Tennessee Code Title 47. Commercial Instruments and Transactions § 47-16-102

Current as of January 02, 2024 | Updated by Findlaw Staff

As used in this chapter:

(1) “Commercial litigation financier”:

(A) Means a person who provides commercial litigation financing; and

(B) Does not include a litigation financier;

(2) “Commercial litigation financing” or “commercial litigation financing transaction”:

(A) Means funding provided by a person to another person that is a party or has standing to become a party to a civil action, administrative proceeding, legal claim, or other legal proceeding seeking to recover monetary damages, or to the legal representative for such party, in exchange for a right to receive payment that is contingent on the outcome of such action, claim, or proceedings by settlement, judgment, or otherwise, or on the outcome of any matter within a portfolio that includes such action, claim, or proceedings and involves the same legal representative or affiliated legal representative; and

(B) Does not include:

(i) A party to the civil action, administrative proceeding, claim, or cause of action;

(ii) An attorney engaged directly or indirectly through another legal representative to represent a party in the civil action;

(iii) An entity or insurer with a preexisting contractual obligation to indemnify or defend a party to the civil action; or

(iv) A nonprofit organization that is funded by private donations; represents one (1) or more clients on a pro-bono, no-cost basis; and seeks only injunctive relief on behalf of its clients; provided, that this subdivision (2)(B)(iv) does not prohibit or otherwise affect an award of costs or attorney fees to such nonprofit organization seeking only injunctive relief on behalf of a client that such nonprofit organization represents on a pro-bono, no-cost basis, or to such client;

(3) “Commercial litigation financing contract” means a written contract memorializing the terms and conditions of commercial litigation financing;

(4) “Consumer” means a 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;

(5) “Foreign person” means a person who is not:

(A) A citizen of the United States;

(B) An alien lawfully admitted for permanent residence in the United States;

(C) An unincorporated association with a majority of members who are citizens of the United States or aliens lawfully admitted for permanent residence in the United States; or

(D) A corporation that is incorporated in the United States;

(6) “Litigation financier” means a person engaged in the business of litigation financing;

(7) “Litigation financing” or “litigation financing transaction”:

(A) Means a non-recourse transaction in which financing is provided to a consumer in return for a consumer assigning to the litigation financier a contingent right to receive an amount of the potential proceeds of the consumer's judgment, award, settlement, or verdict obtained with respect to the consumer's legal claim; and

(B) Does not include:

(i) Legal services provided on a contingency fee basis, or advanced legal costs, where such services or costs are provided to or on behalf of a consumer by an attorney representing the consumer in the dispute and in accordance with the Tennessee Rules of Professional Conduct;

(ii) A commercial tort claim, as defined by § 47-9-102; or

(iii) A claim under the Workers' Compensation Law, compiled in title 50, chapter 6;

(8) “Person” means an individual, combination of persons, including a class of plaintiffs, firm, corporation, association, trust, partnership, joint venture, limited liability company, governmental authority, or other entity; and

(9) “Sovereign wealth fund” means an investment fund owned or controlled by a foreign principal or an agent of a foreign principal.

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Cite this article: FindLaw.com - Tennessee Code Title 47. Commercial Instruments and Transactions § 47-16-102 - last updated January 02, 2024 | https://codes.findlaw.com/tn/title-47-commercial-instruments-and-transactions/tn-code-sect-47-16-102/

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