Senate Bill 0804

    Florida Senate - 1999                                   SB 804

    By Senator Gutman





    34-421-99

  1                      A bill to be entitled

  2         An act relating to contingency fees; limiting

  3         fees that attorneys may charge on a contingency

  4         basis with respect to certain cases; providing

  5         criminal penalties; amending s. 11.047, F.S.;

  6         prohibiting contingency fees with respect to

  7         claim bills; providing an effective date.

  8

  9  Be It Enacted by the Legislature of the State of Florida:

10

11         Section 1.  Restriction on attorney's fees in tort

12  case; penalties.--

13         (1)  An attorney may not charge a contingency fee for

14  services rendered in any action in tort, including any service

15  rendered on appeal, which exceeds:

16         (a)  Fifteen percent of the award; or

17         (b)  Twenty-five percent of the award if the attorney

18  pays all costs and expenses associated with the action.

19         (2)  Any attorney who violates subsection (1) is guilty

20  of a felony of the third degree, punishable as provided in

21  section 775.082 or section 775.083, Florida Statutes.

22         Section 2.  Section 11.047, Florida Statutes, is

23  amended to read:

24         11.047  Contingency fees; prohibitions; penalties.--

25         (1)  "Contingency fee" means a fee, bonus, commission,

26  or nonmonetary benefit as compensation which is dependent or

27  in any way contingent on the enactment, defeat, modification,

28  or other outcome of any specific legislative action, including

29  any claim bill.

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1999                                   SB 804
    34-421-99




  1         (2)  No person may, in whole or in part, pay, give, or

  2  receive, or agree to pay, give, or receive, a contingency fee.

  3  However, this subsection does not apply to claims bills.

  4         (3)  Any person who violates this section commits a

  5  misdemeanor of the first degree, punishable as provided in s.

  6  775.082 or s. 775.083.  If such person is a lobbyist, the

  7  lobbyist shall forfeit any fee, bonus, commission, or profit

  8  received in violation of this section and is subject to the

  9  penalties set forth in s. 11.045.  When the fee, bonus,

10  commission, or profit is nonmonetary, the fair market value of

11  the benefit shall be used in determining the amount to be

12  forfeited.  All forfeited benefits collected shall be

13  deposited into the Legislative Lobbyist Registration Trust

14  Fund.

15         (4)  This section does not apply to any contract

16  providing for compensation by contingency fee which is in

17  existence on the date this act becomes a law and which does

18  not provide for compensation by contingency fee for lobbying

19  after December 31, 1993.

20         (5)  Nothing in this section may be construed to

21  prohibit any salesperson engaging in legitimate state business

22  on behalf of a company from receiving compensation or

23  commission as part of a bona fide contractual arrangement with

24  that company.

25         Section 3.  This act shall take effect October 1, 1999.

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27            *****************************************

28                          SENATE SUMMARY

29    Limits the fee that an attorney may charge on a
      contingency basis in a civil action in tort. Provides
30    criminal penalties for violations. Prohibits contingency
      fees with respect to claim bills.
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