'They Just Outright Prohibit It?': Issa Asks Lawyer About Third Party Litigation Funding In China

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During a House Judiciary Committee hearing in July, Rep. Darrell Issa (R-CA) asked Columbia Law Professor Julian Ku about China's rules around Third Party Litigation Funding, a practice where an interested party not involved in a lawsuit can fund one of the litigants.

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00:00Thanks very much. I yield back.

00:02Would the gentleman yield?

00:03Happy to.

00:04So what you're saying is they might not be too concerned

00:07if we actually had our reciprocity match their reciprocity

00:10or they would be outraged, as they often are.

00:14Well, I mean, they could be outraged,

00:17but they wouldn't have any reasonable basis to be outraged.

00:19I think the rule would be not just the United States,

00:21but other, not just China.

00:23Most countries in the world have a reciprocity requirement.

00:25Yeah. We use Rule 26 for disclosure by the defendants

00:32of their third-party funding, if you will,

00:35of their defense and or payment.

00:37In China, do they have a similar rule,

00:40and does it require the plaintiff to also disclose?

00:45I'm not familiar with that specific rule in China.

00:47I do know that there have been disputes,

00:49and it's uncertain court judgments have...

00:52some Chinese courts have disallowed third-party litigation funding

00:56for the agreements that have been disclosed,

00:59but I'm not sure that disclosures are acquired

01:01under Chinese court system.

01:03But I do know that Chinese courts,

01:05some Chinese courts have refused to allow people to proceed

01:08if they had a third-party litigation agreement.

01:10Okay, so they're just outright prohibited.

01:12Well, there's no general rule,

01:14but I know courts in China have ruled that it is inappropriate

01:18or not allowed or prohibited in this case.

01:23And seeing no one else on your side for now,

01:26we now go to the gentleman from South Carolina.

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