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Chamberlain McHaney, PLLC

Texas Lawyers, Austin & San Antonio

Austin Bar Legislative Update

We have less than 30 days to go till the end of the session.  The deadline for House Committees to report occurred yesterday; thus, many House bills are now dead or close to it.

Subrogation — Made-Whole Doctrine vs. Fortis Benefits  HB 1869 – Contractual Subrogation Rights of Certain Insurers and Benefit Plan Issuers

The Texas Supreme Court ruled in the 2007 Fortis Benefits case that a health insurer’s contractual subrogation rights trumped the made-whole doctrine. These companion bills would change that to provide a statutory formula for a balanced division of the monetary recovery between the injured party and the party’s health insurer in those cases where there is not enough money to fully compensate the injured party.  The bill was heard in the House Jurisprudence and Civil Practices Committee (JCP). TEX-ABOTA, TADC and TTLA registered support for the bill.  Some health insurers registered against.

The HB passed the House on May 6.

Its companion in the Senate has been heard in State Affairs and remains pending.  Status of SB 1339:

Attorney Disclosures Required in Divorce Cases: HB 3470 – Disclosures by an Attorney Before Accepting Representation in Marriage Dissolution Cases

This bill would require an attorney to disclose information about alternative dispute resolution to the prospective client before the attorney may accept the divorce case.  The bill directs the State Bar to promulgate the form disclosure.

The bill was voted out of JCP committee on April 29, and sent to calendars on May 6.

Judicial Selection SJR 34 Duncan, SB 577 by Duncan

The Senate State Affairs Committee heard testimony regarding this proposed constitutional amendment/bill which would change selection of appellate judges to appoint/elect/retain.  After vigorous questioning, the bill was left pending.

It has not been voted out of committee.

Bill Will Increase Civil Court Filing Fees to Pay for State-wide E-filing:  HB 2302 by Hunter

This bill, heard in the House JCP Committee yesterday, would create a statewide court electronic filing system fund and raise certain civil and probate court filing fees to fund the account.  The committee substitute laid out on Monday in the House JCP Committee hearing increased the civil court and probate  filing fee to $20.  Criminal court costs and JP court costs would also be increased. No one registered against the bill, and it was eventually voted favorably out of committee.

The bill passed the House on April 26.  The Senate companion emerged favorably from Jurisprudence on April 3, and is pending in the Senate.  Status of SB 1146

The Mulligan Bill–Defamation Retraction Act:  HB 1759 by Hunter

This bill, which was heard in the House JCP, imposes significant pre-suit conditions on defamation suit filings and limits recoverable damages is some situations.  Major media outlets testified in favor of the bill.  No one testified against it.

The bill emerged favorably out of the JCP committee, and was passed by the full House on May 2, and forwarded to the Senate on May 6.  The Senate companion remains pending in State Affairs. Status of SB 1514

Interlocutory Appeal of Anti-Slapp Motion HB2935  by Hunter

This bill, which would make clear that appellate courts have jurisdiction to hear an interlocutory appeal of a denial of an anti-slapp  motion to dismiss, was heard in the House JCP Committee.  Characterized by supporters as a “clean-up bill,” no one testified in opposition.

The bill passed both committee and full House votes.  The Senate companion remains pending in State Affairs.  Status of SB 1513

Defendant’s Net Worth HB 3098 – Availability and Use of Evidence in Connection with Awards of Exemplary Damages

 For the past twenty or so years, evidence of a defendant’s net worth has been admissible as a factor in determining the appropriate amount of exemplary damages to be awarded against that defendant.  HB 3098, by Rep. Tryon Lewis (R – Odessa), would amend section 41.011 of the CPRC to eliminate net worth as an  as one of the elements.  “Evidence of the net worth of the defendant is privileged from discovery and inadmissible to the extent the evidence is sought or provided to support a claim for or the amount of exemplary damages.”

This bill has not emerged from committee, and is likely to die.

Insurance–Must You Pay to Play?  HB 1774 – Liability Arising from Certain Automobile Accidents

Scofflaws who do not have auto liability insurance would be precluded from recovering non-economic damages or exemplary damages in suits for bodily injury, death or property damage arising from an automobile accident according to this bill:

This bill never received a hearing, and was not voted out of committee.  It is likely to die.

 Divorce Court Forms  SB 1261 – Use of Standardized Forms in Civil Actions (Companion Bill:HB 2878)

 There has been much hue and cry over whether the Texas Supreme Court’s administrative decision to authorize standardized divorce court forms for use by pro se litigants was a good call or not. These companion bills would, among many other things, prohibit a court from “grant[ing] relief or enter[ing] an order using or relying on a standardized form that does not comply with substantive or procedural law.”

The bill has not received a hearing or committee vote.

 “Loser Pays” in Family Law Cases HB 1808 – Award of Attorney’s Fees for Certain Dismissed Claims Joined to Family Code Actions

This bill would apply the 2011 motion to dismiss provisions, which permit prevailing parties to collect attorney’s fees, to “tort claims joined to an action under the Family Code.”

