Bill Text: TX HB247 | 2015-2016 | 84th Legislature | Introduced

---

Bill Title: Relating to limits on certain actions arising out of attorney's fee agreements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-03-05 - Referred to Judiciary & Civil Jurisprudence [HB247 Detail]

Download: Texas-2015-HB247-Introduced.html

---

84R174 CAE-D
By: Raymond H.B. No. 247

A BILL TO BE ENTITLED
AN ACT
relating to limits on certain actions arising out of attorney's fee
agreements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 6, Civil Practice and Remedies Code, is
amended by adding Chapter 150A to read as follows:
CHAPTER 150A. LIMITATION OF ACTION ON CERTAIN ATTORNEY'S FEE
AGREEMENTS
Sec. 150A.001. LIMITATION OF ACTION ON CERTAIN ATTORNEY'S
FEE AGREEMENTS. (a) A party to an attorney's fee agreement to which
this section applies, or a successor, heir, agent, attorney, or
assignee of the party, may not bring an action on a claim arising
out of the agreement or the representation that is the subject of
the agreement except as provided by this section.
(b) This section applies to an attorney's fee agreement in
which the fee is contingent on the outcome of the matter for which
the service is rendered and which states in writing:
(1) the method by which the fee is to be determined;
(2) the litigation and other expenses to be deducted
from the recovery; and
(3) whether litigation expenses and other expenses are
to be deducted before or after the contingent fee is calculated.
(c) With respect to a case in which an attorney represents
two or more clients and makes an aggregate settlement of the
clients' claims, this section applies to an attorney's fee
agreement described by Subsection (b) that additionally includes
disclosure of:
(1) the existence and nature of all claims or pleas
involved;
(2) the nature and extent of the participation of each
client in the settlement; and
(3) the amount of remittance to each client and the
method by which the remittance is to be determined.
(d) A party may bring an action on a claim arising out of an
agreement to which this section applies or the representation that
is the subject of the agreement only on the ground that the
agreement was obtained by corruption, coercion, force, fraud, or
other undue means, or that the agreement was forged as provided by
Section 32.21, Penal Code.
(e) In an action on a claim arising out of an agreement
described by Subsection (c), or the settlement that is the subject
of the agreement, brought on grounds other than those provided by
Subsection (d), the settlement is irrebuttably presumed to be:
(1) fully disclosed, read, understood, and
voluntarily entered into by all parties to the agreement;
(2) fair, accepted, reasonable, and made in the best
interests of the parties by the parties or through their attorneys;
and
(3) final and not subject to subsequent litigation.
(f) On motion of a party, a court shall dismiss with
prejudice an action on a claim arising out of an agreement to which
this section applies or the representation that is the subject of
the agreement if the action is brought on grounds other than those
provided by Subsection (d).
SECTION 2. The change in law made by this Act applies only
to an action on a claim arising out of an attorney's fee agreement
or the representation that is the subject of an agreement entered
into on or after the effective date of this Act. An action on a
claim arising out of an attorney's fee agreement or the
representation that is the subject of an agreement entered into
before the effective date of this Act is governed by the law in
effect immediately before that date, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2015.