2009S0613-1 03/09/09
By: Carona S.B. No. 1855
A BILL TO BE ENTITLED
AN ACT
relating to offers of settlement in certain civil actions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (c), Section 42.002, Civil Practice
and Remedies Code, is amended to read as follows:
(c) This chapter does not apply until a party to an action
[defendant] files a declaration that the settlement procedure
allowed by the chapter is available in the action. The [If there is
more than one defendant, the] settlement procedure allowed by this
chapter is available only in relation to the party [defendant] that
filed the declaration and to the parties that make or receive offers
of settlement in relation to that party [defendant].
SECTION 2. Section 42.004, Civil Practice and Remedies
Code, is amended by amending Subsection (b) and by adding
Subsection (h) to read as follows:
(b) A judgment will be significantly less favorable to the
rejecting party than is the settlement offer if:
(1) the rejecting party is a claimant and the award
will be less than 80 percent of the rejected offer; or
(2) the rejecting party is a defendant and the verdict
[award] will be more than 120 percent of the rejected offer.
(h) If litigation costs and expenses are to be awarded
against a defendant in a case in which one or more statutory
limitations on damages apply, the limitations on damages do not
limit the recovery of costs and expenses under this chapter. Costs
and expenses recoverable by a claimant under this chapter are
independent of and may be awarded in addition to any damages, even
if the award results in payment to the claimant of an amount in
excess of applicable statutory limitations on damages.
SECTION 3. Subsection (b), Section 42.005, Civil Practice
and Remedies Code, is amended to read as follows:
(b) The rules promulgated by the supreme court must provide:
(1) the date by which a party [defendant] or parties
[defendants] must file the declaration required by Section
42.002(c);
(2) the date before which a party may not make a
settlement offer;
(3) the date after which a party may not make a
settlement offer; and
(4) procedures for:
(A) making an initial settlement offer;
(B) making successive settlement offers;
(C) withdrawing a settlement offer;
(D) accepting a settlement offer;
(E) rejecting a settlement offer; and
(F) modifying the deadline for making,
withdrawing, accepting, or rejecting a settlement offer.
SECTION 4. 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 is governed by
the law in effect immediately before that date, and that law is
continued in effect for that purpose.