| 1 | 1 | | 2009S0613-1 03/09/09 |
|---|
| 2 | 2 | | By: Carona S.B. No. 1855 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to offers of settlement in certain civil actions. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. Subsection (c), Section 42.002, Civil Practice |
|---|
| 10 | 10 | | and Remedies Code, is amended to read as follows: |
|---|
| 11 | 11 | | (c) This chapter does not apply until a party to an action |
|---|
| 12 | 12 | | [defendant] files a declaration that the settlement procedure |
|---|
| 13 | 13 | | allowed by the chapter is available in the action. The [If there is |
|---|
| 14 | 14 | | more than one defendant, the] settlement procedure allowed by this |
|---|
| 15 | 15 | | chapter is available only in relation to the party [defendant] that |
|---|
| 16 | 16 | | filed the declaration and to the parties that make or receive offers |
|---|
| 17 | 17 | | of settlement in relation to that party [defendant]. |
|---|
| 18 | 18 | | SECTION 2. Section 42.004, Civil Practice and Remedies |
|---|
| 19 | 19 | | Code, is amended by amending Subsection (b) and by adding |
|---|
| 20 | 20 | | Subsection (h) to read as follows: |
|---|
| 21 | 21 | | (b) A judgment will be significantly less favorable to the |
|---|
| 22 | 22 | | rejecting party than is the settlement offer if: |
|---|
| 23 | 23 | | (1) the rejecting party is a claimant and the award |
|---|
| 24 | 24 | | will be less than 80 percent of the rejected offer; or |
|---|
| 25 | 25 | | (2) the rejecting party is a defendant and the verdict |
|---|
| 26 | 26 | | [award] will be more than 120 percent of the rejected offer. |
|---|
| 27 | 27 | | (h) If litigation costs and expenses are to be awarded |
|---|
| 28 | 28 | | against a defendant in a case in which one or more statutory |
|---|
| 29 | 29 | | limitations on damages apply, the limitations on damages do not |
|---|
| 30 | 30 | | limit the recovery of costs and expenses under this chapter. Costs |
|---|
| 31 | 31 | | and expenses recoverable by a claimant under this chapter are |
|---|
| 32 | 32 | | independent of and may be awarded in addition to any damages, even |
|---|
| 33 | 33 | | if the award results in payment to the claimant of an amount in |
|---|
| 34 | 34 | | excess of applicable statutory limitations on damages. |
|---|
| 35 | 35 | | SECTION 3. Subsection (b), Section 42.005, Civil Practice |
|---|
| 36 | 36 | | and Remedies Code, is amended to read as follows: |
|---|
| 37 | 37 | | (b) The rules promulgated by the supreme court must provide: |
|---|
| 38 | 38 | | (1) the date by which a party [defendant] or parties |
|---|
| 39 | 39 | | [defendants] must file the declaration required by Section |
|---|
| 40 | 40 | | 42.002(c); |
|---|
| 41 | 41 | | (2) the date before which a party may not make a |
|---|
| 42 | 42 | | settlement offer; |
|---|
| 43 | 43 | | (3) the date after which a party may not make a |
|---|
| 44 | 44 | | settlement offer; and |
|---|
| 45 | 45 | | (4) procedures for: |
|---|
| 46 | 46 | | (A) making an initial settlement offer; |
|---|
| 47 | 47 | | (B) making successive settlement offers; |
|---|
| 48 | 48 | | (C) withdrawing a settlement offer; |
|---|
| 49 | 49 | | (D) accepting a settlement offer; |
|---|
| 50 | 50 | | (E) rejecting a settlement offer; and |
|---|
| 51 | 51 | | (F) modifying the deadline for making, |
|---|
| 52 | 52 | | withdrawing, accepting, or rejecting a settlement offer. |
|---|
| 53 | 53 | | SECTION 4. The change in law made by this Act applies only |
|---|
| 54 | 54 | | to an action filed on or after the effective date of this Act. An |
|---|
| 55 | 55 | | action filed before the effective date of this Act is governed by |
|---|
| 56 | 56 | | the law in effect immediately before that date, and that law is |
|---|
| 57 | 57 | | continued in effect for that purpose. |
|---|