Vermont Statutes Title 8 Sec. 2251
Terms Used In Vermont Statutes Title 8 Sec. 2251
- Charges: means the amount a consumer owes to a company in addition to the funded amount and includes an administrative fee, origination fee, underwriting fee, processing fee, and any other fee regardless of how the fee is denominated, including amounts denominated as interest or rate. See
- company: means a person that provides consumer litigation funding to a consumer. See
- Consumer: means a natural person who is seeking or has obtained consumer litigation funding for a pending legal claim, provided:
- Contract: A legal written agreement that becomes binding when signed.
- contract: means a contract between a company and a consumer for the provision of consumer litigation funding. See
- Fees: shall mean earnings due for official services, aside from salaries or per diem compensation. See
- Funded amount: means the amount of monies provided to, or on behalf of, the consumer pursuant to a litigation funding contract. See
- funding: means a nonrecourse transaction in which a company purchases and a consumer assigns to the company a contingent right to receive an amount of the potential net proceeds of a settlement or judgment obtained from the consumer's legal claim. See
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Net proceeds: means the amount recovered by a consumer as a result of a legal claim less costs associated with the legal claim or the underlying events giving rise to the legal claim, including:
- Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
§ 2251. Definitions
As used in this chapter:
(1) “Charges” means the amount a consumer owes to a company in addition to the funded amount and includes an administrative fee, origination fee, underwriting fee, processing fee, and any other fee regardless of how the fee is denominated, including amounts denominated as interest or rate.
(2) “Consumer” means a natural person who is seeking or has obtained consumer litigation funding for a pending legal claim, provided:
(A) the claim is in Vermont; or
(B) the person resides or is domiciled in Vermont, or both.
(3) “Consumer litigation funding” or “funding” means a nonrecourse transaction in which a company purchases and a consumer assigns to the company a contingent right to receive an amount of the potential net proceeds of a settlement or judgment obtained from the consumer’s legal claim. If no proceeds or net proceeds are obtained, the consumer is not required to repay the company the funded amount or charges.
(4) “Consumer litigation funding company,” “litigation funding company,” or “company” means a person that provides consumer litigation funding to a consumer. The term does not include an immediate family member of the consumer.
(5) “Funded amount” means the amount of monies provided to, or on behalf of, the consumer pursuant to a litigation funding contract. The term excludes charges.
(6) “Health care facility” has the same meaning as in 18 V.S.A. § 9402(6).
(7) “Health care provider” has the same meaning as in 18 V.S.A. § 9402(7).
(8) “Litigation funding contract” or “contract” means a contract between a company and a consumer for the provision of consumer litigation funding.
(9)(A) “Net proceeds” means the amount recovered by a consumer as a result of a legal claim less costs associated with the legal claim or the underlying events giving rise to the legal claim, including:
(i) attorney’s fees, attorney liens, litigation costs;
(ii) claims or liens for related medical services owned and asserted by the provider of such services;
(iii) claims or liens for reimbursement arising from third parties who have paid related medical expenses, including claims from insurers, employers with self-funded health care plans, and publicly financed health care plans; and
(iv) liens for workers’ compensation benefits paid to the consumer.
(B) This definition of “net proceeds” shall in no way affect the priority of claims or liens other than those for payments to the consumer litigation funding company under a consumer litigation funding contract subject to this chapter. (Added 2015, No. 128 (Adj. Sess.), § A.1; amended 2019, No. 20, § 33.)