By: Creighton, et al. (Senate Sponsor - Huffman) H.B. No. 274
(In the Senate - Received from the House May 10, 2011;
May 10, 2011, read first time and referred to Committee on State
Affairs; May 23, 2011, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 9, Nays 0;
May 23, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 274 By: Huffman
A BILL TO BE ENTITLED
AN ACT
relating to the reform of certain remedies and procedures in civil
actions and family law matters.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. EARLY DISMISSAL OF ACTIONS
SECTION 1.01. Section 22.004, Government Code, is amended
by adding Subsection (g) to read as follows:
(g) The supreme court shall adopt rules to provide for the
dismissal of causes of action that have no basis in law or fact on
motion and without evidence. The rules shall provide that the
motion to dismiss shall be granted or denied within 45 days of the
filing of the motion to dismiss. The rules shall not apply to
actions under the Family Code.
SECTION 1.02. Chapter 30, Civil Practice and Remedies Code,
is amended by adding Section 30.021 to read as follows:
Sec. 30.021. AWARD OF ATTORNEY'S FEES IN RELATION TO
CERTAIN MOTIONS TO DISMISS. In a civil proceeding, on a trial
court's granting or denial, in whole or in part, of a motion to
dismiss filed under the rules adopted by the supreme court under
Section 22.004(g), Government Code, the court shall award costs and
reasonable and necessary attorney's fees to the prevailing party.
This section does not apply to actions by or against the state,
other governmental entities, or public officials acting in their
official capacity or under color of law.
ARTICLE 2. EXPEDITED CIVIL ACTIONS
SECTION 2.01. Section 22.004, Government Code, is amended
by adding Subsection (h) to read as follows:
(h) The supreme court shall adopt rules to promote the
prompt, efficient, and cost-effective resolution of civil actions.
The rules shall apply to civil actions in district courts, county
courts at law, and statutory probate courts in which the amount in
controversy, inclusive of all claims for damages of any kind,
whether actual or exemplary, a penalty, attorney's fees, expenses,
costs, interest, or any other type of damage of any kind, does not
exceed $100,000. The rules shall address the need for lowering
discovery costs in these actions and the procedure for ensuring
that these actions will be expedited in the civil justice system.
The supreme court may not adopt rules under this subsection that
conflict with a provision of:
(1) Chapter 74, Civil Practice and Remedies Code;
(2) the Family Code;
(3) the Property Code; or
(4) the Tax Code.
ARTICLE 3. APPEAL OF CONTROLLING QUESTION OF LAW
SECTION 3.01. Section 51.014, Civil Practice and Remedies
Code, is amended by amending Subsections (d), (d-1), and (e) and
adding Subsection (f) to read as follows:
(d) On a party's motion or on its own initiative, a trial
court in a civil action [A district court, county court at law, or
county court] may, by [issue a] written order, permit an appeal from
an order that is [for interlocutory appeal in a civil action] not
otherwise appealable [under this section] if:
(1) [the parties agree that] the order to be appealed
involves a controlling question of law as to which there is a
substantial ground for difference of opinion; and
(2) an immediate appeal from the order may materially
advance the ultimate termination of the litigation[; and
[(3) the parties agree to the order].
(d-1) Subsection (d) does not apply to an action brought
under the Family Code.
(e) An appeal under Subsection (d) does not stay proceedings
in the trial court unless:
(1) the parties agree to a stay; or
(2) [and] the trial or appellate court[, the court of
appeals, or a judge of the court of appeals] orders a stay of the
proceedings pending appeal.
(f) An appellate court may accept an appeal permitted by
Subsection (d) if the appealing party, not later than the 15th day
after the date the trial court signs the order to be appealed, files
in the court of appeals having appellate jurisdiction over the
action an application for interlocutory appeal explaining why an
appeal is warranted under Subsection (d). If the court of appeals
accepts the appeal, the appeal is governed by the procedures in the
Texas Rules of Appellate Procedure for pursuing an accelerated
appeal. The date the court of appeals enters the order accepting
the appeal starts the time applicable to filing the notice of
appeal.
