SB557 Summary

• Establishes that contracts for legal services are voidable if procured through conduct violating state law or Alabama Rules of Professional Conduct regarding case solicitation.

• Clients who prevail in voiding a contract may recover all fees and expenses paid to the soliciting person, plus the balance of fees paid to others (after deducting quantum meruit amounts), and actual damages.

• Persons solicited but who did not enter into a contract may file a civil action and recover $5,000 in penalties plus actual damages from those who engaged in unlawful solicitation.

• Attorneys paid under voided contracts may recover fees based on quantum meruit theory if they did not commit solicitation or have knowledge of it, provided they reported the misconduct as required by professional conduct rules.

• Actions must be commenced within two years of the soliciting conduct; the act becomes effective January 1, 2013.