By: Vasut H.B. No. 4573
A BILL TO BE ENTITLED
AN ACT
relating to civil liability, including sanctions, 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 Subsection (a) and adding Subsections (d-1) and (d-2) to
read as follows:
Sec. 82.0651. CIVIL LIABILITY FOR PROHIBITED BARRATRY. (a)
A client may bring an action to void a contract for legal services
that was attempted to be procured as a result of conduct violating
Section 38.12(a) or (b), Penal Code, or Rule 7.03 of 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].
(d-1) A court shall impose a sanction in an amount provided
by Subsection (d-2) against an attorney who pursues an action under
this section on behalf of a client if:
(1) in the action under this section, the attorney’s
client fails to establish that the contract for legal services
related to the underlying action was improperly procured or
solicited as provided in Subsections (a) or (c);
(2) the court determines the action under this section
was groundless as defined in Section 9.001(3); and
(3) the attorney:
(A) represented the client in the underlying
action after the client terminated his or her relationship with the
defendant-attorney in the underlying action; or
(B) has or will receive a fee from the client’s
recovery in the underlying action.
(d-2) A sanction imposed against an attorney under
Subsection (d-1) shall:
(1) reimburse the defendant for the court costs and
reasonable attorney's fees incurred defending against the action;
and
(2) include an additional amount the court finds is
sufficient to deter the attorney who brought the action under this
section from bringing similar actions.
SECTION 3. The changes in law by this Act apply only to an
action filed on or after the effective date of this Act.
SECTION 4. This Act takes effect September 1, 2025.