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.