In the end, the elves will be treated by orcish law, only quite a bit stricter. .... You also make it clear that any lower matters are to be decided between the parties - a point that your kin obviously likes far better than the elves do. The later seem to at least appreciate the thought of having some laws, a step above their current situation.
... Alanor seems very undecided, mostly fearing retalitation from the other elves. You assure him that this would be treated along the lines of having attacked an orc, at wich he changes his opinion to broad approval. ...
Ideas for a law structure(based on Roman stuff)
1. Orc Citizen Law
-This is a list of benefits and such orcs and only them can get. The entire tattoo stuff is included in this, as well as other stuff.
1. Elf citizen Law (needs rename)
-These are the laws the more loyal elves are allowed to follow. Contains benefits and the like. Mostly benefited
2. Universal Law
-This part of law is universal for all people.
3. Law of nature
-If you want to be methaphorical, and sue a rabbit or something.
When a conflict happens between multiple law groups, the highest common law system is used. Ie, a conflict between and Orc and an Elf citizen is handled under universal Law.
We actually have something close already in place. The elves are treated according to orcish law - only stricter. "Peoples Law"
The Serfs have laws and rights close to that of the orcs. Wich obviously always will remain a step above. "Civilian Law"
Orcs are quite unburocratic, so they would either settle matters by themselves, fall back onto the laws, or in serious cases look to their current chieftain or liege for a decision. The orcish "Civilian Law" doubles as "Universal law", and orcs would probably just start to laugh at the mention of natural law.
Anywas, changing the current laws would do nothing much, as they are not even what the whole matter is about. The problem is that the orcs are "mobbing" your serfs. Or rather, do treat them as if they were elven "slaves". Wich all others pretty much are, according to orcish laws. Well, untill you granted them "civilian rights" back then.