--- title: "Statement disclosing third-party litigation funding (United States)" url: "https://ailawframework.com/precedents/costs-billing-and-litigation-funding/us-third-party-litigation-funding-disclosure" type: "precedent" site: "AI Law Framework" id: "a42-us-third-party-litigation-funding-disclosure" area_id: "A42" kind: "court-document" ai_level: "red" version: 1 task_ids: ["A42-T1-R2"] law_stated_as_at: "2026-10-22" --- # 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.… Canonical page: https://ailawframework.com/precedents/costs-billing-and-litigation-funding/us-third-party-litigation-funding-disclosure Law stated as at: 2026-10-22 Site index for agents: https://ailawframework.com/llms.txt 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. ## Key facts - Kind: Court document. A document filed or served in a court or tribunal. - Practice area: [Costs, billing & litigation funding](https://ailawframework.com/precedents/costs-billing-and-litigation-funding.md) - Jurisdictions: United States - AI level: 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: 2026-10-22 - Status: Maintained. Checked on 2026-10-22 against the 6 authorities it cites, for United States. ## 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 - [Compare a funding, uplift or common-fund agreement to the current rules](https://ailawframework.com/obligations/costs-billing-and-litigation-funding/compare-a-funding-uplift-or-common-fund-agreement-to-the-current-rules.md) ## 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 ## Authorities - [U.S. District Court for the District of New Jersey, Local Civil Rule 7.1.1 (Disclosure of Third-Party Litigation Funding), in the local rules compilation marked "With Revisions as of October 21, 2026"; rule adopted June 21, 2021](https://www.njd.uscourts.gov/sites/njd/files/CompleteLocalRules.pdf) - [U.S. District Court for the District of New Jersey, Notice to the Bar, Clarification of L. Civ. R. 7.1.1 (July 29, 2021)](https://www.njd.uscourts.gov/sites/njd/files/NoticetoBarreL.Civ_.R.7.1.1clarification.pdf) - [U.S. District Court for the District of Delaware, Standing Order Regarding Third-Party Litigation Funding Arrangements (Chief Judge Connolly, April 18, 2022)](https://www.ded.uscourts.gov/sites/ded/files/Standing%20Order%20Regarding%20Third-Party%20Litigation%20Funding.pdf) - [ABA Model Rules of Professional Conduct, Rule 1.8 (Current Clients: Specific Rules), including paragraphs (e), (f) and (i)](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_8_current_clients_specific_rules/) - [ABA Model Rules of Professional Conduct, Rule 1.6 (Confidentiality of Information)](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_6_confidentiality_of_information/) - [ABA Standing Committee on Ethics and Professional Responsibility, Formal Opinion 512, Generative Artificial Intelligence Tools (July 29, 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) ## Full text and drafting notes The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/costs-billing-and-litigation-funding/us-third-party-litigation-funding-disclosure and through the signed-in MCP connector https://ailawframework.com/mcp/firm. *Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*