American Property Casualty Insurance Association Applauds Action Requiring Transparency in Litigation Funding

WASHINGTON, June 24 -- The American Property Casualty Insurance Association issued the following statement:

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The American Property Casualty Insurance Association (APCIA) commends the U.S. District Court for the District of New Jersey for adopting a rule to require parties involved in litigation to disclose information and financial interest of non-parties. David A. Sampson, APCIA's president and CEO released the following statement:

"Allowing investors to turn the civil justice system into a profit-centered commodities market is egregious.

"APCIA commends the New Jersey District Court action to require litigants to disclose information about third-party litigation financing agreements.

"Third-party litigation financing is surging, with more than $13 billion of capital invested globally. This should concern everyone, particularly where that financing occurs away from public view and oversight, designed with rate of return in mind rather than justice and fairness.

"By its very nature, third-party litigation financing promotes speculative litigation and increases costs for everyone.

"We call on more federal courts and the states to adopt common-sense reforms. Transparency in third- party litigation financing can help address lawsuit abuse and bring balance to the civil justice system."