Week 7: Preventing “Zombie Litigation”

“Zombie litigation” is the term coined by Boston University Law School Professor Maya Steinitz to describe lawsuits that proceed through the courts for the benefit of a non-party funder even though the named parties want to settle. This phenomenon wastes judicial resources, increases litigation costs, and prevents parties from achieving mutually acceptable resolutions—all to serve the financial interests of a non-party who is typically unknown to the court and parties.

Courts can prevent, or at least understand and manage, zombie litigation only if they order disclosure of TPLF contracts so the court and the other parties know when a named party has contracted away its control over key decisions such as choice of counsel and whether to settle. Judges cannot effectively manage, and parties cannot fairly resolve, their cases without knowing who controls the litigation.