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78R5666 DAK-F
By: Nixon H.B. No. 4
A BILL TO BE ENTITLED
AN ACT
relating to reform of certain procedures and remedies in civil
actions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. CLASS ACTIONS
SECTION 1.01. Subtitle B, Title 2, Civil Practice and
Remedies Code, is amended by adding Chapter 26 to read as follows:
CHAPTER 26. CLASS ACTIONS INVOLVING JURISDICTION
OF STATE AGENCY
Sec. 26.001. DEFINITIONS. In this chapter:
(1) "Agency statute" means a statute of this state
administered or enforced by a state agency.
(2) "Claimant" means a party seeking recovery of
damages or other relief and includes a plaintiff, counterclaimant,
cross-claimant, or third-party claimant.
(3) "Contested case" has the meaning assigned by
Section 2001.003, Government Code.
(4) "Defendant" means a party from whom a claimant
seeks recovery of damages or other relief.
(5) "Rule" has the meaning assigned by Section
2001.003, Government Code.
(6) "State agency" means a board, commission,
department, office, or agency that:
(A) is in the executive branch of state
government;
(B) is created by the constitution or a statute
of this state; and
(C) has statewide jurisdiction.
Sec. 26.002. APPLICABILITY. This chapter applies only to
an action in which:
(1) a claimant seeks recovery of damages or other
relief on behalf of a class of claimants; and
(2) a disputed claim in the action involves the
interpretation, application, or violation of an agency statute or
rule with respect to one or more defendants.
Sec. 26.003. HEARING. (a) On motion of a party, a court
shall conduct a hearing to determine whether an action should be
dismissed or abated under this chapter.
(b) The court shall notify the named parties to the action
of the hearing on or before the 21st day before the date of the
hearing.
(c) A party must file a motion to abate or dismiss an action
under Section 26.005 on or before the 30th day after the date the
court signed the order certifying the action as a class action.
Sec. 26.004. DISMISSAL FOR FAILURE TO EXHAUST
ADMINISTRATIVE REMEDIES. (a) A court shall dismiss an action
without prejudice if:
(1) a state agency has the exclusive jurisdiction to
determine an issue in dispute or grant an administrative remedy
before the claimant can seek a judicial remedy; and
(2) one or more class representatives failed to
exhaust the state agency's administrative remedy.
(b) The court shall specify the state agency having
exclusive jurisdiction and the administrative remedy in the order
of dismissal.
(c) The limitations period applicable to an action
dismissed under this section is suspended for members of the
putative class with respect to the defendants named in the class
action commenced in a court of this state for a period beginning on
the date the order of dismissal is signed and continuing while the
class representatives diligently pursue the administrative remedy
identified in the order of dismissal.
Sec. 26.005. ABATEMENT OR DISMISSAL. (a) On motion of a
party, a court shall abate or dismiss without prejudice an action if
the court determines that:
(1) an issue in dispute involves questions of fact
within the jurisdiction of a state agency to determine;
(2) an issue in dispute involves the interpretation or
violation of an agency statute or rule;
(3) a state agency may make findings of fact and
conclusions of law or issue orders that would aid the court in
resolving the action; or
(4) a state agency may order all or part of the relief
a claimant seeks in a contested case.
(b) The court shall specify in its order of abatement or
dismissal the name of the state agency and the agency statute or
rule on which it based its order.
(c) A court that abates an action under this section shall:
(1) refer specific issues or claims within a state
agency's jurisdiction to the agency for action; and
(2) direct the state agency to report to the court
periodically concerning the disposition of the matters referred to
the agency.
(d) The limitations period applicable to an action
dismissed under this section is suspended for members of the
putative class with respect to the defendants named in the class
action commenced in a court of this state for a period beginning on
the date the order of dismissal is signed and continuing while the
class representatives diligently pursue the administrative remedy
identified in the order of dismissal.
Sec. 26.006. PERIOD OF ABATEMENT. (a) The court shall
provide that the period of abatement is at least six months from the
date the court signs the order of abatement.
(b) The court may extend the period of abatement if the
court determines that the state agency is proceeding diligently to
resolve the matters the court referred to the agency.
