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NOTICE: United States District Court of New Jersey – Proposed Amendment to the Local Civil Rule: RULE 7.1.1

Notice is hereby given to the Bar and all interested parties that the United States District Court for the District of New Jersey proposes to amend the Local Civil Rules. The proposed amendments are posted for public comment as required by 28 U.S.C. § 2071(b) at http://www.njd.uscourts.gov.

New Text Underlined

Civ. RULE 7.1.1 DISCLOSURE OF THIRD-PARTY LITIGATION FUNDING

(a) Within 30 days of filing an initial pleading or transfer of the matter to this district, including the removal of a state action, or promptly after learning of the information to be disclosed, all parties, including intervening parties, shall file a statement (separate from any pleading) containing the following information regarding any person or entity that is not a party and is providing funding for some or all of the attorneys’ fees and expenses for the litigation on a non-recourse basis in exchange for (1) a contingent financial interest based upon the results of the litigation or (2) a non-monetary result that is not in the nature of a personal or bank loan, or insurance:

  1. The identity of the funder(s), including the name, address, and if a legal entity, its place of formation;
  2. Whether the funder’s approval is necessary for litigation decisions or settlement decisions in the action and if the answer is in the affirmative, the nature of the terms and conditions relating to that approval; and
  3. A brief description of the nature of the financial interest.

(b) The parties may seek additional discovery of the terms of any such agreement upon a showing of good cause that the non-party has authority to make material litigation decisions or settlement decisions, the interests of parties or the class (if applicable) are not being promoted or protected, or conflicts of interest exist, or such other disclosure is necessary to any issue in the case.

(c) Nothing herein precludes the Court from ordering such other relief as may be appropriate.

(d) This Rule shall take effect immediately and apply to all pending cases upon its effective date, with the filing mandated in Paragraph 1 to be made within 45 days of the effective date of this Rule.

Comments must be received by the Clerk of the Court by May 21, 2021 and should be addressed to:

William T. Walsh, Clerk of Court

United States District Court

Martin Luther King Jr. Federal Bldg. & U.S. Courthouse

50 Walnut St.

Newark, NJ 07101

or by e-mail to: localrules@njd.uscourts.gov

Dated: April 14, 2021

For the Court

FREDA L. WOLFSON

Chief Judge

New RULE 7.1.1 2021.pdf