SLS 24RS-1433 ENGROSSED
2024 Regular Session
SENATE BILL NO. 483
BY SENATOR MORRIS
ATTORNEYS. Provides relative to attorney service contracts. (8/1/24)
1 AN ACT
2 To amend and reenact R.S. 37:218(A), relative to attorney contracts; to provide relative to
3 judgments and mortgages on immovable property; to provide relative to contingency
4 fee contracts; to provide with respect to ranking of liens; and to provide for related
5 matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 37:218(A) is hereby amended and reenacted to read as follows:
8 ยง218. Contract for fee based on proportion of subject matter; stipulation concerning
9 compromise, discontinuance, or settlement
10 A. By written contract signed by his client, an attorney at law may acquire
11 as his fee an interest in the subject matter of a suit, proposed suit, or claim in the
12 assertion, prosecution, or defense of which he is employed, whether the claim or suit
13 be for money or for property. Such interest shall be a special privilege to take rank
14 as a first privilege thereon, superior to all other privileges and security interests
15 under Chapter 9 of the Louisiana Commercial Laws. In such contract, it may be
16 stipulated that neither the attorney nor the client may, without the written consent of
17 the other, settle, compromise, release, discontinue, or otherwise dispose of the suit
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 483
SLS 24RS-1433 ENGROSSED
1 or claim. Either party to the contract may, at any time, file and record it with the
2 clerk of court in the parish in which the suit is pending or is to be brought or with the
3 clerk of court in the parish of the client's domicile. Nothing in this Section or any
4 other provision of law, including R.S. 9:5001, shall be construed to allow a lien
5 created pursuant to this Subsection to rank superior to a mortgage affecting
6 immovable property or a judgment rendered enforcing a mortgage on
7 immovable property, or a contingency fee contract. After such filing, any
8 settlement, compromise, discontinuance, or other disposition made of the suit or
9 claim by either the attorney or the client, without the written consent of the other, is
10 null and void and the suit or claim shall be proceeded with as if no such settlement,
11 compromise, discontinuance, or other disposition has been made.
12 * * *
The original instrument was prepared by Jonathon Wagner. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Hanna Gettys.
DIGEST
SB 483 Engrossed 2024 Regular Session Morris
Present law provides that an attorney's contract for service can include provisions granting
him an interest in the subject matter of a suit, proposed suit, or claim in the assertion,
prosecution, or defense of which he is employed. Present law provides that the attorney's lien
is superior to all other privileges and security interests.
Proposed law provides a lien created by an attorney's contract for service is not superior in
rank to a mortgage on immovable property or a judgment enforcing a mortgage on
immovable property, or a contingency fee contract.
Effective August 1, 2024.
(Amends R.S. 37:218(A))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary A to the
original bill
1. Makes technical changes.
2. Adds that a lien created by an attorney's contract for service is not superior
in rank to contingency fee contracts.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.