All Roll Calls
Yes: 139 • No: 6
TennesseeHB 2108114th General Assembly (2025-2026)House
AN ACT to amend Tennessee Code Annotated, Title 47, relative to litigation financing.
Sponsored By: Sponsor information unavailable
Signed by Governor
Business and Commerce
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 3 benefits, 3 costs, 0 mixed.
Funded parties keep control of lawsuits
Commercial lawsuit funders cannot choose lawyers, expert witnesses, case strategy, or settlement decisions. The parties and their lawyers keep control, and the financing contract must say so. Litigation financing contracts must also include the required disclosures as important contract terms. These rules apply to contracts made, changed, or renewed on or after the law took effect upon enactment.
Lawsuit funders face fee and recovery caps
Commercial lawsuit funders cannot charge an annual fee above 10% of the original amount provided. In cases seeking money damages, funders also face a limit on what they can contract for, receive, or recover. That limit equals the parties’ combined share of proceeds after lawyer fees and case costs are paid. These caps apply to contracts made, changed, or renewed on or after the law took effect upon enactment.
Lawsuit funders must cover adverse case costs
Commercial lawsuit funders can be held responsible for the full covered costs or money sanctions against funded parties or their lawyers. Those amounts must arise from or relate to the funded proceeding. Funders must also agree to cover adverse costs, lawyer fees, damages, or sanctions ordered in the funded case. This coverage duty applies even without an agreement, except for amounts the funder proves resulted from the party’s or lawyers’ intentional misconduct. These rules apply to contracts made, changed, or renewed on or after the law took effect upon enactment.
Funded parties must file financing contracts
A party or lawyer must file a commercial financing contract covering a pending case and give other parties a copy. The deadline is 14 days after the initial pleading, or 14 days after a later contract is signed or changed. Before filing, they can ask the court to limit further sharing through a protective order. This requirement applies to contracts made, changed, or renewed on or after the law took effect upon enactment.
Foreign adversary ties bar lawsuit funders
People with direct or indirect business-related ties to a designated foreign adversary cannot register or operate as Tennessee litigation financiers. Covered ties include foreign persons, foreign principals, and sovereign wealth funds linked to designated foreign adversaries. The designation follows the federal rule at 15 CFR 791.4. The restriction applies to contracts made, changed, or renewed on or after the law took effect upon enactment.
Lawsuit funders must register and pay fees
Litigation financiers must register with Tennessee’s Secretary of State before conducting financing transactions and maintain an approved $50,000 surety bond. The bond stays in effect while state records list them as financiers and backs claims arising from violations. Business entities and partnerships must be active, in good standing, and identify their financing role in organizational filings. Other applicants must submit an application; all registrants must correct changed or inaccurate information within 30 days. Non-entity applicants pay $100 to register and $20 to change or withdraw registration; copies of filed documents cost $20. Registration filings are public records, and the Secretary can set implementing rules and additional administrative fees. These rules apply to contracts made, changed, or renewed on or after the law took effect upon enactment.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Fred Atchley
Republican • House
Roll Call Votes
Senate vote • 4/20/2026
FLOOR VOTE: Third Consideration 4/20/2026
Yes: 26 • No: 6
House vote • 3/9/2026
FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 3/9/2026
Yes: 91 • No: 0
House vote • 3/9/2026
HOUSE CALENDAR & RULES COMMITTEE
Yes: 0 • No: 0
House vote • 3/4/2026
HOUSE COMMERCE COMMITTEE
Yes: 16 • No: 0
House vote • 2/18/2026
HOUSE BANKING AND CONSUMER AFFAIRS SUBCOMMITTEE
Yes: 6 • No: 0
Bill Text
HA0603 (Substitute)
3/9/2026
Enrolled / Public Chapter
Fiscal Note
Introduced
SA1017
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