By Hilbert                                      H.B. No. 1022

      75R4041 DLF-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to remedies and the award of damages in certain civil

 1-3     actions.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 33.012(b), Civil Practice and Remedies

 1-6     Code, is amended to read as follows:

 1-7           (b)  If the claimant has settled with one or more persons,

 1-8     the court shall further reduce the amount of damages to be

 1-9     recovered by the claimant with respect to a cause of action by a

1-10     credit equal to one of the following, as elected in accordance with

1-11     Section 33.014:

1-12                 (1)  the sum of the dollar amounts of all settlements;

1-13     or

1-14                 (2)  a percentage equal to the sum of the settling

1-15     persons' percentages of responsibility [a dollar amount equal to

1-16     the sum of the  following percentages of damages found by the trier

1-17     of fact:]

1-18                       [(A)  5 percent of those damages up to $200,000;]

1-19                       [(B)  10 percent of those damages from $200,001

1-20     to $400,000;]

1-21                       [(C)  15 percent of those damages from $400,001

1-22     to $500,000; and]

1-23                       [(D)  20 percent of those damages greater than

1-24     $500,000].

 2-1           SECTION 2.  Subtitle C, Title 2, Civil Practice and Remedies

 2-2     Code, is amended by adding Chapter 42 to read as follows:

 2-3      CHAPTER 42.  EVIDENCE OF COLLATERAL BENEFITS ADMISSIBLE AT TRIAL

 2-4           Sec. 42.001.  DEFINITIONS.  In this chapter:

 2-5                 (1)  "Claimant" means a party seeking to recover

 2-6     damages, including a plaintiff, counterclaimant, cross-claimant, or

 2-7     third-party plaintiff.  In an action in which a party seeks

 2-8     recovery of damages for injury to another person, damage to the

 2-9     property of another person, or death of another person, or for

2-10     other harm to another person caused by tortious conduct, the term

2-11     includes both that other person and the person seeking recovery of

2-12     damages.

2-13                 (2)  "Collateral benefits" means an amount that is:

2-14                       (A)  paid to or for the benefit of a claimant, or

2-15     reasonably expected to be paid to or for the benefit of the

2-16     claimant, as a result of the personal injury, property damage,

2-17     death, or other harm for which the claimant seeks damages; and

2-18                       (B)  paid or expected to be paid under:

2-19                             (i)  a state or federal program providing

2-20     benefits for medical expenses or disability;

2-21                             (ii)  a health benefit plan or

2-22     income-disability insurance;

2-23                             (iii)  accident insurance that provides

2-24     health benefits or income-disability coverage;

2-25                             (iv)  property insurance;

2-26                             (v)  any insurance, including business

2-27     interruption insurance, that provides coverage for loss of use of

 3-1     property or related loss of income; and

 3-2                             (vi)  workers' compensation benefits.

 3-3                 (3)  "Health benefit plan" means any contract or

 3-4     agreement of a group, organization, partnership, or corporation to

 3-5     provide, pay for, or reimburse the cost of medical, hospital,

 3-6     dental, or other health care services, including:

 3-7                       (A)  an individual, group, blanket, or franchise

 3-8     insurance policy, insurance agreement, or group hospital service

 3-9     contract that provides benefits for medical or surgical expense

3-10     incurred as a result of an accident or sickness; or

3-11                       (B)  an evidence of coverage or group subscriber

3-12     contract issued by a health maintenance organization.

3-13           Sec. 42.002.  APPLICABILITY.  This chapter applies only to an

3-14     action in which a claimant seeks damages for personal injury,

3-15     property, or death, or damages for other harm caused by tortious

3-16     conduct.

3-17           Sec. 42.003.  EVIDENCE OF COLLATERAL BENEFITS ADMISSIBLE.

3-18     (a)  Evidence of collateral benefits is relevant to the nature and

3-19     extent of the claimant's damages and is admissible for that

3-20     purpose.

3-21           (b)  Any party may introduce at trial evidence of collateral

3-22     benefits.

