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Committee backs Law Institute updates to leases of movable property
Summary
SB77, a Law Institute recommendation to modernize Louisiana’s lease‑of‑movables law, was reported favorably after testimony from LSU’s Missy Longrass explaining changes to protect good‑faith lessees and clarify effects on third parties.
The Senate Judiciary A committee reported SB77, a Law Institute‑drafted update to Louisiana’s lease of movable property law intended to align the state's civil‑code approach with the UCC and other states.
Professor Missy Longrass, assistant reporter for the Law Institute at LSU, told the committee the bill has two principal changes: it extends the concept of a good‑faith purchaser to lessees and clarifies how leases affect third parties. "We have a concept of good faith lessees in our law now that is the same, central concept that we see in every other state in the United States," Longrass said.
Committee members pressed for examples and owner protections; Longrass said remedies against bad‑faith intermediaries already exist in the civil code and owners retain recourse against intermediaries who lease or sell property without authority. Senators discussed narrow scope and merchant requirements to ensure the protection applies to commercial, merchant‑like lessors, not casual roadside deals.
After discussion the committee moved and reported SB77 favorably, with witnesses including representatives from the Law Institute and the Land Title Association on record.
