Sections 25-3301 to 25-3309 shall be known and may be cited as the Nonrecourse Civil Litigation Act.
§ 25-3301.Act, how cited.
Article 33: Nonrecourse Civil Litigation Act · Last amended 2010 · Last verified July 22, 2026
In one sentenceThis section names sections 25-3301 to 25-3309 the Nonrecourse Civil Litigation Act, the short title Nebraska courts, lawyers, and litigation-funding companies use to identify this article’s rules for lawsuit-funding transactions.
Full Text of § 25-3301
Source
Laws 2010, LB1094, § 1.
Plain-English Summary
Section 25-3301 does one job: it gives this article of the Nebraska Revised Statutes a name. Everything from the definitions in section 25-3302 through the Secretary of State’s registration and enforcement powers in section 25-3309 falls under the Nonrecourse Civil Litigation Act. When a later section, a court, or a contract refers to “the act,” this is the source of that label.
The word “nonrecourse” in the title is not decoration. It describes the shape of the transactions the article regulates: a company advances money to someone with a pending lawsuit, and gets repaid only out of the money that lawsuit eventually produces. If the case produces nothing, the company has no separate right to collect from the consumer. That structure sets these transactions apart from an ordinary loan, and it is why the Legislature built a dedicated set of consumer protections, disclosure rules, and a state registration system around them instead of leaving them to general lending law.
Frequently Asked Questions
What does the Nonrecourse Civil Litigation Act cover?
It covers sections 25-3301 through 25-3309, which regulate companies that advance money to a person with a pending lawsuit in exchange for a share of any future recovery.
Why does the act’s name include the word “nonrecourse”?
Because the funding company’s only source of repayment is the proceeds of the consumer’s legal claim. If the claim produces no recovery, the company generally has no separate right to collect the advance from the consumer.
Does this section create any consumer rights on its own?
Is this the same thing as a “lawsuit loan”?
People often use “lawsuit loan” as shorthand, but the act treats the transaction as a purchase of a contingent right to future proceeds, not a loan, which is part of why it carries its own defined terms and its own set of rules.
Who has to follow the Nonrecourse Civil Litigation Act?
Any civil litigation funding company doing business with a Nebraska consumer, as those terms are defined in section 25-3302, along with the consumer’s attorney to the extent later sections require an attorney acknowledgment.
Source & verification. Section text and the amendment-history citation are
reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the
Nebraska Legislature. Last verified July 22, 2026. ·
Official source
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