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Regular Session, 2014
SENATE BILL NO. 299
BY SENATOR MORRISH
LOANS. Provides relative to civil justice funding companies. (1/1/15)
AN ACT1
To enact Chapter 2-C of Code Title XII of Code Book III of Title 9 of the Louisiana Revised2
Statutes of 1950, to be comprised of R.S. 9:3580.1 through 3580.10, relative to civil3
justice funding companies; to enact the Civil Justice Funding Model Act; to provide4
for definitions, terms, conditions, procedures, requirements, effects, and prohibitions;5
to provide for form and terms of contract; to provide for contract disclosures; to6
provide for violations and penalties; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Chapter 2-C of Code Title XII of Code Book III of Title 9 of the9
Louisiana Revised Statutes of 1950, comprised of R.S. 9:3580.1 through 3580.10, is hereby10
enacted to read as follows:11
CHAPTER 2-C. CIVIL JUSTICE FUNDING COMPANIES12
§3580.1. Short title13
This Chapter shall be known and may be cited as the "Civil Justice14
Funding Model Act".15
§3580.2. Definitions16
For the purposes of this Chapter, the following terms shall have the17 SB NO. 299
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following meanings:1
(1) "Advertise" means publishing or disseminating any written,2
electronic, or printed communication or any communication by means of3
recorded telephone messages or transmitted on radio, television, the Internet,4
or similar communications media, including film strips, motion pictures and5
videos, published, disseminated, circulated, or placed before the public, directly6
or indirectly, for the purpose of inducing a consumer to enter into a civil justice7
funding.8
(2) "Charges" means the amount of money to be paid to the civil justice9
funding company by or on behalf of the consumer, above the funded amount10
provided by or on behalf of the company to a consumer. Charges include all11
administrative, origination, underwriting, or other fees no matter how12
denominated.13
(3) "Civil justice funding company" means a person or entity that enters14
into a civil justice funding with a consumer. The term shall not include any of15
the following:16
(a) An immediate family member of the consumer.17
(b) A bank, lender, financing entity, or other special purpose entity that18
provides financing to a civil justice funding company or to which a civil justice19
funding company grants a security interest or transfers any rights or interest20
in a civil justice funding transaction.21
(c) An attorney or accountant who provides services to a consumer.22
(4) "Civil justice funding transaction" means a non-recourse transaction23
in which a civil justice funding company purchases and a consumer assigns to24
the company a contingent right to receive an amount of the potential proceeds25
of a settlement, judgment, award, or verdict obtained in the consumer's legal26
claim.27
(5) "Consumer" means a natural person who has a pending legal claim28
and who either:29 SB NO. 299
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(a) Resides or is domiciled in Louisiana.1
(b) Has a legal claim in Louisiana.2
(6) "Funded amount" means the amount of monies provided to, or on3
behalf of, the consumer in the civil justice funding, excluding charges.4
(7) "Funding date" means the date on which the funded amount is5
transferred to the consumer by the civil justice funding company in any of the6
following manners:7
(a) By personal delivery or via wire.8
(b) By Automated Clearing House or other electronic means.9
(c) By certified or registered mail.10
(8) "Immediate family member" means a spouse, child, sibling, parent,11
grandparent, grandchild, including stepparent, stepchild, stepsibling, and12
adoptive relationships.13
(9) "Legal claim" means a bona fide civil claim or cause of action.14
(10) "Resolution date" means the date that the amount funded to the15
consumer, plus the agreed upon charges, are delivered to the civil justice16
funding company.17
§3580.3. Registration of civil justice funding companies18
A. No civil justice funding company shall engage in the business of civil19
justice funding unless the civil justice funding company is registered with the20
secretary of state.21
B. A civil justice funding company's registration shall be filed on a form22
and in the manner prescribed by the secretary of state.23
C. A registration filed with the secretary of state pursuant to the24
provisions of this Section shall be valid for two years. Prior to the expiration of25
the registration, the civil justice funding company shall submit a registration26
renewal on a form and in a manner prescribed by the secretary of state.27
