Texas House Bill HB2825

Texas 2009 - 81st Regular

Caption

Relating to the disclosure of a lack of professional liability insurance coverage by certain attorneys.

Impact

The introduction of HB2825 carries significant implications for both attorneys and clients in Texas. By requiring clear disclosures regarding the absence of professional liability insurance, the bill seeks to foster greater accountability among legal practitioners. It may create a more informed client base, capable of making better decisions based on the insurance status of their legal counsel. The expectation is that such transparency could ultimately raise standards within the legal profession and encourage attorneys to acquire insurance to avoid negative perceptions.

Summary

House Bill 2825 is proposed legislation in Texas aimed at enhancing transparency regarding professional liability insurance among attorneys. It mandates that attorneys who do not carry professional liability insurance must notify clients and potential clients about their lack of coverage. This is intended to ensure that clients are aware of the risks associated with hiring an attorney who is not insured, potentially impacting their decision when seeking legal representation.

Contention

Debate surrounding HB2825 is likely to focus on the enforcement and practical implications of these disclosure requirements. While proponents argue that the bill improves consumer protection and promotes ethical practices within the legal field, critics may express concerns about the additional burden it places on attorneys, particularly those in solo practice or small firms. Discussions may also emphasize the potential impact on client trust, as clients might perceive uninsured attorneys as less competent or reliable.

Implementation

The bill also empowers the Texas Supreme Court to create specific rules governing the form and manner of the required disclosures. This regulatory aspect raises important questions about the manner in which this information will be communicated to clients, and enforcement mechanisms for non-compliance. It is expected that if the bill is enacted, the provisions will take effect immediately upon receiving a two-thirds majority vote or on September 1, 2009, should the arrangement for immediate effect not be fulfilled.