Tennessee § 47-16-105 - Prohibited activities.

§ 47-16-105. Prohibited activities.

A litigation financier shall not: Pay or offer to pay commissions, referral fees or other forms of consideration to any attorney, law firm, medical provider, chiropractor, or physical therapist or any of their employees for referring a consumer to a litigation financier; Accept any commissions, referral fees, rebates or other forms of consideration from an attorney, law firm, medical provider, chiropractor, or physical therapist or any of their employees; Advertise false or misleading information regarding its products or services; Refer a consumer or potential consumer to a specific attorney, law firm, medical provider, chiropractor, or physical therapist or any of their employees; provided, that if a consumer does not have legal representation, the provider shall refer the consumer to a local or state bar referral service operated by a bar association or a nonprofit organization; Fail to promptly supply copies of any and all complete litigation financing contracts to the consumer and the attorney representing the consumer in the dispute; Attempt to obtain a waiver of any remedy, including but not limited to, compensatory, statutory, or punitive damages, that the consumer might otherwise have; Attempt to effect mandatory arbitration or otherwise effect waiver of a consumer's right to a trial by jury; Offer or provide legal advice to the consumer regarding the litigation financing or the underlying dispute; or Assign, which includes securitizing, a litigation financing contract, in whole or in part, to a third party; however: This subdivision (9) does not prevent a litigation financier that retains responsibility for collecting payment, administering, or otherwise enforcing the litigation financing contract from making an assignment that is: To a wholly owned subsidiary of the litigation financier; To an affiliate of the litigation financier that is under common control with the litigation financier; or A grant of a security interest that is pursuant to title 47, chapter 9 or is otherwise permitted by law; and If an assignment is authorized and made pursuant to this subdivision (9), for purposes of this section, “litigation financier” includes a successor-in-interest to a litigation financing contract. Acts 2014, ch. 819, § 1; 2017, ch. 212, § 1. Compiler's Notes. Pursuant to Article III, Section 18 of the Constitution of Tennessee, Acts 2014, ch. 819 took effect on April 28, 2014, for the purpose of promulgating rules. Amendments. The 2017 amendment, in (7), substituted “mandatory arbitration” for “arbitration” and inserted “a” preceding “trial by jury” at the end; and rewrote (9) which read: “Assign a litigation financing contract in whole or part.” Effective Dates. Acts 2014, ch. 819, § 3. July 1, 2014; provided that for the purpose of promulgating rules, the act took effect April 28, 2014. [See the Compiler's Note.] Acts 2017, ch. 212, § 3. July 1, 2017.