BILL ANALYSIS
C.S.H.B. 6
By: Duncan
April 21, 1995
Committee Report (Substituted)
BACKGROUND
Current law allows parties in a lawsuit to choose where to bring
suit. This has caused suits to be filed in counties which have no
relation to the parties or subject matter of the lawsuit. A result
is that suits are being filed in a county because a business may
have an agent in the county, even though there is no connection
between the location and subject matter of the case.
PURPOSE
C.S.H.B. 6 amends venue rules for cases involving landlord-tenant;
personal injury, death, or property damage; and insurance.
Provides venue rules for multiple, intervening plaintiffs, and
multiple claims. Also provides rules for suits involving joinder
of defendants and claims after proper venue has been established.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Chapter 15A, Civil Practices and Remedies Code,
as follows:
SUBCHAPTER A. New title: DEFINITIONS; GENERAL RULES
Sec. 15.001. DEFINITIONS. Defines "principal office" and
"proper venue."
Sec. 15.002 VENUE: GENERAL RULE. (a) Requires all lawsuits
to be brought in the county in which all or a substantial part
of the events or omissions giving rise to the claim occurred,
rather than where the cause of action accrued; in the county
of the defendant's residence at the time the action accrued;
in the county of the defendant's principal office, if the
defendant is not a natural person; or if Subdivisions (1),
(2), and (3) do not apply, the county in which the plaintiff
resided at the time the cause of action accrued. Requires the
court to determine a single county as the principal office in
this state for any defendant which is not a natural person and
is doing business in this state.
Sec. 15.003. MULTIPLE PLAINTIFFS AND INTERVENING PLAINTIFFS.
(a) Requires each plaintiff in a suit in which more than one
plaintiff is joined to independently of any other plaintiff,
establish proper venue. Prohibits any person who is unable to
establish proper venue from joining or maintaining venue for
the suit as a plaintiff unless the person, independently of
another plaintiff establishes that joinder or intervention in
the suit is proper under Texas Rules of Civil Procedure;
maintaining venue in the county of suit does not unfairly
prejudice another party to the suit; there is an essential
need to have the person's claim tried in the county in which
the suit is pending; and the county in which the suit is
pending is a fair and convenient venue for the person seeking
to join in or maintain venue for the suit and the persons
against whom the suit is brought.
(b) Prohibits a person from intervening or joining in a
pending suit as a plaintiff unless the person, independently
of any other plaintiff establishes proper venue for the county
in which the suit is pending; or satisfies the requirements of
Subsections (a) (1)-(4).
(c) Authorizes any person seeking intervention or joinder,
who is unable t independently establish proper venue, or a
party opposing intervention or joinder of such a person to
contest the decision of the trial court allowing or denying
intervention or joinder by taking an interlocutory appeal to
the court of appeals district in which the trial court is
located under the procedures established for interlocutory
appeals. Requires the appeal to be perfected by the 20th day
after the date the trial court signs the order denying or
allowing intervention or joinder. Requires the court of
appeals to determine whether the joinder or intervention is
proper based on an independent determination from the record
and not under either an abuse of discretion or substantial
evidence standard; and render its decision by the 120th day
after the date the appeal is perfected by the complaining
party.
Sec. 15.004. MANDATORY VENUE PROVISION GOVERNS MULTIPLE
CLAIMS. Requires a suit in which a plaintiff properly joins
at least two claims or causes of action arising from the same
transaction, occurrence or series of transactions or
occurrences, and one of the claims or causes of action is
governed by the mandatory venue provisions of Subchapter B to
be brought in the county required by the mandatory venue
provision.
Sec. 15.005. MULTIPLE DEFENDANTS. Provides that the court
has venue of all the defendants in all claims or actions
arising out of the same transaction, occurrence, or series of
transactions or occurrences in a suit in which the plaintiff
has established proper venue under this chapter against a
defendant.
Sec. 15.006. VENUE DETERMINED BY FACTS EXISTING AT THE TIME
OF ACCRUAL. Requires a court to determine the venue of a suit
based on the facts existing at the time the cause of action
that is the basis of the suit accrued.