D. At the time of filing a registration or registration renewal, the civil28
justice funding company shall file with the secretary of state a surety bond29 SB NO. 299
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issued by a surety company authorized to do business in Louisiana in the1
amount of fifty thousand dollars. In lieu of the bond, the civil justice funding2
company may post an irrevocable letter of credit. The terms of the bond shall3
run concurrently with the period of time during which the registration is in4
effect. The bond shall provide the civil justice funding company shall faithfully5
conform to and abide by the provisions of this Chapter and to all applicable6
rules and regulations.7
E. Notwithstanding the provisions of Subsection A of this Section, a civil8
justice funding company that files its registration between January 1, 2015, and9
July 1, 2015, may engage in civil justice funding during this period and shall be10
deemed registered.11
F. The provisions of this Chapter shall not apply to any civil justice12
funding contract entered into prior to July 1, 2015.13
§3580.4. Civil justice funding contract; requirements14
A. A civil justice funding shall meet all of the following requirements:15
(1) The contract shall be completely filled in when presented to the16
consumer for signature.17
(2) The contract shall contain, in bold print, a right of rescission,18
allowing the consumer to cancel the contract without penalty or further19
obligation if, within five business days after the funding date, the consumer does20
either of the following:21
(a) Returns to the civil justice funding company the full amount of the22
disbursed funds by delivering the civil justice funding company's uncashed23
check to the civil justice funding company's office in person.24
(b) Mails, by certified or registered mail, to the address specified in the25
contract, a notice of cancellation and the full amount of disbursed funds in the26
form of the company's uncashed check or a registered or certified check or27
money order.28
(3) The contract shall contain the initials of the consumer on each page29 SB NO. 299
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of the contract.1
B. The contract shall contain a written acknowledgment by the2
consumer's attorney retained in the legal claim that states all of the following:3
(1) To the best of the attorney's knowledge, all the costs and charges4
relating to the civil justice funding transaction have been disclosed to the5
consumer.6
(2) The attorney is being paid on a contingency basis pursuant to a7
written fee agreement.8
(3) All proceeds of the legal claim shall be disbursed via either the trust9
account of the attorney or a settlement fund established to receive the proceeds10
of the legal claim on behalf of the consumer.11
(4) The attorney is following the written instructions of the consumer12
with regard to the civil justice funding.13
(5) The attorney has not received a referral fee or other consideration14
from the civil justice funding company in connection with the civil justice15
funding, nor will the attorney receive such fee or other consideration in the16
future.17
C.(1) If the acknowledgment provided in Subsection B of this Section is18
not completed and signed by the attorney retained by the consumer in the legal19
claim, the contract shall be null and void.20
(2) The civil justice funding contract and attorney acknowledgment21
executed in accordance with the provisions of this Chapter shall not thereafter22
be deemed null and void solely because legal representation of the consumer23
changes after execution of such contract and acknowledgment.24
§3580.5. Prohibited Conduct25
A. No civil justice funding company shall:26
(1) Pay or offer to pay commissions, referral fees, or other forms of27
consideration to any attorney, law firm, medical provider, chiropractor, or28
physical therapist, or any of their employees for referring a consumer to the29 SB NO. 299
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civil justice funding company.1
(2) Accept any commissions, referral fees, rebates, or other forms of2
consideration from an attorney, law firm, medical provider, chiropractor, or3
physical therapist, or any of their employees.4
(3) Intentionally advertise materially false or misleading information5
regarding its products or services.6
(4) Refer, in furtherance of an initial legal funding, a consumer or7
potential consumer to a specific attorney, law firm, medical provider,8
chiropractor, or physical therapist, or any of their employees. However, if a9
consumer needs legal representation, the company may refer the consumer to10
a local or state bar association referral service.11
