Bill > HB2108

This bill amends Tennessee law concerning litigation financing, which is when a company provides funds to a party involved in a lawsuit in exchange for a portion of any potential settlement or judgment. Primarily, it extends the timeframe from 30 to 35 days for a litigation financier, a person or entity engaged in this business, to update their registration with the Secretary of State if any of their registration information becomes inaccurate or incomplete. Beyond this registration update period, the bill introduces several new regulations for commercial litigation financiers, including prohibiting them from directing the course of litigation or making decisions about settlements, limiting their recovery to a share of the proceeds after attorney fees and costs, requiring disclosure of these contracts to the court and other parties within 14 days of filing an initial pleading, making them jointly and severally liable for certain costs and sanctions against the party they are financing, and requiring them to indemnify parties against adverse costs and sanctions unless caused by intentional misconduct. Additionally, it caps the annual fee a commercial litigation financier can charge at 10% of the original amount financed.