House Bill No. 439 aims to regulate attorney contingency fees in delictual actions by establishing a cap on the fees that can be charged. Specifically, the bill stipulates that attorneys may not charge more than 10% for the first $15,000 of recovery in such cases. Additionally, it mandates that the contingency fee percentage is discoverable, meaning that clients have the right to know this information. Any nondisclosure agreements that attempt to prevent the disclosure of the contingency fee percentage will be deemed null and unenforceable.
The bill also underwent several amendments during the legislative process. Initially, it included a provision requiring an officer of the court to file a complaint against attorneys who violate these provisions with the Louisiana Attorney Disciplinary Board; however, this requirement was later removed. The amendments primarily focused on technical changes and clarifications regarding the discoverability of contingency fees and the enforceability of nondisclosure agreements.