{"id":5728,"date":"2026-10-17T19:15:29","date_gmt":"2026-10-17T23:15:29","guid":{"rendered":"https:\/\/www.injurylawatty.com\/blog\/new-york-litigation-funding-discovery-privacy\/"},"modified":"2026-10-17T19:16:43","modified_gmt":"2026-10-17T23:16:43","slug":"new-york-litigation-funding-discovery-privacy","status":"publish","type":"post","link":"https:\/\/www.injurylawatty.com\/es\/blog\/new-york-litigation-funding-discovery-privacy\/","title":{"rendered":"\u00bfPuede la compa\u00f1\u00eda de seguros ver c\u00f3mo est\u00e1 pagando su demanda? Financiaci\u00f3n de litigios y su privacidad en Nueva York"},"content":{"rendered":"

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.<\/p>\n\n\n\n

\"Injured
Illustration. When an injury keeps you out of work, the bills keep coming.<\/figcaption><\/figure>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

First, what litigation funding actually is<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

The short answer: it's usually your business, not theirs<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

What the courts have actually said<\/h2>\n\n\n\n

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