The bill never got a committee hearing, and is likely to die.

Insurance:  Why Not?  Louisiana Does it. HB 3338 – Insurers as Proper Parties to Certain Actions for Damages

This bill would change long standing Texas law to allow a plaintiff to include the defendant’s liability insurance company as a defendant in the case.

The bill was referred to House JCP, but never received a hearing or committee vote.

Texas Medical Liability Act–What is a Medical Liability Claim?  HB 2644 – Scope of Health Care Liability Claims

The Texas Supreme Court raised a few eyebrows last year when it decided in Texas West Oaks Hospital, L.P. v. Williams that the personal injury claim of a hospital employee against his hospital employer—for injuries sustained when he was assaulted by a psychiatric patient—was a health care liability claim. As such, the employee has to comply with all the requirements of the Texas Medical Liability Act in order to maintain a suit.  This bill would amend Ch 74 of the CPRC to make clear that a health care  liability claim “does not include claims arising from an injury to or death of a person who is not a patient, including employment and premises liability claims.”

This bill received a hearing on April 22, in House JCP committee, but was not voted out of committee.  This bill is likely to die.

TWEET:  You’ve Been Sued! HB 1989 – Substituted Service of Citation Through a Social Media Website

No joke, the other day a federal court authorized service of suit on a foreign corporation by Facebook, reasoning that it was the modern thing to do. This bill would bring that hipness to Texas.

This bill never received a hearing or a committee vote.

And You May Get More Email HB 293 – Release and Use of Information Maintained by the State Bar of Texas (Companion Bill: SB 1796)

If that email inbox is not yet full enough with spam, this bill would require the State Bar of Texas to provide lawyers’ names, bar card numbers and email addresses to an accredited continuing legal education provider affiliated with a state agency, including a public law school, so they can send you information regarding CLE activities.

The bill did not did not emerge from its respective committees, and is likely to die.

Insurance–Pre-Dispute Arbitration Clauses Would be Unenforceable in Some Policies HB 2956 – Prohibitions Against Pre-Dispute Arbitration Provisions in Certain Insurance and Health Benefit Plans

It’s the rage these days to include arbitration clauses in all manner of boilerplate contracts.  Last summer, the Texas Department of Insurance pondered whether Texas should allow that in certain insurance policies.  This bill would curtail that rage in auto and health policies.

The bill received a hearing, but never emerged from committee, meaning it is likely dead.

Lawsuit Lending  HB 1595 – Regulation of and Disclosures Regarding Consumer Lending Lawsuit Transactions (Companion Bill: SB 927)

HB 1595 – Regulation of and Disclosures Regarding Consumer Lending Lawsuit Transactions(Companion Bill: SB 927)
by Rep. Doug Miller (R – New Braunfels) and Sen. Joan Huffman (R – Houston) respectively, would subject consumer lawsuit lending transactions to Texas usury and regulatory laws in the same manner as a loan for personal, family, or  household use.

The HB was voted favorably our of JCP, and is now pending in Calendars. The SB is pending in State Affairs.

Judicial Affairs

These gaggle of bills would affect the way we select and elect judges, and how the judicial campaigns may be funded.

 

SB 103 – Elimination of Straight Ticket Voting for Judicial Offices
by Sen. Dan Patrick (R – Houston), would eliminate straight ticket voting for judicial offices.

SB 577 – Filling Vacancies in Judicial Offices by Appointment, Partisan Elections, and Nonpartisan Retention
SJR 34 – Constitutional Amendment Related to the Filling of Judicial Vacancies
by Sen. Robert Duncan (R – Lubbock),would create an “Appointment, Partisan Election, Nonpartisan Retention Election” process

This bill remains pending in committee.

HB 1126 – Public Financing of Campaigns for Appellate Judicial Offices
by Rep. Rafael Anchia (D – Dallas), a candidate could request public financing by filing a petition signed by a specific number of qualified voters who also make a minimum contribution to the candidate’s campaign.  The bill never got a hearing or committee vote, so it’s likely to die.

HJR 37 – Constitutional Amendment to Change the Terms of District Court Judges to Six Years
HJR 37, authored by Rep. Richard Raymond (D – Laredo), would increase the terms of district court judges from four years to six years.  The bill never received a hearing in the House JCP, and never got a vote.  It is essentially dead.

HB 134 – Abolishment of the Court of Criminal Appeals / HJR 36 – Constitutional Amendment to Abolish the Court of Criminal Appeals
by Rep. Richard Raymond (D – Laredo), would abolish the Court of Criminal Appeals and give jurisdiction of criminal appeals to the Texas Supreme Court
The bill never received a hearing or a vote in the House JCP.

HB 1710 – Cost-of-Living Increase in Compensation for District Judges and Longevity Pay for Certain Judges and Justices

  • Status:  The bill was voted out of JCP committee on April 24 and sent to House Calendars on May 2.

The Austin Bar Legislative Update is a membership benefit of the Austin Bar Association