Senate Bill No. by Senator Morris amends Civil Code Article 2652, which pertains to the sale and assignment of litigious rights. The bill clarifies that when a litigious right is assigned, the debtor can extinguish their obligation by paying the assignee the price paid for the assignment, along with interest from the time of the assignment. A right is considered litigious if it is contested in an ongoing lawsuit.
The bill introduces a significant change by specifying that a debtor cannot extinguish their obligation if the assignment is of a promissory note or if the assignment has been made to a co-owner of the assigned right or to a possessor of the thing subject to the litigious right. This amendment aims to provide clearer guidelines regarding the assignment of litigious rights and the conditions under which a debtor can settle their obligations.