By: Montford, et al. S.B. No. 32
A BILL TO BE ENTITLED
1-1 relating to venue for civil actions.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subchapter A, Chapter 15, Civil Practice and
1-4 Remedies Code, is amended to read as follows:
1-5 SUBCHAPTER A. DEFINITIONS; GENERAL RULES <
1-6 Sec. 15.001. DEFINITIONS. In this chapter:
1-7 (a) "Principal office" means a principal office of the
1-8 corporation, unincorporated association, or partnership in this
1-9 state in which the decision makers for the organization within this
1-10 state conduct the daily affairs of the organization.
1-11 (b) "Proper venue" means:
1-12 (1) the venue required by the mandatory provisions of
1-13 Subchapter B or another statute prescribing mandatory venue; or
1-14 (2) if Subdivision (1) does not apply, the venue
1-15 provided by this subchapter or Subchapter C.
1-16 Sec. 15.002. VENUE: GENERAL RULE. Except as otherwise
1-17 provided by this subchapter or Subchapter B or C, all lawsuits
1-18 shall be brought:
1-19 (1) in the county in which all or a substantial part
1-20 of the events or omissions giving rise to the claim occurred;
1-21 (2) < cause of action accrued or> in the county of
1-22 defendant's residence at the time the cause of action accrued if
1-23 defendant is a natural person;
1-24 (3) in the county of the defendant's principal office
2-1 in this state, if the defendant is not a natural person; or
2-2 (4) if Subdivisions (1), (2), and (3) do not apply, in
2-3 the county in which the plaintiff resided at the time of the
2-4 accrual of the cause of action.
2-5 Sec. 15.003. MULTIPLE PLAINTIFFS AND INTERVENING PLAINTIFFS.
2-6 (a) In a suit where more than one plaintiff is joined each
2-7 plaintiff must, independently of any other plaintiff, establish
2-8 proper venue. Any person who is unable to establish proper venue
2-9 may not join or maintain venue for the suit as a plaintiff unless
2-10 the person, independently of any other plaintiff, establishes that:
2-11 (1) joinder or intervention in the suit is proper
2-12 under the Texas Rules of Civil Procedure;
2-13 (2) maintaining venue in the county of suit does not
2-14 unfairly prejudice another party to the suit;
2-15 (3) there is an essential need to have the person's
2-16 claim tried in the county in which the suit is pending; and
2-17 (4) the county in which the suit is pending is a fair
2-18 and convenient venue for the person seeking to join in or maintain
2-19 venue for the suit and the persons against whom the suit is
2-21 (b) A person may not intervene or join in a pending suit as
2-22 a plaintiff unless the person, independently of any other
2-24 (1) establishes proper venue for the county in which
2-25 the suit is pending; or
2-26 (2) satisfies the requirements of Subdivisions (1)
2-27 through (4) of Subsection (a).
3-1 (c) Any person seeking intervention or joinder, who is
3-2 unable to independently establish proper venue, or a party opposing
3-3 intervention or joinder of such a person may contest the decision
3-4 of the trial court allowing or denying intervention or joinder by
3-5 taking an interlocutory appeal to the court of appeals district in
3-6 which the trial court is located under the procedures established
3-7 for interlocutory appeals. The appeal must be perfected not later
3-8 than the 20th day after the date the trial court signs the order
3-9 denying or allowing the intervention or joinder. The court of
3-10 appeals shall:
3-11 (1) determine whether the joinder or intervention is
3-12 proper based on an independent determination from the record and
3-13 not under either an abuse of discretion or substantial evidence
3-14 standard; and
3-15 (2) render its decision not later than the 120th day
3-16 after the date the appeal is perfected by the complaining party.
3-17 Sec. 15.004. MANDATORY VENUE PROVISION GOVERNS MULTIPLE
3-18 CLAIMS. In a suit in which a plaintiff properly joins two or more
3-19 claims or causes of action arising from the same transaction,
3-20 occurrence, or series of transactions or occurrences, and one of
3-21 the claims or causes of action is governed by the mandatory venue
3-22 provisions of Subchapter B, the suit shall be brought in the county
3-23 required by the mandatory venue provision.
3-24 Sec. 15.005. MULTIPLE DEFENDANTS. In a suit in which the
3-25 plaintiff has established proper venue against a defendant, the
3-26 court also has venue of all the defendants in all claims or actions
3-27 arising out of the same transaction, occurrence, or series of
4-1 transactions or occurrences.