(5) Fail to supply promptly a copy of the executed contract to the12
consumer's attorney.13
(6) Knowingly provide funding to a consumer who has previously14
assigned or sold a portion of the consumer's rights to proceeds from his legal15
claim without first making payments to or purchasing a prior unsatisfied civil16
justice funding company's entire funded amount and contracted charges, unless17
a lesser amount is otherwise agreed to in writing by the civil justice funding18
companies, except that multiple civil justice funding companies may agree to19
contemporaneously provide funding to a consumer provided that the consumer20
and the consumer's attorney consent to the arrangement in writing.21
(7) Receive any right to make or make any decisions with respect to the22
conduct of the underlying legal claim or any settlement or resolution of such23
legal claim. The right to make such decisions shall remain solely with the24
consumer and his attorney in the legal claim.25
(8) Knowingly pay or offer to pay for court costs, filing fees, or attorney26
fees either during or after the resolution of the legal claim using funds from the27
civil justice funding transaction.28
B. No attorney or law firm retained by a consumer shall have a financial29 SB NO. 299
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interest in the civil justice funding company offering a civil justice funding1
transaction to such consumer. Additionally, any attorney who has referred the2
consumer to his retained attorney shall not have a financial interest in the civil3
justice funding company offering civil justice funding to such consumer.4
§3580.6. Contracted amounts5
The contracted amount to be paid to the civil justice funding company6
by the consumer shall be a predetermined amount based upon intervals of time7
from the funding date through the resolution date. It shall not be based on a8
percentage of the recovery from the legal claim.9
§3580.7. Disclosures10
All civil justice funding company contracts shall contain the disclosures11
specified in this Section and such disclosures shall constitute material terms of12
the contract. Unless otherwise specified, the disclosures shall be in bold typed13
print of not less than twelve-point font and be placed clearly and conspicuously14
within the contract, as follows:15
(1) On the front page under appropriate headings, language specifying16
each of the following:17
(a) The funded amount to be paid to the consumer by the civil justice18
funding company.19
(b) An itemization of one-time charges.20
(c) The total amount to be assigned by the consumer to the civil justice21
funding company, including the funded amount and all charges.22
(d) A payment schedule to include the funded amount and charges,23
listing all dates and the amount due at the end of each one hundred eighty-day24
period from the funding date, until the maximum amount due to the civil justice25
funding company by the consumer to satisfy the amount due pursuant to the26
contract.27
(2) Within the body of the contract, language specifying the following:28
"Consumer's Right to Cancellation29 SB NO. 299
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You may cancel this contract without penalty or further obligation1
within five business days after the funding date if you either:2
(a) Return to the civil justice funding company the full amount of the3
disbursed funds by delivering the civil justice funding company's uncashed4
check to the civil justice funding company's office in person.5
(b) Mail, by certified or registered mail, to the civil justice funding6
company at the address specified in the contract, a notice of cancellation and7
include in such mailing a return of the full amount of disbursed funds in the8
form of the civil justice funding company's uncashed check or a registered or9
certified check or money order."10
(3) The civil justice funding company shall have no role in deciding11
whether, when, and for how much the legal claim may be settled. However, the12
consumer and his attorney shall notify the civil justice funding company of the13
outcome of the legal claim prior to the resolution date. The civil justice funding14
company may seek updated information about the status of the legal claim, but15
in no event shall the company interfere with the independent professional16
judgment of the attorney in the handling of the legal claim or any settlement of17
the claim.18
(4) Within the body of the contract, in all capital letters in bold typed19
print of not less than twelve-point font contained within a box, the following:20
"THE FUNDED AMOUNT AND AGREED UPON CHARGES SHALL BE21
PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM, AND22
