Lawsuit Inspiring Bills Defeated
Safeguards Preserved in Legislative Session

Over the past several months CALA has spent a lot of time and money traveling and testifying as requested before House and Senate committees and responding to inquiries from the press. The session ended May 28 in what some have characterized as an evenly matched tug-of-war with lots of effort and little to show for it. As a result of grass roots calls, faxes and e-mails, lawmakers were better aware of the possible effects of the proposed bills.

Lawsuit reformers say safeguards were preserved and damaging bills killed. Many bills pushed by reformers died as well. The clock ran out on negotiation of a campaign finance-reporting bill in the waning days of the session.

The following is the post-mortem on proposed legislation that involved lawsuit reforms.

Bill:
HB 3125 Product Safety Bill
Status:
Killed in House Civil Practices.
Many reformers believe this bill would have overturned product liability, deceptive trade and punitive damage reforms by increasing civil penalties, imposing criminal penalties and reducing the burden of proof for assessing punitive damages. Reformers say this bill would have essentially eliminated sealed settlements.
Bill:
HB 740 Summary Judgment
Status:
Passed in the House. Defeated in Senate Business & Commerce.
Reformers believe this measure would have diluted the Texas Supreme Court’s summary judgment rule, which helps judges get rid of non-meritorious lawsuits.
Bill:
HB 923 Trusts
Status:
Passed in the House. Defeated in Senate Jurisprudence.
Probate courts would have been given expansive—and exclusive—jurisdiction over certain personal injury lawsuits.
Bill:
HB 736/ SB 422 Oil & Gas Leases
Status:
Killed in House Civil Practices.
The four-year statute of limitation would have been lifted in any lawsuit involving and oil and gas lease.
Bill:
HB 735/ SB 290 Venue Exception
Status:
Killed in House Civil Practices.
This bill would have created a special venue exception for lawsuits involving oil and gas leases.
Bill:
SB 11 Medical Privacy
Status:
Passed, as amended, in the House and Senate. Sent to the Governor for signature.
This bill protects the privacy of patient medical records. It gives patients the right to know how entities use their medical information in the form of an easy-to-understand public notice. Patients are given the right to inspect their medical records and are provided with a mechanism to correct errors in their files. The legislation prevents the transfer of patient data from health entities to marketing or advertising concerns without the patient’s consent. Individuals have the right to stop the release of information and seek injunctive relief but not punitive damages. The legislation allows the Texas Attorney General to investigate and to order fines and penalties for violations. All violations must be handled on a case-by-case basis. As initially proposed, the bill granted automatic damages that easily could have been lumped together into a class action lawsuit. Even as amended some business groups believe this is a well-intended but lawsuit inspiring bill that will ultimately lead to inappropriate settlements from potential defendants.
Bill:
SB 8 Equal Healthcare for Women
Status:
Passed, as amended, in the House and Senate. Sent to the Governor for signature.
Routinely doctors and hospitals are reimbursed far less for female-specific surgeries and procedures than for equivalent treatments for men. Yet, the time spent and required skill necessary to perform the surgery is often the same. This bill would assure equal pay for equal work. As originally proposed, the bill allowed for civil penalties of $25,000 per patient and the opportunity to lump violations into a class action lawsuit. The adopted version calls for the Insurance Commissioner to investigate allegations and to impose sanctions and administrative penalties against violators.
Bill:
SB 842 Class Action Lawsuits
Status:
Died in Senate Business & Commerce.
This proposed reform would have allowed the Texas Supreme Court to apply a consistent rule to all Texas class action lawsuits.
Bill:
SB 129 Judicial Selection
Status:
Passed in the Senate. Died in House Calendars.
Texas has come under criticism for an election system that forces judicial candidates to wage expensive political battles. This bill would have eliminated the partisan election of justices to the Texas Supreme Court and Court of Criminal Appeals. Had the measure passed and the State Constitution been amended, justices would have been appointed by the Governor, confirmed by the Senate and retained or ousted by the will of the voters.
Bill:
HB 2 Campaign Finance Disclosure
Status:
Passed in the House and Senate. Died in Conference Committee.
This measure would have strengthened state campaign finance reporting requirements. Campaigns would have been required to report the employer and occupation of those who gave more than $500 and disclose late giving in the final eight days of the campaign. Also, out-of-state political action committees would have been required to report their spending in Texas just like in-state PACs do. Plus, a truth-in-labeling provision would have ended disguised contributions given under obscure or deceptive PAC names.
Bill:
HB 3011 Medical Practice Liability
Status:
Died in House Civil Practices.
This legislation would have resulted in consistent enforcement of cost bond and expert witness requirements in medical malpractice lawsuits.
Bill:
SB 1397 Third Party Liability
Status:
Died in Senate Business & Commerce.
Under current law Texas juries are prohibited from assigning fault to an uncaught criminal. Homeowners, business owners and property owners may therefore be sued for the actions of others. This proposed reform would have allowed juries to assign fault to all responsible parties in a premises case.
Bill:
HB 1905 Bad Faith Claim
Status:
Died in House Calendars
Physicians’ reputations have been ruined by groundless or frivolous lawsuits. This bill would have allowed doctors to sue for damages if victimized by a bad faith or reckless lawsuit.
Bill:
HB 61 Offer of Settlement
Status:
Died in House Civil Practices.
This bill would have encouraged early lawsuit settlements by providing incentives for both defendants and plaintiffs to analyze their cases early and make realistic offers to settle. Currently, under Texas law, a party is not penalized for threatening to drive up expenses in a lawsuit, although an abuse of litigation can be extremely costly to both parties.

Citizens Against Lawsuit Abuse

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