Senate Bill No. 458, introduced by Senator Bass, aims to amend existing laws regarding attorney-client contracts, specifically focusing on contingency fee agreements. The bill establishes that any contingency fee contract that does not comply with the new provisions will be considered null, void, and unenforceable. It introduces specific limitations on contingency fees, such as capping them at 25% of the total compensation received in a suit, with additional stipulations for medical liability claims. Furthermore, the bill mandates that the client's net recovery must exceed the attorney's fee, ensuring better protection for clients against potentially predatory practices.

Additionally, the bill enacts new regulations concerning legal malpractice insurance. Starting August 1, 2024, any legal malpractice insurance policy issued or renewed in Louisiana must exclude coverage for contingency fee contracts that do not adhere to the new requirements. If a claim arises under such a policy, liability will not be compensable if the contract is non-compliant. The bill also clarifies definitions related to fees and costs, emphasizing the importance of protecting clients' interests and ensuring compliance with the Louisiana State Bar Association's Rules of Professional Conduct. Overall, this legislation is designed to enhance client protections and promote ethical practices within the legal profession.

Statutes affected:
SB458 Original: 37:218(A)
SB458 Engrossed: