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 Washington State, 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. While there is no specific state statute in Washington that explicitly regulates litigation funding, the practice is generally allowed and governed by contract law, as well as ethical rules that apply to attorneys. Attorneys must ensure that such arrangements do not compromise their professional judgment or the attorney-client relationship. Additionally, the Washington State Bar Association's Rules of Professional Conduct may impose certain obligations on attorneys, such as the requirement to inform clients of all financing options and the potential impact on their case. It is important for parties considering litigation funding to understand the terms of the funding agreement and to be aware of the potential for conflicts of interest.