BILL ANALYSIS


                                                      C.S.S.B. 32
                                                     By: Montford
                                             Economic Development
                                                         04-12-95
                                   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

As proposed, C.S.S.B. 32 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.  Creates the judicial panel on multicounty
litigation, and authorizes the panel to change the venue of certain
lawsuits.

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 Practice and Remedies Code,
as follows:

       SUBCHAPTER A.  New title: DEFINITIONS; GENERAL RULES

     Sec.  15.001.  DEFINITION.  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)-(3)
     do not apply, in 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 that 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 where 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 to 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.  15.007.  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.  15.008.  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 Practice 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.  FEDERAL EMPLOYERS LIABILITY ACT AND JONES ACT. 
     (a) Provides that this section applies only to suits brought
     under the federal Employers Liability Act (45 U.S.C. Sec. 51
     et seq.) or the Jones Act (46 U.S.C. Section 688).
     
     (b) Requires all suits brought under the federal Employers
       Liability Act or the Jones Act to 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, Civil Practice and Remedies Code,
as follows:

     Sec. 15.032.  INSURANCE.  Authorizes a suit against fire,
     marine, or inland insurance 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.
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.
       
       Sec.  15.033.  BREACH OF WARRANTY OF 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 5. Amends Chapter 15D, Civil Practice 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 Practice 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 Section 17.50.
     
SECTION 7. 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 time of the accident or in the county in which the
     accident involving the uninsured motor vehicle occurred.
SECTION 8. Amends Section 92.007, Property Code, to provide that
a venue for an action under this chapter is governed under Section
15.0115, Civil Practice and Remedies Code.

SECTION 10.    Repealer:  Sections 15.036, 15.037, 15.040, and
15.061, Civil Practice 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 (c).

     (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.