¿Puede la compañía de seguros ver cómo está pagando su demanda? Financiación de litigios y su privacidad en Nueva York

When you are hurt and out of work, the bills don't stop. Rent, groceries and medical costs keep coming while your case works its way through the system. To bridge that gap, some injury victims turn to litigation funding: a cash advance against a future settlement or verdict.

I describe litigation funding as a double-edged sword. We would prefer that our clients never need it, but a client's situation often decides whether it is necessary. Sometimes it is vital. Someone out of work because of an accident may have no other way to meet bills that come due every week. And where there is no insurance to cover treatment and surgery is needed to get someone on the road to recovery, funding can pay for that surgery up front while the case goes on. We take funding seriously, and we go through what is involved, the pros and the cons, with every client before they take any.

A question we hear often: if I take funding, can the other side use it against me, or force me to hand over my funding paperwork? Defendants do want to know whether you have funding, because they want to use it to their advantage. Here is what New York law says.

First, what litigation funding actually is

A funding company advances you money now, and you repay it out of your recovery when the case resolves. New York's courts treat it as a loan that you are obliged to repay. It is not income, and it is not something the defense gets to pick apart.

The short answer: it's usually your business, not theirs

This area is still developing and always depends on the facts of your case. But in most New York injury cases, the defense cannot pry into your litigation funding just because it exists. The Appellate Division, First Department (the appeals court covering Manhattan and the Bronx) has said that the amount and source of your funding is not what your injury case is about. Your case is about how you were hurt, who was responsible and what you lost, not how you kept the lights on while you waited for justice.

What the courts have actually said

In February 2026, in Perdomo v. 361 East Realty Associates LLC, the First Department refused to make an injured plaintiff turn over his funding documents. The court's reasoning is worth knowing:

• The amount and source of funding is not a subject of your claim for damages.
• A bare assertion that the funding is tied to fraud is speculative and not enough. The defense needs actual evidence of misconduct in your case.
• Funding is a loan you have to repay, so it is not a "collateral source" that reduces what you can recover.

The court relied on an earlier First Department decision, Worldview Entertainment Holdings, Inc. v. Woodrow (2022), which set the baseline: a party who cannot show how funding documents are material and necessary to the case is not entitled to see them.

When can the defense get it?

It is not an absolute shield. If the defense comes forward with concrete, case-specific evidence, the answer can change. In Lituma v. Liberty Coca-Cola Beverages LLC, the First Department allowed discovery into funding where the defendants had evidence that the accident was staged as part of a fraud ring, because the funding could show a financial motive. The key word is specific. Vague suspicion and headlines about unrelated cases will not open the door.

Courts in other parts of New York, including Brooklyn, Queens and Long Island, are covered by a different appeals court and may approach this differently, which is one more reason to talk to your lawyer before you sign.

A word of caution before you sign

Funding can give you breathing room to hold out for fair value instead of taking the first lowball offer. But the terms matter. In 2026, a New York appeals court voided a funding agreement (in a divorce case) after finding it was really a loan carrying an illegal interest rate. Before you sign any funding agreement, have your lawyer review it and walk you through the cost and the key terms. If your case succeeds, the funding company is repaid, with its charges, straight out of your recovery.

Talk to us before you borrow against your case

We tell every client the same thing: if you are feeling financial pressure while your case is pending, talk to us first. MooreJustice Abogados de Accidentes y Lesiones can explain your options, protect your privacy and help you avoid agreements that cost more than they are worth. If you've been injured in an accident, Contáctanos or call 888-444-ATTY for a free, confidential consultation.

Sobre Darren T. Moore. Darren T. Moore es el fundador de MooreJustice Accident & Injury Lawyers en la ciudad de Nueva York y un abogado de casos judiciales que representa a personas gravemente heridas en accidentes de tráfico. accidentes de construcción, Accidente de camión, accidentes de coche y mala praxis médica casos. Lee más sobre Darren.

Attorney Advertising. This article is for general informational purposes only and does not constitute legal advice, nor does it create an attorney-client relationship. Every case is different, and prior results do not guarantee a similar outcome. For advice about your specific situation, consult a licensed New York attorney.