Relating to the award of costs and attorney's fees in certain proceedings concerning mechanic's, contractor's, or materialman's liens.
Impact
The proposed changes would apply to any proceedings initiated after the bill's effective date, which is set for September 1, 2011. This could encourage more contractors and suppliers to pursue claims without the fear of incurring significant legal costs, thereby promoting fairer practices in the construction industry. Given that these proceedings are often complex and costly, the new provision could lower the barriers for smaller contractors to enforce their rights effectively.
Summary
House Bill 346 focuses on the legal framework governing mechanic's, contractor's, and materialman's liens in Texas. The bill amends Section 53.156 of the Property Code to clarify court discretion in awarding costs and attorney’s fees in related legal proceedings. This legislation strengthens the rights of contractors and material suppliers by ensuring they have equitable access to recovery of legal expenses when involved in disputes regarding liens or claims against construction projects.
Contention
One notable aspect of the law pertains to the language used concerning the court's authority to award costs and fees. By mandating that courts 'shall' award reasonable attorney's fees, the bill may be seen as providing stronger protections for plaintiffs, which could lead to debates among legal professionals about the implications of such a mandate. Critics may argue that it adds a layer of complexity or could inadvertently encourage frivolous litigation, whereas supporters perceive it as a necessary reform to level the playing field for those seeking to enforce their lien rights.
Relating to transparency in certain legal proceedings and contracts involving a school district and a limit on legal fees that may be spent by a school district in certain legal proceedings.