25 LC 49 2160-EC
Senate Bill 69
By: Senators Kennedy of the 18th, Gooch of the 51st, Robertson of the 29th, Anavitarte of
the 31st, Hatchett of the 50th and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 7 and Article 5 of Chapter 11 of Title 9 of the Official Code of Georgia
1
Annotated, relating to banking and finance, and depositions and discovery under the2
"Georgia Civil Practice Act," respectively, so as to regulate third-party litigation financing3
practices in this state; to enact a new chapter regulating litigation financing practices; to4
provide for definitions; to require and provide for the registration of litigation financiers; to5
prohibit any person with relevant affiliations with foreign persons, foreign principals, or6
sovereign wealth funds from serving as litigation financiers; to require amended registration7
as a litigation financier; to provide for forms and filing fees; to provide for public disclosure8
of documents and information; to provide for prohibitions applicable to litigation financiers;9
to provide for joint and several liability for litigation financiers; to require litigation financing10
contracts to include indemnification provisions; to require litigation financing agreements11
to be memorialized in writing by litigation financing contracts; to provide for required12
provisions and disclosures to be included in litigation financing contracts; to require and13
provide for certain disclosures and acknowledgments in litigation financing agreements; to14
provide for exemptions; to provide for the cancellation of litigation financing agreements;15
to provide for penalties; to provide for the authority of the commissioner of banking and16
finance; to provide for the discovery of litigation financing agreements in civil actions; to17
S. B. 69
- 1 - 25 LC 49 2160-EC
provide a short title; to provide for related matters; to provide for an effective date and
18
applicability; to repeal conflicting laws; and for other purposes.19
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:20
SECTION 1.21
This Act shall be known and may be cited as the "Georgia Courts Access and Consumer22
Protection Act."23
SECTION 2.24
Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, is25
amended by adding a new chapter to read as follows:26
"CHAPTER 10
27
7-10-1.28
As used in this chapter, the term:29
(1) 'Affiliate' or 'affiliated' means a person that directly, or indirectly through one or more30
intermediaries, controls, is controlled by, or is under common control with another31
person.32
(2) 'Commissioner' means the commissioner of banking and finance.33
(3) 'Consumer' means any individual who resides, is present, or is domiciled in this state34
or who is or has standing to become a plaintiff, claimant, or complainant in a civil action,35
administrative proceeding, legal claim, or other legal proceeding or in pursuit of any36
claim or cause of action in this state.37
(4) 'Department' means the Department of Banking and Finance.38
S. B. 69
- 2 - 25 LC 49 2160-EC
(5) 'Entity' means any domestic or foreign corporation, partnership, limited partnership,39
limited liability company, trust, fund, plan, or any other business, enterprise, association,40
or organization of any kind or nature.41
(6) 'Foreign person' means an individual or an entity that is not:42
(A) A citizen of the United States;43
(B) An alien lawfully admitted for permanent residence in the United States;44
(C) An unincorporated association with a majority of members who are citizens of the45
United States or aliens lawfully admitted for permanent residence in the United States;46
or47
(D) A corporation that is incorporated in the United States.48
(7) 'Foreign principal' means:49
(A) The government or a government official of any country other than the United50
States;51
(B) A political subdivision or political party of a country other than the United States;52
or53
(C) A partnership, association, corporation, organization, or other combination of54
persons organized under the laws of or having its principal place of business in a55
country other than the United States whose shares or other ownership interest is owned56
by the government or a government official of a country other than the United States57
or is owned by a political subdivision or political party of a country other than the58
United States.59
(8) 'Legal representative' means any attorney, group of attorneys, or law firm duly60
licensed and authorized to practice law and to represent a consumer in a civil action,61
administrative proceeding, legal claim, or other legal proceeding seeking to recover62
damages in this state.63
(9) 'Litigation financier' means any broker-dealer, institutional investor, issuer, or any64
other person engaged in or formed, created, or established for the purpose of engaging65
S. B. 69
- 3 - 25 LC 49 2160-EC
in any kind of business or economic activity that involves providing litigation financing66
in exchange for consideration of any kind.67
(10)(A) 'Litigation financing agreement' or 'litigation financing' means an agreement68
in which a litigation financier agrees to provide financing to a consumer or entity that69
is or has standing to become a party to or counsel of record for a civil action,70
administrative proceeding, legal claim, or other legal proceeding seeking to recover71
monetary damages, in exchange for a right to receive payment, which right is72
contingent in any respect on the outcome of such action, claim, or proceedings by73
settlement, judgment, or otherwise, or on the outcome of any matter within a portfolio74
that includes such action, claim, or proceedings and involves the same legal75
