A PIANJ-supported bill to bring transparency and accountability to third-party litigation funding in New Jersey has cleared a key hurdle. S-4374, which was introduced earlier this year as part of PIANJ’s broader push for tort reform, has been reported out of the Senate Commerce Committee with amendments.
The bill continues to focus on mandatory disclosure of litigation funding agreements, imposes a fiduciary duty on funders and limits funder influence and recovery—all key provisions that are aimed at reining in rising legal costs that contribute to skyrocketing insurance premiums. To learn more, PIA Northeast members can access What is third-party litigation funding? How it works and its impact on insurance in the QuickSource library.
Committee amendments made technical clarifications, including refining definitions, requiring a court motion before sanctions can be imposed for nondisclosure and confirming that the bill would not apply to pre-settlement personal expense funding.
Why this matters to PIANJ—and to consumers
PIANJ has long recognized that unchecked third-party litigation funding is one of the underlying drivers of soaring insurance premiums. Often, these funding arrangements incentivize unnecessarily prolonged or aggressive litigation, which in turn inflates claims costs and, ultimately, what consumers pay for coverage.
By supporting S-4374, PIANJ is advocating for a more transparent and accountable legal environment—one that helps rein in rising insurance costs without compromising access to justice.
We’ll continue tracking the bill as it moves through the Legislature and keep you informed on the latest developments. If you have questions or want to get involved in advocacy efforts around this issue, PIANJ is here to help.

Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.