| 1 | 1 | | 87R1017 YDB-D |
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| 2 | 2 | | By: Miles S.B. No. 755 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to protection of a client's money and property by an |
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| 8 | 8 | | attorney representing the client; creating civil liability. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter C, Chapter 82, Government Code, is |
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| 11 | 11 | | amended by adding Section 82.0625 to read as follows: |
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| 12 | 12 | | Sec. 82.0625. PROTECTION OF CLIENT MONEY AND PROPERTY; |
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| 13 | 13 | | LICENSE SUSPENSION; CIVIL LIABILITY. (a) This section applies |
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| 14 | 14 | | only to an attorney who receives for a client represented by the |
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| 15 | 15 | | attorney money or other property paid to settle a claim in which the |
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| 16 | 16 | | client has an interest. |
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| 17 | 17 | | (b) The attorney: |
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| 18 | 18 | | (1) shall immediately notify the client on the |
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| 19 | 19 | | attorney's receipt of the money or property; and |
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| 20 | 20 | | (2) may pay to a third person a claim owed by the |
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| 21 | 21 | | client using the money or property only with the client's consent |
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| 22 | 22 | | unless other law requires the attorney to pay the claim to the |
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| 23 | 23 | | person. |
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| 24 | 24 | | (c) An attorney who violates Subsection (b) may be suspended |
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| 25 | 25 | | from the practice of law for not more than six months by a district |
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| 26 | 26 | | court of the county in which the attorney resides or in which the |
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| 27 | 27 | | act complained of occurred. |
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| 28 | 28 | | (d) An attorney who violates Subsection (b) is subject to |
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| 29 | 29 | | civil liability for the violation. A person may bring a civil |
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| 30 | 30 | | action against the attorney to recover: |
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| 31 | 31 | | (1) damages in an amount equal to the amount of money |
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| 32 | 32 | | or value of the property received by the attorney; |
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| 33 | 33 | | (2) interest at a rate not to exceed the judgment rate |
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| 34 | 34 | | authorized in the most recent Texas Credit Letter published by the |
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| 35 | 35 | | Office of Consumer Credit Commissioner; and |
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| 36 | 36 | | (3) reasonable attorney's fees. |
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| 37 | 37 | | SECTION 2. Section 82.0625, Government Code, as added by |
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| 38 | 38 | | this Act, applies only to money or other property received by an |
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| 39 | 39 | | attorney for a client on or after the effective date of this Act. |
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| 40 | 40 | | Money or other property received by an attorney for a client before |
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| 41 | 41 | | the effective date of this Act is governed by the law in effect on |
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| 42 | 42 | | the date the money or other property was received, and that law is |
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| 43 | 43 | | continued in effect for that purpose. |
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| 44 | 44 | | SECTION 3. This Act takes effect September 1, 2021. |
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