representative or affiliated representative.76
(B) Such term shall not include:77
(i) An agreement wherein a legal representative consents to provide legal services on78
a contingency fee basis or to advance his or her client's legal costs, and where such79
services or costs are provided by the legal representative in accordance with the80
Georgia Rules of Professional Conduct maintained and enforced by the State Bar of81
Georgia;82
(ii) A preexisting contractual obligation to indemnify or defend a party to a civil83
action, administrative proceeding, legal claim, or other legal proceeding seeking to84
recover monetary damages, or any other legal proceeding;85
(iii) Any obligation of a health insurer to pay any sums for healthcare for an injured86
person under the terms of a health insurance plan or agreement;87
(iv) Any obligation to repay a financial institution, as such term is defined in Code88
Section 10-5A-1, for loans made directly to a party to a civil action, administrative89
proceeding, legal claim, or other legal proceeding seeking to recover monetary90
damages, or such party's legal representative, provided that such repayment of such91
loan is not contingent upon the outcome of such action, claim, or proceedings, or on92
S. B. 69
- 4 - 25 LC 49 2160-EC
the outcome of any matter within a portfolio that includes such action, claim, or93
proceedings, and involves the same legal representative or affiliated legal94
representative; or95
(v) Funding provided to a nonprofit organization that is funded by private donations,96
represents one or more clients on a pro-bono, no-cost basis, and seeks only injunctive97
relief on behalf of its clients; provided, however, that the provisions of this division98
shall not be construed to prohibit or otherwise affect any award of costs or attorney's99
fees to such nonprofit organization seeking only injunctive relief on behalf of a client100
that such nonprofit organization represents on a pro-bono, no-cost basis, or to such101
client.102
(11) 'Litigation financing contract' or 'contract' means a written contract memorializing103
the terms and conditions of a litigation financing agreement.104
(12) 'Sovereign wealth fund' means an investment fund owned or controlled by a foreign105
principal or an agent thereof.106
7-10-2.107
(a) It is unlawful for a person to engage in litigation financing in this state unless such108
person is registered as a litigation financier as provided under this Code section.109
(b) If the person registering as a litigation financier is an entity:110
(1) Such entity shall be authorized to do business in this state; and111
(2) The entity's articles of incorporation, charter, articles of organization, certificate of112
limited partnership, or other organizational or governing document shall contain a113
statement that such entity is authorized to engage in the business of litigation financing114
and is registered as a litigation financier by the department pursuant to this Code section.115
(c) To register as a litigation financier, a person shall file with the department a registration116
statement setting forth the following:117
(1) The legal name of such person;118
S. B. 69
- 5 - 25 LC 49 2160-EC
(2) The principal business address and preferred mailing address of such person;119
(3) The telephone number and email address through which such person may be120
contacted;121
(4) The name, principal business address, and preferred mailing address of such person's122
registered agent that is authorized to accept service of process on behalf of such person;123
(5) The name, principal business address, and citizenship or country of incorporation or124
registration of any foreign person, foreign principal, or sovereign wealth fund affiliated125
with the person seeking to register as a litigation financier under this Code section in any126
capacity directly or indirectly related to such person's litigation financing business; and127
(6) Any other information deemed necessary by the department.128
(d) If the person seeking to register as a litigation financier is an entity, such entity shall129
file with the department a registration statement that provides, with respect to each person130
that directly or indirectly owns, controls, holds with the power to vote, or holds proxies131
representing 5 percent or more of the voting shares of the litigation financier, the following:132
(1) The legal name of each such person;133
(2) The principal business address and preferred mailing address of each such person;134
(3) If the person is an individual:135
(A) Such individual's occupation;136
(B) Any offices and positions held with the person seeking to register as a litigation137
financier during the past five years;138
(C) Any conviction of a crime other than misdemeanor traffic violations during the139
past ten years; and140
(D) The name, principal business address, and citizenship or country of incorporation141
or registration of any foreign person, foreign principal, or sovereign wealth fund142
affiliated with such individual seeking to register as a litigation financier under this143
Code section in any capacity directly or indirectly related to such individual's litigation144
financing business;145
S. B. 69
- 6 - 25 LC 49 2160-EC
(4) If the person is an entity:146
(A) The nature of the entity's business operations during the past five years or a147
description of the business intended to be undertaken by the entity and such entity's148
subsidiaries, if any;149
(B) A list of all individuals who are or who have been selected to become directors or150
officers of the entity and each subsidiary of the entity, if any. Such list shall include for151
