Section 46A-6N-1 - DefinitionsFor purposes of this article:
(1) "Consumer" means any person who resides, is present, or is domiciled in this state who claims an entitlement to a judgment, award, settlement, or verdict with respect to a legal claim but does not include an attorney representing that person;(2) "Litigation financier" means a person, entity, or partnership engaged in the business of litigation financing; and(3) "Litigation financing" or "litigation financing transaction": (A) Means a transaction in which financing is provided to a consumer in return for a consumer's assigning to the litigation financier a right to receive payment contingent in any respect on the outcome of the legal claim; and(B) Does not include:(i) Legal services provided on a contingency fee basis, or advanced legal costs, where such services or costs are provided to or on behalf of a consumer by an attorney representing the consumer in the dispute and in accordance with the West Virginia Rules of Professional Conduct;(ii) A consumer loan, as defined by § 46A-1-102 of this code;(iii) A claim under the Workers' Compensation Law, compiled in § 23-1-1et seq. of this code;(iv) Lending or financing arrangements between an attorney or law firm and a lender, provided such arrangements do not give the lender any particularized interest in the outcome of any legal claim or portfolio of legal claims; or(v) Nonprofit organizations provided any financing provided to or by the nonprofit organization does not afford the non-party agreeing to pay legal expenses profit from the legal claim beyond repayment of the amount it has contractually agreed to provide, along with reasonable interest not to exceed the Wall Street Journal prime rate at the time the agreement was executed, plus three percent per year.Amended by 2024 Acts, ch. TBD (SB 850), eff. 6/7/2024.Amended by 2019 Acts, ch. 49 (SB 360), eff. 6/5/2019.