H.B. No. 4573 amends Section 82.0651 of the Government Code to address civil liability and sanctions related to prohibited barratry. The bill allows clients to void contracts for legal services that were attempted to be procured through conduct violating specific provisions regarding barratry. Notably, it removes the provision that allowed clients to recover amounts even if the contract was voluntarily voided. Additionally, the bill introduces new subsections that mandate courts to impose sanctions on attorneys who pursue actions under this section if the client fails to prove that the contract was improperly procured, if the court finds the action groundless, or if the attorney has received a fee from the client's recovery.

The sanctions imposed on attorneys will include reimbursement for court costs and reasonable attorney's fees incurred by the defendant, as well as an additional amount deemed sufficient to deter the attorney from bringing similar actions in the future. The changes in law will only apply to actions filed on or after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Government Code 82.0651 (Government Code 82)