SHALL BE PAID ONLY TO THE EXTENT THAT THERE ARE23
AVAILABLE PROCEEDS FROM YOUR LEGAL CLAIM. YOU WILL NOT24
OWE [INSERT NAME OF THE CIVIL JUSTICE FUNDING COMPANY]25
ANYTHING IF THERE ARE NO PROCEEDS FROM YOUR LEGAL26
CLAIM, UNLESS YOU OR YOUR ATTORNEY HAVE VIOLATED ANY27
MATERIAL TERM OF THIS CONTRACT OR YOU HAVE COMMITTED28
FRAUD AGAINST THE CIVIL JUSTICE FUNDING COMPANY."29 SB NO. 299
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(5) Located immediately above the place on the contract where the1
consumer's signature is required, conspicuously displayed and in twelve-point2
font the following: "Do not sign this contract before you read it completely or3
if it contains any blank spaces. You are entitled to a completely filled in copy4
of the contract. Before you sign this contract, you should obtain the advice of5
an attorney. Depending on the circumstances, you may want to consult a tax6
professional, public or private benefits planning professional, or financial7
professional. You acknowledge that your attorney in the legal claim has8
provided no tax advice, public or private benefit planning advice, or financial9
advice regarding this transaction."10
§3580.8. Assignments; liens11
A. The contingent right to receive an amount of the potential proceeds12
of a legal claim is assignable by a consumer.13
B. Nothing in this Chapter shall be construed to cause any civil justice14
funding transaction to be deemed a loan or subject to any of the provisions of15
the Louisiana Consumer Credit Law, R.S. 9:3510 et seq.16
C. Only attorney's liens related to the legal claim or Medicare or other17
statutory liens related to the legal claim shall take priority over any lien of the18
civil justice funding company. All other liens shall take priority by normal19
operation of law.20
§3580.9. Attorney client relationship; attorney liens21
A. Nothing in this Chapter shall be deemed to regulate an attorney client22
relationship or any other matter regulated by the Louisiana Supreme Court.23
B. Nothing in this Chapter shall be deemed to affect an attorney lien or24
privilege arising under Louisiana law.25
§3580.10. Violations; penalties; remedies26
A.(1) A violation of any provision of this Chapter shall constitute an27
unfair or deceptive act or practice and subject the violator to all provisions of28
the Unfair Trade and Consumer Protection Law, R.S. 51:1401 et seq.29 SB NO. 299
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(2) Any person who is found liable under the provisions of this Chapter1
in an action brought by the attorney general shall be liable to the attorney2
general for reasonable costs, expenses, and fees related to investigations, and3
proceedings associated with the violation, including attorney fees. An action to4
recover costs, expenses, fees, and attorney fees shall be ancillary to, and shall be5
filed and heard in the same court as the civil action brought under the6
provisions of this Chapter.7
B. The remedies and rights provided under this Chapter are in addition8
to and do not preclude any remedy otherwise available under law to a9
consumer.10
Section 2. This Act shall become effective on January 1, 2015.11
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ducharme.
DIGEST
Morrish (SB 299)
Proposed law provides for the regulation of civil justice funding companies in this state.
Proposed law defines the following terms as follows:
(1)"Advertise" means publishing or disseminating any written, electronic, or printed
communication or any communication by means of recorded telephone messages or
transmitted on radio, television, the Internet, or similar communications media,
including film strips, motion pictures and videos, published, disseminated,
circulated, or placed before the public, directly or indirectly, for the purpose of
inducing a consumer to enter into a civil justice funding.
(2)"Charges" means the amount of money to be paid to the civil justice funding
company by or on behalf of the consumer, above the funded amount provided by or
on behalf of the company to a consumer. Charges include all administrative,
origination, underwriting, or other fees no matter how denominated.
(3)"Civil justice funding company" means a person or entity that enters into a civil
justice funding with a consumer. This term shall not include any of the following:
(a)An immediate family member of the consumer.
(b)A bank, lender, financing entity, or other special purpose entity that provides
financing to a civil justice funding company or to which a civil justice
funding company grants a security interest or transfers any rights or interest
in a civil justice funding.
(c)An attorney or accountant who provides services to a consumer.
