Senate Bill S8006

2015-2016 Legislative Session

Relates to third party litigation financing

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2015-S8006 (ACTIVE) - Details

See Assembly Version of this Bill:
A9241
Current Committee:
Assembly Ways And Means
Law Section:
General Business Law
Laws Affected:
Add Art 39-H ยงยง899-ccc - 899-ggg, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2017-2018: S3911
2019-2020: S4478

2015-S8006 (ACTIVE) - Summary

Establishes contract requirements for third party litigation financing which includes requiring contracts to contain a right of rescission, a written acknowledgement by the attorney retained, a clear outline of the scheduled fee structure and a no penalty provision.

2015-S8006 (ACTIVE) - Sponsor Memo

2015-S8006 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8006

                            I N  S E N A T E

                              June 3, 2016
                               ___________

Introduced  by  Sen.  ORTT  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in  relation  to  third  party
  litigation financing

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new article
39-H to read as follows:
                               ARTICLE 39-H
                    THIRD PARTY LITIGATION FINANCING
SECTION 899-CCC. DEFINITIONS.
        899-DDD. CONTRACT REQUIREMENTS.
        899-EEE. PROHIBITIONS.
        899-FFF. REGISTRATION.
        899-GGG. PENALTY FOR VIOLATION.
  S 899-CCC. DEFINITIONS. AS USED IN THIS ARTICLE, THE  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "CHARGES" SHALL MEAN THE AMOUNT OF MONEY TO BE PAID TO THE CONSUMER
LITIGATION  FUNDING  COMPANY THAT EXCEEDS THE FUNDED AMOUNT OF PRINCIPAL
LOAN.
  2. "CONSUMER LITIGATION FUNDING COMPANY" SHALL MEAN A PERSON OR ENTITY
THAT ENTERS INTO A NON-RECOURSE TRANSACTION WHEREIN THE COMPANY PROVIDES
FUNDS TO A CONSUMER ON THE CONTINGENT RIGHT TO RECEIVE THE FUNDED AMOUNT
AND AGREED UPON CHARGES OBTAINED IN THE EVENT OF A SETTLEMENT,  JUDGMENT
OR AWARD.
  3.  "FUNDED  AMOUNT"  SHALL  MEAN  THE AMOUNT OF MONEY PROVIDED TO THE
CONSUMER IN CONSUMER LITIGATION FINANCING.
  4. "RESOLUTION DATE" SHALL MEAN THE DATE THE FUNDED AMOUNT AND  AGREED
UPON CHARGES ARE DELIVERED TO THE CONSUMER LITIGATION FINANCING COMPANY.
  S  899-DDD.  CONTRACT REQUIREMENTS. 1. CONTRACTS SHALL CONTAIN A RIGHT
OF RESCISSION, ALLOWING THE CONSUMER TO CANCEL THE  CONTRACT  WITHOUT  A
PENALTY  IF  THE  CONSUMER RETURNS THE FULL AMOUNT OF DISBURSED FUNDS TO
THE COMPANY WITHIN TEN BUSINESS DAYS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13354-08-6
              

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