Allow investigation of litigation finance agreements… Disclosure standards vary by Delaware court

Delaware's Superior Court amended Civil Rule 26(b)(3), effective September 30, 2026, to let litigants obtain discovery into third-party litigation funding arrangements in which a non-party funder both bears costs and holds repayment rights tied to case outcomes plus control over proceedings. Opposing parties may probe the existence and identity of the funder, whether the arrangement meets the rule's requirements, and which procedures the funder can control, while the full contract and case information the parties give the funder remain presumptively off-limits absent good cause shown to the court. The change matters because it gives defendants a formal window into who is bankrolling suits against them and how much sway funders hold, a longstanding transparency demand from corporate defendants. The Court of Chancery is not covered by the amended rule, and disclosure standards already vary by court, leaving a patchwork that could push funding disputes toward different venues. What to watch next is how Superior Court judges apply the good-cause exception and whether the Chancery Court or the legislature moves to align standards.