Tennessee § 47-16-109 - Contingent right to proceeds from legal claim assignable — Priority of liens or rights in proceeds.

§ 47-16-109. Contingent right to proceeds from legal claim assignable — Priority of liens or rights in proceeds.

The contingent right to receive an amount of the potential proceeds of a legal claim may be assigned by a consumer and that assignment is valid for the purposes of obtaining litigation financing from a litigation financier. The lien of a litigation financier on a consumer's legal claim has priority over liens that attach and take effect subsequent to the attachment of the litigation financier's lien to the consumer's legal claim, except for the following: Attorney liens, insurance carrier liens, medical provider liens, or liens based upon subrogation interests or rights of reimbursement related to the consumer's legal claim; and Child support, Medicare, tax, or any other statutory or governmental lien. Acts 2014, ch. 819, § 1; 2017, ch. 212, § 2. 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 rewrote (b) which read: “Any lien, subrogation interest or right of reimbursement against the consumer's legal claim shall take priority over any lien, subrogation interest or right of reimbursement of the litigation financier.” 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.