75R9631 PB-F
By Uher H.B. No. 2160
Substitute the following for H.B. No. 2160:
By Bosse C.S.H.B. No. 2160
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the abuse of judicial process by an insurance premium
1-3 finance company.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 24, Insurance Code, is amended by adding
1-6 Article 24.23 to read as follows:
1-7 Art. 24.23. ABUSE OF JUDICIAL PROCESS
1-8 Sec. 1. LACK OF VENUE. (a) A premium finance company
1-9 violates this code if the company brings an action against a person
1-10 in a court of this state without a reasonable basis for venue in
1-11 that court. A violation under this subsection is subject to
1-12 sanctions under Article 1.10(7) of this code.
1-13 (b) In addition to the sanctions imposed under Subsection
1-14 (a) of this section, the premium finance company is liable to the
1-15 person against whom the action is brought for:
1-16 (1) all costs associated with defending the action,
1-17 including:
1-18 (A) the value of the time of the person
1-19 defending the action;
1-20 (B) attorney's fees; and
1-21 (C) other related costs incurred by the person
1-22 defending the action; and
1-23 (2) exemplary damages equal to three times the amount
1-24 found as costs under Subdivision (1) of this subsection.
2-1 (c) Chapter 41, Civil Practice and Remedies Code, does not
2-2 apply to exemplary damages awarded under Subsection (b) of this
2-3 section.
2-4 Sec. 2. NO CREDIBLE EVIDENCE. (a) A premium finance
2-5 company violates this code if the company brings an action against
2-6 a person in a court of this state in which the court determines
2-7 that:
2-8 (1) there is no credible evidence to support the truth
2-9 of the operative facts that are legally required to support the
2-10 alleged liability; and
2-11 (2) the action is not warranted by a good faith
2-12 argument for the extension, modification, or reversal of existing
2-13 law.
2-14 (b) A violation under Subsection (a) of this section is
2-15 subject to sanctions under Article 1.10(7) of this code.
2-16 (c) In addition to the sanctions imposed under Subsection
2-17 (b) of this section, the premium finance company is liable to the
2-18 person against whom the action is brought for:
2-19 (1) all costs associated with defending the action,
2-20 including:
2-21 (A) the value of the time of the person
2-22 defending the action;
2-23 (B) attorney's fees; and
2-24 (C) other related costs incurred by the person
2-25 defending the action; and
2-26 (2) exemplary damages equal to the greater of:
2-27 (A) three times the amount found as costs under
3-1 Subdivision (1) of this subsection; or
3-2 (B) the amount for which the premium finance
3-3 company sued.
3-4 (d) Chapter 41, Civil Practice and Remedies Code, does not
3-5 apply to exemplary damages awarded under Subsection (c) of this
3-6 section.
3-7 SECTION 2. (a) A premium finance company that brought an
3-8 action before and that is pending on the effective date of this Act
3-9 that violates Section 1, Article 24.23, Insurance Code, as added
3-10 by this Act, shall dismiss that action not later than the 10th day
3-11 after the effective date of this Act.
3-12 (b) A premium finance company violates the Insurance Code if
3-13 the company violates Subsection (a) of this section. A violation
3-14 under this subsection is subject to sanctions under Article
3-15 1.10(7), Insurance Code.
3-16 (c) In addition to the sanctions imposed under Subsection
3-17 (b) of this section, a premium finance company that violates
3-18 Subsection (a) of this section is subject to Section 1(b), Article
3-19 24.23, Insurance Code, as added by this Act.
3-20 SECTION 3. The importance of this legislation and the
3-21 crowded condition of the calendars in both houses create an
3-22 emergency and an imperative public necessity that the
3-23 constitutional rule requiring bills to be read on three several
3-24 days in each house be suspended, and this rule is hereby suspended,
3-25 and that this Act take effect and be in force from and after its
3-26 passage, and it is so enacted.