[Hartford, CT, October 19, 2023] – WSHB, a leading national law firm, has achieved a significant victory in securing discovery related to litigation funding in a highly contentious matter between the parties. The court order issued by the Superior Court of Waterbury, CT., mandated the disclosure of a plaintiff's application for a litigation loan, shedding light on the implications of third-party funding in legal proceedings.
The court order, obtained by WSHB on behalf of the defendants, stemmed from a request for disclosure regarding the plaintiff's statements and nonprivileged documents pertaining to the events alleged in the complaint. It was revealed that the plaintiff had applied for and received a pre-settlement legal funding loan from a prominent litigation funding provider.
“Truly, this is important discovery for the defense and something that should be explored on matters given the rise of litigation funding nationally,” said Molly Wilcox after she argued the motion before the court. “Here, we believed the plaintiff's loan application contained essential information concerning the facts of the case, the alleged incident, and the extent of the damages claimed. As these elements directly relate to the subject matter of the ongoing legal action. Accordingly, the loan application should absolutely be disclosed.”
In response, the plaintiff invoked the work-product privilege and claimed that the loan application should remain confidential. However, the court ruled that the privilege had been waived since the plaintiff willingly submitted the loan application to a third party. Moreover, the court determined that the loan application was not prepared in anticipation of litigation, as it did not fall within the scope of attorney work-product or prelitigation consultation.
As a result of WSHB's successful advocacy, the court ordered the plaintiff to turn over the loan application to the defendants within 10 days of the order's issuance.
“Our client is thrilled, but this court order is a victory for the defense,” explained Managing Partner, Chris Seusing. “The presence of third-party litigation funding introduces new dynamics into the litigation process. With the potential for deep-pocketed funders supporting plaintiffs, the defense bar must adapt their strategies accordingly.”
This landmark court order highlights the importance of transparency and disclosure in cases involving third-party litigation funding. By securing discovery on litigation funding, WSHB has paved the way for attorneys and businesses to gain crucial insights into the motivations behind funded lawsuits. Understanding the financial resources available to plaintiffs can significantly impact defense strategies, negotiation tactics, and overall case management.
"This ruling represents an important step towards ensuring fairness and transparency in litigation funded cases," said Wilcox. "By obtaining discovery on litigation funding, we can better evaluate the motivations and potential influence of third-party funders on the legal process."
WSHB remains at the forefront of legal advocacy, dedicated to protecting the rights and interests of their clients. Their success in securing discovery on litigation funding underscores their commitment to navigating emerging challenges and providing innovative solutions.