summary
Introduced
01/24/2020
01/24/2020
In Committee
01/27/2020
01/27/2020
Crossed Over
Passed
Dead
03/19/2020
03/19/2020
Introduced Session
2020 Regular Session
Bill Summary
An act relating to litigation financing consumer protection; creating part XIII of ch. 559, F.S., entitled "Litigation Financing Consumer Protection Act"; creating s. 559.952, F.S.; providing definitions; creating s. 559.953, F.S.; requiring litigation financiers to register with the Department of State before engaging in litigation financing; providing registration requirements; requiring litigation financiers to file a surety bond meeting specified requirements; requiring the department serve notice to such financiers and to revoke such registrations for certain noncompliance; authorizing the department to adopt rules; creating s. 559.954, F.S.; providing requirements for litigation financing contracts; creating s. 559.955, F.S.; prohibiting litigation financiers from engaging in specified conduct; creating s. 559.956, F.S.; providing disclosure requirements for litigation financing contracts; creating s. 559.957, F.S.; providing for the assignment of contingent rights to civil action or claim proceeds; specifying the priority of liens against or rights to civil action or claim proceeds; creating s. 559.958, F.S.; authorizing litigation financiers to assess specified interest, fees, and charges; providing requirements for such interest, fees, and charges; prohibiting a litigation financier from assessing specified fees or charges; creating s. 559.959, F.S.; requiring the disclosure of litigation financing contracts under specified circumstances; creating s. 559.961, F.S.; providing that specified communications between attorneys and litigation financiers do not affect statutory or common-law privilege; creating s. 559.962, F.S.; providing that violations of the act are deceptive and unfair trade practices; providing construction; providing an effective date.
AI Summary
This bill creates the "Litigation Financing Consumer Protection Act" in Florida. The key provisions are:
1. Requiring litigation financiers (companies that provide funding to consumers for civil lawsuits or claims) to register with the Department of State and obtain a $250,000 surety bond before engaging in litigation financing.
2. Establishing requirements for litigation financing contracts, such as providing consumers the right to rescind the contract within 5 business days, disclosing key terms like the funded amount, interest rate, and total repayment costs, and prohibiting certain practices like paying referral fees or attempting to influence the consumer's civil case.
3. Limiting the interest rate that can be charged by litigation financiers to a maximum of 30% per annum and capping the total fees and charges that can be assessed at $500 per civil action or claim.
4. Requiring parties to a civil case to disclose any existing litigation financing contracts to the other parties.
5. Clarifying that communication between a consumer's attorney and the litigation financier does not waive attorney-client privilege or the work product doctrine.
6. Designating violations of the act as unfair and deceptive trade practices subject to enforcement by the state's consumer protection authorities.
Committee Categories
Budget and Finance, Business and Industry
Sponsors (2)
Other Sponsors (2)
Civil Justice Subcommittee (House), Commerce Committee (House)
Last Action
Died on Calendar (on 03/14/2020)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.flsenate.gov/Session/Bill/2020/7041 |
| Bill | https://www.flsenate.gov/Session/Bill/2020/7041/BillText/c1/PDF |
| House Committee Amendment #689897 | https://www.flsenate.gov/Session/Bill/2020/7041/Amendment/689897/PDF |
| House Committee Amendment #002305 | https://www.flsenate.gov/Session/Bill/2020/7041/Amendment/002305/PDF |
| Bill | https://www.flsenate.gov/Session/Bill/2020/7041/BillText/Filed/PDF |
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