By: Carona S.B. No. 693
(In the Senate - Filed February 20, 2013;
February 25, 2013, read first time and referred to Committee on
State Affairs; April 16, 2013, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 6, Nays 0;
April 16, 2013, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 693 By: Nichols
A BILL TO BE ENTITLED
AN ACT
relating to clarifying liability and damages for certain liens
placed on and certain court records of real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 12.001, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 12.001. DEFINITIONS. In this chapter:
(1) "Court record" has the meaning assigned by Section
37.01, Penal Code.
(2) "Exemplary damages" has the meaning assigned by
Section 41.001 and includes any amount awarded under Section
12.002(b)(1)(A) in excess of actual economic damages.
(3) [(2-a)] "Filing office" has the meaning assigned
by Section 9.102, Business & Commerce Code.
(4) [(2-b)] "Financing statement" has the meaning
assigned by Section 9.102, Business & Commerce Code.
(5) "Fraudulent lien" means a lien that is created by
fraud and filed or recorded without the consent of the person whose
property is encumbered by the lien.
(6) "Injured person" means a person who has sustained
actual economic damages as a result of a violation of Section
12.002(a) or (a-1).
(7) [(2-c)] "Inmate" means a person housed in a secure
correctional facility.
(8) [(3)] "Lien" means a claim in property for the
payment of a debt and includes a security interest.
(9) [(4)] "Public servant" has the meaning assigned by
Section 1.07, Penal Code, and includes officers and employees of
the United States.
(10) [(5)] "Secure correctional facility" has the
meaning assigned by Section 1.07, Penal Code.
SECTION 2. Section 12.002, Civil Practice and Remedies
Code, is amended by amending Subsection (b) and adding Subsections
(b-1), (b-2), and (b-3) to read as follows:
(b) A person who violates Subsection (a) or (a-1) is liable
to the [each] injured person for:
(1) the greater of:
(A) $10,000; or
(B) the actual economic damages caused by the
violation;
(2) court costs;
(3) reasonable attorney's fees; and
(4) exemplary damages in an amount determined by the
court.
(b-1) Notwithstanding any other provision of this chapter,
multiple persons with an interest in a single property subject to a
fraudulent lien shall be treated as a single person for purposes of
calculating total damages, except that the calculation of actual
economic damages under Subsection (b)(1)(B) must include the sum of
actual economic damages suffered by each person with an interest in
the property.
(b-2) Notwithstanding any other provision of this chapter,
multiple persons that jointly file a single fraudulent lien shall
be treated as a single person for purposes of calculating total
damages.
(b-3) When an award made as provided by Subsection (b)(1)(A)
exceeds the actual economic damages caused by the violation,
damages may not be awarded under Subsection (b)(4).
SECTION 3. Section 12.003, Civil Practice and Remedies
Code, is amended by amending Subsection (a) and adding Subsection
(a-1) to read as follows:
(a) The following persons may bring an action to enjoin
violation of this chapter [or to recover damages under this
chapter]:
(1) the attorney general;
(2) a district attorney;
(3) a criminal district attorney;
(4) a county attorney with felony responsibilities;
(5) a county attorney;
(6) a municipal attorney;
(7) in the case of a fraudulent judgment lien, the
person against whom the judgment is rendered; and
(8) in the case of a fraudulent lien or claim against
real or personal property or an interest in real or personal
property, the obligor or debtor at the time the action is commenced,
or a person who owns an interest in the real or personal property at
the time the action is commenced.
(a-1) The persons described by Subsections (a)(7) and (8)
may also bring an action to recover damages under this chapter. The
persons described by Subsections (a)(1) through (6) may also bring
an action to recover damages on behalf of any person described by
Subsection (a)(7) or (8).
SECTION 4. Chapter 12, Civil Practice and Remedies Code, is
amended by adding Section 12.008 to read as follows:
Sec. 12.008. FOUR-YEAR LIMITATIONS PERIOD. (a) A person
must bring suit under this chapter not later than four years after
the date the cause of action accrues.
(b) A cause of action under this chapter accrues on the
earlier of:
(1) the date the fraud is or by the exercise of
reasonable diligence should have been discovered;
(2) the date that property subject to a fraudulent
lien or court record is conveyed if the conveyance occurs after the
date the fraudulent lien is first recorded; or
(3) the date the fraudulent lien is released.
SECTION 5. This Act is intended to clarify existing law with
respect to which fines may be imposed and which persons are entitled
to receive damages for actions under Chapter 12, Civil Practice and
Remedies Code.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.
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