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H5741 • 2026
Ban litigation retention agreements
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Ban litigation retention agreements
Introduced and read first time
Referred to Committee on Judiciary
Ban litigation retention agreements
2025-2026 Bill 5741: Ban litigation retention agreements - South Carolina Legislature Online South Carolina General Assembly 126th Session, 2025-2026 Download This Bill in Microsoft Word Format Indicates Matter Stricken Indicates New Matter H. 5741 STATUS INFORMATION General Bill Sponsors: Reps. Morgan, Edgerton, Kilmartin, Beach, Magnuson, Terribile, Cromer, Harris, Gilreath, Huff, Frank and Pace Document Path: LC-0513DG26.docx Introduced in the House on June 25, 2026 Currently residing in the House Committee on Judiciary Summary: Ban litigation retention agreements HISTORY OF LEGISLATIVE ACTIONS Date Body Action Description with journal page number 6/25/2026 House Introduced and read first time 6/25/2026 House Referred to Committee on Judiciary View the latest legislative information at the website VERSIONS OF THIS BILL 06/25/2026 A bill To AMEND THE South Carolina Code of Laws by adding Article 29 to Title 1, Chapter 1 so as to prohibit a law firm that employs a member of the General Assembly, or an immediate family member of a member of the General assembly, from entering into a litigation retention agreement with a public entity in this State. B e it enacted by the General Assembly of the State of South Carolina: S ECTION 1. C hapter 1, Title 1 of the S.C. Code is amended by adding: A rticle 29 S tate Litigation Retention Agreements S ection 1-1-1910 . ( A) No public entity in this State may enter into, approve, renew, extend, or materially amend a litigation retention agreement with a covered law firm. ( B) This prohibition applies during a member of the General Assembly's tenure and for one year after the member departs office. ( C) No covered law firm may receive direct or indirect compensation from a prohibited litigation retention agreement. This prohibition includes any form of compensation including, but not limited to, attorney's fees, contingency fees, referral fees, co-counsel fees, local counsel fees, subcontract payments, settlement-related fees, or expense reimbursements, except for reimbursement of reasonable costs approved prior to the member of the General Assembly's election and employment by a covered law firm. ( D) For the purposes of this section: ( 1) "Covered law firm" means a law firm, legal professional association, legal professional limited liability company, partnership, corporation, or other legal services entity in which a member of the General Assembly, or an immediate family member of a member thereof, is an owner, partner, shareholder, member, officer, director, employee, of counsel attorney, contractor, compensated agent, referral fee recipient, profit-sharing participant, or other person entitled to receive direct or indirect compensation from the litigation matter. ( 2) "Public entity" means a state agency, department, board, commission, authority, local governing body, school district, special purpose district, or political subdivision of this State. S ECTION 2. This act takes effect upon approval by the Governor. ----XX---- This web page was last updated on June 25, 2026 at 5:52 PM