House Bill 315 is a multi-part measure that combines two major policy changes. First, it creates the “Prohibit Litigation Investments Act,” which bans third-party litigation funding in North Carolina civil proceedings when repayment or compensation is contingent on the outcome of the case. The bill declares that courts should not function as financial markets, and it expressly targets outside investors who finance lawsuits for profit. It also includes exceptions for contingency-fee legal representation, attorney cost advances, insurance obligations, nonprofit legal services, direct loans not tied to case outcomes, and certain family or personal support arrangements.
Second, the bill increases workers’ compensation benefits under the state’s schedule of injuries. It raises maximum awards for serious facial/head disfigurement, serious bodily disfigurement, and loss or permanent injury to an important organ or body part, with staged increases taking effect in 2026, 2027, and 2028. Beginning in 2029, the bill adds annual automatic adjustments tied to the Consumer Price Index for those maximums. It also increases the minimum weekly total disability compensation from $30 to $50 and requires future annual CPI-based adjustments to the maximum weekly benefit starting in 2026.
Impact
The bill would amend Chapter 66 of the General Statutes by adding a new article that makes litigation funding unlawful, voids contracts that violate the ban, authorizes Attorney General enforcement, and creates private rights of action with civil penalties and damages. It would also amend the Workers’ Compensation Act, specifically G.S. 97-29 and G.S. 97-31, to increase benefit amounts and establish automatic inflation indexing for certain compensation caps. The practical effect would be to restrict a growing legal-finance industry in North Carolina while increasing compensation available to injured workers under specified categories.
Sentiment
The available voting history shows strong support in the House, with the bill passing second reading 112-0 on March 26, 2025. No committee transcript was provided, so there is no recorded floor or committee debate to indicate organized opposition in the supplied materials. The unanimous vote suggests broad bipartisan acceptance of the bill as amended, at least at that stage of consideration.
Contention
The main policy controversy is the litigation-funding ban. Supporters, as reflected in the bill text, view third-party litigation investment as distorting civil justice, prolonging cases, and creating national-security risks from undisclosed foreign actors. Potential critics would likely argue that the ban could limit access to capital for plaintiffs with meritorious claims and reduce financing options for litigation. The workers’ compensation provisions appear less contentious in the available record, as they increase benefits for injured workers and index them to inflation, though employers and insurers could object to the higher costs.