A Tennessee bill carried by Memphis Republican Sen. Brent Taylor has kicked up a storm among trial lawyers, who warn it could make it tougher for injured people to take on big corporate defendants. The measure, cross-filed in the House as HB 2108, is moving through early stages of the 114th General Assembly and has landed squarely in a heated national fight over third-party litigation financing.
What the bill actually changes
On paper, the proposal looks tiny. The text of SB 2101/HB 2108 would simply strike "thirty (30) days" and replace it with "thirty-five (35) days" in Tennessee Code Annotated section 47-16-103(c). That tweak would give registered litigation financiers five extra days to update their registration with the secretary of state, according to the bill text filed with the Tennessee General Assembly.
Opponents say the measure goes further
Despite the short statutory language, plaintiff attorneys told local reporters they see the bill as part of a larger effort to clamp down on outside funding for lawsuits. As reported by FOX13 Memphis, Memphis lawyer Thomas Greer labeled the proposal "a U.S. Chamber of Commerce bill." He told the station that the broader package under discussion would cap what litigation-funding groups can charge at 10 percent, make funders liable for attorneys involved in a case, and effectively shut down third-party litigation funding in Tennessee. Greer argues that kind of change would make it harder for Tennesseans with catastrophic injuries to challenge billion-dollar insurers and corporate conglomerates in court.
Where the bill stands right now
SB 2101 has cleared second consideration in the Senate and landed on the Senate Commerce and Labor Committee calendar, although committee action was postponed. Its House companion, HB 2108, has been sent to the Banking & Consumer Affairs Subcommittee, according to legislative tracking records. Those committee stops are where amendments can be offered, and both critics and supporters say they expect potential changes to be hashed out as the bill moves ahead.
Why the fight matters beyond Tennessee
Third-party litigation funding, in which investors front the costs of lawsuits in exchange for a slice of any recovery, has turned into a national policy battleground. Supporters argue it opens courtroom doors for people and small businesses that cannot afford lengthy, expensive litigation. Critics counter that it can create conflicts of interest and give outside financiers too much say in legal strategy. The U.S. Congress and national trade groups have already weighed in with hearings and position papers on how tightly, or loosely, the industry should be regulated.
What to watch next
The real action now shifts to committee rooms. Sponsors can roll out amendments, opponents can work lawmakers for changes, and the committee calendar will dictate if and when the bill reaches a full floor vote. If new language is added that goes beyond the five-day registration deadline adjustment, that is the point when plaintiff lawyers and business interests are expected to push hardest either to reshape the proposal or to stop it altogether.
Legal implications
As written today, the bill is a technical fix to a registration deadline. The political fight around it, though, shows how even small edits to statute can be viewed as part of a broader policy shift. Plaintiff attorneys warn that if future amendments impose caps on funder returns or expand funder liability, those rules could discourage financing for complex, high-cost cases and change how settlements play out. Supporters, on the other hand, say potential new disclosure requirements or caps could help rein in what they describe as predatory practices, a question that has already caught the attention of federal lawmakers.
Coverage will be updated as the Commerce and Labor Committee posts amendments and as bill sponsors and business groups release statements. For now, the best place to track the exact bill language remains the Tennessee General Assembly filing and the companion tracking at LegiScan.
