HBA-ATS H.B. 1558 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1558
By: Junell
Civil Practices
4/20/1999
Introduced



BACKGROUND AND PURPOSE 

Chapter 33 (Proportionate Responsibility), Civil Practice and Remedies
Code, applies to any cause of action based on tort in which a defendant,
settling person, or responsible third party is found responsible for a
percentage of the harm for which relief is sought.  If a claimant settles
with one or more persons, an election must be made as to which dollar
credit is to be applied under Section 33.012(b) (Amount of Recovery).
Section 33.012(b) limits the amount of damages a settling claimant may
recover.  It requires a court to reduce the amount of damages by a credit
equal to one of two options, as elected by a defendant.  The first option
is a credit equal to the sum of the dollar amount of all settlements
(dollar-for-dollar settlement).  The second option is a credit equal to a
dollar amount equal to the sum of a range of percentages for damages of
certain dollar amounts found by the trier of fact (sliding scale).  The
range of percentages are: 5 percent of those damages up to $200,000; 10
percent of those damages from $200,001 to $400,000; 15 percent of those
damages from $400,001 to $500,000; and 20 percent of those damages up to
$500,000. 

H.B. 1558 deletes the sliding scale option and replaces it with an option
based on a dollar amount that is determined by computing the sum of the
percentages of responsibility of all settling persons, and multiplying the
amount of damages by the sum of the percentages of responsibility of all
settling persons. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 33.012(b), Civil Practice and Remedies Code, to
delete the sliding scale option and replace it with an option based on a
dollar amount that is determined by computing the sum of the percentages of
responsibility of all settling persons, and multiplying the amount of
damages by the sum of the percentages of responsibility of all settling
persons. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.