A gripping Congressional hearing unfolded on Wednesday, as lawmakers convened to deliberate the ethical dimensions of litigation funding. The proceedings were fraught with tension as partisan divisions cleaved through the heart of the debate. Republicans, adamant in their condemnation, decried the multibillion-dollar litigation funding industry as a burden on businesses and even a potential national security menace. Meanwhile, Democrats largely brushed off the issue, pivoting to call for an inquiry into recent ethical scandals at the Supreme Court.
Congress Litigation Ethics : Divided Lines in Heated Oversight Hearing
The House Committee on Oversight and Accountability orchestrated a marathon session lasting approximately four and a half hours. During this time, committee members took turns either grilling or tossing softballs at five witnesses summoned to dissect third-party litigation funders and their purportedly “abusive litigation tactics,” as indicated in committee memos.
The panel of witnesses included two law school professors, industry representatives from offshore oil and gas and mining sectors, and Aviva Wein, assistant general counsel at pharmaceutical juggernaut Johnson & Johnson.
Explosive Growth and Ethical Quandaries
The contentious focal point of the hearing centered on third-party litigation funding, a burgeoning industry that bolsters plaintiffs by financing legal battles they might otherwise be unable to afford. Over the past two decades, this sector has skyrocketed, boasting a staggering $13.5 billion in assets under management last year, according to a February report.
