By: Smith, Ashley H.B. No. 868
73R3356 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to settlement offers in certain civil actions.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle C, Title 2, Civil Practice and Remedies
1-5 Code, is amended by adding Chapter 42 to read as follows:
1-6 CHAPTER 42. JUDGMENT FOLLOWING OFFER OF SETTLEMENT
1-7 Sec. 42.001. DEFINITIONS. In this chapter:
1-8 (1) "Claimant" and "defendant" have the meanings
1-9 assigned those terms by Section 33.011.
1-10 (2) "Litigation costs" means costs that are directly
1-11 related to preparing a case for trial and actual trial expenses,
1-12 including:
1-13 (A) reasonable attorney's fees;
1-14 (B) costs;
1-15 (C) deposition costs; and
1-16 (D) expert witness fees.
1-17 Sec. 42.002. APPLICABILITY. This chapter applies only to
1-18 those actions to which Chapter 33 applies.
1-19 Sec. 42.003. OFFER TO SETTLE. (a) A claimant must serve on
1-20 another party an offer to settle under this section before the
1-21 claimant may proceed to trial.
1-22 (b) The offer to settle must:
1-23 (1) be in writing;
1-24 (2) state that it is an offer to settle under this
2-1 section;
2-2 (3) offer to settle a claim as specified in the offer;
2-3 and
2-4 (4) offer to allow judgment to be entered in
2-5 accordance with the terms of the offer.
2-6 (c) An offer to settle must be made before the 20th day
2-7 before the date set for trial.
2-8 (d) An offer to settle need not be filed with the court.
2-9 Sec. 42.004. ACCEPTANCE OR REJECTION OF OFFER. (a) A
2-10 defendant may accept an offer to settle not later than 5 p.m. on
2-11 the 20th day after:
2-12 (1) the date on which the offer to settle was
2-13 deposited in the United States mail; or
2-14 (2) if the offer was not mailed, the date on which the
2-15 offer to settle was delivered.
2-16 (b) An acceptance of an offer must be made in writing and
2-17 served on the claimant making the offer.
2-18 (c) For purposes of this chapter, an offer is considered
2-19 rejected by a defendant if:
2-20 (1) the defendant serves a written rejection on the
2-21 claimant; or
2-22 (2) the defendant has not accepted the offer on or
2-23 before 5 p.m. on the last date the offer may be accepted under
2-24 Subsection (a).
2-25 (d) To determine the time of day for purposes of Subsection
2-26 (a) or (c), the local time of the defendant controls.
2-27 Sec. 42.005. LITIGATION COSTS. (a) The court shall award
3-1 litigation costs to a claimant who makes an offer to settle if the
3-2 claimant's offer is rejected and the judgment finally awarded is
3-3 not more favorable to the defendant to whom the offer to settle was
3-4 made than the offer.
3-5 (b) Litigation costs awarded to a claimant under this
3-6 section may include only those costs incurred after the date the
3-7 offer to settle was made by the claimant.
3-8 Sec. 42.006. MUST BE REPRESENTED BY ATTORNEY. To recover
3-9 attorney's fees under this chapter a claimant must be represented
3-10 by an attorney.
3-11 Sec. 42.007. EVIDENCE OF OFFER NOT ADMISSIBLE. (a)
3-12 Evidence of an offer to settle is not admissible except in:
3-13 (1) an action to enforce the settlement; or
3-14 (2) a proceeding to obtain litigation costs under
3-15 Section 42.005.
3-16 (b) Admission of evidence of an offer to settle in violation
3-17 of this section is presumed to be harmful error for purposes of an
3-18 appeal of the action in which the evidence is admitted.
3-19 SECTION 2. (a) This Act takes effect September 1, 1993.
3-20 (b) Chapter 42, Civil Practice and Remedies Code, as added
3-21 by this Act, applies to an action:
3-22 (1) commenced on or after the effective date of this
3-23 Act; or
3-24 (2) pending on that effective date.
3-25 SECTION 3. The importance of this legislation and the
3-26 crowded condition of the calendars in both houses create an
3-27 emergency and an imperative public necessity that the
4-1 constitutional rule requiring bills to be read on three several
4-2 days in each house be suspended, and this rule is hereby suspended.