By Junell, et al.                                        H.B. No. 4
       74R2943 DAK-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to responsibility for, and recovery of, damages in certain
    1-3  civil actions.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 33, Civil Practice and Remedies Code, is
    1-6  amended to read as follows:
    1-7        CHAPTER 33.  PROPORTIONATE <COMPARATIVE> RESPONSIBILITY
    1-8              <SUBCHAPTER A.  COMPARATIVE RESPONSIBILITY>
    1-9        Sec. 33.001.  DEFINITIONS.  In this chapter:
   1-10              (1)  "Claimant" means a party seeking recovery of
   1-11  damages, including a plaintiff, counterclaimant, cross-claimant, or
   1-12  third-party plaintiff seeking recovery of damages.  In an action in
   1-13  which a party seeks recovery of damages for injury to another
   1-14  person, damage to the property of another person, death of another
   1-15  person, or other harm to another person, "claimant" includes both
   1-16  that other person and the party seeking recovery of damages.
   1-17              (2)  "Defendant" includes any party from whom a
   1-18  claimant seeks recovery of damages at the time of the submission of
   1-19  the case to the trier of fact.
   1-20              (3)  "Liable defendant" means a defendant against whom
   1-21  a judgment can be entered for at least a portion of the damages
   1-22  awarded to the claimant.
   1-23              (4)  "Percentage of responsibility" means that
   1-24  percentage attributed by the trier of fact as provided by Section
    2-1  33.004.
    2-2              (5)  "Settling person" means a person who at the time
    2-3  of submission has paid or promised to pay money or anything of
    2-4  monetary value to a claimant at any time in consideration of
    2-5  potential liability with respect to the harm for which recovery of
    2-6  damages is sought.
    2-7        Sec. 33.002 <33.001>.  PROPORTIONATE <COMPARATIVE>
    2-8  RESPONSIBILITY.  <(a)>  In an action to which this chapter applies
    2-9  under Section 33.003 <recover damages for negligence resulting in
   2-10  personal injury, property damage, or death or an action for
   2-11  products liability grounded in negligence>, a claimant may recover
   2-12  damages only if the claimant's <his> percentage of responsibility
   2-13  is less than or equal to 50 percent.
   2-14        <(b)  In an action to recover damages for personal injury,
   2-15  property damage, or death in which at least one defendant is found
   2-16  liable on a basis of strict tort liability, strict products
   2-17  liability, or breach of warranty under Chapter 2, Business &
   2-18  Commerce Code, a claimant may recover damages only if his
   2-19  percentage of responsibility is less than 60 percent.>
   2-20        <(c)  In an action in which a claimant seeks damages for harm
   2-21  other than personal injury, property damage, or death, arising out
   2-22  of any action grounded in negligence, including but not limited to
   2-23  negligence relating to any professional services rendered by an
   2-24  architect, attorney, certified public accountant, real estate
   2-25  broker or agent, or engineer licensed by this state, a claimant may
   2-26  recover damages only if his percentage of responsibility is less
   2-27  than or equal to 50 percent.>
    3-1        Sec. 33.003 <33.002>.  APPLICABILITY.  (a)  Except as
    3-2  provided by Subsection (b), this chapter applies to any tort,
    3-3  including an action to recover damages for:
    3-4              (1)  negligence resulting in personal injury, property
    3-5  damage, or death;
    3-6              (2)  products liability grounded in negligence;
    3-7              (3)  personal injury, property damage, or death in
    3-8  which at least one defendant is found liable on a basis of strict
    3-9  tort liability, strict products liability, or breach of warranty
   3-10  under Chapter 2, Business & Commerce Code;
   3-11              (4)  harm, other than personal injury, property damage,
   3-12  or death, arising out of any action grounded in negligence,
   3-13  including negligence relating to any professional services rendered
   3-14  by an architect, attorney, certified public accountant, real estate
   3-15  broker or agent, or engineer licensed by this state; or
   3-16              (5)  an intentional act.  <This chapter does not apply
   3-17  to a claim based on an intentional tort or a claim for exemplary
   3-18  damages included in an action to which this chapter otherwise
   3-19  applies.>
   3-20        (b)  This chapter does not apply to:
   3-21              (1)  an action to collect workers' compensation
   3-22  benefits under the workers' compensation laws of this state
   3-23  (Subtitle A, Title 5, Labor Code) <(Article 8306 et seq., Vernon's
   3-24  Texas Civil Statutes)> or actions against an employer for exemplary
   3-25  damages arising out of the death of an employee;
   3-26              (2)  an action brought under the Deceptive Trade
   3-27  Practices-Consumer Protection Act (Subchapter E, Chapter 17,
    4-1  Business & Commerce Code) except as specifically provided in
    4-2  Section 17.50 of that Act; <or>
    4-3              (3)  an action brought under Chapter 21, Insurance
    4-4  Code; or
    4-5              (4)  a claim for exemplary damages included in an
    4-6  action to which this chapter applies.
