Texas Government Code 404.097 – Deposit of Funds Recovered by Litigation or Settlement
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(a) Notwithstanding § 404.093, this section applies by its terms to each state governmental entity.
(b) In this section, “contingent fee contract” and “state governmental entity” have the meanings assigned by § 2254.101.
Terms Used In Texas Government Code 404.097
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(c) All funds recovered by a state governmental entity in litigation or in settlement of a matter that could have resulted in litigation, including funds designated as damages, amounts adjudged or awarded, attorney’s fees, costs, interest, settlement proceeds, or expenses, are public funds of the state or the state governmental entity and shall be deposited in the state treasury to the credit of the appropriate fund or account.
(d) Legal fees and expenses may be paid from the recovered funds under a contingent fee contract for legal services only:
(1) after the funds are deposited in accordance with this section; and
(2) in accordance with Subchapter C, Chapter 2254, if that subchapter applies to the contract.