S.B. No. 1716
 
 
 
 
AN ACT
  relating to voidability of contracts procured through and liability
  arising from conduct constituting barratry; providing a civil
  penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 82.065, Government Code, is amended to
  read as follows:
         Sec. 82.065.  [CONTINGENT FEE] CONTRACT FOR LEGAL SERVICES.
  (a)  A contingent fee contract for legal services must be in
  writing and signed by the attorney and client.
         (b)  Any [A contingent fee] contract for legal services is
  voidable by the client if it is 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.
         (c)  An attorney who was paid or owed fees or expenses under a
  contract that is voided under this section may recover fees and
  expenses based on a quantum meruit theory if the client does not
  prove that the attorney committed barratry or had actual knowledge,
  before undertaking the representation, that the contract was
  procured as a result of barratry by another person. To recover fees
  or expenses under this subsection, the attorney must have reported
  the misconduct as required by the Texas Disciplinary Rules of
  Professional Conduct of the State Bar of Texas, unless:
               (1)  another person has already reported the
  misconduct; or
               (2)  the attorney reasonably believed that reporting
  the misconduct would substantially prejudice the client's
  interests.
         SECTION 2.  Subchapter C, Chapter 82, Government Code, is
  amended by adding Section 82.0651 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 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.
         (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)  reasonable and necessary attorney's fees.
         (c)  A person who was solicited by 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, but who did not enter into a contract as a result of
  that conduct, may file a civil action against any person who
  committed barratry.
         (d)  A person who prevails in an action under Subsection (c)
  shall recover from each person who engaged in barratry:
               (1)  a penalty in the amount of $10,000;
               (2)  actual damages caused by the prohibited conduct;
  and
               (3)  reasonable and necessary attorney's fees.
         (e)  This section shall be liberally construed and applied to
  promote its underlying purposes, which are to protect those in need
  of legal services against unethical, unlawful solicitation and to
  provide efficient and economical procedures to secure that
  protection.
         (f)  The provisions of this subchapter are not exclusive.
  The remedies provided in this subchapter are in addition to any
  other procedures or remedies provided by any other law, except that
  a person may not recover damages and penalties under both this
  subchapter and another law for the same act or practice.
         SECTION 3.  (a)  Section 82.065, Government Code, as amended
  by this Act, applies only to a contract entered into on or after the
  effective date of this Act. A contract entered into before the
  effective date of this Act is governed by the law in effect
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         (b)  Section 82.0651, Government Code, as added by this Act,
  does not apply to prohibited conduct that occurred before the
  effective date of this Act. Prohibited conduct that occurred
  before the effective date of this Act is governed by the law that
  applied to the conduct immediately before the effective date of
  this Act, and that law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2011.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1716 passed the Senate on
  April 7, 2011, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1716 passed the House on
  May 5, 2011, by the following vote:  Yeas 142, Nays 0, two present
  not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor