(a) The contingent right to receive an amount of the potential proceeds of a legal claim may be assigned by a consumer and that assignment is valid for the purposes of obtaining litigation financing from a litigation financier.

Terms Used In Tennessee Code 47-16-109

  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • 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
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • 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
(b) The lien of a litigation financier on a consumer’s legal claim has priority over liens that attach and take effect subsequent to the attachment of the litigation financier’s lien to the consumer’s legal claim, except for the following:

(1) Attorney liens, insurance carrier liens, medical provider liens, or liens based upon subrogation interests or rights of reimbursement related to the consumer’s legal claim; and
(2) Child support, Medicare, tax, or any other statutory or governmental lien.
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