Vasut’s bill on barratry lawsuits

The text as introduced · 376 words

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.