(4)"Civil justice funding transaction" means a non-recourse transaction in which a civil SB NO. 299
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justice funding company purchases and a consumer assigns to the company a
contingent right to receive an amount of the potential proceeds of a settlement,
judgment, award, or verdict obtained in the consumer's legal claim.
(5)"Consumer" means a natural person who has a pending legal claim and who either:
(a) Resides or is domiciled in Louisiana.
(b) Has a legal claim in Louisiana.
(6)"Funded amount" means the amount of monies provided to, or on behalf of, the
consumer in the civil justice funding, excluding charges.
(7)"Funding date" means the date on which the funded amount is transferred to the
consumer by the civil justice funding company in any of the following manners:
(a)By personal delivery or via wire.
(b)By Automated Clearing House or other electronic means.
(c)By certified or registered mail.
(8)"Immediate family member" means a spouse, child, sibling, parent, grandparent,
grandchild, including stepparent, stepchild, stepsibling, and adoptive relationships.
(9)"Legal claim" means a bona fide civil claim or cause of action.
(10)"Resolution date" means the date the amount funded to the consumer, plus the agreed
upon charges, are delivered to the civil justice funding company.
Proposed law provides for the registration of civil justice funding companies.
Proposed law prohibits a civil justice funding company from engaging in the business of
civil justice funding unless the civil justice funding company is registered with the secretary
of state.
Proposed law provides that a civil justice funding company's registration shall be filed on
a form and in the manner prescribed by the secretary of state.
Proposed law provides that a registration filed with the secretary of state shall be valid for
two years. Prior to the expiration of the registration, the civil justice funding company shall
submit a registration renewal on a form and in a manner prescribed by the secretary of state.
Proposed law that at the time of filing a registration or registration renewal, the civil justice
funding company shall file with the secretary of state a surety bond issued by a surety
company authorized to do business in La. in the amount of $50,000. In lieu of the bond, the
civil justice funding company post an irrevocable letter of credit.
Proposed law provides that the terms of the bond shall run concurrently with the period of
time during which the registration is in effect. The bond shall provide the civil justice
funding company shall faithfully conform to certain provisions of law and to all applicable
rules and regulations.
Proposed law allows a civil justice funding company to request, in writing, a hearing if the
secretary of state has notified the civil justice funding company that its application has been
denied or the secretary of state has not issued a registration to the civil justice funding
company within 60 days of filing of the application for registration. SB NO. 299
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Proposed law provides that a request for a hearing shall not be made more than 15 days after
the secretary of state has mailed a written notice to the civil justice funding company that
its application has been denied. The written notice shall state the secretary of state's findings
supporting denial of the application for registration.
Proposed law allows a civil justice funding that applies for registration between January 1,
2015, and July 1, 2015, may engage in civil justice funding during this period and shall be
deemed registered.
Proposed law provides that the provisions of proposed law shall not apply to any civil justice
funding contract entered into prior to July 1, 2015.
Proposed law provides that a civil justice funding shall meet all of the following
requirements:
(1)The contract shall be completely filled in when presented to the consumer for
signature.
(2)The contract shall contain, in bold print, a right of rescission, allowing the consumer
to cancel the contract without penalty or further obligation if, within five business
days after the funding date, the consumer does either of the following:
(a)Returns to the civil justice funding company the full amount of the disbursed
funds by delivering the civil justice funding company's uncashed check to the
civil justice funding company's office in person.
(b)Mails, by certified or registered mail, to the address specified in the contract,
a notice of cancellation and the full amount of disbursed funds in the form of
the company's uncashed check or a registered or certified check or money
order.
(3)The contract shall contain the initials of the consumer on each page of the contract.
Proposed law provides that the contract shall contain a written acknowledgment by the
consumer's attorney retained in the legal claim that states all of the following:
(1)To the best of the attorney's knowledge, all the costs and charges relating to the civil
justice funding transactions have been disclosed to the consumer.
(2)The attorney is being paid on a contingency basis pursuant to a written fee
agreement.
