BILL ANALYSIS C.S.S.B. 1306 By: Lucio Jurisprudence 5-3-95 Committee Report (Substituted) BACKGROUND A default judgment may be reversed against an out-of-state defendant if the defendant has not received notice of the proceeding. The defendant may also have a default judgment reversed even if there is an error in the way the case is pleaded or if the person refuses to claim the person's certified mail, even if the defendant did have actual notice of the pending proceeding at an address previously agreed to in a written agreement. The out-of-state defendant must only file a "writ of error" stating that the Texas resident did not follow the procedure for pleading or service of process to the letter, possibly by leaving out specific wording in the petition to the secretary of state, such as "home or home office" when referring to the residence of the out-of-state defendant. PURPOSE As proposed, C.S.S.B. 1306 provides that a default judgment is not invalidated if it is proved that the person against whom such judgment was taken had received actual or constructive notice of the lawsuit within a certain time period. 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 17.045, Civil Practice and Remedies Code, by amending Subsections (a) and (d) and adding Subsection (f), as follows: (a) Requires the secretary of state to require a statement from the party requesting service of the name and address of the nonresident's home or home office where the party requesting service reasonably believes the nonresident may be served with process. Requires the secretary of state to immediately mail a copy of the process to the nonresident at the address specified in the statement from the party requesting service. (d) Makes conforming changes. (f) Provides that the process or notice is considered to have been received by a nonresident in the case of a default of judgment entered against a nonresident after service, even if the nonresident did not take possession of the process or notice on delivery, on proof that indicates that the nonresident, at least 30 days before the default judgment, actually knew or should have known about the action against the nonresident. SECTION 2. Makes application of this Act prospective beginning September 1, 1995. SECTION 3. Emergency clause. Effective date: 90 days after adjournment.