What Statute Authorizes Barratry In the Form of a Letter of Protection in Texas?

Does a Letter of Protection in Texas Circumvent Barratry Laws?

The answer pretty much cemented what we’ve already stated in the lawsuits presented here on LIT

A letter of protection in Texas does not necessarily circumvent barratry laws. Barratry refers to the illegal practice of stirring up lawsuits or quarrels for personal or financial gain, and is prohibited by Texas law. A letter of protection is a written agreement between a personal injury attorney and a client in which the attorney agrees to provide legal services in exchange for a portion of any settlement or judgment obtained in the case. While a letter of protection itself is not considered barratry, the manner in which it is used can still be subject to scrutiny under the barratry laws.

If a personal injury attorney engages in unethical or illegal practices, such as soliciting clients through false or misleading advertising, using high-pressure tactics to convince clients to sign a letter of protection, or filing frivolous lawsuits, they may be subject to discipline and liability under Texas barratry laws, regardless of whether a letter of protection is involved.

In summary, a letter of protection in Texas is not inherently illegal or a circumvention of barratry laws, but the use of a letter of protection can still be subject to the barratry laws if the attorney engaged in unethical or illegal practices.

Does that include letters of protection between personal injury lawyers and physicians?

Yes, letters of protection between personal injury lawyers and physicians are subject to the same rules and regulations as letters of protection between personal injury lawyers and clients. The purpose of a letter of protection between a personal injury lawyer and a physician is to provide assurance to the physician that they will be paid for the medical services they provide to the client in a personal injury case.

However, like all letters of protection, the manner in which they are used can still be subject to scrutiny under Texas barratry laws. For example, if a personal injury lawyer and a physician engage in unethical or illegal practices, such as offering or accepting kickbacks or engaging in fraud or false billing, they may be subject to discipline and liability under Texas barratry laws, regardless of whether a letter of protection is involved.

It is important to note that all legal arrangements, including letters of protection, must comply with ethical and legal standards, and any unethical or illegal practices will be subject to the relevant laws and regulations, including Texas barratry laws.