Rep. Richard Raymond

Rep. Richard Raymond

Legislation introduced by Rep. Richard Raymond (D-Laredo) HB 3404¬†would limit certain actions relating to attorney’s fee and litigation expense agreements in which the fee is contingent on the outcome of the litigation. The bill sets out certain critieria that an attorney’s fee, litigation expense, or settlement agreement must meet in order to qualify for this limitation. Specifically, a party to such an agreement may bring an action on a claim arising out of a settlement agreement or a representation that is the subject of the agreement only if the settlement agreement was obtained by corruption, coercion, or force, or if the agreement was forged. Additionally, in an action to invalidate a settlement agreement that meets the requirements of the bill, 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. A court shall dismiss with prejudice an action on a claim arising from a settlement agreement if the action is brought on grounds other than those specified in the bill.

Pin It on Pinterest

Share This