Bill Text: TX HB1890 | 2011-2012 | 82nd Legislature | Comm Sub
Bill Title: Relating to voidability of contracts procured through barratry and civil liability arising from conduct constituting barratry.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-05-04 - Laid on the table subject to call [HB1890 Detail]
Download: Texas-2011-HB1890-Comm_Sub.html
82R19586 YDB-F | |||
By: Fletcher | H.B. No. 1890 | ||
Substitute the following for H.B. No. 1890: | |||
By: Scott | C.S.H.B. No. 1890 |
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relating to voidability of contracts procured through barratry and | ||
civil liability arising from conduct constituting barratry. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 82.065, Government Code, is amended to | ||
read as follows: | ||
Sec. 82.065. [ |
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(a) A contingent fee contract for legal services must be in | ||
writing and signed by the attorney and client. | ||
(b) Any [ |
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voidable by the client if it is procured as a result of conduct | ||
violating the laws of this state or the Texas Disciplinary Rules of | ||
Professional Conduct [ |
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attorneys or other persons. | ||
(c) A lawyer who was paid or owed fees or expenses under a | ||
voided contract may recover in quantum meruit if the client does not | ||
prove the lawyer committed barratry or had actual knowledge, prior | ||
to undertaking the representation, that the contract was procured | ||
as a result of barratry by another person. To recover in quantum | ||
meruit, the lawyer must have reported the misconduct as required by | ||
Rule 8.03(a), Texas Disciplinary Rules of Professional Conduct, | ||
unless: | ||
(1) another person previously reported the conduct; or | ||
(2) the lawyer reasonably believed that reporting the | ||
conduct would substantially prejudice the client's interests. | ||
SECTION 2. Subchapter C, Chapter 82, Government Code, is | ||
amended by adding Section 82.067 to read as follows: | ||
Sec. 82.067. CIVIL LIABILITY FOR PROHIBITED BARRATRY. | ||
(a) A client may bring an action to void any contract for legal | ||
services that was procured as a result of conduct violating the laws | ||
of this state or the Texas Disciplinary Rules of Professional | ||
Conduct regarding barratry by attorneys or other persons. | ||
(b) A client who prevails in an action under Subsection (a) | ||
shall recover from any person who committed barratry: | ||
(1) all fees and expenses paid to that person under any | ||
voided contract; | ||
(2) the balance of any fees and expenses paid to | ||
another person under the voided contract less any quantum meruit | ||
fees and expenses awarded under Section 82.065(c); | ||
(3) actual damages caused by the prohibited conduct; | ||
and | ||
(4) reasonable and necessary attorney's fees. | ||
(c) A person who was solicited by conduct violating the laws | ||
of this state or the Texas Disciplinary Rules of Professional | ||
Conduct regarding barratry by attorneys or other persons, but who | ||
did not enter into a contract as a result of that conduct, may file a | ||
civil action against any person who committed barratry. | ||
(d) A person who prevails in an action under Subsection (c) | ||
shall recover from each person who engaged in barratry: | ||
(1) a penalty in the amount of $10,000; | ||
(2) actual damages caused by the prohibited conduct; | ||
and | ||
(3) reasonable and necessary attorney's fees. | ||
(e) This section shall be liberally construed and applied to | ||
promote its underlying purposes, which are to protect those in need | ||
of legal services against unethical, unlawful solicitation and to | ||
provide efficient and economical procedures to secure such | ||
protection. | ||
(f) The provisions of this subchapter are not exclusive. | ||
The remedies provided in this subchapter are in addition to any | ||
other procedures or remedies provided in any other law, except that | ||
recovery is not permitted under both this subchapter and another | ||
law of both damages and penalties for the same act or practice. | ||
SECTION 3. (a) Section 82.065, Government Code, as amended | ||
by this Act, applies only to a contract entered into on or after the | ||
effective date of this Act. A contract entered into before the | ||
effective date of this Act is governed by the law in effect | ||
immediately before the effective date of this Act, and that law is | ||
continued in effect for that purpose. | ||
(b) Section 82.067, Government Code, as added by this Act, | ||
does not apply to prohibited conduct, as defined by that section, | ||
that occurred before the effective date of this Act. Prohibited | ||
conduct that occurred before the effective date of this Act is | ||
governed by the law that applied to the conduct immediately before | ||
the effective date of this Act, and that law is continued in effect | ||
for that purpose. | ||
SECTION 4. This Act takes effect September 1, 2011. |