S T A T E   O F   N E W   Y O R K
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                                  5275

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 15, 2011
                               ___________

Introduced  by  M.  of A. TITONE, P. RIVERA -- read once and referred 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:

  Section 1. Section 475 of the judiciary law, as amended by chapter 105
of the laws of 1946, is amended to read as follows:
  S  475.  Attorney's lien in action, special or other proceeding.  From
the commencement of an action, special or other proceeding in any  court
or  before  any state, municipal or federal department, except a depart-
ment of labor, or the service of an answer containing a counterclaim, OR
THE INITIATION OF ANY MEANS OF ALTERNATIVE DISPUTE RESOLUTION INCLUDING,
BUT NOT LIMITED TO,  MEDIATION  OR  ARBITRATION,  OR  THE  PROVISION  OF
SERVICES  IN  A  SETTLEMENT NEGOTIATION AT ANY STAGE OF THE DISPUTE, the
attorney who appears for a party has a lien upon  his  OR  HER  client's
cause  of  action,  claim  or counterclaim, which attaches to a verdict,
report, determination, decision, AWARD, SETTLEMENT,  judgment  or  final
order in his OR HER client's favor, and the proceeds thereof in whatever
hands  they  may come; and the lien cannot be affected by any settlement
between the parties before or after judgment, final  order  or  determi-
nation.    The  court  upon  the  petition of the client or attorney may
determine and enforce the lien.
  S 2. Section 475-a of the judiciary law, as added by  chapter  551  of
the laws of 1955, is amended to read as follows:
  S  475-a.  NOTICE  OF LIEN. If prior to the commencement of an action,
ARBITRATION, MEDIATION OR A FORM OF ALTERNATIVE DISPUTE RESOLUTION, OR A
special or other proceeding, an attorney serves a notice  of  lien  upon
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
              

A. 5275                             2

claim or cause of action, the attorney has a  lien  upon  the  claim  or
cause  of action from the time such notice is given, which attaches to a
verdict, report, determination, decision,  AWARD,  SETTLEMENT  or  final
order in his OR HER client's favor of any court, ARBITRAL TRIBUNAL or of
any  state,  municipal  or  federal  department,  except a department of
labor, and to any money or property which may be recovered on account of
such claim or cause of action in whatever hands they may come;  and  the
lien cannot be affected by any settlement between the parties after such
notice  of  lien  is  given.  The  notice shall, (1) be served by either
personal service or registered mail; (2) be in writing; (3)  state  that
the relationship of attorney and client has been established, the nature
of  the claim or cause of action, and that the attorney claims a lien on
such claim or cause of action; (4) be signed by  the  client,  or  by  a
person  on  his  OR  HER  behalf  whose relationship is shown, and which
signature shall also  be  witnessed  by  a  disinterested  person  whose
address  shall  also be given; and (5) be signed by the attorney. A lien
obtained under this section shall otherwise have the same effect and  be
enforced  in  the  same  manner  as  a  lien obtained under section four
hundred seventy-five of this [chapter] ARTICLE.
  S 3. This act shall take effect on the ninetieth day  after  it  shall
have become a law.