SRC-DBM S.B. 755 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 755
By: Haywood
Economic Development
4/27/1999
As Filed


DIGEST 

Currently, juries may impose damages to punish a defendant for malicious or
intentional misconduct and to deter others from the misconduct.  The
Supreme Court of Texas recently held that repeated awards of punitive
damages for the same conduct are unconstitutional when the aggregate sum is
"grossly excessive to the state's legitimate interest in punishment and
deterrence."  Texas law does not limit repeated punishment.  An American
Law Institute Committee noted:  "substantial payments for earlier punitive
awards may strip the firm of its insurance coverage and assets, thus
endangering the ability of later claimants to realize their fundamental
tort right to compensatory redress."  S.B. 755 would  require the amount of
exemplary damages awarded against a defendant to be reduced by the total
amount of exemplary damages previously awarded against the defendant by any
state or federal court in any jurisdiction if a defendant has previously
paid damages or been held liable for the same course or acts. 

PURPOSE

As proposed, S.B. 755 provides limitations on repetitive awards of
exemplary damages. 

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 41.001, Civil Practices and Remedies Code, by
adding Subdivision 8, to define "same course of conduct" as acts or
omission, or a series of acts or omission, that cause or contribute to
causing the same or substantially similar risks of harm.  Provides that in
products liability actions, the term includes substantially the same
defects in design, substantially the same manufacturing defects, or
failures to warn of substantially the same hazards with respect to
substantially similar units of product.  Provides that a course of conduct
is not dissimilar merely because it results in harm to different property
or persons. 

SECTION 2.  Amends Subsections (a) and (b), Section 41.002, Civil Practice
and Remedies Code, to provide that this chapter applies to any action in
which a claimant seeks exemplary damages relating to a cause of action
under the laws of this state or any other state.  Deletes text regarding
another law of this state.  Makes a conforming change. 

SECTION 3.  Amends Section 41.008, Civil Practice and Remedies Code, by
amending Subsection (e) and adding Subsection (f), to require the amount of
exemplary damages awarded against a defendant to be reduced by the total
amount of exemplary damages previously awarded against the defendant by any
state or federal court in any jurisdiction for that course of conduct or
acts, if a defendant has paid damages for or has been held liable for
exemplary damages for the same course or acts made the subject of the
claimant's claim.  Requires the limitation prescribed by this subsection to
be applied after the limitation prescribed by Subsection (b).  Requires the
court to receive evidence outside the presence of the jury concerning
previous payments and judgments for exemplary damages made by or entered
against the defendant.  Prohibits provisions of Subsections (a), (b), and
(e) from being made known to a jury by any means, including voir dire,
introduction into evidence, argument, or instruction. 

 SECTION 4.Effective date: September 1, 1999.

SECTION 5.Emergency clause.