(c) The period of abatement ends when:
(1) the state agency takes its final action on the
matters the court referred to the agency; or
(2) the court determines that the state agency is not
proceeding diligently to resolve the matters the court referred to
the agency.
Sec. 26.007. PROCEEDING AFTER ABATEMENT; DISMISSAL. (a)
After the abatement period, the court shall decide whether to
dismiss the action, proceed with the action as an individual
action, or proceed with the action as a class action.
(b) A court shall dismiss an action if the court determines
that:
(1) the state agency granted all or a substantial part
of the relief sought by the claimant; or
(2) the relief granted by the state agency is an
adequate substitute for the relief sought by the claimant.
(c) If the court does not dismiss the action, it shall
determine whether to proceed with the action as a class action or as
an individual action by considering or reconsidering the case in
light of class certification criteria. In determining whether a
class action is superior to other available methods for the fair and
efficient adjudication of the controversy, the court shall consider
the availability of judicial review of the state agency's decision
and of declaratory relief under Section 2001.038, Government Code,
concerning the validity and applicability of agency rules.
(d) Relief awarded to a claimant may be adequate even if the
relief does not include exemplary damages, multiple damages,
attorney's fees, or costs of court.
(e) If a person seeks judicial review of a state agency's
decision on a matter referred to the agency by the court, the court
may transfer the action to a county of proper venue for the judicial
review if the court determines that:
(1) the transfer is necessary to avoid the likelihood
of conflicting or inconsistent judicial decisions affecting the
parties to the action;
(2) the transfer would promote judicial economy;
(3) the transfer would not work a substantial
injustice to the parties to the action; and
(4) the balance of interests of the parties to the
action predominates in favor of transferring the action.
(f) If a person seeks declaratory relief under Section
2001.038, Government Code, concerning the validity or
applicability of a state agency rule involved in a state agency's
decision on a matter referred to the agency by the court, the court
shall transfer the action to Travis County.
SECTION 1.02. Title 6, Civil Practice and Remedies Code, is
amended by adding Chapter 140 to read as follows:
CHAPTER 140. ATTORNEY'S FEES AWARDED IN CLASS ACTIONS
Sec. 140.001. APPLICABILITY. (a) This chapter applies to
an award of attorney's fees in a class action notwithstanding:
(1) any agreement between the attorney or attorneys
for the class and any member of the class; or
(2) any other law or rule of court.
(b) This chapter does not apply to fees payable to the
attorney or attorneys by a named plaintiff client out of that
client's funds, including the client's share of the common fund
recovered for the class, under an agreement between the attorney or
attorneys and the client.
Sec. 140.002. NO RIGHT TO FEES CREATED. This chapter does
not create any right in the class to any award of attorney's fees
against the defendant.
Sec. 140.003. AWARD OF FEES. If a court awards a fee in a
class action to the attorney or attorneys for the class, the fee
must be awarded out of a common fund recovered for the class only as
provided by this chapter.
Sec. 140.004. DETERMINATION OF REASONABLE AND NECESSARY
TIME AND LABOR. The court shall determine the number of hours that
it considers the reasonable and necessary time and labor expended
by the attorney or attorneys for the class.
Sec. 140.005. BASE FEE. The base fee is an amount
determined by multiplying the following amounts:
(1) the number of hours determined in Section 140.004;
and
(2) an hourly fee that the court determines is not
greater than the fee customarily charged in the locality for
similar legal services.
Sec. 140.006. INCREASE OR DECREASE OF BASE FEE. (a) Except
as provided by Subsection (b), the court may increase or decrease
the base fee determined under Section 140.005 by applying the
following factors:
(1) the novelty and difficulty of the issues involved
in the action;
(2) the skill required to properly perform the legal
services performed by the attorney or attorneys for the class;
(3) the amount of money involved in the action and the
results obtained;
(4) the time limitations imposed by the class or the
circumstances; and
(5) the experience, reputation, and ability of the
attorney or attorneys performing services for the class.
(b) The total fees awarded by the court may not exceed the
lesser of:
(1) 25 percent of the amounts collected by class
members out of the common fund recovered for the class; or
(2) four times the base fee as determined under
Section 140.005.
