By: Bivins, et al. S.B. No. 274
A BILL TO BE ENTITLED
AN ACT
1-1 relating to class actions.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 22.001, Government Code, is amended by
1-4 adding Subsection (e) to read as follows:
1-5 (e)(1) Review of an order of a trial court that certifies or
1-6 refuses to certify a class pursuant to Rule 42, Texas Rules of
1-7 Civil Procedure, or that rule's successor, may be had exclusively
1-8 by an interlocutory appeal taken directly to the supreme court by
1-9 petition for review.
1-10 (2) The supreme court may decline to review an order
1-11 certifying or refusing to certify a class if the court determines
1-12 that the case is not of such importance to the jurisprudence of the
1-13 state that a review should be allowed.
1-14 (3) The supreme court and the courts of appeals shall
1-15 not have mandamus jurisdiction from an order certifying or refusing
1-16 to certify a class.
1-17 (4) An appeal filed under Subdivision (1) shall be
1-18 given precedence by the supreme court over other petitions for
1-19 review and pending matters.
1-20 (5) Notice of appeal brought pursuant to Subdivision
1-21 (1) shall be filed with the supreme court on or before the 20th day
1-22 after the date the order certifying or refusing to certify the
1-23 class is signed. Failure to file within the time allowed by this
1-24 subdivision shall constitute a waiver of the right granted by
2-1 Subdivision (1).
2-2 (6) A petition for review under Subdivision (1) shall
2-3 be deemed denied unless the supreme court grants the petition on or
2-4 before the 60th day after a response to the petition is filed or,
2-5 if a party files a waiver of response, no later than the 60th day
2-6 after the waiver is filed.
2-7 (7) If review is granted, the supreme court shall
2-8 render judgment on an appeal filed under Subdivision (1) on or
2-9 before the 90th day after the respondent's brief is due, or the
2-10 appeal shall be deemed denied.
2-11 (8) A motion for rehearing shall be filed within 15
2-12 days from the date the supreme court renders judgment or makes an
2-13 order disposing of a petition for review. The court shall rule on
2-14 a motion for rehearing within 30 days or it shall be deemed denied.
2-15 (9) If notice of class certification is directed to
2-16 members of the class during the pendency of an interlocutory
2-17 appeal, the class counsel shall provide notice to members of the
2-18 class of a final judgment of the supreme court that reverses the
2-19 order granting class certification.
2-20 (10) Section 22.004 does not apply to this subsection.
2-21 (11) To the extent of any conflict between this
2-22 subsection and the Texas Rules of Appellate Procedure, this
2-23 subsection controls.
2-24 SECTION 2. Subchapter D, Chapter 16, Civil Practice and
2-25 Remedies Code, is amended by adding Section 16.073 to read as
2-26 follows:
3-1 Sec. 16.073. CLASS ACTIONS. The applicable limitations
3-2 period is suspended for members of a putative class on the filing
3-3 of a class action petition or complaint and shall remain suspended
3-4 until the request for class certification is finally denied or the
3-5 class is finally decertified.
3-6 SECTION 3. Section 51.014, Civil Practice and Remedies Code,
3-7 is amended to read as follows:
3-8 Sec. 51.014. APPEAL FROM INTERLOCUTORY ORDER. (a) A person
3-9 may appeal from an interlocutory order of a district court, county
3-10 court at law, or county court that:
3-11 (1) appoints a receiver or trustee;
3-12 (2) overrules a motion to vacate an order that
3-13 appoints a receiver or trustee;
3-14 (3) [certifies or refuses to certify a class in a suit
3-15 brought under Rule 42 of the Texas Rules of Civil Procedure];
3-16 [(4)] grants or refuses a temporary injunction or
3-17 grants or overrules a motion to dissolve a temporary injunction as
3-18 provided by Chapter 65;
3-19 (4) [(5)] denies a motion for summary judgment that is
3-20 based on an assertion of immunity by an individual who is an
3-21 officer or employee of the state or a political subdivision of the
3-22 state;
3-23 (5) [(6)] denies a motion for summary judgment that is
3-24 based in whole or in part upon a claim against or defense by a
3-25 member of the electronic or print media, acting in such capacity,
3-26 or a person whose communication appears in or is published by the
4-1 electronic or print media, arising under the free speech or free
4-2 press clause of the First Amendment to the United States
4-3 Constitution, or Article 1, Section 8, of the Texas Constitution,
4-4 or Chapter 73;
4-5 (6) [(7)] grants or denies the special appearance of a
4-6 defendant under Rule 120a, Texas Rules of Civil Procedure, except
4-7 in a suit brought under the Family Code; or
4-8 (7) [(8)] grants or denies a plea to the jurisdiction
4-9 by a governmental unit as that term is defined in Section 101.001.
4-10 (b) Except as provided by Subsection (c), an [An]
4-11 interlocutory appeal under Subsection (a) shall have the effect of
4-12 staying the commencement of a trial in the trial court pending
4-13 resolution of the appeal.
4-14 (c) An interlocutory appeal under Section 22.01(e),
4-15 Government Code, shall have the effect of staying all proceedings
4-16 in the trial court pending resolution of the appeal.
4-17 SECTION 4. This Act takes effect September 1, 1999, and
4-18 applies to:
4-19 (1) all actions commenced on or after September 1,
4-20 1999;
4-21 (2) all actions pending on September 1, 1999, in which
4-22 an order granting or denying class certification has not been
4-23 issued; and
4-24 (3) all actions pending on September 1, 1999, in which
4-25 an order granting or denying class certification has been issued
4-26 but the time for appeal has not yet elapsed.
5-1 SECTION 5. The importance of this legislation and the
5-2 crowded condition of the calendars in both houses create an
5-3 emergency and an imperative public necessity that the
5-4 constitutional rule requiring bills to be read on three several
5-5 days in each house be suspended, and this rule is hereby suspended.
5-6 COMMITTEE AMENDMENT NO. 1
5-7 Amend S.B. 274, SECTION 3, amending Sec. 51.014, Civil
5-8 Practice and Remedies Code, as follows:
5-9 Amend Sec. 51.014(b) by striking the phrase "Except as
5-10 provided by Subsection (c), an" and restoring the stricken word
5-11 "An".
5-12 Amend Sec. 51.014 by striking Subsection (c) in its entirety
5-13 and substituting a new subsection (c) to read as follows:
5-14 "(c) Discovery taken during the pendency of the
5-15 interlocutory appeal under Sec. 22.001(e), Government Code, shall
5-16 be confined to the claims and defenses of the class representative
5-17 and defendant."
5-18 Zbranek