Bill Text: TX SB13 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the reform of certain remedies and procedures in civil actions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-14 - Referred to State Affairs [SB13 Detail]
Download: Texas-2011-SB13-Introduced.html
2011S0443-3 03/09/11 | ||
By: Huffman | S.B. No. 13 |
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relating to the reform of certain remedies and procedures in civil | ||
actions. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 7, Civil Practice and Remedies Code, is | ||
amended by adding Chapter 174 to read as follows: | ||
CHAPTER 174. EARLY DISMISSAL OF ACTIONS | ||
Sec. 174.001. It is the policy of this state that all civil | ||
actions shall be disposed of fairly, promptly, and with the least | ||
possible expense to the litigants and to the state. | ||
Sec. 174.002. ADOPTION OF RULES BY THE SUPREME COURT. | ||
(a) The supreme court shall adopt rules to provide for the fair and | ||
early dismissal of nonmeritorious cases. | ||
(b) The supreme court shall adopt rules under this chapter | ||
on or before December 31, 2011. | ||
SECTION 2. Title 7, Civil Practice and Remedies Code, is | ||
amended by adding Chapter 175 to read as follows: | ||
Sec. 175.001. ADOPTION OF RULES BY SUPREME COURT. (a) The | ||
supreme court shall adopt rules by which a plaintiff in a civil | ||
action may elect a procedure for the prompt, efficient, and | ||
cost-effective resolution of civil actions in which the damages are | ||
at least $10,000 but not more than $100,000. | ||
(b) In this section, "damages" means all claims under common | ||
law, statutory, and equitable causes of action for actual damages, | ||
including economic and noneconomic damages, and all forms of | ||
additional damages including without limitation knowing damages, | ||
punitive damages, trebling of damages of any kind, penalties, | ||
prejudgment interest, postjudgment interest, attorney's fees, | ||
litigation costs, costs of court, and all other damages of any kind | ||
or character. | ||
(c) The rules promulgated by the supreme court shall not | ||
apply to a class action, a civil action primarily governed by the | ||
Family Code, a workers' compensation case, or an action governed by | ||
Chapter 74. | ||
(d) The supreme court shall adopt rules under this section | ||
to be in effect by January 1, 2012. | ||
SECTION 3. Subchapter C, Chapter 311, Government Code, is | ||
amended by adding Section 311.035 to read as follows: | ||
Sec. 311.035. NO IMPLIED CAUSE OF ACTION. A statute may not | ||
be construed to create a cause of action unless a cause of action is | ||
created by clear and unambiguous language in the statute. | ||
SECTION 4. Subchapter B, Chapter 312, Government Code, is | ||
amended by adding Section 312.017 to read as follows: | ||
Sec. 312.017. NO IMPLIED CAUSE OF ACTION. A statute may not | ||
be construed to create a cause of action unless a cause of action is | ||
created by clear and unambiguous language in the statute. | ||
SECTION 5. Sections 38.001 and 38.002, Civil Practice and | ||
Remedies Code, are amended to read as follows: | ||
Sec. 38.001. RECOVERY OF ATTORNEY'S FEES. The prevailing | ||
party [ |
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individual, [ |
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(1) rendered services; | ||
(2) performed labor; | ||
(3) furnished material; | ||
(4) freight or express overcharges; | ||
(5) lost or damaged freight or express; | ||
(6) killed or injured stock; | ||
(7) a sworn account; [ |
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(8) an oral or written contract; or | ||
(9) defamation. | ||
Sec. 38.002. PROCEDURE FOR RECOVERY OF ATTORNEY'S FEES. | ||
For [ |
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subchapter [ |
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(1) the person seeking to recover attorney's fees | ||
[ |
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(2) the claimant must present the claim to the | ||
opposing party or to a duly authorized agent of the opposing party; | ||
and | ||
(3) payment for the just amount owed must not have been | ||
tendered before the expiration of the 30th day after the claim is | ||
presented. | ||
SECTION 6. Subdivisions (1), (5), and (6), Section 42.001, | ||
Civil Practice and Remedies Code, are amended to read as follows: | ||
(1) "Claim" means a request, including a counterclaim, | ||
cross-claim, or third-party claim, to recover monetary damages or | ||
to obtain other relief. The term does not include a request to | ||
recover litigation costs. | ||
(5) "Litigation costs" means money actually spent and | ||
obligations actually incurred that are directly related to the | ||
action [ |
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includes: | ||
(A) court costs; | ||
(B) reasonable deposition costs; | ||
(C) reasonable fees for not more than two | ||
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(D) [ |
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(6) "Settlement offer" means an offer to settle or | ||
compromise a claim made in compliance with Section 42.003 [ |
