SRC-JJJ H.B. 2456 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2456
76R10342 DAK-DBy: Hartnett (Wentworth)
Jurisprudence
5/11/1999
Engrossed


DIGEST 

In Williams v. Khalaf, 802 S.W. 2d 651 (Tex. 1990), the Texas Supreme Court
held Section 16.004, Civil Practice and Remedies Code, to establish a
four-year statute of limitations for fraud and breach of fiduciary duty.
Prior to that holding, Texas courts held that fraud and breach of fiduciary
duty were subject to a two-year statute of limitations.  Numerous courts
after Williams have held that the four-year statute of limitations also
applies.  H.B. 2456 would establish the statute of limitations for certain
civil actions. 

PURPOSE

As proposed, H.B. 2456 establishes the statute of limitations for certain
civil actions. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 16.004(a), Civil Practice and Remedies Code, to
require a person to bring a suit  on certain actions  not later than four
years after the day the cause of action accrues, including fraud or breach
of fiduciary duty. 

SECTION 2.  Provides that the intent of this Act is to clarify existing
law by resolving a conflict in case law concerning  the applicable  statute
of limitations for actions for fraud and breach of fiduciary duty.
Establishes that it is not the intent of this Act to affect the two-year
statute of limitations applicable to an action for breach of the duty of
good faith and fair dealing in insurance contracts. 

SECTION 3.  Emergency clause.
  Effective date: 90 days after adjournment.