(3)All proceeds of the legal claim shall be disbursed via either the trust account of the
attorney or a settlement fund established to receive the proceeds of the legal claim
on behalf of the consumer.
(4)The attorney is following the written instructions of the consumer with regard to the
civil justice funding.
(5)The attorney has not received a referral fee or other consideration from the civil
justice funding company in connection with the civil justice funding, nor will the
attorney receive such fee or other consideration in the future.
Proposed law provides that if the acknowledgment provided in the proposed law is not
completed and signed by the attorney retained by the consumer in the legal claim, the
contract shall be null and void.
Proposed law provides that the civil justice funding contract and attorney acknowledgment SB NO. 299
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shall not thereafter be deemed null and void solely because legal representation of the
consumer changes after execution of such contract and acknowledgment.
Proposed law provides that no civil justice funding company shall:
(1)Pay or offer to pay commissions, referral fees, or other forms of consideration to any
attorney, law firm, medical provider, chiropractor, or physical therapist, or any of
their employees for referring a consumer to the civil justice funding company.
(2)Accept any commissions, referral fees, rebates, or other forms of consideration from
an attorney, law firm, medical provider, chiropractor, or physical therapist, or any
of their employees.
(3)Intentionally advertise materially false or misleading information regarding its
products or services.
(4)Refer, in furtherance of an initial legal funding, a consumer or potential consumer
to a specific attorney, law firm, medical provider, chiropractor, or physical therapist,
or any of their employees. However, if a consumer needs legal representation, the
company may refer the consumer to a local or state bar association referral service.
(5)Fail to supply promptly a copy of the executed contract to the consumer's attorney.
(6)Knowingly provide funding to a consumer who has previously assigned or sold a
portion of the consumer's rights to proceeds from his legal claim without first making
payments to or purchasing a prior unsatisfied civil justice funding company's entire
funded amount and contracted charges, unless a lesser amount is otherwise agreed
to in writing by the civil justice funding companies, except that multiple civil justice
funding companies may agree to contemporaneously provide funding to a consumer
provided that the consumer and the consumer's attorney consent to the arrangement
in writing.
(7)Receive any right to or make any decisions with respect to the conduct of the
underlying legal claim or any settlement or resolution of such legal claim. The right
to make such decisions shall remain solely with the consumer and his attorney in the
legal claim.
(8)Knowingly pay or offer to pay for court costs, filing fees, or attorney fees either
during or after the resolution of the legal claim using funds from the civil justice
funding transaction.
Proposed law prohibits an attorney or law firm retained by a consumer from having a
financial interest in the civil justice funding company offering a civil justice funding
transaction to such consumer. Additionally, any attorney who has referred the consumer to
his retained attorney shall not have a financial interest in the civil justice funding company
offering civil justice funding to such consumer.
Proposed law provides that the contracted amount to be paid to the civil justice funding
company by the consumer shall be a predetermined amount based upon intervals of time
from the funding date through the resolution date. It shall not be based on a percentage of
the recovery from the legal claim.
Proposed law provides that all civil justice funding company contracts shall contain the
disclosures specified and such disclosures shall constitute material terms of the contract.
Unless otherwise specified, the disclosures shall be in bold typed print of not less than 12-
point font and be placed clearly and conspicuously within the contract, as follows:
(1)On the front page under appropriate headings, language specifying each of the SB NO. 299
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following:
(a)The funded amount to be paid to the consumer by the civil justice funding
company.
(b)An itemization of one-time charges.
(c)The total amount to be assigned by the consumer to the civil justice funding
company, including the funded amount and all charges.
(d)A payment schedule to include the funded amount and charges, listing all
dates and the amount due at the end of each one hundred eighty-day period
from the funding date, until the maximum amount due to the civil justice
funding company by the consumer to satisfy the amount due pursuant to the
contract.
