By: Haywood S.B. No. 755
99S0280/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to limitations on repetitive awards of exemplary damages.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 41.001, Civil Practice and Remedies Code,
1-4 is amended by adding Subdivision (8) to read as follows:
1-5 (8) "Same course of conduct" means acts or omissions,
1-6 or a series of acts or omissions, that cause or contribute to
1-7 causing the same or substantially similar risks of harm. In
1-8 products liability actions, the term includes substantially the
1-9 same defects in design, substantially the same manufacturing
1-10 defects, or failures to warn of substantially the same hazards,
1-11 with respect to substantially similar units of a product. A course
1-12 of conduct is not dissimilar merely because it results in harm to
1-13 different property or persons.
1-14 SECTION 2. Subsections (a) and (b), Section 41.002, Civil
1-15 Practice and Remedies Code, are amended to read as follows:
1-16 (a) This chapter applies to any action in which a claimant
1-17 seeks exemplary damages relating to a cause of action under the
1-18 laws of this state or any other state.
1-19 (b) This chapter establishes the maximum exemplary damages
1-20 that may be awarded in an action subject to this chapter, including
1-21 an action for which exemplary damages are awarded under another law
1-22 [of this state]. This chapter does not apply to the extent that
1-23 another law establishes a lower maximum amount of exemplary damages
1-24 for a particular claim.
2-1 SECTION 3. Section 41.008, Civil Practice and Remedies Code,
2-2 is amended by amending Subsection (e) and adding Subsection (f) to
2-3 read as follows:
2-4 (e) If a defendant has paid damages for or has been held
2-5 liable for exemplary damages for the same course of conduct or acts
2-6 made the subject of the claimant's claim, the amount of exemplary
2-7 damages awarded against that defendant shall be reduced by the
2-8 total amount of exemplary damages previously awarded against the
2-9 defendant by any state or federal court in any jurisdiction for
2-10 that course of conduct or acts. The limitation prescribed by this
2-11 subsection shall be applied after the limitation prescribed by
2-12 Subsection (b). The court shall receive evidence outside the
2-13 presence of the jury concerning previous payments and judgments for
2-14 exemplary damages made by or entered against the defendant.
2-15 (f) The provisions of Subsections (a), [and] (b), and (e)
2-16 may not be made known to a jury by any means, including voir dire,
2-17 introduction into evidence, argument, or instruction.
2-18 SECTION 4. This Act takes effect September 1, 1999.
2-19 SECTION 5. This Act applies to a civil action commenced on
2-20 or after the effective date of this Act or pending on the effective
2-21 date of this Act and in which the trial, or any new trial or
2-22 retrial following motion, appeal, or otherwise, begins on or after
2-23 that date. In an action commenced before the effective date of
2-24 this Act, a trial, new trial, or retrial that is in progress on
2-25 that date is governed with respect to the subject matter of this
2-26 Act by the applicable law in effect immediately before that date,
3-1 and that law is continued in effect for that purpose.
3-2 SECTION 6. The importance of this legislation and the
3-3 crowded condition of the calendars in both houses create an
3-4 emergency and an imperative public necessity that the
3-5 constitutional rule requiring bills to be read on three several
3-6 days in each house be suspended, and this rule is hereby suspended.