85R3374 CAE-F
By: Flynn H.B. No. 45
A BILL TO BE ENTITLED
AN ACT
relating to the application of foreign laws and foreign forum
selection in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 6, Civil Practice and Remedies Code, is
amended by adding Chapter 148 to read as follows:
CHAPTER 148. APPLICATION OF FOREIGN LAWS; SELECTION OF FOREIGN
FORUM
Sec. 148.001. DEFINITION. In this chapter, "foreign law"
means a law, rule, or legal code of a jurisdiction outside of the
states and territories of the United States. The term does not
include a law of a Native American tribe of a state or territory of
the United States.
Sec. 148.002. DECISION BASED ON FOREIGN LAW. A ruling or
decision of a court, arbitrator, or administrative adjudicator may
not be based on a foreign law if the application of that law would
violate a right guaranteed by the United States Constitution or the
constitution of this state.
Sec. 148.003. CHOICE OF FOREIGN LAW OR FORUM IN CONTRACT.
(a) A contract provision providing that a foreign law is to govern
a dispute arising under the contract is void to the extent that the
application of the foreign law to the dispute would violate a right
guaranteed by the United States Constitution or the constitution of
this state.
(b) A contract provision providing that the forum to resolve
a dispute arising under the contract is located outside the states
and territories of the United States is void if the foreign law that
would be applied to the dispute in that forum would, as applied,
violate a right guaranteed by the United States Constitution or the
constitution of this state.
Sec. 148.004. LIMITATION ON FORUM NON CONVENIENS. If a
resident of this state commences an action in this state, a court
may not grant a motion for forum non conveniens if the foreign law
that would be applied to the dispute in the forum to which the
moving party seeks to have the action removed would, as applied,
violate a right guaranteed by the United States Constitution or the
constitution of this state.
SECTION 2. (a) Section 148.002, Civil Practice and
Remedies Code, as added by this Act, applies only to a ruling or
decision that becomes final on or after the effective date of this
Act. A ruling or decision that becomes final before the effective
date of this Act and any appeal of that ruling or decision are
governed by the law in effect immediately before the effective date
of this Act, and that law is continued in effect for that purpose.
(b) Section 148.003, Civil Practice and Remedies Code, as
added by this Act, applies only to a contract entered into on or
after the effective date of this Act. A contract entered into
before the effective date of this Act is governed by the law in
effect immediately before that date, and that law is continued in
effect for that purpose.
(c) Section 148.004, Civil Practice and Remedies Code, as
added by this Act, applies only to a motion for forum non conveniens
made on or after the effective date of this Act. A motion for forum
non conveniens made before the effective date of this Act is
governed by the law in effect immediately before that date, and that
law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.