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79R1897 QS-D
By: Williams S.B. No. 260
A BILL TO BE ENTITLED
AN ACT
relating to the division of legal fees between attorneys in
different law firms.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 84, Government Code, is
amended to read as follows:
CHAPTER 84. [UNAUTHORIZED] ATTORNEY COMPENSATION
SECTION 2. Sections 84.001-84.004, Government Code, are
designated as Subchapter A, Chapter 84, Government Code, and a
subchapter heading is added to read as follows:
SUBCHAPTER A. UNAUTHORIZED ATTORNEY COMPENSATION IN CRIMINAL
MATTERS
SECTION 3. Chapter 84, Government Code, is amended by
adding Subchapter B to read as follows:
SUBCHAPTER B. DIVISION OF FEES
Sec. 84.051. DIVISION OF FEES BETWEEN ATTORNEYS NOT OF SAME
FIRM. An attorney may not divide a fee for legal services with
another attorney who is not a partner in or associate of the
attorney's law firm, unless:
(1) the client consents to employment of the other
attorney in writing after a full disclosure that the fees will be
divided;
(2) the division is in proportion to the services
performed by each attorney or, after providing written notice to
the client, each attorney assumes joint responsibility for the
representation; and
(3) the total fee of the attorneys does not exceed
reasonable compensation for all legal services the attorneys
provided to the client.
SECTION 4. Section 84.051, Government Code, as added by
this Act, applies only to a contract for attorney's fees that is
executed on or after the effective date of this Act. A contract for
fees that is executed before the effective date of this Act is
governed by the law applicable to the contract immediately before
the effective date of this Act, and that law is continued in effect
for that purpose.
SECTION 5. This Act takes effect September 1, 2005.