BILL ANALYSIS
Senate Research Center |
H.B. 4325 |
89R18973 AMF-F |
By: Moody; Garcia Hernandez, Cassandra (Hinojosa, Juan "Chuy") |
|
Jurisprudence |
|
5/12/2025 |
|
Engrossed |
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The civil penalty for barratry, which amounts to $10,000 in addition to damages and attorney's fees, is recoverable by a person who prevails in a barratry action but has remained static since its establishment. However, some practitioners have argued that the penalty is insufficient to deter prohibited barratry and make victims whole, especially unsophisticated victims who enter agreements without a contract.
H.B. 4325 seeks to address this issue by increasing the civil penalty for barratry and solicitation of professional services to $50,000 when recovered by a person who was solicited through barratry but did not enter into a contract as a result of that conduct.
H.B. 4325 amends current law relating to civil liability for prohibited barratry.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 82.0651(d), Government Code, to increase from $10,000 to $50,000 the amount of a penalty required to be recovered from each person who engaged in barratry.
SECTION 2. Makes application of Section 82.0651(d), Government Code, as amended by this Act, prospective.
SECTION 3.� Effective date: September 1, 2025.