By Dutton H.B. No. 3109
77R4577 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to judgment debtors.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 52.002, Civil Practice and Remedies Code,
1-5 is amended to read as follows:
1-6 Sec. 52.002. BOND OR DEPOSIT FOR MONEY JUDGMENT. Except as
1-7 provided by Section 52.0021, a [A] trial court rendering a judgment
1-8 that awards recovery of a sum of money, other than a judgment
1-9 rendered in a bond forfeiture proceeding, a personal injury or
1-10 wrongful death action, a claim covered by liability insurance, or a
1-11 workers' compensation claim, may set the security in an amount less
1-12 than the amount of the judgment, interest, and costs if the trial
1-13 court, after notice to all parties and a hearing, finds that:
1-14 (1) setting the security at an amount equal to the
1-15 amount of the judgment, interest, and costs would cause irreparable
1-16 harm to the judgment debtor; and
1-17 (2) setting the security at the lesser amount would
1-18 not substantially decrease the degree to which a judgment
1-19 creditor's recovery under the judgment would be secured after the
1-20 exhaustion of all appellate remedies.
1-21 SECTION 2. Chapter 52, Civil Practice and Remedies Code, is
1-22 amended by adding Section 52.0021 to read as follows:
1-23 Sec. 52.0021. LIMITS. (a) A trial court rendering a
1-24 judgment in a civil action that awards relief of any kind based on
2-1 any legal theory shall set the security in an amount that is equal
2-2 to or less than:
2-3 (1) $1 million, if the judgment is greater than $1
2-4 million but less than $100 million; or
2-5 (2) $25 million, if the judgment is equal to or
2-6 greater than $100 million.
2-7 (b) On proof by a preponderance of the evidence that the
2-8 judgment debtor is intentionally dissipating or diverting assets
2-9 outside of the ordinary course of its business for the purpose of
2-10 evading ultimate payment of the judgment, the court may enter any
2-11 order necessary to prevent the dissipation or diversion, including
2-12 requiring the judgment debtor to post security in an amount equal
2-13 to the full amount of the judgment.
2-14 SECTION 3. Section 35.006, Civil Practice and Remedies Code,
2-15 is amended to read as follows:
2-16 Sec. 35.006. STAY. (a) If the judgment debtor shows the
2-17 court that an appeal from the foreign judgment is pending or will
2-18 be taken, that the time for taking appeals has not expired, or that
2-19 a stay of execution has been granted, requested, or will be
2-20 requested, and proves that the judgment debtor has furnished the
2-21 security for the satisfaction of the judgment required by the state
2-22 in which it was rendered, the court shall stay enforcement of the
2-23 foreign judgment until the appeal is concluded, the time for appeal
2-24 expires, or the stay of execution expires or is vacated.
2-25 (b) If the judgment debtor shows the court a ground on which
2-26 enforcement of a judgment of the court of this state would be
2-27 stayed, including that an appeal is pending or will be taken, that
3-1 the time for taking appeals has not expired, or that a stay of
3-2 execution has been granted, requested, or will be requested, the
3-3 court shall stay enforcement of the foreign judgment for an
3-4 appropriate period and require the same security for satisfaction
3-5 of the judgment that is required in this state, in accordance with
3-6 Sections 52.002 and 52.0021.
3-7 SECTION 4. (a) This Act takes effect immediately if it
3-8 receives a vote of two-thirds of all the members elected to each
3-9 house, as provided by Section 39, Article III, Texas Constitution.
3-10 If this Act does not receive the vote necessary for immediate
3-11 effect, this Act takes effect September 1, 2001.
3-12 (b) This Act applies only to an action commenced or pending
3-13 on or after the effective date of this Act without regard to
3-14 whether the judgment in the action was entered before, on, or after
3-15 that date.
3-16 (c) An action not commenced or pending on or after the
3-17 effective date of this Act is governed by the law applicable to the
3-18 action immediately before the effective date, and that law is
3-19 continued in effect for that purpose.