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Primary Sponsor

Last Action

Ch. SL 2026-142026-06-22

Vote Breakdown

Plain Language Summary

This bill has two main parts: it prohibits litigation investments (third-party funding of lawsuits in exchange for a share of any settlement or judgment) in North Carolina civil cases, and it increases workers' compensation benefit amounts for certain injuries, including raising maximum awards for facial disfigurement from $20,000 to $40,000 and other injury categories from $10,000-$20,000 to $20,000-$40,000.

Arguments in Favor

• •Supporters argue that prohibiting litigation investments protects the integrity of the civil justice system by preventing outside investors from controlling or influencing lawsuits for profit, which could encourage frivolous claims and drive up litigation costs.
• •They contend that increasing workers' compensation benefits ensures injured workers receive adequate coverage for serious injuries, particularly disfigurements that affect earning potential and quality of life.

Arguments Against

• •Opponents of the litigation investment prohibition argue it may limit access to justice for people without resources to fund their own lawsuits, potentially preventing meritorious cases from being brought.
• •Critics of the workers' compensation increases contend that higher benefit caps may raise insurance costs for employers and workers, and question whether the increases are fiscally necessary or properly calibrated to actual injury costs.