Advocacy News – April 16, 2026
What’s New: The House Judiciary Committee advanced HB 5281 this week – adding transparency and guardrails to third-party litigation funding (TPLF), a growing practice where outside financiers fund lawsuits in exchange for a share of the outcome.
Why it matters: Without oversight, TPLF can quietly shape litigation – influencing legal strategy, prolonging cases and contributing to court backlogs – often without disclosure to the court or parties involved.
What the bill does: The legislation increases transparency without prohibiting TPLF:
- Requires disclosure and registration of funders in TPLF-backed cases
- Prohibits funder influence over legal strategy and case outcomes
- Caps funder returns from awards and settlements, ensuring fair plaintiff compensation
- Restricts foreign adversary involvement in U.S. litigation
The big picture: Michigan’s legal climate directly impacts employers and the broader economy.
→ Nearly 100,000 job opportunities lost annually
→ More than $3,000 per household in hidden “tort tax” costs
What we’re saying: The Michigan Chamber supports reforms like HB 5281 that promote balance, transparency and fairness in Michigan’s courts. We’re also proud to be part of the Michigan Alliance for Legal Reform – a coalition working to address lawsuit abuse and strengthen the state’s legal climate.
Go deeper: Learn more about the Alliance and check out committee testimony.