1-1     By:  Sibley                                            S.B. No. 614
 1-2           (In the Senate - Filed February 19, 1999; February 22, 1999,
 1-3     read first time and referred to Committee on Economic Development;
 1-4     April 14, 1999, reported favorably by the following vote:  Yeas 6,
 1-5     Nays 1; April 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to proportionate responsibility of persons who cannot
 1-9     feasibly be joined in a lawsuit.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 33.003, Civil Practice and Remedies Code,
1-12     is amended to read as follows:
1-13           Sec. 33.003.  Determination of Percentage of Responsibility.
1-14     The trier of fact, as to each cause of action asserted, shall
1-15     determine the percentage of responsibility, stated in whole
1-16     numbers, for the following persons with respect to each person's
1-17     causing or contributing to cause in any way the harm for which
1-18     recovery of damages is sought, whether by negligent act or
1-19     omission, by any defective or unreasonably dangerous product, by
1-20     other conduct or activity that violates an applicable legal
1-21     standard, or by any combination of these:
1-22                 (1)  each claimant;
1-23                 (2)  each defendant;
1-24                 (3)  each settling person; [and]
1-25                 (4)  each responsible third party who has been joined
1-26     under Section 33.004; and
1-27                 (5)  each responsible third party who cannot feasibly
1-28     be joined.
1-29           SECTION 2.  Subchapter A, Chapter 33, Civil Practice and
1-30     Remedies Code, is amended by adding Section 33.005 to read as
1-31     follows:
1-32           Sec. 33.005.  DESIGNATION OF RESPONSIBLE THIRD PARTIES WHO
1-33     CANNOT FEASIBLY BE JOINED.  (a)  A defendant seeking to have a
1-34     person designated as a responsible third party who cannot feasibly
1-35     be joined must file a notice with the court designating that person
1-36     as a responsible third party who cannot feasibly be joined.  A
1-37     notice filed under this subsection must be filed in accordance with
1-38     the deadlines established for joining responsible third parties in
1-39     Sections 33.004(a), (d), and (e).  Failure to file a notice within
1-40     the established deadlines may be excused by the court upon a
1-41     showing of good cause.
1-42           (b)  A claimant may file an objection to a designation filed
1-43     under Subsection (a).  If an objection is filed, the court shall
1-44     determine whether the designation is proper.
1-45           (c)  A designation under this section is proper if the court
1-46     determines that the designated person meets the definition
1-47     established in Section 33.011(6)(C) and the defendant pleads
1-48     sufficient facts concerning the alleged responsibility of the
1-49     designated person to satisfy the pleading requirements of the Texas
1-50     Rules of Civil Procedure.
1-51           (d)  Filing of a notice under Subsection (a) or any finding
1-52     of fault against a responsible third party who cannot feasibly be
1-53     joined in a suit:
1-54                 (1)  does not by itself impose liability on the
1-55     responsible third party who cannot feasibly be joined; and
1-56                 (2)  may not be used in any other proceeding, on the
1-57     basis of res judicata, collateral estoppel, or any other legal
1-58     theory, to impose liability on the responsible third party who
1-59     cannot feasibly be joined.
1-60           SECTION 3.  Subdivision (6), Section 33.011, Civil Practice
1-61     and Remedies Code, is amended by adding Paragraph (C) to read as
1-62     follows:
1-63                       (C)  "Responsible third party who cannot feasibly
1-64     be joined" includes:
 2-1                             (i)  the claimant's employer, if the
 2-2     employer maintained workers' compensation insurance coverage, as
 2-3     defined by Section 401.011(44), Labor Code, at the time of the act,
 2-4     event, or occurrence that is the basis of the claimant's suit; or
 2-5                             (ii)  a person accused of performing a
 2-6     criminal act that caused or contributed to causing the harm for
 2-7     which the claimant seeks to recover damages, if there is clear and
 2-8     convincing evidence that a criminal act occurred.  If the identity
 2-9     of a person under this subparagraph is not known, that person may
2-10     be identified as "Jane Doe" or "John Doe," provided that all known
2-11     identifying characteristics of this person are stated in the notice
2-12     of designation.
2-13           SECTION 4.  Subsection (b), Section 417.001, Labor Code, is
2-14     amended to read as follows:
2-15           (b)  If a benefit is claimed by an injured employee or a
2-16     legal beneficiary of the employee, the insurance carrier is
2-17     subrogated to the rights of the injured employee and may enforce
2-18     the liability of the third party in the name of the injured
2-19     employee or the legal beneficiary.  The insurance carrier's
2-20     subrogation interest is limited to the amount of the total benefits
2-21     assumed by the carrier or paid by the carrier to the employee or
2-22     the legal beneficiary less the amount by which the court reduced
2-23     the judgment based on the percentage of responsibility determined
2-24     by the trier of fact pursuant to Section 33.003, Civil Practice and
2-25     Remedies Code, attributable to an employer, as described in Section
2-26     33.011(6)(C)(i), Civil Practice and Remedies Code.   If the
2-27     recovery is for an amount greater than the amount of the insurance
2-28     carrier's subrogation interest [that paid or assumed by the
2-29     insurance carrier to the employee or the legal beneficiary], the
2-30     insurance carrier shall:
2-31                 (1)  reimburse itself and pay the costs from the amount
2-32     recovered; and
2-33                 (2)  pay the remainder of the amount recovered to the
2-34     injured employee or the legal beneficiary.
2-35           SECTION 5.  (a)  This Act takes effect September 1, 1999.
2-36           (b)  The changes in law made by this Act apply only to a
2-37     cause of action commenced on or after the effective date of this
2-38     Act.  A cause of action commenced before the effective date of this
2-39     Act is governed by the law in effect at the time the action was
2-40     commenced, and the former law is continued in effect for that
2-41     purpose.
2-42           SECTION 6.  The importance of this legislation and the
2-43     crowded condition of the calendars in both houses create an
2-44     emergency and an imperative public necessity that the
2-45     constitutional rule requiring bills to be read on three several
2-46     days in each house be suspended, and this rule is hereby suspended.
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