Texas Senate Bill SB21

Texas 2011 - 82nd Regular

• Introduced: 2/24/11
• Refer: 2/28/11

Caption

Relating to the establishment of a voluntary compensation plan as an alternative to litigation.

Impact

If enacted, SB21 would significantly impact the laws surrounding how claims for personal injury and damages are handled in Texas. It specifically allows parties who may be liable for certain incidents or product-related damages to create plans that preemptively compensate affected individuals without the need for litigation. This could lead to a reduction in the number of lawsuits filed in such cases, as individuals might opt for compensation through these plans instead of pursuing traditional legal avenues.

Summary

Senate Bill 21 (SB21) aims to establish chapters within the Civil Practice and Remedies Code that allow for the creation of a voluntary compensation plan as an alternative to litigation. This bill introduces a systematic approach for potentially liable individuals or entities to set up a compensation scheme for claims involving personal injury, death, or property damage caused by certain events. The idea is to streamline the process for both claimants and plan creators, allowing for a potentially quicker resolution without the need for a protracted legal battle.

Sentiment

The sentiment around SB21 appears mixed, with proponents arguing that it provides a fair and efficient mechanism for compensation that benefits both claimants who receive timely relief and defendants who can avoid lengthy legal disputes. However, critics express concern that the voluntary compensation plan may undermine the rights of claimants, particularly if it does not provide adequate compensation compared to what could be pursued through litigation. This contention reflects deeper issues regarding the balance between alternative dispute resolution mechanisms and traditional legal rights.

Contension

Notable points of contention include concerns about transparency and fairness within the voluntary compensation framework. Critics worry that these plans could limit the accountability of those who might otherwise face legal action and potentially minimize the compensation available to victims. Additionally, there is debate over how these plans might be perceived in court, particularly regarding the legality of their existence and the implications for liability. The bill also introduces provisions for abatement of lawsuits, which some argue could delay justice for those seeking compensation.