Sec. 15.007. CONFLICT WITH CERTAIN PROVISIONS. Provides that
notwithstanding Sections 15.004, 15.005, and 15.031, to the
extent that venue under this chapter for a suit brought by or
against an executor, administrator, or a guardian as such, for
personal injury, death or property damage conflicts with venue
provisions under the Texas Probate Code, this chapter
controls.
SECTION 2. Amends Chapter 15B, Civil Practices and Remedies Code,
by amending Section 15.011 and by adding Sections 15.0115 and
15.018, as follows:
Sec. 15.011. LAND. Requires actions for recovery of damages
to real property, among other actions, to be brought in the
county in which all or part of the property is located.
Sec. 15.0115. LANDLORD-TENANT. (a) Requires a suit between
a landlord and tenant under a lease to be brought in the
county containing all or part of the real property, except as
provided by another statute prescribing mandatory venue.
(b) Defines "lease."
Sec. 15.018. SUITS UNDER FELA OR THE JONES ACT. A suit filed
under the Federal Employer' Liability Act (45 U.S.C. Section
51 et seq.) or the Jones Act (46 U.S.C. Section 668) shall be
brought in the county in which all or a substantial part of
the cause of the action occurred; in the county where the
defendant's principal office in this state is located; or in
the county where the plaintiff resided at the time the cause
of action accrued.
SECTION 3. Amends Section 15.032, and 15.033, Civil Practice and
Remedies Code, as follows:
Sec. 15.032. INSURANCE. Authorizes a suit against fire,
marine, or inland companies to begin in the county with the
insured property. Authorizes a policy suit to be brought
against an insurance company in the county in which the
company's principle office in this state is located, or in
which the policyholder or beneficiary resided at the time the
cause of action accrued.
Sec. 15.033. BREACH OF WARRANTY BY MANUFACTURER. Authorizes
a suit for breach of warranty by the manufacturer of consumer
goods to be brought in any county in which all or part of the
cause of action accrued, in the county in which the
manufacturer has its principal office, rather than where it
may have an agency or representative in which the principal
office of the company may be situated, or in the county in
which the plaintiff, rather than the plaintiff or plaintiffs,
resided at the time the cause of action accrued.
SECTION 4. Amends Section 15.062, Civil Practices and Remedies
code, as follows:
Sec. 15.062. COUNTERCLAIMS, CROSS CLAIMS, AND THIRD PARTY
CLAIMS. (a) Requires venue for the main action to establish
venue of a counterclaim, crossclaim, or third-party claim
properly joined under the Texas Rules of Civil Procedure or
applicable statute.
(b) Requires venue, if an original defendant properly joins a
third party defendant, to be proper for a claim arising out of
the same transaction, occurrence, or series of transactions or
occurrences by the plaintiff against the third-party defendant
if the claim arises out of the subject matter of the
plaintiff's claim against the original defendant.
SECTION 5. Amends Chapter 15D, Civil Practices and Remedies Code,
by adding Sections 15.0641-15.0644, as follows:
Sec. 15.0641. VENUE RIGHTS OF MULTIPLE DEFENDANTS. Provides
that in a suit in which two or more defendants are joined, any
action or omission by one defendant in relation to venue,
including a waiver of venue by one defendant, does not operate
to impair or diminish the right of any other defendant to
properly challenge venue.
Sec. 15.0642. MANDAMUS. Authorizes a party to apply for a
writ of mandamus with an appellate court to enforce mandatory
venue provisions of this chapter. Requires an application for
the writ of mandamus to be filed by the later of the 90th day
before the date the trial starts; or the 10th day after the
date the party receives notice of the trial setting.
SECTION 6. Amends Chapter 15D, Civil Practices and Remedies Code,
by adding Section 15.066, as follows:
Sec. 15.066. CONFLICT WITH RULES OF CIVIL PROCEDURE.
Provides that this chapter controls when conflicting with the
Texas Rules of Civil Procedure, subject to Section 22.004,
Government Code.
SECTION 7. Amends Section 17.56, Business and Commerce Code, as
follows:
Sec. 17.56. VENUE. Requires an action which alleges a claim
to relief under Section 17.50 of this subchapter to be brought
as provided by Chapter 15, Civil Practice and Remedies Code,
except as provided by Article 5.06-1(8), Insurance Code.
Deletes language authorizing venue locations for a claim to
relief under 17.50.
SECTION 8. Amends Article 5.06-1, Insurance Code, by adding
Subsection (8), as follows:
(8) Authorizes an action against an insurer in relation to
coverage provided under this article, including an action to
enforce that coverage, to be brought in the county in which
the policyholder or beneficiary instituting the suit resided
at the rime of the accident or in the county in which the
accident involving the uninsured motor vehicle occurred.
SECTION 9. Amends Section 92.007, Property Code, to provide that
a venue for an action under this chapter is governed under Section
15.0115, Civil Practices and Remedies Code.
SECTION 10. Repeals Sections 15.036, 15.037, 15.040, and 15.061,
Civil Practices and Remedies Code (Corporations and Associations--Foreign Corporations--Nonresidence; Residence Unknown--Joinder of
Defendants of Claims.)
SECTION 11. (a) Makes application of this Act prospective, except
as provided by Subsection (b).
(b). Makes application of this Act prospective beginning January 1,
1996, relating to the venue of a suit.
SECTION 12. Emergency clause. Effective date: upon passage.
COMPARISON OF ORIGINAL TO SUBSTITUTE
H.B. 6 amended the general rule of venue to allow that all lawsuits
shall be brought: in the county in which all or part of the cause
of action accrued; in the county of defendant's residence if
defendant is a natural person; or in the county of the defendant's
principal place of business in this state if the defendant is not
a natural person.
H.B. 6 amended venue rules for cases involving landlord-tenant;
personal injury, death, or property damage; insurance; breach of
warranty by manufacturer; and libel, slander, or invasion of
privacy; Provides rules for suits involving joinder of multiple
defendants, as well as, joinder of claims. Creates the judicial
panel on multicounty litigation, and authorizes the panel to change
the venue of certain lawsuits.
C.S.H.B. 6 revises the general rule of venue to allow that lawsuits
may be filed: in the county in which a substantial part of the
events or omissions giving rise to the claim occur; in the county
of a defendant's residence, or county of principal office (if the
defendant is a business entity). If those don't apply, in the
county of the plaintiff's residence at the time the action accrued.
C.S.H.B. 6 also amends venue rules for cases involving landlord-tenant; personal injury, death, or property damage; and insurance--but not for breach of warranty by manufacturer; and libel, slander,
or invasion of privacy. Provides venue rules for multiple,
intervening plaintiffs, and multiple claims. Also provides rules
for suits involving joinder of defendants and claims after proper
venue has been established.
SUMMARY OF COMMITTEE ACTION
Pursuant to posting of public notice on March 8, 1995 the House
Committee on State Affairs convened in a public hearing on March
13, 1995 to consider HB 6. The Chair laid out HB 6 and recognized
Rep. Duncan to explain the bill. Rep. Hilbert laid out a complete
committee substitute which was withdrawn. The Chair recognized the
following people to testify for the bill: Shannon Ratliff
representing the Texas Civil Justice League; Larry York
representing Texans for Lawsuit Reform; Philip W. Johnson
representing the Texas Association of Defense Counsel; Richard W.
Weekley representing Texans for Lawsuit Reform; Richard J.
Trabulsi, Jr representing Texans for Lawsuit Reform; and R C Mann
representing the Texas Society of CPAs. The Chair recognized the
following people to testify against the bill: Mike Gallagher
representing Texas Trial Lawyers Association; Bill Whitehurst
representing Texas Trial Lawyers Association; andRichard Levy
representing TX AFL-CIO. The Chair recognized the following
persons to provide neutral testimony on the bill: Craig Eiland
representing himself; and Patrick Hazel representing himself.
C.S.H.B. 6 was withdrawn. The Chair recognized Rep. Duncan to
close. The Chair left HB 6 pending. In a formal meeting on April
12, 1995 the Chair laid out HB 6. Rep. Black laid out a complete
committee substitute which was adopted without objection. HB 6 was
reported favorably as substituted with the recommendation that it
do pass and be printed by a record vote of: 10 Ayes; 4 Nayes; 0
PNV; and 1 Absent.