Court document · Costs, billing & litigation funding
Statement disclosing third-party litigation funding (United States)
A lawyer's decision note and a short statement for a case in which a non-party funds fees or expenses on a non-recourse basis. Built from the District of New Jersey local rule and one Delaware judge's standing order, not from a national form.
- Kind
- Court document. A document filed or served in a court or tribunal.
- Where it applies
- United States
- AI use
- Red You write the text. The tool writes nothing into the document. Where permitted, it may check, clarify or collect data, and anything it checks or collects is verified.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the 6 authorities it cites, for United States.
- Version
- 1
- Source
- Written for this library
When to use it
Use when a party in a US case may have non-recourse funding from a person who is not a party, and the lawyer must decide whether a local rule or a judge's order requires a disclosure statement. Do not file it in a court whose rule has not been read.
Used for these tasks
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
The lawyer decides whether a rule applies and writes the statement that is filed. A tool may set the agreement's names and dates beside the draft for comparison. It writes nothing that is filed.
AI may
- Extract from the funding agreement the funder's name, address, place of formation and whether the agreement says the funder must approve settlement, using only the agreement the lawyer supplies
- Place those extracts next to the three items in the New Jersey rule so the lawyer can compare them
- Remind the lawyer that the Delaware standing order opened applies only to cases assigned to Chief Judge Connolly
AI must not
- Must not decide that a disclosure rule applies, or that it does not
- Must not draft the sentence that is filed, or file it
- Must not describe a funder's control in softer terms than the agreement uses
- Must not treat this statement as the client's informed consent under Rule 1.8(f)
The lawyer checks
- The local rules and the assigned judge's standing orders have been read for this district, not only the two sources this precedent uses
- If the funder pays the lawyer, Rule 1.8(f) consent, independence and confidentiality are satisfied as well as any court disclosure
- The statement matches the agreement, including any approval right over settlement or litigation decisions
- No negative statement is filed in the District of New Jersey solely to say that funding does not exist, unless a later order requires one
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
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- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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