By Junell H.B. No. 2072
77R1880 AJA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to class actions.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 22.225(b) and (d), Government Code, are
1-5 amended to read as follows:
1-6 (b) Except as provided by Subsection (c) or (d), a judgment
1-7 of a court of appeals is conclusive on the law and facts, and a
1-8 review may not be granted by [writ of error is not allowed from]
1-9 the supreme court, in the following civil cases:
1-10 (1) a case appealed from a county court or from a
1-11 district court when, under the constitution, a county court would
1-12 have had original or appellate jurisdiction of the case, with the
1-13 exception of a probate matter or a case involving state revenue
1-14 laws or the validity or construction of a statute;
1-15 (2) a case of a contested election other than a
1-16 contested election for a state officer, with the exception of a
1-17 case where the validity of a statute is questioned by the decision;
1-18 (3) an appeal from an interlocutory order appointing a
1-19 receiver or trustee or from other interlocutory appeals that are
1-20 allowed by law;
1-21 (4) an appeal from an order or judgment in a suit in
1-22 which a temporary injunction has been granted or refused or when a
1-23 motion to dissolve has been granted or overruled; and
1-24 (5) all other cases except the cases where appellate
2-1 jurisdiction is given to the supreme court and is not made final in
2-2 the courts of appeals.
2-3 (d) Review [A writ of error] is allowed in [from] the
2-4 supreme court for an appeal from an interlocutory order described
2-5 by Section 51.014(a)(3) or (6) [51.014(6)], Civil Practice and
2-6 Remedies Code.
2-7 SECTION 2. Section 51.014, Civil Practice and Remedies Code,
2-8 is amended by amending Subsection (b) and adding Subsection (c) to
2-9 read as follows:
2-10 (b) Except as provided by Subsection (c), an [An]
2-11 interlocutory appeal under Subsection (a) shall have the effect of
2-12 staying the commencement of a trial in the trial court pending
2-13 resolution of the appeal.
2-14 (c) An interlocutory appeal under Subsection (a)(3) stays
2-15 all proceedings in the trial court pending resolution of the
2-16 appeal.
2-17 SECTION 3. Subchapter A, Chapter 22, Government Code, is
2-18 amended by adding Section 22.015 to read as follows:
2-19 Sec. 22.015. CLASS ACTIONS. (a) The supreme court by rule
2-20 may authorize an action to be maintained as a class action only for
2-21 settlement purposes even if the action does not satisfy all the
2-22 requirements of Rules 42(a) and (b), Texas Rules of Civil
2-23 Procedure.
2-24 (b) If the supreme court adopts a rule described by
2-25 Subsection (a), certification of an action as a class action only
2-26 for settlement purposes may not be considered in determining
2-27 whether the action may be maintained as a class action for other
3-1 purposes.
3-2 (c) If the supreme court adopts a rule described by
3-3 Subsection (a), the rule must require that:
3-4 (1) the interests of all class members be adequately
3-5 protected;
3-6 (2) the settlement be fair, just, and reasonable for
3-7 all class members, considering the circumstances of the action; and
3-8 (3) the award, if any, of attorney's fees and expenses
3-9 be fair and reasonable considering the circumstances of the action,
3-10 including the amount of damages awarded to class members
3-11 individually and collectively.
3-12 SECTION 4. Section 15.005, Civil Practice and Remedies Code,
3-13 is amended to read as follows:
3-14 Sec. 15.005. MULTIPLE DEFENDANTS. Except as provided by
3-15 Section 15.021, in [In] a suit in which the plaintiff has
3-16 established proper venue against a defendant, the court also has
3-17 venue of all the defendants in all claims or actions arising out of
3-18 the same transaction, occurrence, or series of transactions or
3-19 occurrences.
3-20 SECTION 5. Subchapter B, Chapter 15, Civil Practice and
3-21 Remedies Code, is amended by adding Section 15.021 to read as
3-22 follows:
3-23 Sec. 15.021. CLASS ACTIONS. (a) A class action against a
3-24 person that is not a natural person, and against principals,
3-25 shareholders, agents, or representatives of that person, shall be
3-26 brought in the county of that person's principal office in this
3-27 state.
