A litigation financier shall not:

(1) Pay or offer to pay commissions, referral fees or other forms of consideration to any attorney, law firm, medical provider, chiropractor, or physical therapist or any of their employees for referring a consumer to a litigation financier;

Terms Used In Tennessee Code 47-16-105

  • Consumer: means any natural person who resides, is present or is domiciled in this state, or who is or may become a plaintiff or complainant in a dispute in this state. See Tennessee Code 47-16-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Litigation financier: means a person, entity or partnership engaged in the business of litigation financing. See Tennessee Code 47-16-102
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
(2) Accept any commissions, referral fees, rebates or other forms of consideration from an attorney, law firm, medical provider, chiropractor, or physical therapist or any of their employees;
(3) Advertise false or misleading information regarding its products or services;
(4) Refer a consumer or potential consumer to a specific attorney, law firm, medical provider, chiropractor, or physical therapist or any of their employees; provided, that if a consumer does not have legal representation, the provider shall refer the consumer to a local or state bar referral service operated by a bar association or a nonprofit organization;
(5) Fail to promptly supply copies of any and all complete litigation financing contracts to the consumer and the attorney representing the consumer in the dispute;
(6) Attempt to obtain a waiver of any remedy, including but not limited to, compensatory, statutory, or punitive damages, that the consumer might otherwise have;
(7) Attempt to effect mandatory arbitration or otherwise effect waiver of a consumer’s right to a trial by jury;
(8) Offer or provide legal advice to the consumer regarding the litigation financing or the underlying dispute; or
(9) Assign, which includes securitizing, a litigation financing contract, in whole or in part, to a third party; however:

(A) This subdivision (9) does not prevent a litigation financier that retains responsibility for collecting payment, administering, or otherwise enforcing the litigation financing contract from making an assignment that is:

(i) To a wholly owned subsidiary of the litigation financier;
(ii) To an affiliate of the litigation financier that is under common control with the litigation financier; or
(iii) A grant of a security interest that is pursuant to title 47, chapter 9 or is otherwise permitted by law; and
(B) If an assignment is authorized and made pursuant to this subdivision (9), for purposes of this section, “litigation financier” includes a successor-in-interest to a litigation financing contract.
  Previous section
Next section  
 Chapter 16 Contents