4-2 Sec. 15.006. VENUE DETERMINED BY FACTS EXISTING AT THE TIME
4-3 OF ACCRUAL. A court shall determine the venue of a suit based on
4-4 the facts existing at the time the cause of action that is the
4-5 basis of the suit accrued.
4-6 Sec. 15.007. CONFLICT WITH CERTAIN PROVISIONS.
4-7 Notwithstanding Sections 15.004, 15.005, and 15.031, to the extent
4-8 that venue under this chapter for a suit by or against an executor,
4-9 administrator, or guardian as such, for personal injury, death, or
4-10 property damage conflicts with venue provisions under the Texas
4-11 Probate Code, this chapter controls.
4-12 SECTION 2. Subchapter B, Chapter 15, Civil Practice and
4-13 Remedies Code, is amended by amending Section 15.011 and by adding
4-14 Sections 15.0115 and 15.018 to read as follows:
4-15 Sec. 15.011. LAND. Actions for recovery of real property or
4-16 an estate or interest in real property, for partition of real
4-17 property, to remove encumbrances from the title to real property,
4-18 for recovery of damages to real property, or to quiet title to real
4-19 property shall be brought in the county in which all or a part of
4-20 the property is located.
4-21 Sec. 15.0115. LANDLORD-TENANT. (a) Except as provided by
4-22 another statute prescribing mandatory venue, a suit between a
4-23 landlord and a tenant arising under a lease shall be brought in the
4-24 county in which all or a part of the real property is located.
4-25 (b) In this section, "lease" means any written or oral
4-26 agreement between a landlord and a tenant that establishes or
4-27 modifies the terms, conditions, or other provisions relating to the
5-1 use and occupancy of the real property that is the subject of the
5-3 Sec. 15.018. FEDERAL EMPLOYERS' LIABILITY ACT AND JONES ACT.
5-4 (a) This section only applies to suits brought under the federal
5-5 Employers' Liability Act (45 U.S.C. Section 51 et seq.) or the
5-6 Jones Act (46 U.S.C. Section 688).
5-7 (b) All suits brought under the federal Employers' Liability
5-8 Act or the Jones Act shall be brought:
5-9 (1) in the county in which all or a substantial part
5-10 of the events or omissions giving rise to the claim occurred;
5-11 (2) in the county where the defendant's principal
5-12 office in this state is located; or
5-13 (3) in the county where the plaintiff resided at the
5-14 time the cause of action accrued.
5-15 SECTION 3. Sections 15.032 and 15.033, Civil Practice and
5-16 Remedies Code, are amended to read as follows:
5-17 Sec. 15.032. INSURANCE. Suit against fire, marine, or
5-18 inland insurance companies may also be commenced in any county in
5-19 which the insured property was situated. A suit on a policy may be
5-20 brought against any life insurance company, or accident insurance
5-21 company, or life and accident, or health and accident, or life,
5-22 health, and accident insurance company in the county in which the
5-23 company's principal office in this state < home office of the
5-24 company> is located or in the county in which the loss has occurred
5-25 or in which the policyholder or beneficiary instituting the suit
5-26 resided at the time the cause of action accrued < resides>.
5-27 Sec. 15.033. BREACH OF WARRANTY BY MANUFACTURER. A suit for
6-1 breach of warranty by a manufacturer of consumer goods may be
6-2 brought in any county in which all or a substantial part of the
6-3 events or omissions giving rise to the claim occurred < cause of
6-4 action accrued>, in the < any> county in which the manufacturer has
6-5 its < may have an agency or representative, in the county in which
6-6 the> principal office in this state < of the company may be
6-7 situated>, or in the county in which the plaintiff resided at the
6-8 time the cause of action accrued < or plaintiffs reside>.
6-9 SECTION 4. Section 15.062, Civil Practice and Remedies Code,
6-10 is amended to read as follows:
6-11 Sec. 15.062. COUNTERCLAIMS, CROSS CLAIMS, AND THIRD-PARTY
6-12 CLAIMS. (a) Venue of the main action shall establish venue of a
6-13 counterclaim, cross claim, or third-party claim properly joined
6-14 under the Texas Rules of Civil Procedure or any applicable statute.
6-15 (b) If an original defendant properly joins a third-party
6-16 defendant, venue shall be proper for a claim arising out of the
6-17 same transaction, occurrence, or series of transactions or
6-18 occurrences by the plaintiff against the third-party defendant if
6-19 the claim arises out of the subject matter of the plaintiff's claim
6-20 against the original defendant.
