TPLF Tuesday, Week 2: TPLF Contracts Affect All Parties

A TPLF contract is not simply a private matter between a named party (or lawyer) and a funder. It is a contract that purports to give non-parties the right to participate in someone else’s litigation. When a named party transfers control over litigation decisions (whether expressly or by operation of the funding mechanism) and assigns the right to a portion of any judgment or settlement, all parties to the litigation are affected, and so is the court. TPLF contracts can alter the dynamics of settlement discussions, change the scope of discovery, generate conflicts of interest, and raise questions about whether witnesses have a stake in the outcome that should be explored on cross examination. The only way to understand what a TPLF agreement means to your lawsuit is to read the TPLF contract.