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History
- Referred to codes
- Delivered to assembly
- Passed senateVote 32–29
- Ordered to third reading cal.1084
- Committee discharged and committed to rules
- Print number 5389a
- Amend and recommit to judiciary
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Sets forth requirements for non-recourse civil litigation advance contracts
In Assembly Committee · Rules · Sponsor Darryl Towns
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5389A
Title of bill
An act to amend the general obligations law, in relation to the regulation of non-recourse civil litigation advance contracts
Purpose or general idea of bill
The purpose of the bill is to regulate contracts wherein a company makes a payment to a consumer who has a civil right of action for money damages in exchange for the right to recoup such advance, together with fees, via contract from monies received.
Summary of specific provisions
The bill adds a new section 5-801 to the general obligations law to provide that on and after the effective date of the bill, all contracts entered into by companies providing civil litigation advances to consumers shall be subject to the regulation and scrutiny contained in the aforementioned section. In addition to providing that all such contracts shall be in writing, there are additional protections afforded to consumers including requirements relating to the right of cancellation, including disclosure of all the terms and conditions with clear and precise alternatives that may be utilized by a consumer in the event he or she wishes to so cancel. Where the consumer's primary language is English, French or Spanish, the contract mist be written in that language: where the native language of the consumer is neither English, French or Spanish, the contract, shall at the request of the consumer, be translated into his or her respective native language.
Justification
By enacting the provisions of this bill into law, certainty and consistency in non-recourse civil litigation contracts will be ensured. Consumers, and attorneys representing consumers, will be fully apprised of the protections this bill contains. A valuable, and in many cases, a needed alternative source of current and immediate income to those persons who are likely to receive a money award in the distant future will -be more readily available, with full and proper disclosure and transparency.
Prior legislative history
New bill.
Fiscal implications
None.
Effective date
This act shall take effect 90 days after the date upon which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.