6-21 SECTION 5. Subchapter D, Chapter 15, Civil Practice and
6-22 Remedies Code, is amended by adding Sections 15.0641 and 15.0642 to
6-23 read as follows:
6-24 Sec. 15.0641. VENUE RIGHTS OF MULTIPLE DEFENDANTS. In a
6-25 suit in which two or more defendants are joined, any action or
6-26 omission by one defendant in relation to venue, including a waiver
6-27 of venue by one defendant, does not operate to impair or diminish
7-1 the right of any other defendant to properly challenge venue.
7-2 Sec. 15.0642. MANDAMUS. A party may apply for a writ of
7-3 mandamus with an appellate court to enforce the mandatory venue
7-4 provisions of this chapter. An application for the writ of
7-5 mandamus must be filed before the later of:
7-6 (1) the 90th day before the date the trial starts; or
7-7 (2) the 10th day after the date the party receives
7-8 notice of the trial setting.
7-9 SECTION 6. Subchapter D, Chapter 15, Civil Practice and
7-10 Remedies Code, is amended by adding Section 15.066 to read as
7-12 Sec. 15.066. CONFLICT WITH RULES OF CIVIL PROCEDURE.
7-13 Subject to Section 22.004, Government Code, to the extent that this
7-14 chapter conflicts with the Texas Rules of Civil Procedure, this
7-15 chapter controls.
7-16 SECTION 7. Section 17.56, Business & Commerce Code, is
7-17 amended to read as follows:
7-18 Sec. 17.56. VENUE. Except as provided by Article 5.06-1(8),
7-19 Insurance Code, an < An> action brought which alleges a claim to
7-20 relief under Section 17.50 of this subchapter shall be brought as
7-21 provided by Chapter 15, Civil Practice and Remedies Code < may be
7-22 commenced in the county in which the person against whom the suit
7-23 is brought resides, has his principal place of business, or has a
7-24 fixed and established place of business at the time the suit is
7-25 brought or in the county in which the alleged act or practice
7-26 occurred or in a county in which the defendant or an authorized
7-27 agent of the defendant solicited the transaction made the subject
8-1 of the action at bar>.
8-2 SECTION 8. Article 5.06-1, Insurance Code, is amended by
8-3 adding Section (8) to read as follows:
8-4 (8) Notwithstanding Section 15.032, Civil Practice and
8-5 Remedies Code, an action against an insurer in relation to the
8-6 coverage provided under this article, including an action to
8-7 enforce that coverage, may be brought only:
8-8 (a) in the county in which the policyholder or
8-9 beneficiary instituting the suit resided at the time of the
8-10 accident; or
8-11 (b) in the county in which the accident involving the
8-12 uninsured or underinsured motor vehicle occurred.
8-13 SECTION 9. Section 92.007, Property Code, is amended to read
8-14 as follows:
8-15 Sec. 92.007. VENUE. Venue for an action under this chapter
8-16 is governed by Section 15.0115, Civil Practice and Remedies Code
8-17 < in the county in which the premises are located>.
8-18 SECTION 10. Sections 15.036, 15.037, 15.040, and 15.061,
8-19 Civil Practice and Remedies Code, are repealed.
8-20 SECTION 11. (a) Except as provided by Subsection (b) of
8-21 this section, this Act applies only to a suit commenced on or after
8-22 September 1, 1995. A suit commenced before September 1, 1995, is
8-23 governed by the law applicable to the suit immediately before the
8-24 effective date of this Act, and that law is continued in effect for
8-25 that purpose.
8-26 (b) Venue under Section 15.018, Civil Practice and Remedies
8-27 Code, as added by this Act, applies only to a suit commenced on or
9-1 after January 1, 1996. Venue under that section for a suit
9-2 commenced before January 1, 1996, is governed by the law applicable
9-3 to the suit immediately before the effective date of this Act, and
9-4 that law is continued in effect for that purpose.
9-5 SECTION 12. The importance of this legislation and the
9-6 crowded condition of the calendars in both houses create an
9-7 emergency and an imperative public necessity that the
9-8 constitutional rule requiring bills to be read on three several
9-9 days in each house be suspended, and this rule is hereby suspended,
9-10 and that this Act take effect and be in force from and after its
9-11 passage, and it is so enacted.