When a non-party acquires a contractual right to a portion of a potential judgment or settlement, it becomes the direct beneficiary of the court’s action, essentially a “real party in interest.” Courts and parties need to know when non-parties have a direct stake in other people’s lawsuits—and must understand the details of that arrangement—in order to avoid conflicts of interest and manage the litigation. A court that does not know who stands to benefit directly from its judgment and rulings cannot evaluate recusal. Parties who do not know who has the right to collect a portion of a judgment or settlement cannot understand the dynamics of litigation or resolution. The only way to know whether a TPLF contract effectively turns a non-party into a real party in interest is to require disclosure of the TPLF contract.