    4-7        Sec. 33.004 <33.003>.  DETERMINATION OF PERCENTAGE OF
    4-8  <COMPARATIVE> RESPONSIBILITY.  (a)  The trier of fact, as to each
    4-9  cause of action asserted, shall determine the percentage of
   4-10  responsibility for the following persons with respect to their
   4-11  causing or contributing to cause in any way, including by negligent
   4-12  act or omission, by any defective or unreasonably dangerous
   4-13  product, by other conduct or activity that violates an applicable
   4-14  legal standard, or by any combination of these, the harm for which
   4-15  recovery of damages is sought:
   4-16              (1)  each claimant;
   4-17              (2)  each defendant; <and>
   4-18              (3)  each settling person; and
   4-19              (4)  any other person, subject to Section 33.005,
   4-20  without regard to whether that person was or could have been named
   4-21  as a party to the action.
   4-22        Sec. 33.005.  PERCENTAGE OF RESPONSIBILITY FOR A NONPARTY.
   4-23  (a)  The trier of fact may determine the percentage of
   4-24  responsibility for a person who is not a party to the action or is
   4-25  not a settling person only if the defendant files a pleading in the
   4-26  action stating:
   4-27              (1)  the person's name and last known address or, if
    5-1  the name and address is not known, the best identification of the
    5-2  person that is possible under the circumstances; and
    5-3              (2)  the basis for believing the person to be wholly or
    5-4  partially at fault.
    5-5        (b)  The defendant must file the pleading required by this
    5-6  section not later than the 90th day after the date the defendant is
    5-7  served  process in the action unless the court grants leave to file
    5-8  the pleading at a later time.
    5-9           <Sections 33.004-33.010 reserved for expansion>
   5-10                     <SUBCHAPTER B.  CONTRIBUTION>
   5-11        <Sec. 33.011.  DEFINITIONS.  In this chapter:>
   5-12              <(1)  "Claimant" means a party seeking recovery of
   5-13  damages pursuant to the provisions of Section 33.001, including a
   5-14  plaintiff, counterclaimant, cross-claimant, or third-party
   5-15  plaintiff seeking recovery of damages.  In an action in which a
   5-16  party seeks recovery of damages for injury to another person,
   5-17  damage to the property of another person, death of another person,
   5-18  or other harm to another person, "claimant" includes both that
   5-19  other person and the party seeking recovery of damages pursuant to
   5-20  the provisions of Section 33.001.>
   5-21              <(2)  "Defendant" includes any party from whom a
   5-22  claimant seeks recovery of damages pursuant to the provisions of
   5-23  Section 33.001 at the time of the submission of the case to the
   5-24  trier of fact.>
   5-25              <(3)  "Liable defendant" means a defendant against whom
   5-26  a judgment can be entered for at least a portion of the damages
   5-27  awarded to the claimant.>
    6-1              <(4)  "Percentage of responsibility" means that
    6-2  percentage attributed by the trier of fact to each claimant, each
    6-3  defendant, or each settling person with respect to causing or
    6-4  contributing to cause in any way, whether by negligent act or
    6-5  omission, by any defective or unreasonably dangerous product, by
    6-6  other conduct or activity violative of the applicable legal
    6-7  standard, or by any combination of the foregoing, the personal
    6-8  injury, property damage, death, or other harm for which recovery of
    6-9  damages is sought.>
   6-10              <(5)  "Settling person" means a person who at the time
   6-11  of submission has paid or promised to pay money or anything of
   6-12  monetary value to a claimant at any time in consideration of
   6-13  potential liability pursuant to the provisions of Section 33.001
   6-14  with respect to the personal injury, property damage, death, or
   6-15  other harm for which recovery of damages is sought.>
   6-16        <Sec. 33.012.  AMOUNT OF RECOVERY.  (a)  If the claimant is
   6-17  not barred from recovery under Section 33.001, the court shall
   6-18  reduce the amount of damages to be recovered by the claimant with
   6-19  respect to a cause of action by a percentage equal to the
   6-20  claimant's percentage of responsibility.>
   6-21        <(b)  If the claimant has settled with one or more persons,
   6-22  the court shall further reduce the amount of damages to be
   6-23  recovered by the claimant with respect to a cause of action by a
   6-24  credit equal to one of the following, as elected in accordance with
   6-25  Section 33.014:>
   6-26              <(1)  the sum of the dollar amounts of all settlements;
   6-27  or>
    7-1              <(2)  a dollar amount equal to the sum of the following
    7-2  percentages of damages found by the trier of fact:>
    7-3                    <(A)  5 percent of those damages up to $200,000;>
    7-4                    <(B)  10 percent of those damages from $200,001
    7-5  to $400,000;>
    7-6                    <(C)  15 percent of those damages from $400,001
    7-7  to $500,000; and>
    7-8                    <(D)  20 percent of those damages greater than
    7-9  $500,000.>
   7-10        <(c)  The amount of damages recoverable by the claimant may
   7-11  only be reduced once by the credit provided for in Subsection (b).>
   7-12        Sec. 33.006 <33.013>.  Amount of Liability.  (a)  This
   7-13  section applies only if a claimant is not barred from recovery
   7-14  under Section 33.002.
