83R15862 AJA-F
By: Fletcher H.B. No. 1711
A BILL TO BE ENTITLED
AN ACT
relating to civil liability 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 Subsections (a) and (b) and adding Subsection (g) to read
as follows:
(a) A client may bring an action to void a contract for legal
services that was procured as a result of conduct violating the laws
of this state or 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.
(b) A client who prevails in an action under Subsection (a)
shall recover from any person who committed barratry:
(1) all fees and expenses paid to that person under the
contract;
(2) the balance of any fees and expenses paid to any
other person under the contract, after deducting fees and expenses
awarded based on a quantum meruit theory as provided by Section
82.065(c);
(3) actual damages caused by the prohibited conduct;
[and]
(4) a penalty in the amount of $10,000; and
(5) reasonable and necessary attorney's fees.
(g) The expedited actions process created by Rule 169, Texas
Rules of Civil Procedure, does not apply to an action under this
section.
SECTION 2. (a) Except as provided by this section, Section
82.0651, Government Code, as amended by this Act, applies only to an
action concerning a contract procured as a result of conduct
described by Section 82.0651(a), Government Code, that occurs on or
after the effective date of this Act. An action concerning a
contract procured as a result of conduct that occurred before the
effective date of this Act is governed by the law applicable to the
contract immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
(b) Section 82.0651(g), Government Code, as added by this
Act, applies to an action:
(1) commenced on or after the effective date of this
Act; or
(2) pending on the effective date of this Act and in
which the trial, or any new trial or retrial following motion,
appeal, or otherwise, begins on or after the effective date of this
Act.
SECTION 3. This Act takes effect September 1, 2013.