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A BILL TO BE ENTITLED
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AN ACT
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relating to limits on certain actions arising out of attorney's fee |
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agreements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 6, Civil Practice and Remedies Code, is |
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amended by adding Chapter 150A to read as follows: |
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CHAPTER 150A. LIMITATION OF ACTION ON CERTAIN ATTORNEY'S FEE |
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AGREEMENTS |
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Sec. 150A.001. LIMITATION OF ACTION ON CERTAIN ATTORNEY'S |
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FEE AGREEMENTS. (a) A party to an attorney's fee agreement to which |
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this section applies, or a successor, heir, agent, attorney, or |
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assignee of the party, may not bring an action on a claim arising |
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out of the agreement or the representation that is the subject of |
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the agreement except as provided by this section. |
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(b) This section applies to an attorney's fee agreement in |
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which the fee is contingent on the outcome of the matter for which |
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the service is rendered and which states in writing: |
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(1) the method by which the fee is to be determined; |
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(2) the litigation and other expenses to be deducted |
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from the recovery; and |
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(3) whether litigation expenses and other expenses are |
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to be deducted before or after the contingent fee is calculated. |
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(c) With respect to a case in which an attorney represents |
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two or more clients and makes an aggregate settlement of the |
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clients' claims, this section applies to an attorney's fee |
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agreement described by Subsection (b) that additionally includes |
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disclosure of: |
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(1) the existence and nature of all claims or pleas |
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involved; |
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(2) the nature and extent of the participation of each |
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client in the settlement; and |
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(3) the amount of remittance to each client and the |
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method by which the remittance is to be determined. |
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(d) A party may bring an action on a claim arising out of an |
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agreement to which this section applies or the representation that |
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is the subject of the agreement only on the ground that the |
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agreement was obtained by corruption, coercion, force, fraud, or |
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other undue means, or that the agreement was forged as provided by |
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Section 32.21, Penal Code. |
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(e) In an action on a claim arising out of an agreement |
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described by Subsection (c), or the settlement that is the subject |
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of the agreement, brought on grounds other than those provided by |
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Subsection (d), the settlement is irrebuttably presumed to be: |
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(1) fully disclosed, read, understood, and |
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voluntarily entered into by all parties to the agreement; |
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(2) fair, accepted, reasonable, and made in the best |
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interests of the parties by the parties or through their attorneys; |
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and |
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(3) final and not subject to subsequent litigation. |
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(f) On motion of a party, a court shall dismiss with |
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prejudice an action on a claim arising out of an agreement to which |
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this section applies or the representation that is the subject of |
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the agreement if the action is brought on grounds other than those |
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provided by Subsection (d). |
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SECTION 2. The change in law made by this Act applies only |
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to an action on a claim arising out of an attorney's fee agreement |
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or the representation that is the subject of an agreement entered |
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into on or after the effective date of this Act. An action on a |
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claim arising out of an attorney's fee agreement or the |
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representation that is the subject of an agreement entered into |
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before the effective date of this Act is governed by the law in |
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effect immediately before that date, and the former law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |