Bill To Rein In Local Contingency Fee Contracts Sent To Texas Governor

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May 23, 2019

A bill that would rein in the growing trend of private lawyers pitching lawsuits to local and municipal governments passed both chambers of the Texas legislature and is on the way to the governor, according to the Southeast Texas Record.

When signed, HB 2826 would require any contingency fee arrangement between a private lawyer and a municipal government be approved by the attorney general. It would give the attorney general the power to reject an agreement that he or she believes is related to a matter already being addressed by the state.

Proponents of the bill say it will help local governments hold onto the lion’s share of proceeds from litigation. The general counsel of Texans for Lawsuit Reform said it will ensure municipalities  “get quality legal services at a reasonable rate that allows them to keep more of their potential awards.”