[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2463 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2463

To provide limits on contingency fees in health care liability actions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 11, 2001

 Mr. Brady  of Texas introduced the following bill; which was referred 
                   to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To provide limits on contingency fees in health care liability actions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Patients' Right to Fair Compensation 
and Protection Against Predatory Contingency Fee Practices Act''.

SEC. 2. ASSURING PATIENTS FAIR COMPENSATION AND PROTECTION AGAINST 
              PREDATORY CONTINGENCY FEE PRACTICES.

    (a) In General.--An attorney may not enter into or enforce a 
contract, whether express or implied, for attorney fees in connection 
with a health care liability action to the extent that the amount or 
payment of such fees is--
            (1) contingent upon the resolution of the action; and
            (2) in excess of the maximum allowed percentage specified 
        in subsection (b).
    (b) Maximum Allowed Percentage.--
            (1) In general.--Except as provided in paragraph (2), the 
        maximum allowed percentage referred to in subsection (a) shall 
        be 10 percent of the amount recovered by the claimant in 
        connection with the action.
            (2) Unreasonable protraction.--If the opposing party during 
        the course of the action so unreasonably protracts the final 
        resolution of the controversy that the claimant's attorney is 
        required to render additional services of a degree not 
        reasonably contemplated at the time the contract was made, the 
        maximum allowed percentage referred to in subsection (a) shall 
        be the amount specified in paragraph (1), plus any additional 
        amount necessary and appropriate to adequately account for the 
        additional services.
    (c) Civil Action.--
            (1) In general.--Any person aggrieved by the act of an 
        attorney in violation of subsection (a) may bring a civil 
        action in a United States district court or other appropriate 
        court to rescind the contract to the extent it violates such 
        subsection and to compel the disgorgement of any fees paid in 
        violation of such subsection.
            (2) Remedies not exclusive.--The remedies provided in 
        paragraph (1) are in addition to any other remedies that may be 
        available.
    (d) Sanctions.--
            (1) In general.--A court with jurisdiction over the health 
        care liability action referred to in subsection (a) shall 
        sanction an attorney who violates such subsection.
            (2) Maximum.--The amount of the sanction shall not exceed 
        the amount by which the fee sought under the contract exceeds 
        the maximum fee permitted by subsection (a).
            (3) Minimum.--Notwithstanding paragraph (2), the amount of 
        the sanction shall be not less than $2,000.
    (e) Definitions.--For purposes of this section:
            (1) Claimant.--The term ``claimant'' means any person who 
        brings a health care liability action and any person on whose 
        behalf such an action is brought. If such action is brought 
        through or on behalf of an estate, the term includes the 
        claimant's decedent. If such action is brought through or on 
        behalf of a minor or incompetent, the term includes the 
        claimant's legal guardian.
            (2) Health benefit plan.--The term ``health benefit plan'' 
        means--
                    (A) a hospital or medical expense incurred policy 
                or certificate,
                    (B) a hospital or medical service plan contract,
                    (C) a health maintenance subscriber contract, or
                    (D) a MedicarePlus product (offered under part C of 
                title XVIII of the Social Security Act), that provides 
                benefits with respect to health care services.
            (3) Health care liability action.--The term ``health care 
        liability action'' means a civil action brought in a State or 
        Federal court or pursuant to alternative dispute resolution 
        against a health care provider, health insurance issuer, plan 
        sponsor, or any other entity which is obligated to provide or 
        pay for health benefits under any health benefit plan 
        (including any person or entity acting under a contract or 
        arrangement to provide or administer any health benefit), based 
        upon the provision of (or the failure to provide or pay for) 
        health care services or the use of a medical product, 
        regardless of the theory of liability on which the claim is 
        based or the number of plaintiffs, defendants, or causes of 
        action.
            (4) Health care provider.--The term ``health care 
        provider'' means any person that is engaged in the delivery of 
        health care services in a State and that is required by the 
        laws or regulations of the State to be licensed or certified by 
        the State to engage in the delivery of such services in the 
        State.
            (5) State.--The term ``State'' means each of the several 
        States, the District of Columbia, Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, the Northern Mariana Islands, 
        and any other territory or possession of the United States.
    (f) Preemption.--
            (1) In general.--Subject to paragraph (2), this section 
        shall preempt any State law to the extent such law is 
        inconsistent with this section.
            (2) Additional limitations.--This section shall not preempt 
        any State law to the extent such law imposes additional 
        limitations on attorney contingency fees.
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