SB557 Alabama 2012 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2012

Title

Attorneys, certain contracts for legal services voidable, recovery of attorneys fees and expenses, Sec. 34-3-25 am'd

Summary

The bill makes legal-services contracts voidable if obtained through improper solicitation and allows recovery of fees and expenses, including by quantum meruit, with penalties for solicitation.

What This Bill Does

It amends the law to let a client void a contract for legal services if it was procured by conduct that violates state law or the Alabama Rules of Professional Conduct on case solicitation. It defines what counts as solicitation and imposes criminal penalties and civil penalties for improper solicitation. A client who wins can recover fees and expenses paid to the solicitor, and may have the remaining fees allocated under quantum meruit; attorneys can also seek fees under quantum meruit in certain cases. The bill also adds exceptions, sets a two-year deadline for related actions, and makes the changes effective January 1, 2013.

Who It Affects

• Clients and prospective clients seeking legal services, who may have a contract voided and may recover fees and damages if the contract was obtained through improper solicitation.
• Attornies, law firms, and others who solicit clients for legal services, who face new restrictions, potential liability, and penalties for improper solicitation.

Key Provisions

• Contracts for legal services procured as a result of conduct violating state law or the Alabama Rules of Professional Conduct regarding case solicitation are voidable by the client.
• Solicitation is defined broadly to include direct contact or written communication to a specific prospective client, not meeting certain professional conduct rules, with a motive of gain for the solicitor or attorney.
• Criminal penalties: a person who accepts compensation for case solicitation can be charged with a misdemeanor, up to $1,000 fine, and up to six months in county jail or hard labor.
• Civil remedies for clients: a prevailing client may recover all fees and expenses paid to the solicitor, the remaining contract-based fees after deducting quantum meruit amounts, and actual damages from the solicitor or others involved in the solicitation.
• Civil penalties for solicitors: violators may owe a $5,000 penalty per violation plus actual damages.
• Attorney remedies: an attorney may recover fees and expenses on a quantum meruit basis if the client cannot prove solicitation misconduct and reporting requirements are met (with exceptions).
• Two-year limitation period for actions related to solicitation, and conduct that is authorized by professional conduct rules is an exception.
• Effective date: January 1, 2013.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Attorneys