RS 9:3580.12

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RS 9:3580.12

§3580.12. Definitions

For the purpose of this Chapter, the following terms have the meanings ascribed to them in this Section:

(1)"Attorney" means an attorney, group of attorneys, or law firm who may be entitled to represent a person or persons in a civil action in this state.

(2)"Litigation financer" means third-party litigation funder as defined in R.S. 9:3580.2.

(3)(a) "Litigation financing" means the financing, funding, advancing, or lending of money to pay for fees, costs, expenses, or an agreement to pay expenses directly related to pursuing the legal claim, administrative proceeding, claim, or cause of action if the financing, funding, advancing, or lending of money is provided by any person other than a person who is any of the following:

(i)A party to the civil action, administrative proceeding, claim, or cause of action.

(ii)An attorney engaged directly or indirectly through another legal representative to represent a party in the civil action, administrative proceeding, claim, or cause of action.

(iii)An entity or insurer with a preexisting contractual obligation to indemnify or defend a party to the civil action, administrative proceeding, claim, or cause of action or a health insurer which has paid, or is obligated to pay, any sums for health care for an injured person under the terms of any health insurance plan or agreement.

(b)Funds provided directly to a party solely for personal needs shall not be considered litigation financing if such funds are provided exclusively for personal and family use and not for legal filings, legal document preparation and drafting, appeals, creation of a litigation strategy, drafting testimony, and related litigation expenses.

(4)"Litigation financing contract or agreement" means a transaction in which litigation financing is provided to a party or a party's attorney in return for assigning to the litigation financer a right to receive an amount including payment of interest, fees, or any other consideration contingent in any respect on the outcome of the underlying claim or action. The term "litigation financing contract or agreement" does not include:

(a)Legal services provided to a party by an attorney on a contingency fee basis or legal costs advanced by an attorney when such services or costs are provided to or on behalf of a party by an attorney in the dispute and in accordance with the Louisiana Rules of Professional Conduct.

(b)The bills, receivables, or liens held by a healthcare provider or their assignee.

(c)Secured or unsecured loans made directly to a party or a party's attorney when repayment of the loan is not contingent upon the judgment, award, settlement, or verdict in a claim or action.

(d)Funding provided by a nonprofit organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code by grant or otherwise.

(5)"Party" means any person or entity or any attorney retained to represent such person or entity in an underlying civil action.

(6)"Proprietary information" shall mean information developed, created, or discovered by a party which became known by or was conveyed to the party which has commercial value in the party's business. "Proprietary information" shall include but not be limited to domain names, trade secrets, copyrights, ideas, techniques, inventions, whether patentable or not, and any other information of any type relating to designs, configurations, documentation, recorded data, schematics, circuits, mask works, layouts, source code, object code, master works, master databases, algorithms, flow charts, formulae, works of authorship, mechanisms, research, manufacture, improvements, assembly, installation, intellectual property including patents and patent applications, and the information concerning the entity's actual or anticipated business, research, or development, or which is received in confidence by or for the entity from any other source.

Acts 2024, No. 765, §1.