Texas 2011 - 82nd Regular

Texas House Bill HB2661 Compare Versions

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Old	New	Differences
1	1	82R20976 TJS-D
2	2	By: Kleinschmidt, Creighton, Madden, H.B. No. 2661
3	3	S. Davis of Harris, Sheets
4	4	Substitute the following for H.B. No. 2661:
5	5	By: Lewis C.S.H.B. No. 2661
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to settlement of certain civil actions.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Sections 42.001(5) and (6), Civil Practice and
13	13	Remedies Code, are amended to read as follows:
14	14	(5) "Litigation costs" means money actually spent and
15	15	obligations actually incurred that are directly related to the
16	16	action [case] in which a settlement offer is made. The term
17	17	includes:
18	18	(A) court costs;
19	19	(B) reasonable fees for not more than two
20	20	testifying expert witnesses; [and]
21	21	(C) reasonable attorney's fees; and
22	22	(D) reasonable deposition costs.
23	23	(6) "Settlement offer" means an offer to settle or
24	24	compromise a claim made in compliance with Section 42.003 [this
25	25	chapter].
26	26	SECTION 2. Sections 42.002(b), (d), and (e), Civil Practice
27	27	and Remedies Code, are amended to read as follows:
28	28	(b) This chapter does not apply to:
29	29	(1) a class action;
30	30	(2) a shareholder's derivative action;
31	31	(3) an action by or against a governmental unit;
32	32	(4) an action brought under the Family Code;
33	33	(5) an action to collect workers' compensation
34	34	benefits under Subtitle A, Title 5, Labor Code; or
35	35	(6) an action filed in a justice of the peace court or
36	36	a small claims court.
37	37	(d) This chapter does not limit or affect the ability of any
38	38	person to:
39	39	(1) make an offer to settle or compromise a claim that
40	40	does not comply with Section 42.003 [this chapter]; or
41	41	(2) offer to settle or compromise a claim in an action
42	42	to which this chapter does not apply.
43	43	(e) An offer to settle or compromise that does not comply
44	44	with Section 42.003 [is not made under this chapter] or an offer to
45	45	settle or compromise made in an action to which this chapter does
46	46	not apply does not entitle any [the offering] party to recover
47	47	litigation costs under this chapter.
48	48	SECTION 3. Section 42.003, Civil Practice and Remedies
49	49	Code, is amended to read as follows:
50	50	Sec. 42.003. MAKING SETTLEMENT OFFER. (a) After a
51	51	defendant files a declaration under Section 42.002(c), the
52	52	defendant filing the declaration and any party with a claim against
53	53	that defendant may make a settlement offer to settle all claims in
54	54	the action between the parties.
55	55	(b) A settlement offer must:
56	56	(1) be in writing;
57	57	(2) state that it is made under this chapter;
58	58	(3) state the terms by which the claims may be settled;
59	59	(4) state a deadline by which the settlement offer
60	60	must be accepted; and
61	61	(5) be served on all parties to whom the settlement
62	62	offer is made.
63	63	(c) The parties are not required to file a settlement offer
64	64	with the court.
65	65	SECTION 4. Section 42.004(c), Civil Practice and Remedies
66	66	Code, is amended to read as follows:
67	67	(c) The litigation costs that may be recovered by the
68	68	offering party under this section are limited to those litigation
69	69	costs incurred by the offering party after the date the rejecting
70	70	party rejected the earliest settlement offer that entitles the
71	71	party to an award of litigation costs under this section.
72	72	SECTION 5. Sections 42.004(d) and (g), Civil Practice and
73	73	Remedies Code, are repealed.
74	74	SECTION 6. The changes in law made by this Act to Chapter
75	75	42, Civil Practice and Remedies Code, apply only to a civil action
76	76	commenced on or after the effective date of this Act. A civil
77	77	action commenced before the effective date of this Act is governed
78	78	by the law in effect immediately before the effective date of this
79	79	Act, and that law is continued in effect for that purpose.
80	80	SECTION 7. This Act takes effect September 1, 2011.