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SECTION 7. Chapter 42, Civil Practice and Remedies Code, is | ||
amended by amending Sections 42.003, 42.004, and 42.005 and adding | ||
Section 42.006 to read as follows: | ||
Sec. 42.003. MAKING SETTLEMENT OFFER. (a) A defendant may | ||
serve on a claimant a settlement offer to settle all claims in the | ||
action between that defendant and claimant. | ||
(b) A settlement offer must: | ||
(1) be in writing; | ||
(2) state that it is made under this chapter; | ||
(3) state the terms by which the claims may be settled; | ||
(4) state a deadline by which the settlement offer | ||
must be accepted; and | ||
(5) be served on all parties to whom the settlement | ||
offer is made. | ||
(c) A defendant may not make a settlement offer under this | ||
section before the 60th day after the date the defendant files a | ||
responsive pleading or otherwise appears in the action. | ||
(d) A defendant may not make a settlement offer under this | ||
section after the 14th day before the date set for trial. | ||
(e) The parties are not required to file a settlement offer | ||
with the court. | ||
Sec. 42.004. AWARDING LITIGATION COSTS. (a) A defendant | ||
who makes a settlement offer to a claimant seeking monetary relief | ||
shall recover litigation costs from the claimant if: | ||
(1) the settlement offer is rejected; | ||
(2) the court signs a judgment on the claim; | ||
(3) the amount of monetary relief awarded to the | ||
claimant in the judgment is more favorable to the defendant who made | ||
the settlement offer than the settlement offer; and | ||
(4) the difference between the amount of monetary | ||
relief awarded to the claimant in the judgment and the amount of the | ||
settlement offer is equal to or greater than 10 percent of the | ||
amount of the settlement offer. | ||
(b) A defendant who makes a settlement offer to a claimant | ||
seeking nonmonetary relief, other than injunctive relief, may | ||
recover litigation costs from the claimant if: | ||
(1) the settlement offer is rejected; | ||
(2) the court signs a judgment on the claim; and | ||
(3) the judgment is more favorable to the defendant | ||
who made the settlement offer than the settlement offer. | ||
(c) A court may include in litigation costs awarded to a | ||
defendant under this section only those litigation costs incurred | ||
by the defendant who made a settlement offer after the rejection of | ||
the earliest settlement offer that entitles the defendant to the | ||
award of litigation costs under this section. | ||
(d) If a court awards litigation costs against a claimant | ||
under this section, the court may not award the claimant the | ||
post-settlement offer portion of any litigation costs to which the | ||
claimant would otherwise be entitled under Chapter 38 or other | ||
applicable law. | ||
(e) An award of litigation costs by the court under this | ||
section is reviewable under a de novo standard. [ |
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Sec. 42.005. SUPREME COURT [ |
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supreme court may amend or adopt rules that are not inconsistent | ||
with this chapter [ |
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Sec. 42.006. ADMISSIBILITY OF EVIDENCE. (a) This chapter | ||
does not affect the admissibility or inadmissibility of evidence as | ||
provided in the Texas Rules of Evidence. | ||
(b) The provisions of this chapter may not be made known to | ||
the jury through any means, including voir dire, introduction into | ||
evidence, instruction, or argument. | ||
SECTION 8. (a) The Texas Supreme Court shall conduct a | ||
study to determine the most effective method to implement a system | ||
in which the prevailing party in a civil action may recover its | ||
attorney's fees, court costs, and other litigation costs from | ||
adverse parties. The system should allow a defendant to determine | ||
if the fee-shifting system would apply to a lawsuit and should | ||
discourage the filing of frivolous lawsuits. | ||
(b) Not later than December 1, 2012, the Texas Supreme Court | ||
shall prepare a report of the findings of the study and provide a | ||
copy of the report to the governor, the lieutenant governor, and | ||
each member of the legislature. | ||
SECTION 9. The change in law made by this Act applies only | ||
to an action filed on or after the effective date of this Act. An | ||
action filed before the effective date of this Act, including an | ||
action to which a party is joined or designated after the effective | ||
date of this Act, is governed by the law in effect immediately | ||
before the change in law made by this Act, and that law is continued | ||
in effect for that purpose. | ||
SECTION 10. If any provision of this Act or its application | ||
to any person or circumstance is held invalid, the invalidity does | ||
not affect other provisions or applications of this Act that can be | ||
given effect without the invalid provision or application, and to | ||
this end the provisions of this Act are declared to be severable. | ||
SECTION 11. This Act takes effect September 1, 2011. |