1-1 By: Montford, et al. S.B. No. 32
1-2 (In the Senate - Filed January 11, 1995; January 11, 1995,
1-3 read first time and referred to Committee on Economic Development;
1-4 April 12, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 9, Nays 0; April 12, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 32 By: Rosson
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to venue for civil actions.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subchapter A, Chapter 15, Civil Practice and
1-13 Remedies Code, is amended to read as follows:
1-14 SUBCHAPTER A. DEFINITIONS; GENERAL RULES <
1-15 Sec. 15.001. DEFINITIONS. In this chapter:
1-16 (a) "Principal office" means a principal office of the
1-17 corporation, unincorporated association, or partnership in this
1-18 state in which the decision makers for the organization within this
1-19 state conduct the daily affairs of the organization.
1-20 (b) "Proper venue" means:
1-21 (1) the venue required by the mandatory provisions of
1-22 Subchapter B or another statute prescribing mandatory venue; or
1-23 (2) if Subdivision (1) does not apply, the venue
1-24 provided by this subchapter or Subchapter C.
1-25 Sec. 15.002. VENUE: GENERAL RULE. (a) Except as otherwise
1-26 provided by this subchapter or Subchapter B or C, all lawsuits
1-27 shall be brought:
1-28 (1) in the county in which all or a substantial part
1-29 of the events or omissions giving rise to the claim occurred;
1-30 (2) < cause of action accrued or> in the county of
1-31 defendant's residence at the time the cause of action accrued if
1-32 defendant is a natural person;
1-33 (3) in the county of the defendant's principal office
1-34 in this state, if the defendant is not a natural person; or
1-35 (4) if Subdivisions (1), (2), and (3) do not apply, in
1-36 the county in which the plaintiff resided at the time of the
1-37 accrual of the cause of action.
1-38 (b) The court shall determine a single county as the
1-39 principal office in this state for any defendant which is not a
1-40 natural person and is doing business in this state.
1-41 Sec. 15.003. MULTIPLE PLAINTIFFS AND INTERVENING PLAINTIFFS.
1-42 (a) In a suit where more than one plaintiff is joined each
1-43 plaintiff must, independently of any other plaintiff, establish
1-44 proper venue. Any person who is unable to establish proper venue
1-45 may not join or maintain venue for the suit as a plaintiff unless
1-46 the person, independently of any other plaintiff, establishes that:
1-47 (1) joinder or intervention in the suit is proper
1-48 under the Texas Rules of Civil Procedure;
1-49 (2) maintaining venue in the county of suit does not
1-50 unfairly prejudice another party to the suit;
1-51 (3) there is an essential need to have the person's
1-52 claim tried in the county in which the suit is pending; and
1-53 (4) the county in which the suit is pending is a fair
1-54 and convenient venue for the person seeking to join in or maintain
1-55 venue for the suit and the persons against whom the suit is
1-57 (b) A person may not intervene or join in a pending suit as
1-58 a plaintiff unless the person, independently of any other
1-60 (1) establishes proper venue for the county in which
1-61 the suit is pending; or
1-62 (2) satisfies the requirements of Subdivisions (1)
1-63 through (4) of Subsection (a).
1-64 (c) Any person seeking intervention or joinder, who is
1-65 unable to independently establish proper venue, or a party opposing
1-66 intervention or joinder of such a person may contest the decision
1-67 of the trial court allowing or denying intervention or joinder by
1-68 taking an interlocutory appeal to the court of appeals district in
2-1 which the trial court is located under the procedures established
2-2 for interlocutory appeals. The appeal must be perfected not later
2-3 than the 20th day after the date the trial court signs the order
2-4 denying or allowing the intervention or joinder. The court of
2-5 appeals shall:
2-6 (1) determine whether the joinder or intervention is
2-7 proper based on an independent determination from the record and
2-8 not under either an abuse of discretion or substantial evidence
2-9 standard; and
2-10 (2) render its decision not later than the 120th day
2-11 after the date the appeal is perfected by the complaining party.
2-12 Sec. 15.004. MANDATORY VENUE PROVISION GOVERNS MULTIPLE
2-13 CLAIMS. In a suit in which a plaintiff properly joins two or more
2-14 claims or causes of action arising from the same transaction,
2-15 occurrence, or series of transactions or occurrences, and one of
2-16 the claims or causes of action is governed by the mandatory venue
2-17 provisions of Subchapter B, the suit shall be brought in the county
2-18 required by the mandatory venue provision.
