CHAPTER 36

An Act to make it unlawful for any person to induce another person to
commence or prosecute proceedings in any court or before any board
or administrative agency under certain conditions; to provide for
ai filing of affidavits; and to provide penalties for violations of this
act.

[H 64]
Approved September 29, 1956

Be it enacted by the General Assembly of Virginia:

1. §1. (a) It shall be unlawful for any person not having a direct interest
in the proceedings, either before or after proceedings commenced:

t to promise, give or offer, or to conspire or agree to promise, give or
offer, or

to receive or accept, or to agree or conspire to receive or accept, or

to solicit, request or donate,

Any money, bank note, bank check, chose in action, personal services
or any other personal or real property, or any other thing of value, or any
other assistance as an inducement to any person to commence or to prose-
cute further any original proceeding in any court of this State, or before
any board or administrative agency within the said State, or in any United
States court located within the said State against thé Commonwealth of Vir-
ginia, any department, agency or political subdivision thereof, or any person
acting as an officer or employee for either or both or any of the foregoing;
provided, however, this section shall not be construed to prohibit the
constitutional right of regular employment of any attorney at law, for
either a fixed fee or upon a contingent basis, to represent such person,
firm, partnership, corporation, group, organization or association before
any court or board or administrative agency.

(b) It shall be unlawful for any person, not related by blood or mar-
riage or who does not occupy a position of trust or a position in loco
parentis to one who becomes the plaintiff in a suit or action, who has no
direct interest in the subject matter of the proceeding and whose pro-
fessional advice has not been sought in accordance with the Virginia
canons of legal ethics, to advise, counsel or otherwise instigate the bring-
ing of a suit or action against the Commonwealth of Virginia, any depart-
ment, agency or political subdivision thereof, or any person acting as an
officer or employee for either or both or any of the foregoing.

(c) As used in this act, “person” includes person, firm, partnership,
corporation, organization or association; “direct interest” means a personal
right or a pecuniary right or liability.

(d) Any person violating any of the provisions of § 1 of this act shall
be guilty of a misdemeanor and, upon conviction thereof, shall be fined not
more than one thousand dollars or confined in jail for not more than one
year, or both.

§ 2. Every person who commences or prosecutes or assists in the com-
mencement or prosecution of any proceeding against one of the parties set
forth in paragraph (a) of § 1 in any court in this State, or before any board
or administrative agency therein, or who may take an appeal from any
such rule, order or judgment thereof, shall, on motion made by any of the
parties to such proceedings or by the court or board or administrative
agency in which such proceeding is pending, file with such court or agency,
as a condition precedent to the further prosecution of such proceeding, the
following affidavit:

I, (name of individual or corporation, organization or association, firm
or partnership), petitioner (or plaintiff, appellant or whatever party he
may be, or an officer thereof if a corporation, organization or association,
firm or partnership) in this matter, do hereby swear (or affirm) that I have
(or the corporation, organization or association, firm or partnership has)
neither received, nor conspired to receive, nor have I (nor has the cor-
poration, organization or association, firm or partnership), been promised
or tendered any valuable consideration or assistance not permitted by law

as an inducement to the commencement or further prosecution of the

proceedings in this matter, nor has the same been instigated in violation of
Ww.

(Signature of Affiant)
Affiant

Sworn to and subscribed before me on this, the (date) day of (month),
19 (year).

(Signature of Official Authorized to
Administer Oaths)
(Title of Official)

In the case of any firm, corporation, group, organization, partnership
or association required to make the above affidavit, such affidavit shall be
made by the person having custody and control of the books and records of
such firm, corporation, group, organization or association and one of the
principal officers thereof.

Forms for such affidavit shall be furnished by the clerk of court, and
shall have printed at the bottom thereof the text of § 4 of this act, under
the heading “PENALTY”.

