Tennessee legislation · 114th General Assembly
Tennessee SB2101: 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
What the bill says
From the amended text:
Senate Commerce and Labor 1 Amendment No. 1 to SB2101 Bailey Signature of Sponsor AMEND S e n ate Bill No. 2101* House Bill No. 2108 by deleting all language after the enacting clause and substituting: SECTION 1. Tennessee Code Annotated, Section 47-16-102, is amended by deleting the section and substituting: As used in this chapter: (1) "Commercial litigation financier": (A) Means a person who provides commercial litigation financing; and (B) Does not include a litigation financier; (2) "Commercial litigation financing" or "commercial litigation financing transaction": (A) 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 in any respect 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; and (B) Does not include: SA1017 (i) A party to the civil action, administrative proceeding, claim or cause of action: (ii) An attorney engaged directly or indirectly through another legal representative to represent …