Litigation funding—also known as litigation financing or third-party litigation funding (TPLF)—provides a person or entity with the money to pay attorney fees, expert witnesses, and other costs necessary for litigation. Litigation funding is essentially a loan, secured by the proceeds of the expected settlement or collection of judgment in a lawsuit, and is designed to allow persons or entities without the necessary resources to pursue valid claims in litigation.

In New Mexico, litigation funding, also known as third-party litigation funding (TPLF), is a practice where a third party provides financial assistance to a litigant to cover legal expenses such as attorney fees and expert witness costs. This funding is typically non-recourse, meaning that the funder will only be repaid from the proceeds of a settlement or judgment if the litigation is successful. New Mexico does not have specific statutes directly regulating litigation funding for general civil litigation. However, the practice must comply with general state laws on contracts, lending, and professional conduct for attorneys. Attorneys in New Mexico are bound by the Rules of Professional Conduct, which may impose certain restrictions on their involvement with litigation funders, such as the requirements to maintain client confidentiality and avoid conflicts of interest. It is important for parties considering litigation funding to ensure that any agreements entered into comply with relevant laws and ethical rules.