BILL ANALYSIS


                                                    C.S.S.B. 1240
                                                        By: Brown
                                                    Jurisprudence
                                                          4-19-95
                                   Committee Report (Substituted)
BACKGROUND

Several conflicting appellate court opinions have recently been
decided regarding mediated settlement agreements.  Two cases held
that a party who has reached a settlement agreement disposing of a
dispute through alternative dispute resolution procedures and has
signed a written agreement, may not unilaterally repudiate the
agreement.  Another case held that an agreement entered into as a
result of court-ordered mediation cannot be the basis of a consent
judgment if one party withdraws consent after the signing of the
agreement, but before the trial court renders judgment.  Thus, a
conflict exists regarding the enforceability of mediated settlement
agreements prior to the agreement's approval by the trial court.  

PURPOSE

As proposed, C.S.S.B. 1240 provides that mediated settlements have
binding effect on the parties if the settlement agreement
specifically states that the agreement is not subject to
revocation.

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 Section 154.071, Civil Practice and Remedies
Code, by adding Subsections (d) and (e), as follows:

     (d) Subjects a mediated settlement agreement (agreement) to
     revocation by a party before rendition of judgment, unless the
     agreement specifically states that the agreement is not
     subject to revocation; is signed by an attorney for the party;
     and if the party has an attorney representing the party in the
     matter, the attorney approves the agreement if the party's
     attorney is present when the agreement is signed.
     
     (e) Entitles a party to judgment or decree on an agreement if
     the agreement meets the requirements of Subsection (d).
SECTION 2. Emergency clause.
           Effective date: upon passage.