Ohio House Passes HB 105 to Bring Transparency and Accountability to Third-Party Litigation Funding

COLUMBUS—State Representatives Meredith Craig (R–Smithville) and Jim Thomas (R-Jackson Township) today announced the Ohio House of Representatives passed House Bill 105, legislation to reform Ohio’s third-party litigation funding practices to protect consumers, strengthen Ohio’s legal system, and improve the state’s business climate.

“The business of nonrecourse litigation funding has operated without guidelines for too long,” said Rep. Craig. “House Bill 105 protects our judicial system from outside influence, guards against interference, and will ensure that justice in Ohio is never for sale to foreign actors.”

House Bill 105 establishes a comprehensive regulatory framework for nonrecourse litigation funding, a growing practice where third-party companies advance money to plaintiffs, law firms, or businesses in exchange for a share of any future lawsuit recovery. The bill creates a uniform registration and oversight system under the Attorney General to bring greater transparency to this practice. 

The legislation aims to prevent hidden actors or anonymous funders from influencing legal outcomes behind the scenes. Funders will be required to clearly disclose the amount advanced, the fees charged, how those fees accumulate, and the maximum amount a consumer could owe. This will provide clarity for individuals who are often in vulnerable positions and facing financial uncertainty during legal disputes. Additionally, HB 105 includes a ban on any foreign government, foreign corporation, or foreign investor involved in third-party litigation funding.

“A important component of a strong business environment is a stable and predictable civil justice system,” said Rep. Thomas. “This bill will protect Ohioans, consumers, and businesses and help our state improve its standing.”

Ohio is currently ranked as the 15th worst state for lawsuit abuse, creating uncertainty for businesses considering expansion in Ohio. House Bill 105 represents a strong commitment to transparency and accountability, helping to create a fairer legal environment and a more stable climate for economic growth.

House Bill 105 now heads to the Ohio Senate for consideration.