3-23           SECTION 3.  Section 2, Article 1.05, Title 79, Revised

3-24     Statutes (Article 5069-1.05, Vernon's Texas Civil Statutes), is

3-25     amended to read as follows:

3-26           Sec. 2.  Except as provided in Section 1 of this article, all

3-27     judgments, together with taxable court costs, of the courts of this

 4-1     state earn interest, compounded annually, at the rate published by

 4-2     the consumer credit commissioner in the Texas Register.  The

 4-3     consumer credit commissioner shall compute on the 15th day of each

 4-4     month the judgment interest rate by taking the auction rate quoted

 4-5     on a discount basis for 52-week treasury bills issued by the United

 4-6     States government as published by the Federal Reserve Board on the

 4-7     most recent date preceding the date of computation.  The interest

 4-8     rate so computed shall be the judgment rate[, except that if the

 4-9     rate so computed is less than 10 percent, the judgment interest

4-10     rate shall be 10 percent, and if it be more than 20 percent, the

4-11     judgment interest rate shall be 20 percent].  The rate established

4-12     on that computation date shall be the interest rate on judgments

4-13     for the next calendar month.

4-14           SECTION 4.  Section 6, Article 1.05, Title 79, Revised

4-15     Statutes (Article 5069-1.05, Vernon's Texas Civil Statutes), is

4-16     amended by amending Subsections (a) and (d) and adding Subsections

4-17     (h) and (i) to read as follows:

4-18           (a)  Judgments in all actions for wrongful death, personal

4-19     injury, [and] property damage, tortious conduct that results in

4-20     harm, and contract actions not governed by Section 1 of this

4-21     article [cases] must include prejudgment interest on past economic

4-22     damages.  Except as provided by Subsections (b), (c), and (d) of

4-23     this section, the prejudgment interest accrual period begins

4-24     [accrues on the amount of the judgment during the period beginning

4-25     on the 180th day after the date the defendant receives written

4-26     notice of a claim or] on the day the action [suit] is filed and

4-27     ends[, whichever occurs first, and ending] on the day immediately

 5-1     preceding the date judgment is rendered.

 5-2           (d)  Prejudgment [In addition to the exceptions provided

 5-3     under Subsections (b) and (c) of this section, the court in its

 5-4     discretion may order that prejudgment] interest [does or] does not

 5-5     accrue during periods of delay in the trial[, taking into

 5-6     consideration:]

 5-7                 [(1)  periods of delay caused by a defendant; and]

 5-8                 [(2)  periods of delay] caused by a claimant.

 5-9           (h)  A court may not award prejudgment interest on attorney's

5-10     fees, damages other than economic damages, or future damages.

5-11           (i)  In this section, "economic damages" means compensatory

5-12     damages for pecuniary loss.  The term does not include exemplary

5-13     damages or damages for physical pain and mental anguish, loss of

5-14     consortium, disfigurement, physical impairment, or loss of

5-15     companionship and society.

5-16           SECTION 5.  (a)  This Act applies to all actions:

5-17                 (1)  commenced on or after the effective date of this

5-18     Act; or

5-19                 (2)  pending on that effective date and in which the

5-20     trial, or any new trial or retrial following motion, appeal, or

5-21     otherwise, begins on or after that effective date.

5-22           (b)  In an action commenced before the effective date of this

5-23     Act, a trial, new trial, or retrial that is in progress on the

5-24     effective date is governed by the law applicable to the trial, new

5-25     trial, or retrial immediately before the effective date, and that

5-26     law is continued in effect for that purpose.

5-27           SECTION 6.  The importance of this legislation and the

 6-1     crowded condition of the calendars in both houses create an

 6-2     emergency and an imperative public necessity that the

 6-3     constitutional rule requiring bills to be read on three several

 6-4     days in each house be suspended, and this rule is hereby suspended,

 6-5     and that this Act take effect and be in force from and after its

 6-6     passage, and it is so enacted.