§46A-6N-1. Definitions
For purposes of this article: (1) “Consumer” means any natural person who resides, is present, or is domiciled in this state;
§46A-6N-2. Litigation Financier; Registration; Bond; Public Record; Rules
(a)(1) No litigation financier shall engage in a litigation financing transaction in this state unless it is registered as a litigation financier in this state. (2) A litigation financier that is a business entity or partnership is registered in this state if:
§46A-6N-3. Litigation Financier Requirements
A litigation financier shall fulfill each of the following requirements when engaged in litigation financing: (1) 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;
§46A-6N-4. Litigation Financier Prohibitions
(a) 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, physical therapist, or any of their employees for referring a consumer to a litigation financier;
§46A-6N-5. Litigation Financing Contracts; Disclosures
(a) A litigation financing contract shall contain the disclosures specified in this section, which shall constitute material terms of the litigation financing contract. (b) Unless otherwise specified, the disclosures shall be typed in at least 14-point, bold font and be placed clearly and conspicuously within the litigation financing contract, as follows: (1) Each contract shall […]
§46A-6N-6. Third-Party Agreements
Except as otherwise stipulated or ordered by the court, a party shall, without awaiting a discovery request, provide to the other parties any agreement under which any litigation financier, other than an attorney permitted to charge a contingent fee representing a party, has a right to receive compensation that is contingent on and sourced from […]
§46A-6N-7. Violation; Enforcement
(a) Any violation of this article shall make the litigation financing contract unenforceable by the litigation financier, the consumer, or any successor-in-interest to the litigation financing contract. The court may, in the event that judgment is awarded to the plaintiff, assess costs of the action, including reasonable attorneys” fees, against the defendant. (b) Nothing in […]
§46A-6N-8. Contingency Rights; Assignments; Priority of Lien, Subrogation Interest, or Right of Reimbursement
(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. (b) The lien of a litigation financier on a consumers legal claim has priority over liens that […]
§46A-6N-9. Fees; Terms; Incorporation of Obligations in Agreement
(a) A litigation financier may not charge the consumer an annual fee of more than 18 percent of the original amount of money provided to the consumer for the litigation financing transaction. (b) Litigation financiers shall not charge a consumer the annual fee authorized by §46A-6N-9(a) of this code more than one time each year […]