Sec. 140.007. ACTUAL EXPENSES AND COSTS. In addition to the
fee determined by the court under this chapter, the court may award
the attorney or attorneys representing the class all reasonable
expenses and costs actually incurred by the attorney on behalf of
the class.
SECTION 1.03. Sections 22.225(b) and (d), Government Code,
are amended to read as follows:
(b) Except as provided by Subsection (c) or (d), a judgment
of a court of appeals is conclusive on the law and facts, and a
petition for review [writ of error] is not allowed to [from] the
supreme court, in the following civil cases:
(1) a case appealed from a county court or from a
district court when, under the constitution, a county court would
have had original or appellate jurisdiction of the case, with the
exception of a probate matter or a case involving state revenue laws
or the validity or construction of a statute;
(2) a case of a contested election other than a
contested election for a state officer, with the exception of a case
where the validity of a statute is questioned by the decision;
(3) an appeal from an interlocutory order appointing a
receiver or trustee or from other interlocutory appeals that are
allowed by law;
(4) an appeal from an order or judgment in a suit in
which a temporary injunction has been granted or refused or when a
motion to dissolve has been granted or overruled; and
(5) all other cases except the cases where appellate
jurisdiction is given to the supreme court and is not made final in
the courts of appeals.
(d) A petition for review [writ of error] is allowed from
the supreme court for an appeal to [from] an interlocutory order
described by Section 51.014(a)(3) or (6) [51.014(6)], Civil
Practice and Remedies Code.
SECTION 1.04. Section 51.014(b), Civil Practice and
Remedies Code, is amended to read as follows:
(b) An interlocutory appeal under Subsection (a), other
than an appeal under Subsection (a)(4), shall have the effect of
staying the commencement of a trial in the trial court pending
resolution of the appeal. Additionally, an interlocutory appeal
under Subsection (a)(3) stays all other proceedings in the trial
court pending resolution of that appeal.
SECTION 1.05. This article applies only to a suit commenced
or pending on or after the effective date of this Act.
ARTICLE 2. SETTLEMENT
SECTION 2.01. Subtitle C, Title 2, Civil Practice and
Remedies Code, is amended by adding Chapter 42 to read as follows:
CHAPTER 42. SETTLEMENT AND RECOVERY OF LITIGATION COSTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 42.001. DEFINITIONS. In this chapter:
(1) "Claim" means a request, including a counterclaim,
cross-claim, or third-party claim, to recover monetary damages or
to obtain other relief. The term does not include a request for an
injunction or to recover litigation costs.
(2) "Claimant" means a person making a claim.
(3) "Defendant" means a person from whom a claimant
seeks recovery on a claim, including a counterdefendant,
cross-defendant, or third-party defendant.
(4) "Governmental unit" means the state, a unit of
state government, or a political subdivision of this state.
(5) "Litigation costs" means money actually spent and
obligations actually incurred that are directly related to an
action. "Litigation costs" include:
(A) reasonable attorney's fees;
(B) court costs;
(C) reasonable deposition costs; and
(D) reasonable fees for not more than two expert
witnesses.
(6) "Settlement offer" means an offer to settle or
compromise a claim made in compliance with Section 42.051.
Sec. 42.002. APPLICABILITY AND EFFECT. (a) This chapter
does not apply to an action in which a class has been certified.
(b) Without regard to whether an action is brought by itself
or in conjunction with other actions, this chapter does not apply to
an action:
(1) brought under the Family Code;
(2) brought under Chapter 27, Property Code;
(3) brought on behalf of a minor or person of unsound
mind; or
(4) to collect workers' compensation benefits under
Subtitle A, Title 5, Labor Code.
(c) This chapter does not limit or affect the ability of any
person to:
(1) make an offer to settle or compromise a claim that
does not comply with this chapter; or
(2) offer to settle or compromise a claim to which this
chapter does not apply.
(d) A party's offer to settle or compromise that does not
comply with Section 42.051 or that is excluded from this chapter
under Subsection (a) does not entitle the party to recover
litigation costs under this chapter.
