Texas Senate Bill SB755

Texas 2021 - 87th Regular

Caption

Relating to protection of a client's money and property by an attorney representing the client; creating civil liability.

Impact

If enacted, SB 755 would amend the Government Code in Texas to include new stipulations for attorneys, enhancing the protection of client property and money. The law would stipulate that attorneys who fail to comply with these regulations could face up to six months of suspension from practicing law, as well as being subject to civil liability. Clients would have the right to sue attorneys for any damages incurred due to non-compliance, including recovery of the property or funds in question, along with interest and legal fees.

Summary

Senate Bill 755 addresses the ethical responsibilities of attorneys regarding the management of their clients' money and property. The bill introduces specific provisions that require attorneys to notify their clients immediately upon receipt of funds or property intended for the client. Furthermore, any payment to third parties on behalf of the client must be made only with the client's explicit consent, unless mandated by other laws. This aims to enhance the transparency and accountability of attorneys in handling client assets.

Contention

While the bill aims to strengthen client protections and improve ethical standards within the legal profession, it may provoke discussions regarding the balance of responsibility and authority between attorneys and clients. Critics might argue about the potential for increased litigation against lawyers, which could lead to fear of legal repercussions and affect the overall attorney-client relationship. Proponents, however, would defend that these provisions are necessary to safeguard clients from potential financial misconduct and ensure that their interests are prioritized.