Texas House Bill HB247

Texas 2015 - 84th Regular

• Filed: 11/12/14

Caption

Relating to limits on certain actions arising out of attorney's fee agreements.

Impact

The bill seeks to standardize how disputes regarding attorney's fee agreements are handled by the courts. The introduction of clear boundaries regarding claims arising from such agreements may prevent legal actions based on subjective interpretations of fairness and agreement understanding. As a result, attorneys and clients will have a more predictable framework to operate within, specifically enhancing the reliability of contingent fee arrangements in Texas. However, it may also limit recourse for clients unhappy with their attorney's handling of their case, depending on the circumstances under which the agreement was made.

Summary

HB247 aims to impose limitations on certain actions arising from attorney's fee agreements, specifically focusing on agreements that are contingent on the outcome of legal matters. The bill specifies that a party to such an agreement cannot bring an action except under specific conditions, such as if the agreement was obtained through undue means like corruption or fraud. This measure is intended to provide clarity and security regarding the enforceability of attorney's fee agreements and to reduce frivolous lawsuits related to these arrangements.

Contention

Notably, there are concerns that by placing such restrictions on legal actions regarding attorney's fee agreements, HB247 could potentially silence valid grievances that clients may have against their attorneys. Critics of the bill might argue that it favors attorneys by establishing an almost irrebuttable presumption that the agreements are fair and made in good faith, which could inhibit clients from seeking justice in instances of wrongdoing. Discussions in committee and among stakeholders suggest a tension between the desire to protect legal professionals and the need to maintain accountability within the attorney-client relationship.