Tennessee legislation · 114th General Assembly

Tennessee HB2108: AN ACT to amend Tennessee Code Annotated, Title 47, relative to litigation financing.

Status: Chaptered, May 26, 2026

Fiscal Summary NOT SIGNIFICANT Bill Summary ON MARCH 9, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2108, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, require a commercial litigation financier to meet the same registration and bond requirements as a litigation financier. Present law prohibits a litigation financier from engaging in a litigation financing transaction unless it is registered as a litigation financier. This amendment prohibits a commercial litigation financier from engaging in a commercial litigation financing transaction unless it is registered as a commercial litigation financier. As used in this amendment, a "commercial litigation financing transaction" 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. However, the term does not include (i) a party to the civil 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 or more clients on a pro-bono basis, and seeks only injunctive relief on behalf of its clients. Present law requires a litigation financier to file