By Haywood S.B. No. 1816
75R8168 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to class actions.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle B, Title 2, Civil Practice and Remedies
1-5 Code, is amended by adding Chapter 24 to read as follows:
1-6 CHAPTER 24. CLASS ACTIONS
1-7 Sec. 24.001. DEFINITIONS. In this chapter:
1-8 (1) "Claimant" means the representative of the persons
1-9 seeking relief in a class action suit.
1-10 (2) "Defendant" means the representative of the
1-11 persons defending against a claim in a class action suit.
1-12 Sec. 24.002. SCOPE OF CHAPTER. This chapter applies to a
1-13 class action suit brought in any court in this state other than a
1-14 federal court.
1-15 Sec. 24.003. ATTORNEY'S FEES. (a) The court shall
1-16 determine the method of payment for the attorney representing the
1-17 class on certification of the class action.
1-18 (b) The court may determine as a method of payment:
1-19 (1) a flat fee;
1-20 (2) an hourly rate; or
1-21 (3) a percentage of a settlement or judgment amount.
1-22 Sec. 24.004. OPT-IN CLASS. (a) A court may allow, on
1-23 petition from claimant or defendant, that:
1-24 (1) a person eligible to become a member of the class
2-1 may become a member only if the person, after receiving proper
2-2 notice, affirmatively requests that the person be included in the
2-3 class; and
2-4 (2) an eligible person who does not affirmatively
2-5 request to be included in the class not become a member of the
2-6 class.
2-7 (b) Notice under this section must include an explanation of
2-8 the effect of the class action suit on the right of the person who
2-9 does not affirmatively request to be included in the class to seek
2-10 redress in another manner.
2-11 Sec. 24.005. FUTURE DAMAGES. (a) A court may not award
2-12 future damages in a class action suit unless it is shown to the
2-13 court that it is reasonably likely that the defendant will dissolve
2-14 or will otherwise be unable or unavailable to pay damages that may
2-15 be awarded in the future.
2-16 (b) A court that awards future damages under Subsection (a)
2-17 shall require that all future damages be paid:
2-18 (1) under an insurance policy;
2-19 (2) in annual payments, as determined by the court,
2-20 made to an escrow account; or
2-21 (3) subject to Subsection (c), in a lump-sum payment.
2-22 (c) The court may not allow future damages to be paid in a
2-23 lump-sum payment unless it is shown to the court that the damages
2-24 will be incurred before the first anniversary of the date the
2-25 lump-sum payment is made.
2-26 Sec. 24.006. CONFLICT WITH RULES. Notwithstanding Section
2-27 22.004, Government Code, the supreme court may not amend or adopt
3-1 rules in conflict with this chapter.
3-2 SECTION 2. This Act takes effect September 1, 1997, and
3-3 applies only to a class action suit certified on or after that
3-4 date. A class action suit certified before the effective date of
3-5 this Act is governed by the law applicable to the suit immediately
3-6 before the effective date of this Act, and that law is continued in
3-7 effect for that purpose.
3-8 SECTION 3. The importance of this legislation and the
3-9 crowded condition of the calendars in both houses create an
3-10 emergency and an imperative public necessity that the
3-11 constitutional rule requiring bills to be read on three several
3-12 days in each house be suspended, and this rule is hereby suspended.