BILL NUMBER: AB 2227	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Villines

                        FEBRUARY 18, 2010

   An act to amend Section 6147 of the Business and Professions Code,
relating to attorneys.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2227, as introduced, Villines. Attorneys: contingency fees.
   Existing law, the State Bar Act, provides for the licensure and
regulation of attorneys by the State Bar of California. Existing law
requires an attorney who contracts with a client on a contingency fee
basis to enter into a specified written contract with the plaintiff
and requires the contract to include certain statements.
   This bill would make a nonsubstantive, technical change to those
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6147 of the Business and Professions Code is
amended to read:
   6147.  (a) An attorney who contracts to represent a client on a
contingency fee basis shall, at the time the contract is entered
into, provide a duplicate copy of the contract, signed by both the
attorney and the client, or the client's guardian or representative,
to the plaintiff, or to the client's guardian or representative. The
contract shall be in writing and shall include, but is not limited
to, all of the following:
   (1) A statement of the contingency fee rate that the client and
attorney have agreed upon.
   (2) A statement as to how disbursements and costs incurred in
connection with the prosecution or settlement of the claim will
affect the contingency fee and the client's recovery.
   (3) A statement as to what extent, if any, the client could be
required to pay any compensation to the attorney for related matters
that arise out of their relationship not covered by their contingency
fee contract. This may include any amounts collected for the
plaintiff by the attorney.
   (4) Unless the claim is subject to the provisions of Section 6146,
a statement that the fee is not set by law but is negotiable between
attorney and client.
   (5) If the claim is subject to the provisions of Section 6146, a
statement that the rates set forth in that section are the maximum
limits for the contingency fee agreement, and that the attorney and
client may negotiate a lower rate.
   (b) Failure to comply with any provision of this section renders
the agreement voidable at the option of the plaintiff, and the
attorney shall thereupon be entitled to collect a reasonable fee.
   (c) This section shall not apply to contingency fee contracts for
the recovery of workers' compensation benefits. 
   (d) This section shall become operative on January 1, 2000.