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A BILL TO BE ENTITLED
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AN ACT
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relating to civil liability for prohibited barratry. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 82.0651(a) and (b), Government Code, |
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are amended to read as follows: |
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(a) A client may bring an action to void a contract for legal |
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services that was procured as a result of conduct violating the laws |
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of this state or the Texas Disciplinary Rules of Professional |
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Conduct of the State Bar of Texas regarding barratry by attorneys or |
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other persons and to recover any amount that may be awarded under |
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Subsection (b). A client who enters into a contract described by |
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this subsection may bring an action to recover any amount that may |
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be awarded under Subsection (b) even if the contract is voided |
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voluntarily. |
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(b) A client who prevails in an action under Subsection (a) |
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shall recover from any person who committed barratry: |
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(1) all fees and expenses paid to that person under the |
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contract; |
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(2) the balance of any fees and expenses paid to any |
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other person under the contract, after deducting fees and expenses |
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awarded based on a quantum meruit theory as provided by Section |
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82.065(c); |
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(3) actual damages caused by the prohibited conduct; |
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[and] |
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(4) a penalty in the amount of $10,000; and |
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(5) reasonable and necessary attorney's fees. |
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SECTION 2. The change in law made by this Act to Section |
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82.0651, Government Code, applies only to an action concerning a |
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contract procured as a result of conduct described by Section |
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82.0651(a), Government Code, that occurs on or after the effective |
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date of this Act. An action concerning a contract procured as a |
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result of conduct that occurred before the effective date of this |
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Act is governed by the law applicable to the contract immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |