By: Smith, Ashley H.B. No. 1162 73R923 DLF-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to damages in personal injury actions. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subtitle B, Title 2, Civil Practice and Remedies 1-5 Code, is amended by adding Chapters 24 and 25 to read as follows: 1-6 CHAPTER 24. COLLATERAL SOURCE BENEFITS 1-7 Sec. 24.001. DEFINITIONS. In this chapter: 1-8 (1) "Claimant" means a party, including a plaintiff, 1-9 counterclaimant, cross-claimant, or third-party claimant, seeking 1-10 recovery of damages. If the action is brought through or on behalf 1-11 of an estate, the term includes the beneficiaries of the estate. 1-12 If the action is brought on behalf of a minor, the term includes 1-13 the minor's parent or guardian. 1-14 (2) "Collateral source benefit" means a benefit paid 1-15 or payable to or on behalf of a claimant under: 1-16 (A) the Social Security Act (42 U.S.C. 301 et 1-17 seq.); 1-18 (B) a state or federal income replacement, 1-19 disability, workers' compensation, or other law that provides 1-20 partial or full income replacement; 1-21 (C) any insurance policy, other than a life 1-22 insurance policy, including: 1-23 (i) an accident, health, or sickness 1-24 insurance policy; 2-1 (ii) a disability insurance policy; and 2-2 (iii) a property or casualty insurance 2-3 policy, including a motor vehicle or homeowners' insurance policy; 2-4 (D) an agreement under which a person, including 2-5 a health maintenance organization operating under a certificate of 2-6 authority issued under the Texas Health Maintenance Organization 2-7 Act (Chapter 20A, Vernon's Texas Insurance Code), is obligated to 2-8 provide or pay for medical, hospital, dental, or other health care 2-9 services or similar benefits; or 2-10 (E) a contractual or voluntary wage continuation 2-11 plan, provided by an employer or other person, or any other system 2-12 intended to provide wages during a period of disability. 2-13 Sec. 24.002. APPLICATION OF CHAPTER. (a) This chapter 2-14 applies only to a claim for damages arising from personal injury, 2-15 including a claim for loss of wages, medical or other health care 2-16 costs, rehabilitation costs, and services. 2-17 (b) This chapter applies regardless of the theory of 2-18 liability under which the action is brought. 2-19 Sec. 24.003. ADMISSIBILITY OF EVIDENCE OF COLLATERAL SOURCE 2-20 BENEFITS. Evidence of a collateral source benefit is admissible in 2-21 a personal injury action if the benefit: 2-22 (1) has been paid or is substantially certain to be 2-23 paid to the claimant; and 2-24 (2) compensates the claimant for at least some of the 2-25 damages sought in the action. 2-26 Sec. 24.004. CONSIDERATION OF COLLATERAL SOURCE BENEFITS. 2-27 (a) The trier of fact shall consider collateral source benefits 3-1 admissible under Section 24.003 in determining the amount of a 3-2 judgment. 3-3 (b) The court shall consider collateral source benefits 3-4 admissible under Section 24.003 in reviewing a judgment for 3-5 excessiveness. 3-6 Sec. 24.005. PREMIUMS PAID FOR COLLATERAL SOURCE BENEFITS. 3-7 In determining the amount of a judgment, the trier of fact may 3-8 consider premiums personally paid by a claimant to obtain coverage 3-9 that provides a collateral source benefit that has been paid or 3-10 that is payable. 3-11 Sec. 24.006. EVIDENCE OF TAX IMPLICATION OF DAMAGE AWARDS. 3-12 The trier of fact shall be informed of the tax implications of an 3-13 award of damages for a claim for which collateral source benefits 3-14 were received. 3-15 CHAPTER 25. AWARD OF DAMAGES 3-16 Sec. 25.001. DEFINITION. In this chapter, "claimant" means 3-17 a party, including a plaintiff, counterclaimant, cross-claimant, or 3-18 third-party claimant, seeking recovery of damages. If the action 3-19 is brought through or on behalf of an estate, the term includes the 3-20 beneficiaries of the estate. If the action is brought on behalf of 3-21 a minor, the term includes the minor's parent or guardian. 3-22 Sec. 25.002. SPECIAL DAMAGES FINDINGS REQUIRED. (a) If a 3-23 trier of fact awards damages for personal injury, the trier of fact 3-24 shall make separate findings for each claimant specifying: 3-25 (1) the amount of damages that have accrued at the 3-26 time of the judgment for: 3-27 (A) medical and other health care costs; 4-1 (B) economic loss other than the costs of 4-2 medical or other health care; and 4-3 (C) noneconomic loss; and 4-4 (2) the amount of damages that will accrue in the 4-5 future for: 4-6 (A) medical and other health care costs; 4-7 (B) economic loss other than the costs of 4-8 medical or other health care; and 4-9 (C) noneconomic loss. 4-10 (b) This section applies regardless of the theory of 4-11 liability under which the claim for damages for personal injury is 4-12 brought. 4-13 Sec. 25.003. COMPUTATION OF FUTURE DAMAGES. (a) The trier 4-14 of fact, in computing the cost of medical or other health care that 4-15 will accrue in the future and future noneconomic loss, may consider 4-16 only the costs and losses that will accrue during the period of 4-17 time the claimant will sustain those costs and losses. 4-18 (b) The trier of fact, in computing the economic loss other 4-19 than the cost of medical or other health care that will accrue in 4-20 the future, shall consider the losses that would have accrued 4-21 during the period of time the claimant would have lived if the 4-22 injury on which the claim is made had not been sustained. 4-23 SECTION 2. This Act takes effect September 1, 1993, and 4-24 applies only to a cause of action that commences on or after that 4-25 date. An action that commences before that date is governed by the 4-26 law in effect at the time the action commences, and that law is 4-27 continued in effect for that purpose. 5-1 SECTION 3. The importance of this legislation and the 5-2 crowded condition of the calendars in both houses create an 5-3 emergency and an imperative public necessity that the 5-4 constitutional rule requiring bills to be read on three several 5-5 days in each house be suspended, and this rule is hereby suspended.