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.