each individual the information required by paragraph (3) of this subsection; and152
(C) The name, principal business address, and citizenship or country of incorporation153
or registration of any foreign person, foreign principal, or sovereign wealth fund154
affiliated with the entity seeking to register as a litigation financier under this Code155
section in any capacity directly or indirectly related to such entity's litigation financing156
business; and157
(5) Any other information deemed necessary by the department.158
(e) No person shall be registered as a litigation financier or shall engage in litigation159
financing in this state that is, in any capacity directly or indirectly related to such person's160
litigation financing business, affiliated with any foreign person, foreign principal, or161
sovereign wealth fund of a foreign government or foreign nongovernment person162
designated by the United States Secretary of Commerce as a foreign adversary pursuant to163
15 C.F.R. Section 7.4.164
(f) A person subject to registration under this Code section shall file, within 30 days of any165
change to the most recently filed registration or within 30 days of when such registration166
becomes inaccurate or incomplete in any respect, an amended registration with the167
department.168
(g) The commissioner is authorized to prescribe the forms and the filing fees that he or she169
deems necessary for the purposes of this chapter.170
(h) All documents and information filed with the department pursuant to this Code section171
are public records subject to disclosure pursuant to Article 4 of Chapter 18 of Title 50.172
S. B. 69
- 7 - 25 LC 49 2160-EC
7-10-3.173
(a) A litigation financier shall not:174
(1) Direct, or make any decisions with respect to, the course of any civil action,175
administrative proceeding, legal claim, or other legal proceeding for which such litigation176
financier has provided litigation financing, or any settlement or other disposition thereof. 177
Such prohibition includes, but is not limited to, decisions in appointing or changing legal178
representatives, choice or use of expert witnesses, and litigation strategy. All rights to179
make decisions with respect to the course and settlement or other disposition of the180
subject civil action, administrative proceeding, legal claim, or other legal proceeding shall181
remain solely with the parties to such action, claim, or proceedings and their legal182
representatives. The provisions of this paragraph shall be strictly construed in favor of183
the consumer and against the litigation financier;184
(2) Pay or offer commissions, referral fees, rebates, or other forms of consideration to185
any person, including, but not limited to, an attorney or any employee of an attorney or186
a law firm, in exchange for referring a consumer to a litigation financier;187
(3) Accept any commissions, referral fees, rebates, or other forms of consideration from188
any person, including, but not limited to, an attorney or any employee of an attorney or189
a law firm, for providing any goods or rendering any services to the consumer;190
(4) Contract for, receive, or recover, whether directly or indirectly, any amount greater191
than an amount equal to the share of the proceeds collectively recovered by the plaintiffs192
or claimants in a civil action, administrative proceeding, legal claim, or other legal193
proceeding seeking to recover monetary damages financed by a litigation financing194
agreement after the payment of any attorney's fees and costs owed in connection to such195
action, claim, or proceedings;196
(5) Advertise false or misleading information regarding its products or services;197
(6) Refer or require any consumer to hire or engage any person providing any goods or198
rendering any services to the consumer;199
S. B. 69
- 8 - 25 LC 49 2160-EC
(7) Fail to promptly deliver a fully completed and signed litigation financing contract to200
the consumer and the consumer's legal representative;201
(8) Attempt to secure a remedy or obtain a waiver of any remedy, including, but not202
limited to, compensatory, statutory, or punitive damages, that the consumer may or may203
not be entitled to pursue or recover otherwise;204
(9) Offer or provide legal advice to the consumer;205
(10) Assign or securitize a litigation financing agreement in whole or in part; or206
(11) Report a consumer to a credit reporting agency if insufficient funds remain to repay207
the litigation financier in full from the proceeds received from any judgment, award,208
settlement, verdict, or other form of monetary relief obtained in a civil action,209
administrative proceeding, legal claim, or other legal proceeding that is the subject of the210
litigation financing agreement.211
(b) No person that provides any goods or renders any services to the consumer shall have212
a financial interest in litigation financing provided by a litigation financier to such213
consumer, and no such person shall receive any commissions, referral fees, rebates, or214
other forms of consideration from any litigation financier or the litigation financier's agents,215
employees, owners, or affiliates.216
7-10-4.217
(a) A litigation financier shall be jointly and severally liable for any award or order218
imposing or assessing costs or monetary sanctions against a consumer arising from or219
relating to any civil action, administrative proceeding, legal claim, or other legal220
proceeding for which the litigation financier is providing litigation financing.221
(b) In each litigation financing contract, the litigation financier shall agree to indemnify,222
