Texas Senate Bill SB1855

Texas 2009 - 81st Regular

Caption

Relating to offers of settlement in certain civil actions.

Impact

The bill has the potential to impact state civil litigation by encouraging quicker and more effective resolutions of disputes. By clarifying the parameters around settlement offers, it aims to discourage frivolous rejections of offers, thereby promoting more amicable settlements between parties. Legal practitioners may need to adapt their strategies in handling settlements as a result of the revised regulations in SB1855. Furthermore, the clarification regarding litigation costs and expenses ensures that claimants can pursue reasonable recovery regardless of statutory damage limitations, thus providing a stronger position for them in negotiations.

Summary

SB1855 relates to offers of settlement in certain civil actions, aiming to modify existing provisions under the Civil Practice and Remedies Code. The bill introduces amendments to several sections that define how settlement offers are made, accepted, and rejected within the court system. One significant change includes the stipulation that a judgment will be deemed considerably less favorable to a rejecting party if the award falls below a defined threshold compared to the rejected offer. This establishes a clearer framework for evaluating settlement negotiations and their outcomes in litigation contexts.

Contention

Notable points of contention may arise concerning how the threshold for settlements influences the behaviors of parties involved in civil litigation. Critics might argue that the bill favors defendants by imposing conditions making it riskier for plaintiffs to reject settlement offers. This could be perceived as a detrimental shift in the balance of power within civil cases, particularly for claimants who cannot afford extended litigation. Additionally, apprehensions may surface regarding the potential increase in legal battles where parties feel compelled to accept offers that do not adequately meet their needs due to the fear of unfavorable judgments.

Implementation

SB1855 is designed to take effect only for actions filed on or after its effective date, thus ensuring that it does not retroactively alter existing cases. This conditional implementation allows stakeholders to adjust to the new legal framework without impacting ongoing litigation. Overall, SB1855 represents an effort to streamline settlement processes and reduce unnecessary litigation while maintaining fairness to all parties involved.