Bill Text: NY S01546 | 2011-2012 | General Assembly | Introduced

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Bill Title: Authorizes an attorney to attach a lien to awards and settlement proceeds received by his or her client through alternative dispute resolution or settlement negotiations.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-10-03 - SIGNED CHAP.478 [S01546 Detail]

Download: New_York-2011-S01546-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1546
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                   January 10, 2011
                                      ___________
       Introduced  by  Sen. SAMPSON -- read twice and ordered printed, and when
         printed to be committed to the Committee on Judiciary
       AN ACT to amend the judiciary law, in relation to authorizing an  attor-
         ney  to  attach a charging lien to awards and settlement proceeds that
         clients receive through alternative dispute resolutions and settlement
         negotiations
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 475 of the judiciary law, as amended by chapter 105
    2  of the laws of 1946, is amended to read as follows:
    3    S  475.  Attorney's lien in action, special or other proceeding.  From
    4  the commencement of an action, special or other proceeding in any  court
    5  or  before  any state, municipal or federal department, except a depart-
    6  ment of labor, or the service of an answer containing a counterclaim, OR
    7  THE INITIATION OF ANY MEANS OF ALTERNATIVE DISPUTE RESOLUTION INCLUDING,
    8  BUT NOT LIMITED TO,  MEDIATION  OR  ARBITRATION,  OR  THE  PROVISION  OF
    9  SERVICES  IN  A  SETTLEMENT NEGOTIATION AT ANY STAGE OF THE DISPUTE, the
   10  attorney who appears for a party has a lien upon  his  OR  HER  client's
   11  cause  of  action,  claim  or counterclaim, which attaches to a verdict,
   12  report, determination, decision, AWARD, SETTLEMENT,  judgment  or  final
   13  order in his OR HER client's favor, and the proceeds thereof in whatever
   14  hands  they  may come; and the lien cannot be affected by any settlement
   15  between the parties before or after judgment, final  order  or  determi-
   16  nation.    The  court  upon  the  petition of the client or attorney may
   17  determine and enforce the lien.
   18    S 2. Section 475-a of the judiciary law, as added by  chapter  551  of
   19  the laws of 1955, is amended to read as follows:
   20    S  475-a.  NOTICE  OF LIEN. If prior to the commencement of an action,
   21  ARBITRATION, MEDIATION OR A FORM OF ALTERNATIVE DISPUTE RESOLUTION, OR A
   22  special or other proceeding, an attorney serves a notice  of  lien  upon
   23  the  person  or persons against whom his OR HER client has or may have a
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06080-01-1
       S. 1546                             2
    1  claim or cause of action, the attorney has a  lien  upon  the  claim  or
    2  cause  of action from the time such notice is given, which attaches to a
    3  verdict, report, determination, decision,  AWARD,  SETTLEMENT  or  final
    4  order in his OR HER client's favor of any court, ARBITRAL TRIBUNAL or of
    5  any  state,  municipal  or  federal  department,  except a department of
    6  labor, and to any money or property which may be recovered on account of
    7  such claim or cause of action in whatever hands they may come;  and  the
    8  lien cannot be affected by any settlement between the parties after such
    9  notice  of  lien  is  given.  The  notice shall, (1) be served by either
   10  personal service or registered mail; (2) be in writing; (3)  state  that
   11  the relationship of attorney and client has been established, the nature
   12  of  the claim or cause of action, and that the attorney claims a lien on
   13  such claim or cause of action; (4) be signed by  the  client,  or  by  a
   14  person  on  his  OR  HER  behalf  whose relationship is shown, and which
   15  signature shall also  be  witnessed  by  a  disinterested  person  whose
   16  address  shall  also be given; and (5) be signed by the attorney. A lien
   17  obtained under this section shall otherwise have the same effect and  be
   18  enforced  in  the  same  manner  as  a  lien obtained under section four
   19  hundred seventy-five of this [chapter] ARTICLE.
   20    S 3. This act shall take effect on the ninetieth day  after  it  shall
   21  have become a law.