STAND. COM. REP. NO. 445-04
Honolulu, Hawaii
, 2004
RE: H.B. No. 1781
H.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committee on Judiciary, to which was referred H.B. No. 1781 entitled:
"A BILL FOR AN ACT RELATING TO ATTORNEY'S LIENS,"
begs leave to report as follows:
The purpose of this bill is to prevent the double taxation of income by providing an attorney a superior lien on judgments, decrees, orders, and awards entered in the client's favor.
The National Employment Lawyers Association-Hawaii Chapter and several concerned individuals testified in support of this bill.
Your Committee finds that:
(1) This measure will clarify the law regarding attorney's liens and prevent the double taxation of fees and costs paid to an attorney pursuant to a contingent-fee agreement;
(2) The subject lien attaches to settlements as well as the items listed in this bill;
(3) The subject lien applies to costs advanced to clients by their attorneys; and
(4) The priority of the subject lien is not clear under the current language of the bill.
Your Committee has amended this bill by adding language to further clarify that the attorney's lien:
(1) Also attaches to settlements;
(2) Applies to costs advanced to clients by their attorneys; and
(3) Is superior to all other liens.
Your Committee has also made technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1781, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1781, H.D. 1, and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Judiciary,
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____________________________ ERIC G. HAMAKAWA, Chair |
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