§ 47-16-101. Short Title
This chapter shall be known and may be cited as the “Tennessee Litigation Financing Consumer Protection Act.”
§ 47-16-102. Chapter Definitions
As used in this chapter: “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; “Litigation financier” means a person, entity or partnership engaged in the business of litigation financing; and “Litigation financing” or […]
§ 47-16-103. Registration as Litigation Financier
No litigation financier shall engage in a litigation financing transaction in this state unless it is registered as a litigation financier in this state. A litigation financier that is a business entity or partnership is registered in this state if: It is in compliance with the bond requirements of subsection (b); It has a status […]
§ 47-16-104. Requirements for Litigation Financing Transactions
A litigation financier shall fulfill each of the following requirements when engaged in litigation financing: The terms of the litigation financing transaction shall be set forth in a written contract that is completely filled-in with no incomplete sections when the contract is offered or presented to the consumer; The litigation financing contract shall contain a […]
§ 47-16-105. Prohibited Activities
A litigation financier shall not: 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; Accept any commissions, referral fees, rebates or other forms of consideration from an […]
§ 47-16-106. Required Disclosures in Litigation Financing Contract
Litigation financing contracts shall contain the disclosures specified in this section, which shall constitute material terms of the litigation financing contract. Unless otherwise specified, the disclosures shall be typed in at least fourteen-point, bold font and be placed clearly and conspicuously within the litigation financing contract, as follows: On the front page under appropriate headings […]
§ 47-16-107. Violation of Chapter Renders Contract Uneforceable
Any violation of this chapter shall make the litigation financing contract unenforceable by the litigation financier, the consumer or any successor-in-interest to the litigation financing contract.
§ 47-16-108. Violation of Part Constitutes Unfair or Deceptive Practice for Purposes of Consumer Protection Act — Enforcement by Attorney General and Reporter
Any violation of this chapter shall constitute a violation of the Tennessee Consumer Protection Act of 1977, compiled in chapter 18, part 1 of this title, and shall be enforced solely by the attorney general and reporter at the attorney general’s discretion. For the purpose of application of the Tennessee Consumer Protection Act of 1977, […]
§ 47-16-109. Contingent Right to Proceeds From Legal Claim Assignable — Priority of Liens or Rights in Proceeds
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. The lien of a litigation financier on a consumer’s legal claim has priority over liens that attach and […]
§ 47-16-110. Annual Fee — Limitation on Term of Transaction — Obligations From One Transaction Not to Be Included in Subsequent Transaction
All consumers entering into litigation financing transactions shall pay the litigation financier an annual fee of not more than ten percent (10%) of the original amount of money provided to the consumer for the litigation financing transaction. Litigation financiers shall not charge a consumer the annual fee authorized by subsection (a) more than one (1) […]