SECTION 3.02. Section 22.225(d), Government Code, is
amended to read as follows:
(d) A petition for review is allowed to the supreme court
for an appeal from an interlocutory order described by Section
51.014(a)(3), (6), or (11), or (d), Civil Practice and Remedies
Code.
ARTICLE 4. ALLOCATION OF LITIGATION COSTS
SECTION 4.01. Sections 42.001(5) and (6), Civil Practice
and Remedies Code, are amended to read as follows:
(5) "Litigation costs" means money actually spent and
obligations actually incurred that are directly related to the
action [case] in which a settlement offer is made. The term
includes:
(A) court costs;
(B) reasonable deposition costs;
(C) reasonable fees for not more than two
testifying expert witnesses; and
(D) [(C)] reasonable attorney's fees.
(6) "Settlement offer" means an offer to settle or
compromise a claim made in compliance with Section 42.003 [this
chapter].
SECTION 4.02. Sections 42.002(b), (d), and (e), Civil
Practice and Remedies Code, are amended to read as follows:
(b) This chapter does not apply to:
(1) a class action;
(2) a shareholder's derivative action;
(3) an action by or against a governmental unit;
(4) an action brought under the Family Code;
(5) an action to collect workers' compensation
benefits under Subtitle A, Title 5, Labor Code; or
(6) an action filed in a justice of the peace court or
a small claims court.
(d) This chapter does not limit or affect the ability of any
person to:
(1) make an offer to settle or compromise a claim that
does not comply with Section 42.003 [this chapter]; or
(2) offer to settle or compromise a claim in an action
to which this chapter does not apply.
(e) An offer to settle or compromise that does not comply
with Section 42.003 [is not made under this chapter] or an offer to
settle or compromise made in an action to which this chapter does
not apply does not entitle any [the offering] party to recover
litigation costs under this chapter.
SECTION 4.03. Section 42.003, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 42.003. MAKING SETTLEMENT OFFER. (a) 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.
(b) The parties are not required to file a settlement offer
with the court.
SECTION 4.04. Section 42.004(d), Civil Practice and
Remedies Code, is amended to read as follows:
(d) The litigation costs that may be awarded under this
chapter to any party may not be greater than the total amount that
the claimant recovers or would recover before adding an award of
litigation costs under this chapter in favor of the claimant or
subtracting as an offset an award of litigation costs under this
chapter in favor of the defendant. [an amount computed by:
[(1) determining the sum of:
[(A) 50 percent of the economic damages to be
awarded to the claimant in the judgment;
[(B) 100 percent of the noneconomic damages to be
awarded to the claimant in the judgment; and
[(C) 100 percent of the exemplary or additional
damages to be awarded to the claimant in the judgment; and
[(2) subtracting from the amount determined under
Subdivision (1) the amount of any statutory or contractual liens in
connection with the occurrences or incidents giving rise to the
claim.]
ARTICLE 5. DESIGNATION OF RESPONSIBLE THIRD PARTIES
SECTION 5.01. Section 33.004, Civil Practice and Remedies
Code, is amended by adding subsection (d) to read as follows:
(d) A defendant may not designate a person as a responsible
third party with respect to a claimant's cause of action after the
applicable limitations period on the cause of action has expired
with respect to the responsible third party if the defendant has
failed to comply with its obligations, if any, to timely disclose
that the person may be designated as a responsible third party under
the Texas Rules of Civil Procedure.
SECTION 5.02. Section 33.004(e), Civil Practice and
Remedies Code, is repealed.
Article 6. EFFECTIVE DATE
SECTION 6.01. The changes in law made by this Act apply only
to a civil action commenced on or after the effective date of the
change in law as provided by this article. A civil action commenced
before the effective date of the change in law as provided by this
article is governed by the law in effect immediately before the
effective date of the change in law, and that law is continued in
effect for that purpose.
SECTION 6.02. This Act takes effect September 1, 2011.
* * * * *