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LJUK Legal Alert: Pennsylvania Civil Procedural Rules Committee Proposes Allowing Discovery Into Litigation Financing Agreements

The Pennsylvania Supreme Court’s Civil Procedural Rules Committee proposed on February 11, 2026 an amendment to Pa. R. Civ. P. 4003.2 that would allow discovery of the existence and terms of any agreement under which any entity agrees to fund a plaintiff’s litigation in exchange for a right to influence the litigation or any settlement decisions in the action. The rule would apply to any arrangement in which the third party receives a direct or collateralized interest in the proceeds of the action regardless of whether the agreement is with the plaintiff directly, the attorney, or a law firm and regardless of who executes the agreement for either side (as long as the arrangement includes the ability to influence litigation or settlement decisions).

The proposed rule would not apply to agreements between plaintiffs and their attorneys (such as contingency fee or cost advancement agreements).

The comment period ends April 22, 2026, after which the committee can propose the rule to the Pennsylvania Supreme Court.