Protecting Public Resources Through Liability Reform
As we begin the 2026 legislative session, I want to highlight an issue that has important implications for Enduris members and for public agencies across Washington State: the growing role of third-party litigation funding (TPLF).
Third-party litigation funding is the practice by which outside investors finance litigation in exchange for a share of any eventual settlement or judgment. While often described as improving access to the courts, this practice has expanded rapidly in recent years and is increasingly raising concerns about transparency, litigation strategy, and rising costs within the civil justice system.
For public agencies, those concerns are not abstract. Across the country, policymakers, courts, insurers, and risk pools are seeing evidence that undisclosed litigation funding can prolong cases, increase settlement demands, and complicate resolution. When litigation funding involves foreign entities, it can raise added concerns about transparency and information security, since funders may obtain access to discovery materials and other confidential case information. Ultimately, those pressures can translate into higher liability costs, costs that are borne by public entities and, in turn, taxpayers.
The Washington Liability Reform Coalition (LRC), a broad-based coalition that includes businesses, insurers, local governments, nonprofits, and public-sector risk pools, has been examining these issues closely. Enduris is a member of the LRC, and we participate to ensure that the public-sector’s perspective is included in conversations about tort liability and civil justice policy.
As part of this work, the LRC has developed an updated issue brief on third-party litigation funding, which Enduris has received permission to share with our members. The brief provides an overview of how TPLF works, why it has raised concerns nationally, and how other states have approached transparency and oversight. Enduris has posted this resource on our website and crediting the LRC for its work so members can review it directly. Click here to learn more about TPLF.
House Bill 2255 has been introduced this session to set standards for third-party litigation funding in Washington. The bill would establish disclosure and agreement-production requirements, as well as contract limits and enforcement provisions under the Consumer Protection Act intended to improve transparency and accountability in litigation financing. Developments such as HB 2255 may be relevant to public agencies because of their potential impact on litigation costs, settlement dynamics, and public accountability.
Our responsibility is to monitor developments that may affect our members’ risk exposure and to provide objective, timely information so public agencies can understand emerging trends.
Throughout the legislative session, Enduris staff will continue to monitor activity related to third-party litigation funding and other liability issues. We will share updates and educational resources as appropriate, with the goal of helping members stay informed and prepared in an increasingly complex risk environment.
Thank you for your continued partnership and for your work as stewards of public resources.
Sheryl Brandt
Executive Director, Enduris
