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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 459
BY SENATOR CLAITOR
ATTORNEYS. Prohibits contingency fee contracts for private attorneys handling matters
for the Department of Health and Hospitals.
AN ACT1
To amend and reenact R.S. 46:438.1, relative to contingency fee contracts; to provide for2
prohibition of certain contingency fee payments by the state; to provide relative to3
private counsel employed by the state to institute civil actions under the Medical4
Assistance Programs Integrity Law; provide relative to contracts of employment of5
private counsel by the state; to provide relative to public records; and to provide for6
related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 46:438.1 is hereby amended and reenacted to read as follows: 9
ยง438.1. Civil actions authorized10
A. The secretary or the attorney general may institute a civil action in the11
courts of this state to seek recovery from persons who violate the provisions of this12
Part. No private counsel employed by the secretary or attorney general to13
institute such civil action shall be compensated on a contingency fee basis or any14
other basis solely dependent upon the outcome of the action. The contract of15
employment of such private counsel, including fee amounts, shall be a public16
record.17 SB NO. 459
SLS 14RS-29 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
B. An action to recover costs, expenses, fees, and attorney fees shall be1
ancillary to, and shall be brought and heard in the same court as, the civil action2
brought under the provision of Subsection A of this Section.3
C.(1) A prevailing defendant may only seek recovery for costs, expenses,4
fees, and attorney fees if the court finds, following a contradictory hearing, that5
either of the following apply:6
(a) The action was instituted by the secretary or attorney general pursuant7
to Subsection A of this Section after it should have been determined by the secretary8
or attorney general to be frivolous, vexatious, or brought primarily for the purpose9
of harassment.10
(b) The secretary or attorney general proceeded with the action instituted11
pursuant to Subsection A of this Section after it should have been determined by the12
secretary or attorney general that proceeding would be frivolous, vexatious, or for13
the purpose of harassment.14
(2) Recovery awarded to a prevailing defendant shall be awarded only for15
those reasonable, necessary, and proper costs, expenses, fees, and attorney fees16
actually incurred by the prevailing defendant.17
D. An action to recover costs, expenses, fees, and attorney fees may be18
brought no later than sixty days after the rendering of judgment by the district court,19
unless the district court decision is appealed. If the district court decision is appealed,20
such action may be brought no later than sixty days after the rendering of the final21
opinion on appeal by the court of appeal or, if applicable, by the supreme court.22
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Julie J. Baxter.
DIGEST
Claitor (SB 459)
Present law provides that the secretary or the attorney general may institute a civil action in
the courts of this state to seek recovery from persons who violate the provisions of the
Medical Assistance Programs Integrity Law.
Proposed law retains present law.
Proposed law provides that no private counsel employed by the secretary or attorney general SB NO. 459
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to institute such civil action shall be compensated on a contingency fee basis or any other
basis solely dependent upon the outcome of the action. Proposed law further provides that
the contract of employment of such private counsel, including fee amounts, shall be a public
record.
Effective August 1, 2014.
(Amends R.S. 46:438.1)