Senate Bill 2101 and House Bill 2108 propose amendments to Tennessee's litigation financing laws. The bills introduce new definitions and regulations regarding commercial litigation financing, including the distinction between "commercial litigation financiers" and "litigation financiers." Key provisions include the requirement for litigation financiers to register with the state, maintain a surety bond of $50,000, and file necessary documentation with the Secretary of State. Additionally, the bills stipulate that commercial litigation financiers cannot direct the course of legal proceedings or receive more than a proportional share of the proceeds from financed actions.

The amendments also establish specific disclosure requirements for litigation financing contracts, including a prohibition against financiers making decisions related to the legal proceedings they finance. Furthermore, the bills impose liability on commercial litigation financiers for costs or sanctions arising from the actions they finance and limit the annual fees they can charge to no more than 10% of the original financing amount. The act will take effect upon becoming law and will apply to contracts entered into, amended, or renewed after that date.

Statutes affected:
Introduced: 47-16-103(c), 47-16-103
Amended with HA0603 -- 03/09/2026: 47-16-103(c), 47-16-103, 47-16-102, 47-16-105, 47-16-106(a), 47-16-106, 47-16-107, 47-16-110