   7-15        (b)  A <Except as provided in Subsections (b) and (c), a>
   7-16  liable defendant is liable to a claimant only for an amount of
   7-17  damages calculated by multiplying the total amount of the
   7-18  claimant's damages as found by the trier of fact by the defendant's
   7-19  percentage of responsibility as found by the trier of fact.
   7-20        (c)  A court may not enter a judgment against a liable
   7-21  defendant that results in the defendant's being jointly liable for
   7-22  the claimant's damages.  <the percentage of the damages found by
   7-23  the trier of fact equal to that defendant's percentage of
   7-24  responsibility with respect to the personal injury, property
   7-25  damage, death, or other harm for which the damages are allowed.>
   7-26        <(b)  Notwithstanding Subsection (a), each liable defendant
   7-27  is, in addition to his liability under Subsection (a), jointly and
    8-1  severally liable for the damages recoverable by the claimant under
    8-2  Section 33.012 with respect to a cause of action if:>
    8-3              <(1)  the percentage of responsibility attributed to
    8-4  the defendant is greater than 20 percent; and>
    8-5              <(2)  only for a negligence action pursuant to Section
    8-6  33.001(a) or (c), the percentage of responsibility attributed to
    8-7  the defendant is greater than the percentage of responsibility
    8-8  attributed to the claimant.>
    8-9        <(c)  Notwithstanding Subsection (a), each liable defendant
   8-10  is, in addition to his liability under Subsection (a), jointly and
   8-11  severally liable for the damages recoverable by the claimant under
   8-12  Section 33.012 with respect to a cause of action if:>
   8-13              <(1)  no percentage of responsibility is attributed to
   8-14  the claimant and the percentage of responsibility attributed to the
   8-15  defendant is greater than 10 percent; or>
   8-16              <(2)  the claimant's personal injury, property damage,
   8-17  or death is caused by the depositing, discharge, or release into
   8-18  the environment of any hazardous or harmful substance as described
   8-19  in Subdivision (3); or>
   8-20              <(3)  the claimant's personal injury, property damage,
   8-21  or death resulted from a "toxic tort."  "Toxic tort" means a cause
   8-22  of action in tort or for breach of implied warranty under Chapter
   8-23  2, Business & Commerce Code, arising out of exposure to hazardous
   8-24  chemicals, hazardous wastes, hazardous hydrocarbons, similarly
   8-25  harmful organic or mineral substances, hazardous radiation sources,
   8-26  and other similarly harmful substances (which usually, but need not
   8-27  necessarily, arise in the work place), but not including any "drug"
    9-1  as defined in Section 81.001(3), Civil Practice and Remedies Code.>
    9-2        (d)  This section does not create a cause of action.