2-19 Sec. 15.005. MULTIPLE DEFENDANTS. In a suit in which the
2-20 plaintiff has established proper venue against a defendant, the
2-21 court also has venue of all the defendants in all claims or actions
2-22 arising out of the same transaction, occurrence, or series of
2-23 transactions or occurrences.
2-24 Sec. 15.006. VENUE DETERMINED BY FACTS EXISTING AT THE TIME
2-25 OF ACCRUAL. A court shall determine the venue of a suit based on
2-26 the facts existing at the time the cause of action that is the
2-27 basis of the suit accrued.
2-28 Sec. 15.007. CONFLICT WITH CERTAIN PROVISIONS.
2-29 Notwithstanding Sections 15.004, 15.005, and 15.031, to the extent
2-30 that venue under this chapter for a suit by or against an executor,
2-31 administrator, or guardian as such, for personal injury, death, or
2-32 property damage conflicts with venue provisions under the Texas
2-33 Probate Code, this chapter controls.
2-34 SECTION 2. Subchapter B, Chapter 15, Civil Practice and
2-35 Remedies Code, is amended by amending Section 15.011 and by adding
2-36 Sections 15.0115 and 15.018 to read as follows:
2-37 Sec. 15.011. LAND. Actions for recovery of real property or
2-38 an estate or interest in real property, for partition of real
2-39 property, to remove encumbrances from the title to real property,
2-40 for recovery of damages to real property, or to quiet title to real
2-41 property shall be brought in the county in which all or a part of
2-42 the property is located.
2-43 Sec. 15.0115. LANDLORD-TENANT. (a) Except as provided by
2-44 another statute prescribing mandatory venue, a suit between a
2-45 landlord and a tenant arising under a lease shall be brought in the
2-46 county in which all or a part of the real property is located.
2-47 (b) In this section, "lease" means any written or oral
2-48 agreement between a landlord and a tenant that establishes or
2-49 modifies the terms, conditions, or other provisions relating to the
2-50 use and occupancy of the real property that is the subject of the
2-52 Sec. 15.018. FEDERAL EMPLOYERS' LIABILITY ACT AND JONES ACT.
2-53 (a) This section only applies to suits brought under the federal
2-54 Employers' Liability Act (45 U.S.C. Section 51 et seq.) or the
2-55 Jones Act (46 U.S.C. Section 688).
2-56 (b) All suits brought under the federal Employers' Liability
2-57 Act or the Jones Act shall be brought:
2-58 (1) in the county in which all or a substantial part
2-59 of the events or omissions giving rise to the claim occurred;
2-60 (2) in the county where the defendant's principal
2-61 office in this state is located; or
2-62 (3) in the county where the plaintiff resided at the
2-63 time the cause of action accrued.
2-64 SECTION 3. Sections 15.032 and 15.033, Civil Practice and
2-65 Remedies Code, are amended to read as follows:
2-66 Sec. 15.032. INSURANCE. Suit against fire, marine, or
2-67 inland insurance companies may also be commenced in any county in
2-68 which the insured property was situated. A suit on a policy may be
2-69 brought against any life insurance company, or accident insurance
2-70 company, or life and accident, or health and accident, or life,
3-1 health, and accident insurance company in the county in which the
3-2 company's principal office in this state < home office of the
3-3 company> is located or in the county in which the loss has occurred
3-4 or in which the policyholder or beneficiary instituting the suit
3-5 resided at the time the cause of action accrued < resides>.
3-6 Sec. 15.033. BREACH OF WARRANTY BY MANUFACTURER. A suit for
3-7 breach of warranty by a manufacturer of consumer goods may be
3-8 brought in any county in which all or a substantial part of the
3-9 cause of action accrued, in the < any> county in which the
3-10 manufacturer has its < may have an agency or representative, in the
3-11 county in which the> principal office in this state < of the company
3-12 may be situated>, or in the county in which the plaintiff resided
3-13 at the time the cause of action accrued < or plaintiffs reside>.
3-14 SECTION 4. Section 15.062, Civil Practice and Remedies Code,
3-15 is amended to read as follows:
3-16 Sec. 15.062. COUNTERCLAIMS, CROSS CLAIMS, AND THIRD-PARTY
3-17 CLAIMS. (a) Venue of the main action shall establish venue of a
3-18 counterclaim, cross claim, or third-party claim properly joined
3-19 under the Texas Rules of Civil Procedure or any applicable statute.