(2)Within the body of the contract, language specifying the following:
"Consumer's Right to Cancellation
You may cancel this contract without penalty or further obligation within five
business days after the funding date if you either:
(a)Return to the civil justice funding company the full amount of the disbursed
funds by delivering the civil justice funding company's uncashed check to the
civil justice funding company's office in person.
(b)Mail, by certified or registered mail, to the civil justice funding company at
the address specified in the contract, a notice of cancellation and include in
such mailing a return of the full amount of disbursed funds in the form of the
civil justice funding company's uncashed check or a registered or certified
check or money order."
(3)The civil justice funding company shall have no role in deciding whether, when, and
how much the legal claim is settled for; however, the consumer and his attorney shall
notify the civil justice funding company of the outcome of the legal claim prior to
the resolution date. The civil justice funding company may seek updated information
about the status of the legal claim, but in no event shall the company interfere with
the independent professional judgment of the attorney in the handling of the legal
claim or any settlement of the claim.
(4)Within the body of the contract, in all capital letters in bold typed print of not less
than 12-point font contained within a box, the following: "THE FUNDED
AMOUNT AND AGREED UPON CHARGES SHALL BE PAI D ONLY FROM
THE PROCEEDS OF YOUR LEGAL CLAIM, AND SHALL BE PAID ONLY TO
THE EXTENT THAT THERE ARE AVAILABLE PROCEEDS FROM YOUR
LEGAL CLAIM. YOU WILL NOT OWE [INSERT NAME OF THE CIVIL
JUSTICE FUNDING COMPANY] ANYTHING IF THERE ARE NO PROCEEDS
FROM YOUR LEGAL CLAIM, UNLESS YOU OR YOUR ATTORNEY HAVE
VIOLATED ANY MATERIAL TERM OF THIS CONTRACT OR YOU HAVE
COMMITTED FRAUD AGAINST THE CIVIL JUSTICE FUNDING COMPANY."
(5)Located immediately above the place on the contract where the consumer's signature
is required, conspicuously displayed and in 12-point font the following: "Do not
sign this contract before you read it completely or if it contains any blank spaces.
You are entitled to a completely filled in copy of the contract. Before you sign this
contract, you should obtain the advice of an attorney. Depending on the
circumstances, you may want to consult a tax professional, public or private benefits SB NO. 299
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planning professional, or financial professional. You acknowledge that your attorney
in the legal claim has provided no tax advice, public or private benefit planning
advice, or financial advice regarding this transaction."
Proposed law provides that the contingent right to receive an amount of the potential
proceeds of a legal claim is assignable by a consumer.
Proposed law shall not be construed to cause any civil justice funding transaction to be
deemed a loan or subject to any of the provisions of the Louisiana Consumer Credit Law.
Proposed law provides that only attorney's liens related to the legal claim or Medicare or
other statutory liens related to the legal claim shall take priority over any lien of the civil
justice funding company. All other liens shall take priority by normal operation of law.
Proposed law shall not be deemed to regulate an attorney client relationship or any other
matter regulated by the Louisiana Supreme Court.
Proposed law shall not be deemed to affect an attorney lien or privilege arising under
Louisiana law.
Proposed law provides that any violation of proposed law shall constitute an unfair or
deceptive act or practice for purposes of the Unfair Trade and Consumer Protection Law.
Proposed law allows the attorney general to seek reasonable costs, expenses, and fees if a
person is found liable in an action brought by the attorney general.
Proposed law provides that the remedies and rights provided in proposed law are in addition
to and do not preclude any remedy otherwise available under law to a consumer.
Effective January 1, 2015.
(Adds R.S. 9:3580.1-3580.10)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill
1. Changes effective date from August 1, 2014 to January 1, 2015.
2. Provides for recovery of reasonable fees and costs in actions brought by the
attorney general under the Unfair Trade and Consumer Protection Law.
3. Revises the registration process for civil justice funding companies.
4. Provides that proposed law does not apply to civil justice transactions entered
into prior to July 1, 2015.