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 allows attorneys to acquire an interest in the subject matter of a suit through a written contract with their clients, which can include stipulations regarding the settlement or compromise of the suit. However, the proposed law specifies that the lien created by such contracts will not rank superior to mortgages on immovable property, judgments enforcing those mortgages, or contingency fee contracts.

The bill aims to ensure that while attorneys can secure their fees through liens, these liens do not take precedence over existing financial interests related to immovable property. This change is significant as it protects the rights of mortgage holders and reinforces the hierarchy of claims against property. The amendments are set to take effect on August 1, 2024.

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