7-10-5. Liability; indemnification.

A litigation financier that agrees to provide $25,000.00 or more in funding pursuant to a litigation financing agreement may be jointly and severally liable for any award or order imposing or assessing costs or monetary sanctions for frivolous litigation against a consumer, entity, or a legal representative of such consumer or entity arising from or relating to any civil action, administrative proceeding, legal claim, or other legal proceeding for which the litigation financier is providing litigation financing; provided, however, that where the litigation financier’s right of repayment is a fixed amount set by contract, the liability of such litigation financier shall not exceed the right of repayment less the amount already extended.#

In each litigation financing contract, the litigation financier shall agree to indemnify, and shall indemnify even without such agreement, the plaintiffs and claimants to the civil action, administrative proceeding, legal claim, or other legal proceeding that is the subject of such litigation financing agreement and such plaintiffs’ and claimants’ legal representatives against any adverse costs, attorney’s fees, damages, or sanctions that may be ordered or awarded against such persons in such action, claim, or proceedings; provided, however, that such indemnification shall not be required or enforceable for adverse costs, attorney’s fees, damages, or sanctions that the litigation financier can show resulted from the intentional misconduct of such plaintiffs or claimants or their legal representatives.#