and shall indemnify even without such agreement, the plaintiffs and claimants to the civil223
action, administrative proceeding, legal claim, or other legal proceeding that is the subject224
of such litigation financing agreement and such plaintiffs' and claimants' legal225
S. B. 69
- 9 - 25 LC 49 2160-EC
representatives against any adverse costs, attorney's fees, damages, or sanctions that may226
be ordered or awarded against such persons in such action, claim, or proceedings; provided,227
however, that such indemnification shall not be required or enforceable for adverse costs,228
attorney's fees, damages, or sanctions that the litigation financier can show resulted from229
the intentional misconduct of such plaintiffs or claimants or their legal representatives.230
7-10-5.231
(a) The terms and conditions of a litigation financing agreement shall be set forth in a fully232
completed, written litigation financing contract with no material terms or conditions233
omitted, and such contract shall contain all material terms and conditions at the time it is234
signed by any party.235
(b) Upon execution of a litigation financing contract, a litigation financier shall not amend236
the terms or conditions of the litigation financing agreement that is memorialized by such237
contract without full disclosure to and prior written consent of all parties to such litigation238
financing agreement.239
(c) Each litigation financing contract shall set forth the name, principal business address,240
and preferred mailing address of the litigation financier on the first page of such contract,241
and the following disclosures shall be typed in at least 14 point bold font and placed clearly242
and conspicuously immediately above the consumer's signature line in the litigation243
financing contract:244
'IMPORTANT DISCLOSURES -- PLEASE READ CAREFULLY245
1. Right to Cancellation: You, the consumer, or your legal representative may cancel246
this litigation financing agreement without penalty or further obligation within247
five (5) business days from the date you sign this contract or the date you receive248
financing from the litigation financier, whichever date is later. You or your legal249
representative may cancel this litigation financing agreement by sending a notice of250
cancellation to the litigation financier and returning to the litigation financier any251
S. B. 69
- 10 - 25 LC 49 2160-EC
funds received from the litigation financier at the litigation financier's preferred252
mailing address set forth on page 1 of this contract.253
2. The maximum amount the litigation financier may receive or recover from any254
contingent payment provided for in this litigation financing agreement shall be no255
more than an amount equal to the share of the proceeds collectively recovered by the256
plaintiffs or claimants in a civil action, administrative proceeding, legal claim, or257
other legal proceeding seeking to recover monetary damages financed by this258
litigation financing agreement after the payment of any attorney's fees and costs owed259
in connection to such action, claim, or proceedings.260
3. The litigation financier agrees that it has no right to, and will not demand, request,261
receive, or exercise any right to, influence, affect, or otherwise make any decision in262
the handling, conduct, administration, litigation, settlement, or resolution of your civil263
action, administrative proceeding, legal claim, other legal proceeding. All of these264
rights remain solely with you and your legal representative.265
4. You, the consumer, are not required by the terms of this litigation financing266
agreement to continue to be represented by any particular legal representative, and the267
litigation financing agreement does not include any right for the litigation financier,268
any legal representative, or any other person to claim or seek to recover any269
assessment, charge, fee, penalty, or damages of any kind if you elect to change legal270
representatives at any time.271
5. If there is no recovery of any money from your civil action, administrative272
proceeding, legal claim, or other legal proceeding, or if there is not enough money to273
satisfy in full the portion assigned to the litigation financier, you will not owe274
anything in excess of your recovery.275
6. You are entitled to a fully completed litigation financing contract with no material276
terms or conditions omitted prior to signing. Before signing the litigation financing277
S. B. 69
- 11 - 25 LC 49 2160-EC
contract, or authorizing anyone to sign it on your behalf, you should read the contract278
completely and consult an attorney.'279
(d) Only the consumer shall be authorized to execute a litigation financing contract on his280
or her own behalf, except in such cases where the consumer lacks the legal capacity to281
execute a contract. The consumer's legal representative in the civil action, administrative282
proceeding, legal claim, or other legal proceeding seeking to recover monetary damages283
financed by the corresponding litigation financing agreement shall not execute a litigation284
financing contract on behalf of the consumer. A litigation financing contract executed by285
such legal representative on behalf of such consumer shall be void and unenforceable as286
a matter of law.287
(e) If the consumer is represented by a legal representative in the civil action,288
administrative proceeding, legal claim, or other legal proceeding that is the subject of the289
litigation financing agreement, the legal representative shall acknowledge in the litigation290
