By:  Kamel                                             H.B. No. 406
       73R1932 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to award of attorney's fees in certain civil actions.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Sections 38.001 and 38.003, Civil Practice and
    1-5  Remedies Code, are amended to read as follows:
    1-6        Sec. 38.001.  Recovery of Attorney's Fees.  A court shall
    1-7  award attorney's fees to a prevailing party in a civil action to
    1-8  which this chapter applies.  The award shall be made in accordance
    1-9  with this chapter.  <A person may recover reasonable attorney's
   1-10  fees from an individual or corporation, in addition to the amount
   1-11  of a valid claim and costs, if the claim is for:>
   1-12              <(1)  rendered services;>
   1-13              <(2)  performed labor;>
   1-14              <(3)  furnished material;>
   1-15              <(4)  freight or express overcharges;>
   1-16              <(5)  lost or damaged freight or express;>
   1-17              <(6)  killed or injured stock;>
   1-18              <(7)  a sworn account; or>
   1-19              <(8)  an oral or written contract.>
   1-20        Sec. 38.003.  PRESUMPTION.  It is presumed that the usual and
   1-21  customary attorney's fees for a claim of the type that is the
   1-22  subject of the action <described in Section 38.001> are reasonable.
   1-23  The presumption may be rebutted.
   1-24        SECTION 2.  Chapter 38, Civil Practice and Remedies Code, is
    2-1  amended by adding Section 38.0015 to read as follows:
    2-2        Sec. 38.0015.  APPLICABILITY.  Attorney's fees are
    2-3  recoverable in the manner provided by this chapter in any civil
    2-4  action for which attorney's fees are:
    2-5              (1)  not otherwise recoverable under another statute;
    2-6  or
    2-7              (2)  recoverable under another statute if that statute
    2-8  expressly states that this chapter applies.
    2-9        SECTION 3.  Section 38.006, Civil Practice and Remedies Code,
   2-10  is repealed.
   2-11        SECTION 4.  Sections 17.50(c) and (d), Business & Commerce
   2-12  Code, are amended to read as follows:
   2-13        (c)  The court shall award the prevailing party in an action
   2-14  under this section:
   2-15              (1)  attorney's fees under Chapter 38, Civil Practice
   2-16  and Remedies Code; and
   2-17              (2)  court costs.  <On a finding by the court that an
   2-18  action under this section was groundless and brought in bad faith,
   2-19  or brought for the purpose of harassment, the court shall award to
   2-20  the defendant reasonable and necessary attorneys' fees and court
   2-21  costs.>
   2-22        <(d)  Each consumer who prevails shall be awarded court costs
   2-23  and reasonable and necessary attorneys' fees.>
   2-24        SECTION 5.  This Act takes effect September 1, 1993, and
   2-25  applies only to an action commenced on or after January 1, 1994.
   2-26  An action that is commenced before January 1, 1994, is governed by
   2-27  the law in effect at the time the action is commenced, and that law
    3-1  is continued in effect for that purpose.
    3-2        SECTION 6.  The importance of this legislation and the
    3-3  crowded condition of the calendars in both houses create an
    3-4  emergency   and   an   imperative   public   necessity   that   the
    3-5  constitutional rule requiring bills to be read on three several
    3-6  days in each house be suspended, and this rule is hereby suspended.