HB22 Summary

• Legal service contracts are voidable by clients if procured through conduct violating Alabama state law or the Alabama Rules of Professional Conduct regarding case solicitation.

• Clients prevailing in actions against case solicitors may recover all fees and expenses paid, actual damages, and attorney fees; persons solicited but not contracting may file civil actions for a $5,000 penalty plus actual damages.

• Attorneys paid under voided contracts may recover fees based on quantum meruit theory if they did not commit case solicitation and reported the misconduct as required by professional conduct rules, with specified exceptions.

• Case solicitation violations include knowingly instituting unauthorized suits, soliciting employment in person or by communication, paying prospective clients or others for employment referrals, and accepting payment for solicitation.

• Actions must be commenced within two years of the soliciting conduct; the act becomes effective January 1, 2015, and does not apply to conduct occurring before that date.