By Hunter of Nueces H.B. No. 1565 74R5117 DAK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to sanctions for frivolous pleadings and motions. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subtitle A, Title 2, Civil Practice and Remedies 1-5 Code, is amended by adding Chapter 10 to read as follows: 1-6 CHAPTER 10. SANCTIONS FOR FRIVOLOUS PLEADINGS AND MOTIONS 1-7 Sec. 10.001. SIGNING OF PLEADINGS AND MOTIONS. The signing 1-8 of a pleading or motion as required by the Texas Rules of Civil 1-9 Procedure constitutes a certificate by the signatory that to the 1-10 signatory's best knowledge, information, and belief, formed after 1-11 reasonable inquiry: 1-12 (1) the pleading or motion is not being presented for 1-13 any improper purpose, including to harass or to cause unnecessary 1-14 delay or needless increase in the cost of litigation; 1-15 (2) each claim, defense, or other legal contention in 1-16 the pleading or motion is warranted by existing law or by a 1-17 nonfrivolous argument for the extension, modification, or reversal 1-18 of existing law or the establishment of new law; 1-19 (3) each allegation or other factual contention in the 1-20 pleading or motion has evidentiary support or, for a specifically 1-21 identified allegation or factual contention, is likely to have 1-22 evidentiary support after a reasonable opportunity for further 1-23 investigation or discovery; and 1-24 (4) each denial in the pleading or motion of a factual 2-1 contention is warranted on the evidence or, for a specifically 2-2 identified denial, is reasonably based on a lack of information or 2-3 belief. 2-4 Sec. 10.002. MOTION FOR SANCTIONS. (a) A party may make a 2-5 motion for sanctions, describing the specific conduct violating 2-6 Section 10.001. 2-7 (b) The court on its own initiative may enter an order 2-8 describing the specific conduct that appears to violate Section 2-9 10.001 and direct the alleged violator to show cause why the 2-10 conduct has not violated that section. 2-11 (c) The court may award to a party prevailing on a motion 2-12 under this section the reasonable expenses and attorney's fees 2-13 incurred in presenting or opposing the motion. 2-14 Sec. 10.003. NOTICE AND OPPORTUNITY TO RESPOND. The court 2-15 shall provide a party who is the subject of a motion for sanctions 2-16 under Section 10.002 notice of the allegations and a reasonable 2-17 opportunity to respond to the allegations. 2-18 Sec. 10.004. VIOLATION; SANCTION. (a) A court that 2-19 determines that a person has signed a pleading or motion in 2-20 violation of Section 10.001 may impose a sanction on the person, a 2-21 party represented by the person, or both. 2-22 (b) The sanction must be limited to what is sufficient to 2-23 deter repetition of the conduct or comparable conduct by others 2-24 similarly situated. 2-25 (c) A sanction may include: 2-26 (1) a directive to the violator to perform, or refrain 2-27 from performing, an act; 3-1 (2) an order to pay a penalty into court; 3-2 (3) an order to pay to the other party the amount of 3-3 the reasonable expenses incurred by the other party because of the 3-4 filing of the pleading or motion, including reasonable attorney's 3-5 fees. 3-6 (d) The court may not award monetary sanctions against a 3-7 represented party for a violation of Section 10.001(2). 3-8 (e) The court may not award monetary sanctions on its own 3-9 initiative unless the court issues its order to show cause before a 3-10 voluntary dismissal or settlement of the claims made by or against 3-11 the party or the party's attorney who is to be sanctioned. 3-12 Sec. 10.005. ORDER. A court shall describe in an order 3-13 imposing a sanction under this chapter the conduct the court has 3-14 determined violated Section 10.001 and explain the basis for the 3-15 sanction imposed. 3-16 Sec. 10.006. CONFLICT. Notwithstanding Section 22.004, 3-17 Government Code, the supreme court may not amend or adopt rules in 3-18 conflict with this chapter. 3-19 SECTION 2. This Act takes effect September 1, 1995, and 3-20 applies only to a pleading or motion in a suit commenced on or 3-21 after that date. A pleading or motion in a suit commenced before 3-22 the effective date of this Act is governed by the law applicable to 3-23 the pleading or motion immediately before the effective date of 3-24 this Act, and that law is continued in effect for that purpose. 3-25 SECTION 3. The importance of this legislation and the 3-26 crowded condition of the calendars in both houses create an 3-27 emergency and an imperative public necessity that the 4-1 constitutional rule requiring bills to be read on three several 4-2 days in each house be suspended, and this rule is hereby suspended.