| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to civil liability, including sanctions, for prohibited |
|
|
barratry. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 82.0651, Government Code, is amended by |
|
|
amending Subsection (a) and adding Subsections (d-1) and (d-2) to |
|
|
read as follows: |
|
|
Sec. 82.0651. CIVIL LIABILITY FOR PROHIBITED BARRATRY. (a) |
|
|
A client may bring an action to void a contract for legal services |
|
|
that was attempted to be procured as a result of conduct violating |
|
|
Section 38.12(a) or (b), Penal Code, or Rule 7.03 of the Texas |
|
|
Disciplinary Rules of Professional Conduct of the State Bar of |
|
|
Texas, regarding barratry by attorneys or other persons, and to |
|
|
recover any amount that may be awarded under Subsection (b). A |
|
|
client who enters into a contract described by this subsection may |
|
|
bring an action to recover any amount that may be awarded under |
|
|
Subsection (b) [even if the contract is voided voluntarily]. |
|
|
(d-1) A court shall impose a sanction in an amount provided |
|
|
by Subsection (d-2) against an attorney who pursues an action under |
|
|
this section on behalf of a client if: |
|
|
(1) in the action under this section, the attorney’s |
|
|
client fails to establish that the contract for legal services |
|
|
related to the underlying action was improperly procured or |
|
|
solicited as provided in Subsections (a) or (c); |
|
|
(2) the court determines the action under this section |
|
|
was groundless as defined in Section 9.001(3); and |
|
|
(3) the attorney: |
|
|
(A) represented the client in the underlying |
|
|
action after the client terminated his or her relationship with the |
|
|
defendant-attorney in the underlying action; or |
|
|
(B) has or will receive a fee from the client’s |
|
|
recovery in the underlying action. |
|
|
(d-2) A sanction imposed against an attorney under |
|
|
Subsection (d-1) shall: |
|
|
(1) reimburse the defendant for the court costs and |
|
|
reasonable attorney's fees incurred defending against the action; |
|
|
and |
|
|
(2) include an additional amount the court finds is |
|
|
sufficient to deter the attorney who brought the action under this |
|
|
section from bringing similar actions. |
|
|
SECTION 3. The changes in law by this Act apply only to an |
|
|
action filed on or after the effective date of this Act. |
|
|
SECTION 4. This Act takes effect September 1, 2025. |