Delaware Narrows The Lens On Litigation Funding Discovery

Key Takeaways

Delaware Superior Court Civil Rule 26(b), which took effect September 30, 2026, now defines a “litigation-funding agreement” as an agreement, other than with the party’s own attorney, under which a counterparty pays litigation expenses in exchange for “a contractual right to repayment contingent on the outcome of the case” and “a contractual right to control aspects of the litigation for the party, such as the right to approve any settlement” (i.e., “control rights”). Super. Ct. Civ. R. 26(b)(3)(A). Where that definition is met, an opposing party may seek discovery