Bill Text: TX HB3404 | 2013-2014 | 83rd Legislature | Introduced

Texas House Bill 3404 (Prior Session Legislation)

Introduced

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

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2013-04-08 - No action taken in committee [HB3404 Detail]

Download: Texas-2013-HB3404-Introduced.html

	83R13011 TJS-F

	By: Raymond	H.B. No. 3404



	A BILL TO BE ENTITLED
	AN ACT
	relating to limits on certain actions arising out of attorney's fee
	agreements and litigation expense 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 165 to read as follows:
	CHAPTER 165. LIMITATION OF ACTION ON CERTAIN ATTORNEY'S FEE
	AGREEMENTS AND LITIGATION EXPENSE AGREEMENTS
	Sec. 165.001. LIMITATION OF ACTION ON CERTAIN ATTORNEY'S
	FEE AGREEMENTS AND LITIGATION EXPENSE AGREEMENTS. (a) A party to an
	attorney's fee agreement or litigation expense 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 settlement 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 and
	litigation expense 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 a settlement agreement
	approved by the client at the conclusion of the litigation 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 a
	settlement 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, or
	force or that the agreement was forged as provided by Section 32.21,
	Penal Code.
	(e) In an action on a claim arising out of a settlement
	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 a settlement 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 commenced or settled, or in which judgment was entered,
	on or after the effective date of this Act. An action commenced or
	settled, or in which judgment was entered, 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, 2013.