By Culberson                                     H.B. No. 556

      75R1661 DLF-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to discovery of evidence of the net worth of a defendant.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Chapter 41, Civil Practice and Remedies Code, is

 1-5     amended by adding Sections 41.0115 and 41.0116 to read as follows:

 1-6           Sec. 41.0115.  DISCOVERY OF EVIDENCE OF NET WORTH.  (a)  A

 1-7     claimant may not obtain discovery of evidence that relates to

 1-8     determining the net worth of  a defendant and that is relevant only

 1-9     to the amount of exemplary damages that may be awarded before the

1-10     defendant has been found to be liable for compensatory and

1-11     exemplary damages in the first phase of a bifurcated trial.

1-12           (b)  This section applies only to an action in which a

1-13     bifurcated trial is held under Section 41.009.  If discovery of

1-14     evidence described by Subsection (a) is sought before a motion for

1-15     a bifurcated trial is made, the defendant may object to the

1-16     discovery request and move for a bifurcated trial under Section

1-17     41.009.

1-18           Sec. 41.0116.  IN CAMERA REVIEW OF EVIDENCE OF NET WORTH.

1-19     (a)  A defendant who receives a request for discovery of evidence

1-20     that relates to determining the net worth of the defendant and that

1-21     is relevant only to the amount of exemplary damages that may be

1-22     awarded may submit the evidence to the judge for review.

1-23           (b)  The judge shall review evidence submitted under

1-24     Subsection (a) in camera and may excerpt from the evidence any

 2-1     material that:

 2-2                 (1)  is not relevant to determining the net worth of

 2-3     the defendant;

 2-4                 (2)  may unfairly prejudice, confuse, or mislead  a

 2-5     jury;

 2-6                 (3)  is cumulative of other evidence and is not

 2-7     necessary for determining the defendant's net worth; or

 2-8                 (4)  is otherwise inadmissible under the Texas Rules of

 2-9     Civil Evidence.

2-10           SECTION 2.  This Act takes effect September 1, 1997, and

2-11     applies only to a suit that is commenced on or after that date.  A

2-12     suit that is commenced before the effective date of this Act is

2-13     governed by the law applicable to the suit immediately before the

2-14     effective date of this Act, and that law is continued in effect for

2-15     that purpose.

2-16           SECTION 3.  The importance of this legislation and the

2-17     crowded condition of the calendars in both houses create an

2-18     emergency and an imperative public necessity that the

2-19     constitutional rule requiring bills to be read on three several

2-20     days in each house be suspended, and this rule is hereby suspended.