§ 3. Every attorney representing any person, firm, partnership, cor-
poration, group, organization or association in any proceeding in any court
or before any board or administrative agency in this State or who may take
an appeal from any rule, order or judgment thereof, shall, on motion made
by any of the parties to such proceeding or by the court or board or agency
in which such proceeding is pending, file, as a condition precedent to the
further prosecution of such proceeding, the following affidavit:

I, (name), attorney representing (name of party), petitioner (or plain-
tiff, appellant or whatever party he may be) in this matter, do hereby swear
(or affirm) that neither I nor, to the best of my knowledge and belief, any
other person, firm, partnership, corporation, group, organization or associa-
tion has promised, given or offered, or conspired to promise, give or offer,
or solicited, received or accepted any valuable consideration or any assist-
ance not permitted by law to said (name of party) as an inducement to
said (name of party) to the commencement or further prosecution of the
proceedings herein, nor has the same been instigated in violation of law.

(Signature of Affiant)
Affiant
Sworn to and subscribed before me on this, the (date) day of (month),
19 (year).
(Signature of Official Authorized to
Administer Oaths)
(Title of Official)

Forms for such affidavit shall be furnished by the clerk of court, and
shall have printed at the bottom thereof the text of § 4 of this act, under
the heading “PENALTY”.

§ 4. Every person or attorney who shall file a false affidavit shall be
guilty of perjury and shall be punished as provided by law. Every attorney
who shall file a false affidavit, or who shall violate any other provision of
this act, upon final conviction thereof, shall also be disbarred by order of
the court in which convicted. Any attorney who shall file a false affidavit,
or violate any other provision of this act, and who is not a member of the
Virginia State Bar, shall, in addition to the other penalties provided by this
act, be forever barred from practicing before any court or board or ad-
ministrative agency of this State.

§ 5. No person shall be excused from attending or testifying or
producing evidence of any kind before a grand jury or before any court,
or in any cause or proceeding, criminal or otherwise, based upon or growing
out of any alleged violation of the provisions of this act on the ground or
for the reason that the testimony or evidence, documentary or otherwise,
required of him may tend to incriminate him or subject him to a penalty
or forfeiture. But no person shall be prosecuted or subject to any penalty
or forfeiture for, or on account of, any transaction, matter or thing, con-
cerning which he may be required to testify or produce evidence, docu-
mentary or otherwise, before the grand jury or court or in any cause or
proceeding brought by the Commonwealth; provided, that no person so
testifying shall be exempt from prosecution or punishment for perjury
in so testifying. Any person who shall neglect or refuse to so attend or
testify, or to answer any lawful inquiry, or to produce books or other
documentary evidence, if in his power to do so, shall be guilty of a mis-
demeanor and, upon conviction thereof, shall be punished by a fine of not
less than one hundred dollars nor more than one thousand dollars, or by
imprisonment for not more than one hundred eighty days, or by both such
fine and imprisonment.

§ 6. This act shall not be applicable to attorneys who are parties
to contingent fee contracts with their clients where the attorney does
not protect the client from payment of the costs and expense of litiga-
tion, nor shall this act apply to a mandamus proceeding against the
State Comptroller, nor shall this act apply to any matter involving
zoning, annexation, bond issues, or the holding or results of any election
or referendum, nor shall this act apply to suits pertaining to or affecting
possession of or title to real or personal property, regardless of ownership,
nor shall this act apply to suits involving the legality of assessment or col-
lection of taxes or the rates thereof, nor shall this act apply to suits in-
volving rates or charges or services by common carriers or public utilities,
nor shall this act apply to criminal prosecutions, nor to the payment of attor-
neys by legal aid societies approved by the Virginia State Bar, nor
to proceedings to abate nuisances. Nothing herein shall be construed to
be in derogation of the constitutional right of real parties in interest to
employ counsel or to prosecute any available legal remedy under the laws
of this State. The provisions hereof shall not affect the right of a lawyer
in good faith to advance expenses as a matter of convenience but subject
to reimbursement.

§ 7. Nothing in this act shall affect the provisions of Chapter-670
of the Acts of Assembly of 1956.

2. An emergency exists and this act is in force from its passage.