HBA-ATS H.B. 2993 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2993 By: Culberson Civil Practices 3/23/1999 Introduced BACKGROUND AND PURPOSE By statute, Texas law permits the recovery of prejudgment interest in personal injury, wrongful death, and property damage cases. Case law defines prejudgment interest to mean "compensation allowed by law as additional damages for lost use of the money due as damages during the lapse of time between the accrual of the claim and the date of judgment." Cavnar v. Quality Control Parking, Inc., 696 S.W.2d 549 (Tex.1985) (overruled on other grounds). The Supreme Court of Texas has held that a plaintiff is entitled to prejudgment interest on future damages for a judgment rendered in a personal injury, wrongful death, or property damage case. C & H Nationwide, Inc., v. Thompson, 903 S.W.2d 315 (Tex. 1994). H.B. 2993 prohibits a court from awarding prejudgment interest on future damages, which are defined by this bill as an award of damages for harm that has not been sustained before the judgment date and is expected to be sustained after that date. 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 Subchapter B, Chapter 304, Finance Code, by adding Section 304.1025, as follows: Sec. 304.1025. PREJUDGMENT INTEREST ON FUTURE DAMAGES PROHIBITED. Defines "future damages" to mean an award of damages for harm that has not been sustained before the judgment date and is expected to be sustained after that date. Prohibits a court from awarding prejudgment interest on future damages. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.