Senate Bill No. 483, introduced by Senator Morris, amends R.S. 37:218(A) to clarify the ranking of liens created by attorney service contracts. The bill stipulates that while attorneys can acquire an interest in the subject matter of a suit through a written contract, the lien established by this contract will not rank superior to mortgages on immovable property, judgments enforcing such mortgages, or contingency fee contracts. This change aims to provide clearer guidelines regarding the hierarchy of claims against property in legal proceedings.

The bill also includes provisions that require both the attorney and the client to obtain written consent from each other before settling, compromising, or discontinuing a suit or claim. Any actions taken without this consent will be considered null and void, ensuring that the original terms of the contract are upheld. The proposed changes will take effect on August 1, 2024, and are intended to enhance the legal framework surrounding attorney contracts and the enforcement of liens.

Statutes affected:
SB483 Original: 37:218(A)
SB483 Engrossed: 37:218(A)