4-1 (b) If venue in a class action against multiple defendants
4-2 would be proper under this section in more than one county, the
4-3 class action shall be brought in a county where the greatest number
4-4 of defendants have their principal office.
4-5 (c) On motion of a party, the court may transfer a class
4-6 action against multiple defendants to a county where a defendant
4-7 has a principal office if the court determines that:
4-8 (1) the balance of interests of the parties
4-9 predominates in favor of the action being brought in the other
4-10 county; and
4-11 (2) the transfer would not work an injustice to a
4-12 party.
4-13 SECTION 6. Subchapter D, Chapter 16, Civil Practice and
4-14 Remedies Code, is amended by adding Section 16.073 to read as
4-15 follows:
4-16 Sec. 16.073. CLASS ACTIONS. The limitations period
4-17 applicable to the action against a defendant named in a class
4-18 action commenced in a court of this state is suspended for members
4-19 of the putative class from the date the class action petition is
4-20 filed until the date the request for class certification is denied
4-21 or the class is decertified.
4-22 SECTION 7. Subtitle B, Title 2, Civil Practice and Remedies
4-23 Code, is amended by adding Chapter 26 to read as follows:
4-24 CHAPTER 26. CLASS ACTIONS INVOLVING JURISDICTION OF STATE
4-25 AGENCY
4-26 Sec. 26.001. DEFINITIONS. In this chapter:
4-27 (1) "Agency statute" means a statute of this state
5-1 administered or enforced by a state agency.
5-2 (2) "Claimant" means a party seeking recovery of
5-3 damages or other relief and includes a plaintiff, counterclaimant,
5-4 cross-claimant, or third-party plaintiff.
5-5 (3) "Contested case" has the meaning assigned by
5-6 Section 2001.003, Government Code.
5-7 (4) "Defendant" means a party from whom a claimant
5-8 seeks recovery of damages or other relief.
5-9 (5) "Rule" has the meaning assigned by Section
5-10 2001.003, Government Code.
5-11 (6) "State agency" means a board, commission,
5-12 department, office, or agency that:
5-13 (A) is in the executive branch of state
5-14 government;
5-15 (B) is created by the constitution or a statute
5-16 of this state; and
5-17 (C) has statewide jurisdiction.
5-18 Sec. 26.002. APPLICABILITY. This chapter applies only to an
5-19 action in which:
5-20 (1) a claimant seeks recovery of damages or other
5-21 relief on behalf of a class of claimants; and
5-22 (2) a disputed claim in the action involves the
5-23 interpretation, application, or violation of an agency statute or
5-24 rule with respect to one or more defendants.
5-25 Sec. 26.003. HEARING. (a) On motion of a party, a court
5-26 shall conduct a hearing to determine whether an action should be
5-27 dismissed or abated under this chapter.
6-1 (b) The court shall notify the named parties to the action
6-2 of the hearing on or before the 21st day before the date of the
6-3 hearing.
6-4 (c) A party must file a motion to abate or dismiss an action
6-5 under Section 26.005 on or before the 30th day after the date the
6-6 court signed the order certifying the action as a class action.
6-7 Sec. 26.004. DISMISSAL FOR FAILURE TO EXHAUST ADMINISTRATIVE
6-8 REMEDIES. (a) A court shall dismiss an action without prejudice
6-9 if:
6-10 (1) a state agency has the exclusive jurisdiction to
6-11 determine an issue in dispute or grant an administrative remedy
6-12 before the claimant can seek a judicial remedy; and
6-13 (2) one or more class representatives failed to
6-14 exhaust the state agency's administrative remedy.
6-15 (b) The court shall specify the state agency having
6-16 exclusive jurisdiction and the administrative remedy in the order
6-17 of dismissal.
