Governor Andrew Cuomo has signed into law a measure to allow attorneys to attach liens to awards or settlements received through negotiations or alternative dispute resolution. The measure amends the Judiciary Law to provide attorneys with the same fee protections when a case is settled pre-litigation or through ADR that they have in cases resolved in court. Currently, the Lien Law (Judiciary Law §§475 and 475a) permits an attorney to attach a charging lien to a client’s recovery only in an “action, special or other proceeding in any court or before any state, municipal or federal department, except a Department of Labor.” Courts have consistently held that out-of-court settlements and alternative dispute resolutions are not covered.
A5275/ S1546 was signed by the governor Oct. 3 and takes effect on Jan. 1. The bill was proposed by the New York City Bar with the support of the New York State Bar Association. It was sponsored by Senator John Sampson, D-Brooklyn, and Assemblyman Matthew Titone, D-Staten Island.