    9-3        <Sec. 33.014.  ELECTION OF CREDIT FOR SETTLEMENTS.  (a)  If a
    9-4  claimant has settled with one or more persons, an election must be
    9-5  made as to which dollar credit is to be applied under Section
    9-6  33.012(b).  This election shall be made by any defendant filing a
    9-7  written election before the issues of the action are submitted to
    9-8  the trier of fact and, when made, shall be binding on all
    9-9  defendants.  If no defendant makes this election or if conflicting
   9-10  elections are made, all defendants are considered to have elected
   9-11  Subdivision (2) of Section 33.012(b).>
   9-12        <Sec. 33.015.  CONTRIBUTION.  (a)  If a defendant who is
   9-13  jointly and severally liable under Section 33.013 pays a percentage
   9-14  of the damages for which the defendant is jointly and severally
   9-15  liable greater than his percentage of responsibility, that
   9-16  defendant has a right of contribution for the overpayment against
   9-17  each other liable defendant to the extent that the other liable
   9-18  defendant has not paid the percentage of the damages found by the
   9-19  trier of fact equal to that other defendant's percentage of
   9-20  responsibility.>
   9-21        <(b)  As among themselves, each of the defendants who is
   9-22  jointly and severally liable under Section 33.013 is liable for the
   9-23  damages recoverable by the claimant under Section 33.012 in
   9-24  proportion to his respective percentage of responsibility.  If a
   9-25  defendant who is jointly and severally liable pays a larger
   9-26  proportion of those damages than is required by his percentage of
   9-27  responsibility, that defendant has a right of contribution for the
   10-1  overpayment against each other defendant with whom he is jointly
   10-2  and severally liable under Section 33.013 to the extent that the
   10-3  other defendant has not paid the proportion of those damages
   10-4  required by that other defendant's percentage of responsibility.>
   10-5        <(c)  If for any reason a liable defendant does not pay or
   10-6  contribute the portion of the damages required by his percentage of
   10-7  responsibility, the amount of the damages not paid or contributed
   10-8  by that defendant shall be paid or contributed by the remaining
   10-9  defendants who are jointly and severally liable for those damages.
  10-10  The additional amount to be paid or contributed by each of the
  10-11  defendants who is jointly and severally liable for those damages
  10-12  shall be in proportion to his respective percentage of
  10-13  responsibility.>
  10-14        <(d)  No defendant has a right of contribution against any
  10-15  settling person.>
  10-16        <Sec. 33.016.  CLAIM AGAINST CONTRIBUTION DEFENDANT.  (a)  In
  10-17  this section, "contribution defendant" means any defendant, counter
  10-18  defendant, or third-party defendant from whom any party seeks
  10-19  contribution with respect to any portion of damages for which that
  10-20  party may be liable, but from whom the claimant seeks no relief at
  10-21  the time of submission.>
  10-22        <(b)  Each liable defendant is entitled to contribution from
  10-23  each person who is not a settling person and who is liable to the
  10-24  claimant for a percentage of responsibility but from whom the
  10-25  claimant seeks no relief at the time of submission.  A party may
  10-26  assert this contribution right against any such person as a
  10-27  contribution defendant in the claimant's action.>
   11-1        <(c)  The trier of fact shall determine as a separate issue
   11-2  or finding of fact the percentage of responsibility with respect to
   11-3  each contribution defendant and these findings shall be solely for
   11-4  purposes of this section and Section 33.015 and not as a part of
   11-5  the percentages of responsibility determined under Section 33.003.
   11-6  Only the percentage of responsibility of each defendant and
   11-7  contribution defendant shall be included in this determination.>
   11-8        <(d)  As among liable defendants, including each defendant
   11-9  who is jointly and severally liable under Section 33.013, each
  11-10  contribution defendant's percentage of responsibility is to be
  11-11  included for all purposes of Section 33.015.  The amount to be
  11-12  contributed by each contribution defendant pursuant to Section
  11-13  33.015 shall be in proportion to his respective percentage of
  11-14  responsibility relative to the sum of percentages of responsibility
  11-15  of all liable defendants and liable contribution defendants.>
  11-16        SECTION 2.  Section 32.001, Civil  Practice and Remedies
  11-17  Code, is amended by adding Subsection (c) to read as follows:
  11-18        (c)  This chapter does not apply to an action to which
  11-19  Chapter 33 applies.
  11-20        SECTION 3.  This Act takes effect September 1, 1995, and
  11-21  applies only to a cause of action that accrues on or after that
  11-22  date.  A cause of action that accrued before the effective date of
  11-23  this Act is governed by the law in effect at the time the action
  11-24  accrued, and that law is continued in effect for that purpose.
  11-25        SECTION 4.  The importance of this legislation and the
  11-26  crowded condition of the calendars in both houses create an
  11-27  emergency and an imperative public necessity that the
   12-1  constitutional rule requiring bills to be read on three several
   12-2  days in each house be suspended, and this rule is hereby suspended.