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Pepsi-Cola Metropolitan Bottling Company, Inc. v. Employers Insurance Company of Wausau (Anti-Assignment Clause)

In Pepsi-Cola Metropolitan Bottling Company, Inc. v. Employers Insurance Company of Wausau (2023 WI 42), the Wisconsin Supreme Court did not reach a decision in a case involving an insurer’s duty to defend and the applicability of an anti-assignment clause. As a per curiam opinion, the supreme court’s decision did not establish a precedent; however, the published court of appeals decision was affirmed.

Litigation Financing: Coalition Asks Federal Committee to Adopt Disclosure Rule

On May 8, a broad national coalition of 35 business associations and tort reform advocates sent a letter to the federal Advisory Committee on Civil Rules regarding third party litigation funding. The letter asks the committee to amend Rule 26 of the Federal Rules of Civil Procedure to require disclosure of a litigation financing agreement in any civil action filed in federal court.

Lawsuit Against Burford Capital Reveals Dangers of Litigation Financing

Third party litigation funding or “litigation financing” is a form of investing in which hedge funds and other financiers invest in a lawsuit in exchange for a portion of any settlement or judgement award. The investment provides cash to plaintiffs to litigate a claim, while the financier—thanks to its sophisticated underwriting—anticipates the case to end in a large enough judgement or settlement to satisfy its obligations.