financing contract that the legal representative and the legal representative's employer and291
employees have not received or paid a commission, referral fee, rebate, or any other292
consideration from or to the litigation financier and have no obligation to do so in the293
future.294
(f) If the consumer's legal representative is a party to a litigation financing agreement295
related to the consumer's civil action, administrative proceeding, legal claim, or other legal296
proceeding that is the subject of the consumer's litigation financing agreement, the legal297
representative shall disclose and deliver a copy of his or her litigation financing contract298
to the consumer. Following such disclosure and delivery, the consumer shall sign an299
acknowledgment that the consumer has read and understands the terms and conditions of300
his or her legal representative's litigation financing contract. Such consumer shall be301
provided with a copy of such signed acknowledgment.302
S. B. 69
- 12 - 25 LC 49 2160-EC
7-10-6.303
The provisions of this chapter shall not apply to:304
(1) A nonprofit entity that provides litigation financing, directly or indirectly, for the305
benefit of such nonprofit entity or one or more of its members without receiving, in306
consideration for the litigation financing:307
(A) The payment of interest, fees, or other consideration; or308
(B) Except for in-house counsel of such nonprofit entity, any right to recovery or309
payment from the amount of any judgment, award, settlement, verdict, or other form310
of monetary relief obtained in the civil action, administrative proceeding, legal claim,311
or other legal proceeding;312
(2) Any litigation financing provided by an entity engaged in commerce or business313
activity; provided, however, that this exemption shall apply only if such entity does not:314
(A) Charge, contract for, collect, or receive any interest, fees, or other consideration;315
(B) Retain or receive any financial interest in the outcome of the civil action,316
administrative proceeding, legal claim, or other legal proceeding; or317
(C) Retain or receive any right to recovery or payment from the amount of any318
judgment, award, settlement, verdict, or other form of monetary relief obtained in the319
civil action, administrative proceeding, legal claim, or other legal proceeding; or320
(3) A regulated lender that does not receive, in consideration for loaning money to any321
person, a right to receive payment from the value of any proceeds or other consideration322
realized from any judgment award, settlement, verdict, or other form of monetary relief323
any person may receive or recover in relation to any civil action, administrative324
proceeding, legal claim, or other legal proceeding.325
S. B. 69
- 13 - 25 LC 49 2160-EC
7-10-7.326
Any violation of this chapter by a litigation financier renders the litigation financing327
agreement void and unenforceable by such litigation financier or any successor-in-interest328
to the litigation financing agreement.329
7-10-8.330
(a) It is unlawful for a litigation financier to enter into or offer to enter into a litigation331
financing agreement unless such litigation financier is registered under this chapter.332
(b) A person that willfully violates this chapter shall be guilty of a felony and upon333
conviction thereof, shall be imprisoned not less than one nor more than five years, or fined334
not more than $10,000.00, or both; provided, however, that on the recommendation of the335
jury trying the case, when such recommendation is approved by the judge presiding on the336
trial, such crime shall be punished as a misdemeanor. If the judge trying the case deems337
it proper, such judge may, in fixing the punishment, reduce such felony to a misdemeanor.338
(c) The Attorney General or the proper prosecuting attorney with or without a reference339
from the commissioner may institute criminal proceedings under this chapter.340
(d) This chapter does not limit the power of this state to punish a person for conduct that341
constitutes a crime under other laws of this state.342
7-10-9.343
The commissioner is authorized to adopt rules and other policies in overseeing the practice344
of litigation financing consistent with this chapter."345
SECTION 3.346
Article 5 of Chapter 11 of Title 9 of the Official Code of Georgia Annotated, relating to347
depositions and discovery under the "Georgia Civil Practice Act," is amended in Code348
S. B. 69
- 14 - 25 LC 49 2160-EC
Section 9-11-26, relating to general provisions governing discovery, by adding a new
349
paragraph to subsection (b) to read as follows:350
"(2.1)(A) Litigation financing agreement. A party may obtain discovery of the
351
existence and terms and conditions of any litigation financing agreement, as such term352
is defined in Code Section 7-10-1, the subject of which is or includes the pending353
action.354
(B) Information concerning the litigation financing agreement is not by reason of355
disclosure admissible in evidence at trial; provided, however, that nothing in this356
subparagraph shall be construed to limit the admissibility of such information as357
evidence of a party's claim or defense;"358
SECTION 4.359
This Act shall become effective upon its approval by the Governor or upon its becoming law360
without such approval and shall apply to:361
(1) Any civil action, administrative proceedings, legal claims, or other legal proceedings362
commenced on or after the effective date of this Act; and363
(2) Any contracts entered into on or after the effective date of this Act.364
SECTION 5.365
All laws and parts of laws in conflict with this Act are repealed.366
S. B. 69
- 15 -