Chapter Definitions

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As used in this chapter:

  1. “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;
  2. “Litigation financier” means a person, entity or partnership engaged in the business of litigation financing; and
  3. “Litigation financing” or “litigation financing transaction”:
    1. 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
    2. Does not include:
      1. 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;
      2. A commercial tort claim as defined by § 47-9-102; or
      3. A claim under the Workers' Compensation Law, compiled in title 50, chapter 6.


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