ZEM C.S.H.B. 3087 75(R)BILL ANALYSIS CIVIL PRACTICES C.S.H.B. 3087 By: Hartnett 5-5-97 Committee Report (Substituted) BACKGROUND Some litigants abuse the Texas court system by systematically filing lawsuits with little or no merit. This practice clogs the courts with repetitious or groundless cases, delays the hearing of legitimate disputes, wastes taxpayer dollars, and requires defendants to spend money on legal fees to defend against groundless lawsuits. At least two other states, California and Hawaii, have passed laws requiring plaintiffs found by a court to be "vexatious" to post security for costs before proceeding with a new lawsuit. PURPOSE H.B. 3087 will curb vexatious litigation by requiring plaintiffs found by a court to be "vexatious" to post security for costs before proceeding with a lawsuit. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1 Amends Title 2, Civil Practice and Remedies Code, by adding Chapter 11 as follows: CHAPTER 11. VEXATIOUS LITIGANTS SUBCHAPTER A. GENERAL PROVISIONS Sec. 11.001 Defines "defendant," "litigation," "local administrative judge," "moving defendant," and "plaintiff". Sec. 11.002-11.050 Reserves sections for expansion. SUBCHAPTER B. VEXATIOUS LITIGANTS Sec. 11.051 Provides that a defendant may move that a court determine whether a plaintiff is a "vexatious litigant" and whether the plaintiff should be required to furnish security. Sec. 11.052 (a) Provides that litigation is stayed upon a Sec. 11.051 motion before the date the trial starts, and provides pleading deadlines for defendants when such motions are filed; (b) Provides that the court may use its discretion to determine the amount of time the litigation is stayed if a Sec. 11.051 motion is made on or after the date the trial starts. Sec. 11.053 Provides that the court shall give notice and hold a hearing regarding the motion; specifies types of evidence the court may consider. Sec. 11.054 Outlines the criteria for determining whether a plaintiff is a vexatious litigant. Sec. 11.055 Requires the court to order the plaintiff to furnish security if the plaintiff has been determined a vexatious litigant; gives the court discretion to determine the deadline for furnishing security; specifies how the court shall determine the amount of the security. Sec. 11.056 Requires the court to dismiss the litigation as to the moving defendant if a plaintiff ordered to furnish security does not do so by the court's deadline. Sec. 11.057 Allows the defendant's recourse to the security if the litigation is dismissed on its merits. Sec. 11.058-11.100 Reserves sections for expansion. SUBCHAPTER C. PROHIBITING THE FILING OF NEW LITIGATION Sec. 11.101 Specifies when a court may enter an order prohibiting a person from filing a new litigation in a Texas court after the court provides notice and holds a hearing in compliance with Sec. 11.053. Sec. 11.102 Provides when a local administrative law judge may grant permission to a person found to be a vexatious litigant to file litigation. Sec. 11.103 Requires a vexatious litigant to obtain an order from a local administrative judge permitting a suit to be filed before the clerk of the court may file the litigation; provides procedures if the clerk mistakenly files a litigation without an order from the local administrative judge. Sec. 11.104 Provides clerk of the court shall provide the Office of the Court Administration of the Texas Judicial System a copy of any prefiling order issued; provides the Office of Court Administration shall maintain a list of vexatious litigants and shall annually send the list to the clerks of the courts of this state. SECTION 2 Effective date: September 1, 1997. Applies prospectively to the filing of litigation, as defined by Sec. 11.001 of this Act. Provides that for the purpose of determining whether a person is a vexatious litigant under Chapter 11 of this Act, only a litigation filed after the effective date of this Act may be considered. SECTION 3 Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The committee substitute changes the application of the act in SECTION 2 to clarify that only a litigation filed after the effective date of this act may be considered in determining whether a litigant is classified as "vexatious" under this Act. The original bill had provided that litigation filed before the effective date of the act could be taken into account for the determination of vexatious.