Senate Bill 179 is being heard on Tuesday afternoon at 1pm by the Nevada Senate Judiciary Committee.
This bill aims to bring sunlight to an under reported industry; lawsuit lending firms.
What are lawsuit lending firms?
They are third party litigation lenders who give upfront pre-settlement funding in the form of loans to plaintiffs in pending civil lawsuits in exchange for the right to receive an amount of the proceeds of the settlement.
In other words, the third-party firms are paying for someone else’s lawsuit on the front-end to get a percentage of the settlement on the back end.
What is the perceived issue?
According to proponents of SB-179, the lawsuit lending firms are gaming the legal system.
They are pushing for trial juries, instead of having plaintiffs settling out of court, because the firms are motivated by big payouts.
Proponents say it's a drain on resources, it's clogging the courts.
What are the perceived wider implications?
Proponents of the bill say it drives up cost of litigation which has a trickle-down effect on the economy.
For example, in civil cases against trucking companies.
Nuclear multi-million verdicts hit the industry...insurance companies raise their premiums to offset litigation costs...motor carriers increase their prices to offset insurance costs...increased transportation costs lead to increased prices for consumers.
What does SB179 aim to do?
According to proponents, SB179 aims to make it mandatory for the contracts between the lawsuit lending firms visible to attorneys and judges in civil cases.