3-20 (b) If an original defendant properly joins a third party
3-21 defendant, venue shall be proper for a claim arising out of the
3-22 same transaction, occurrence, or series of transactions or
3-23 occurrences by the plaintiff against the third-party defendant if
3-24 the claim arises out of the subject matter of the plaintiff's claim
3-25 against the original defendant.
3-26 SECTION 5. Subchapter D, Chapter 15, Civil Practice and
3-27 Remedies Code, is amended by adding Sections 15.0641 and 15.0642 to
3-28 read as follows:
3-29 Sec. 15.0641. VENUE RIGHTS OF MULTIPLE DEFENDANTS. In a
3-30 suit in which two or more defendants are joined, any action or
3-31 omission by one defendant in relation to venue, including a waiver
3-32 of venue by one defendant, does not operate to impair or diminish
3-33 the right of any other defendant to properly challenge venue.
3-34 Sec. 15.0642. MANDAMUS. A party may apply for a writ of
3-35 mandamus with an appellate court to enforce the mandatory venue
3-36 provisions of this chapter. An application for the writ of
3-37 mandamus must be filed before the later of:
3-38 (1) the 90th day before the date the trial starts; or
3-39 (2) the 10th day after the date the party receives
3-40 notice of the trial setting.
3-41 SECTION 6. Subchapter D, Chapter 15, Civil Practice and
3-42 Remedies Code, is amended by adding Section 15.066 to read as
3-44 Sec. 15.066. CONFLICT WITH RULES OF CIVIL PROCEDURE.
3-45 Subject to Section 22.004, Government Code, to the extent that this
3-46 chapter conflicts with the Texas Rules of Civil Procedure, this
3-47 chapter controls.
3-48 SECTION 7. Section 17.56, Business & Commerce Code, is
3-49 amended to read as follows:
3-50 Sec. 17.56. VENUE. Except as provided by Article 5.06-1(8),
3-51 Insurance Code, an < An> action brought which alleges a claim to
3-52 relief under Section 17.50 of this subchapter shall be brought as
3-53 provided by Chapter 15, Civil Practice and Remedies Code < may be
3-54 commenced in the county in which the person against whom the suit
3-55 is brought resides, has his principal place of business, or has a
3-56 fixed and established place of business at the time the suit is
3-57 brought or in the county in which the alleged act or practice
3-58 occurred or in a county in which the defendant or an authorized
3-59 agent of the defendant solicited the transaction made the subject
3-60 of the action at bar>.
3-61 SECTION 8. Article 5.06-1, Insurance Code, is amended by
3-62 adding Section (8) to read as follows:
3-63 (8) Notwithstanding Section 15.032, Civil Practice and
3-64 Remedies Code, an action against an insurer in relation to the
3-65 coverage provided under this article, including an action to
3-66 enforce that coverage, may be brought only:
3-67 (a) in the county in which the policyholder or
3-68 beneficiary instituting the suit resided at the time of the
3-69 accident; or
3-70 (b) in the county in which the accident involving the
4-1 uninsured or underinsured motor vehicle occurred.
4-2 SECTION 9. Section 92.007, Property Code, is amended to read
4-3 as follows:
4-4 Sec. 92.007. VENUE. Venue for an action under this chapter
4-5 is governed by Section 15.0115, Civil Practice and Remedies Code
4-6 < in the county in which the premises are located>.
4-7 SECTION 10. Sections 15.036, 15.037, 15.040, and 15.061,
4-8 Civil Practice and Remedies Code, are repealed.
4-9 SECTION 11. (a) Except as provided by Subsection (b) of
4-10 this section, this Act applies only to a suit commenced on or after
4-11 the effective date of this Act. A suit commenced before the
4-12 effective date of this Act is governed by the law applicable to the
4-13 suit immediately before the effective date of this Act, and that
4-14 law is continued in effect for that purpose.
4-15 (b) Venue under Section 15.018, Civil Practice and Remedies
4-16 Code, as added by this Act, applies only to a suit commenced on or
4-17 after January 1, 1996. Venue under that section for a suit
4-18 commenced before January 1, 1996, is governed by the law applicable
4-19 to the suit immediately before the effective date of this Act, and
4-20 that law is continued in effect for that purpose.
4-21 SECTION 12. The importance of this legislation and the
4-22 crowded condition of the calendars in both houses create an
4-23 emergency and an imperative public necessity that the
4-24 constitutional rule requiring bills to be read on three several
4-25 days in each house be suspended, and this rule is hereby suspended,
4-26 and that this Act take effect and be in force from and after its
4-27 passage, and it is so enacted.
4-28 * * * * *