6-18 (c) The limitations period applicable to an action dismissed
6-19 under this section is suspended for members of the putative class
6-20 with respect to the defendants named in the class action commenced
6-21 in a court of this state for a period beginning on the date the
6-22 order of dismissal is signed and continuing while the class
6-23 representatives diligently pursue the administrative remedy
6-24 identified in the order of dismissal.
6-25 Sec. 26.005. ABATEMENT OR DISMISSAL. (a) On motion of a
6-26 party, a court shall abate or dismiss without prejudice an action
6-27 if the court determines that:
7-1 (1) an issue in dispute involves questions of fact
7-2 within the jurisdiction of a state agency to determine;
7-3 (2) an issue in dispute involves the interpretation or
7-4 violation of an agency statute or rule;
7-5 (3) a state agency may make findings of fact and
7-6 conclusions of law or issue orders that would aid the court in
7-7 resolving the action; or
7-8 (4) a state agency may order all or part of the relief
7-9 a claimant seeks in a contested case.
7-10 (b) The court shall specify in its order of abatement or
7-11 dismissal the state agency and the agency statute or rule on which
7-12 it based its order.
7-13 (c) A court that abates an action under this section shall:
7-14 (1) refer specific issues or claims within a state
7-15 agency's jurisdiction to the agency for action; and
7-16 (2) direct the state agency to report to the court
7-17 periodically concerning the disposition of the matters referred to
7-18 the agency.
7-19 (d) The limitations period applicable to an action dismissed
7-20 under this section is suspended for members of the putative class
7-21 with respect to the defendants named in the class action commenced
7-22 in a court of this state for a period beginning on the date the
7-23 order of dismissal is signed and continuing while the class
7-24 representatives diligently pursue the administrative remedy
7-25 identified in the order of dismissal.
7-26 Sec. 26.006. PERIOD OF ABATEMENT. (a) The court shall
7-27 provide that the period of abatement is at least six months from
8-1 the date the court enters the order of abatement.
8-2 (b) The court may extend the period of abatement if the
8-3 court determines that the state agency is proceeding diligently to
8-4 resolve the matters the court referred to the agency.
8-5 (c) The period of abatement ends when:
8-6 (1) the state agency takes its final action on the
8-7 matters the court referred to the agency; or
8-8 (2) the court determines that the state agency is not
8-9 proceeding diligently to resolve the matters the court referred to
8-10 the agency.
8-11 Sec. 26.007. PROCEEDING AFTER ABATEMENT; DISMISSAL. (a)
8-12 After the abatement period, the court may proceed with the action.
8-13 (b) A court shall dismiss an action if the court determines
8-14 that:
8-15 (1) the state agency granted all or a substantial part
8-16 of the relief sought by the claimant; or
8-17 (2) the relief granted by the state agency is an
8-18 adequate substitute for the relief sought by the claimant.
8-19 (c) Relief awarded to a claimant may be adequate even if the
8-20 relief does not include exemplary damages, multiple damages,
8-21 attorney's fees, or costs of court.
8-22 (d) If a person seeks judicial review of a state agency's
8-23 decision on a matter referred to the agency by the court, the court
8-24 may transfer venue of the action to a county of proper venue for
8-25 the judicial review if the court determines that:
8-26 (1) the transfer is necessary to avoid the likelihood
8-27 of conflicting or inconsistent judicial decisions affecting the
9-1 parties to the action;
9-2 (2) the transfer would promote judicial economy;
9-3 (3) the transfer would not work a substantial
9-4 injustice to the parties to the action; and
9-5 (4) the balance of interests of the parties to the
9-6 action predominates in favor of transferring the action.
9-7 SECTION 8. (a) This Act takes effect September 1, 2001.
9-8 (b) This Act applies to:
9-9 (1) a suit commenced on or after the effective date of
9-10 this Act;
9-11 (2) a suit pending on the effective date of this Act
9-12 in which an order granting or denying class certification has not
9-13 been signed; and
9-14 (3) a suit pending on the effective date of this Act
9-15 in which an order granting or denying class certification has been
9-16 signed but the time for appeal has not elapsed.