Last year, the litigation finance industry was nearly taxed out of existence by a measure Sen. Thom Tillis (R-N.C.) tried to attach to a big tax and spending package.

The measure, which would have imposed a 41% tax on litigation finance profits, didn't become law. But it did spook many who work on this fast growing $16 billion industry.

Two attorneys have responded by launching the American Civil Accountability Alliance, a lobbying group designed to push back against laws targeting the outside funding of lawsuits. One of those two co-founders, Houston patent lawyer Erick Robinson, is our guest on today's episode of our podcast, On The Merits.

"I think we were all just shocked," Robinson told Bloomberg Law's Emily R. Siegel. The litigation funding tax "came very close, a lot closer than anybody including, I think, Senator Tillis, thought to passing."

Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.