U.S. Judges Explain the Drawbacks of Forced Disclosure of Legal Finance

At ILFA’s 2024 New York Conference in April, a panel of current and former federal judges criticized proposals to force disclosure of legal finance.

The panel featured the Hon. Robert M. Dow Jr., Counselor to Chief Justice John Roberts; the Hon. Ursula Ungaro, former Senior Judge of the U.S. District Court for the Southern District of Florida; and the Hon. Sam S. Sheldon, U.S. Magistrate for the Southern District of Texas.

The judges disputed the notion advanced by advocates of forced disclosure that it merely promotes transparency. Rather, they said such a mandate could hinder the confidentiality of litigation strategy for both sides. “Public disclosure of too much really gets into litigation strategy,” Judge Dow said. He added it is “really not fair to give one side the other side’s litigation strategy unless it’s mutual.” And since funders do not have control over litigation, he said it is unlikely that judges will be concerned about disclosing the source of that funding. “As long as the funder doesn’t have control, I don’t think it’s going to be a major issue for judge,” he said.

Judge Ungaro echoed the sentiment. “I’m still struggling with the idea that any of this should be disclosed,” she said. “There are all kinds of things that go on in the world that have some influences on lawyers and clients and judge’s cases, to think that disclosure is going to solve that problem is nonsense.”

Read more about ILFA’s 2024 New York Conference here.