Texans for Lawsuit Reform

Through political action, legal, academic and market research, and grassroots initiatives, TLR fights for common-sense reforms that keep Texas open for business.

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For the Record

Time for Transparency

When we elect individuals to serve in public office, they pledge to uphold the law, do what’s best for their constituents, and spend tax dollars wisely, honestly and transparently. After all, they’re doing the work of the people.

Those obligations don’t necessarily apply to contingency fee plaintiff lawyers who solicit local governments as clients.

We’ve written extensively about the rise of law firms soliciting local governments to file lawsuits. At the national level, we’ve seen this in climate change and opioid litigation, but it has also become a regular occurrence in Texas. From opioids to construction defects, lawyers are propositioning local governments to file contingency-fee lawsuits—that is, the lawyer doesn’t get paid unless the case is successful. The local government takes home the leftovers after the legal and court fees have been paid. While local governments must be able to hire private lawyers, the way the contracting process currently works leaves plenty of room for abuse and over-charging by lawyers.

A recent article from Legal Newsline highlights the problem. Records show that legal bills for two of the firms involved in county-level opioid litigation ranged from $160 to draft and file complaints to $3,000 or more to review the same complaints. The law firms involved fought the public release of their contracts, begging the question of exactly what is in those contracts that they want to hide from the public? And why did the contracts vary so wildly for what amounted to similar work?

Currently, nothing is stopping plaintiff lawyers from brokering a sweetheart deal behind closed doors to take home 30 percent or more in fees. Nothing stops those attorneys from inflating their rates to drive up their award if a case is resolved. That’s because contracts with local governments don’t have to follow the same statutes and procedures as contracts with state government.

For example, while the state can enter into contingency fee agreements with law firms, it cannot enter into percentage contingency fee agreements. Any contingency fee agreement with the state is based on the attorneys receiving a reasonable hourly rate. This lets the state keep more of the money from any potential award rather than simply getting the leftovers once the attorneys have taken a massive cut. At the same time, the hourly rate is sufficient to engage outstanding lawyers to litigate meritorious cases for the government.

It’s time to make contingency-fee contracting consistent and transparent. The statutes and regulations in place for state contracts have successfully allowed the state of Texas to hire private attorneys when necessary, to keep more of the money from these legal awards and to bring more transparency to the process. What has worked for the state will work for its political subdivisions.

Rep. Greg Bonnen has file a bill to create more transparency and consistency in the process, giving taxpayers a better idea of why contingency fee contracts are required and whether there were any preexisting relationships between the law firm and the government entity. We expect a Senate bill to be filed soon. The legislation requires local governments to publicly post that they are hiring a private attorney, to hire the most qualified attorneys to handle their specific litigation (rather than simply one who has solicited them) and require contracts for legal services to be based on a reasonable hourly rate rather than a percentage rate. Finally, the bills give the Texas attorney general the authority to review and reject contracts that don’t comply with the statutes, or that interfere with the state’s interest in similar litigation.

TLR supports this legislation and will keep you updated on its progress during session.

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Texans for Lawsuit Reform

3 days ago

Texans for Lawsuit Reform

A great turnout at our 88th Legislative Session Lunch & Learn today! Thanks to all the legislative staffers who joined us to hear about TLR’s agenda this session. ... See MoreSee Less

A  great turnout at our 88th Legislative Session Lunch & Learn today! Thanks to all the legislative staffers who joined us to hear about TLR’s agenda this session.Image attachment
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Texans for Lawsuit Reform

3 days ago

Texans for Lawsuit Reform

In case you missed it: Check out the TLR Advocate to read our top priorities for the 88th legislative session, guest columns, and an update on the expanding TLR team. Read and share: bit.ly/3ZHdEva ... See MoreSee Less

In case you missed it: Check out the TLR Advocate to read our top priorities for the 88th legislative session, guest columns, and an update on the expanding TLR team. Read and share: https://bit.ly/3ZHdEva
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Texans for Lawsuit Reform

4 days ago

Texans for Lawsuit Reform

Public nuisance lawsuits have expanded beyond their traditional use into a way to regulate through litigation. TLR is dedicated to preventing the public nuisance doctrine from becoming a catch-all cause of action used to impose one person’s political views on society as a whole. Read and share: bit.ly/3ZHdEva ... See MoreSee Less

Public nuisance lawsuits have expanded beyond their traditional use into a way to regulate through litigation. TLR is dedicated to preventing the public nuisance doctrine from becoming a catch-all cause of action used to impose one person’s political views on society as a whole. Read and share: https://bit.ly/3ZHdEva
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lawsuitreform avatarTLR@lawsuitreform·
3 Feb 1621598756633288707

A great turnout at our 88th Legislative Session Lunch & Learn today! Thanks to all the legislative staffers who joined us to hear about TLR’s agenda this session. #txlege

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lawsuitreform avatarTLR@lawsuitreform·
3 Feb 1621539669228879873

#ICYMI: Check out the TLR Advocate to read our top priorities for the 88th legislative session, guest columns, and an update on the expanding TLR team. Read and share: https://bit.ly/3ZHdEva

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lawsuitreform avatarTLR@lawsuitreform·
2 Feb 1621267523164426242

TLR is working to make the Texas legal system fair, efficient, and accessible for all. Learn more: #txjustice #txcourts

TLR at a Glance

TLR's objective is to restore litigation to its traditional and appropriate role in our society. A lawsuit takes a heavy emotional and financial toll ...

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Texans for Lawsuit Reform
1701 Brun Street
Houston, Texas 77019

Ph. 713-963-9363
  • About TLR
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  • Invite a TLR Speaker
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  • Contact TLR

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