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Minutes for SB54 - Committee on Judiciary
Short Title
Limiting discovery and disclosure of third-party litigation funding agreements in certain circumstances and requiring reporting of such agreements to the judicial council for study.
Minutes Content for Mon, Feb 10, 2025
Chairwoman Warren opened the hearing on SB54
Natalie Scott, Revisor's Office, provided an overview of the bill and stood for questions. (Attachment 1)
Eric Stafford, Vice President of Government Affairs, Kansas Chamber, testified in support of the bill. They believe SB54 offers a simple disclosure solution to protect against abuses in our state's legal system. (Attachment 2)
Philip Davidson, Hinkle Law Firm, provides testimony in support of the bill. He states SB54 maintains the equitable efficiency we all need during the litigation process. He states disclosing third party funding allows both parties the opportunity to retain the litigation efficiencies that best serve our processes. (Attachment 3)
Daniel Murray, Kansas State Director, National Federation of Independent Business, supports the bill. He states it is shameful that predatory venture capitalist and foreign interests are partnering with trial attorneys to make money on the backs of fearful small business owners. (Attachment 4)
Beth Smoller, General Counsel, Kansas Association of Insurance Agents (KAIA), states the member agents strive to be the leading and most trusted resource for helping individual families and businesses with their insurance needs. As such, KAIA's mission includes advocating for measures that provide a favorable insurance marketplace and climate that allows Kansans to thrive. We believe SB54 helps to achieve this goal. (Attachment 5)
Rachelle Colombo, Executive Director, Kansas Medical Society, provides testimony in support of the bill. They support restricting third party financing of lawsuits which encourage litigation and increase liability costs and decrease access for quality care for all Kansans. (Attachment 6)
The proponent conferees stood for questions.
Written-only testimony in support of SB54 was submitted by:
- Marlee Carpenter, Kansas Association of Property and Casualty Insurance Companies (KAPCIC) (Attachment 7)
Phillip Arzen, Regional Vice President, Midwest, National Association of Mutual Insurance Companies (Attachment 8)
Scot Kibbe, Vice President, State Government Relations, American Property Casualty Insurance Association (Attachment 9)
Samantha Woods, President, Kansas Association of Defense Counsel (Attachment 10)
There was no neutral testimony submitted
Dai Wai Chin Feman, Director of Commercial Litigation Strategies, Parabellum Capital provided testimony in opposition of this bill. He stated there is no need for a special rule for legal finance industry and no basis for one litigant to have to disclose their confidential financial arrangements to an opposing party in litigation. (Attachment 11)
John Federico, Federico // Duerst Consulting Group, on behalf of International Legal Finance Association (ILFA) provided testimony in opposition. He said their opposition to this bill remains the same; 1) we do not understand the problem in Kansas that needs to be fixed that would necessitate putting a law on the books, and 2) what is being proposed in the bill... ' forced disclosure' between two contracting parties serves little purpose other than to advantage one party to a lawsuit, to detriment of the others. (Attachment 12)
Written-only testimony in opposition of SB54 was submitted by:
Joseph N Molina, Legislative Services Director, Kansas Bar Association (Attachment 13)
Callie Jill Denton, Executive Director, Kansas Trial Lawyers Association (Attachment 14)
The opponent conferees stood for questions.
No further conferees.
Chairwoman Warren closed the hearing on SB54
