Louisiana House Bill HB340

Louisiana 2017 Regular Session

• Introduced: 3/30/17
• Refer: 3/30/17
• Refer: 4/10/17

Caption

Provides relative to the availability of attorney fees in suits on open accounts

Impact

The impact of HB 340 is significant as it modifies laws related to civil actions concerning debt recovery. By allowing claimants to seek attorney fees at the point of filing rather than waiting for a judgment, the bill could encourage more creditors to pursue legal recourse while simultaneously placing economic pressure on debtors to resolve outstanding accounts promptly. This change could lead to more litigation involving debts and possibly affect the behaviors of both debtors and creditors across various sectors.

Summary

House Bill 340 seeks to clarify the provision of attorney fees in legal actions concerning open accounts in the state of Louisiana. Specifically, the bill amends existing law to state that a claimant is entitled to reasonable attorney fees when a suit is filed against a debtor, emphasizing that the entitlement attaches at that moment rather than upon judgment being rendered. This provision aims to streamline the process for claimants pursuing collections on open accounts while ensuring that debtors have specific timeframes to settle debts without incurring additional fees.

Sentiment

The sentiment surrounding the bill has been mixed. Proponents argue that the measure provides fair recourse for creditors in enforcing payment and facilitates a more effective collection process. However, some critics voice concerns regarding the potential for the bill to place burden on debtors, particularly those who may face difficulties in resolving debts promptly due to financial hardships. This polarization reflects broader discussions about consumer protections versus creditor rights in the legal system.

Contention

A notable point of contention relates to the delineation of rules regarding when attorney fees can be avoided by debtors. While the bill retains the provision allowing debtors to escape attorney fees by paying the account within specified timelines post-service of a petition, critics argue that these time limits might not adequately accommodate individuals facing genuine financial difficulty. This aspect of the bill could lead to legal disputes about what constitutes a fair process in debt recovery actions.