Sec. 42.003. ELECTION BY GOVERNMENTAL UNITS; WAIVER. (a)
This chapter does not apply to an action by or against a
governmental unit unless the governmental unit elects to seek
recovery of litigation costs under this chapter or elects to waive
immunity from liability for costs awarded under this chapter.
(b) To be effective as an election or waiver, the
governmental unit must make the election or waiver specifically and
affirmatively by a writing filed with the court on or before the
45th day after the date the governmental unit files its original
petition or original answer.
(c) An election or waiver is effective only in the action in
which it is filed.
Sec. 42.004. MODIFICATION OF TIME LIMITS. A court may
modify the time limits specified in this chapter by order resulting
from a pretrial conference conducted under Rule 166, Texas Rules of
Civil Procedure.
Sec. 42.005. SERVICE. When this chapter requires a writing
to be served on another party, service is adequate if it is
performed in a manner described in Rule 21a, Texas Rules of Civil
Procedure.
[Sections 42.006-42.050 reserved for expansion]
SUBCHAPTER B. AWARDING LITIGATION COSTS
Sec. 42.051. SETTLEMENT OFFER. (a) A defendant may serve
on a claimant a settlement offer to settle all claims in the action
between that defendant and claimant.
(b) The settlement offer must:
(1) be in writing;
(2) state that it is a settlement offer under this
chapter;
(3) state the terms by which the claims may be settled;
(4) state a deadline by which the settlement offer
must be accepted; and
(5) be served on the claimant to whom the settlement
offer is made.
(c) A defendant may not make a settlement offer under this
section before the 90th day after the date the defendant files a
responsive pleading or otherwise appears in the action.
(d) A defendant may not make a settlement offer under this
section after the 30th day before the date set for trial.
(e) The parties are not required to file a settlement offer
with the court.
Sec. 42.052. ACCEPTANCE OF SETTLEMENT OFFER. (a) A
claimant may accept a settlement offer on or before 5 p.m. on the
30th day after the date the claimant received the settlement offer
or before the deadline stated in the settlement offer, whichever is
later.
(b) Acceptance of a settlement offer must be:
(1) in writing; and
(2) served on the defendant who made the settlement
offer.
Sec. 42.053. WITHDRAWING SETTLEMENT OFFER. (a) A
defendant may withdraw a settlement offer by serving a written
withdrawal on the claimant to whom the settlement offer was made
before the claimant accepts the settlement offer. A claimant may
not accept a settlement offer after it is withdrawn.
(b) If a defendant withdraws a settlement offer, that
settlement offer does not entitle the defendant to recover
litigation costs.
Sec. 42.054. REJECTION OF SETTLEMENT OFFER. For purposes
of this chapter, a settlement offer is rejected if:
(1) the claimant to whom the settlement offer was made
rejects the settlement offer by serving a written rejection on the
defendant making the settlement offer; or
(2) the settlement offer is not withdrawn and is not
accepted before the deadline for accepting the offer.
Sec. 42.055. AWARD OF LITIGATION COSTS. (a) A defendant
who makes a settlement offer to a claimant seeking monetary relief
shall recover litigation costs from the claimant if:
(1) the settlement offer is rejected;
(2) the court signs a judgment on the claim;
(3) the amount of monetary relief awarded to the
claimant in the judgment is more favorable to the defendant who made
the settlement offer than the settlement offer; and
(4) the difference between the amount of monetary
relief awarded to the claimant in the judgment and the amount of the
settlement offer is equal to or greater than 10 percent of the
amount of the settlement offer.
(b) A defendant who makes a settlement offer to a claimant
seeking nonmonetary relief, other than injunctive relief, may
recover litigation costs from the claimant if:
(1) the settlement offer is rejected;
(2) the court signs a judgment on the claim; and
(3) the judgment is more favorable to the defendant
who made the settlement offer than the settlement offer.
(c) Litigation costs awarded to a defendant under this
section include only those litigation costs incurred by the
defendant who made a settlement offer after the rejection of the
earliest settlement offer that entitles the defendant to an award
of litigation costs under this section.
(d) An award of litigation costs by the court may be
reviewed on appeal from a final judgment for abuse of discretion by
the court.
Sec. 42.056. LIMITATION ON LITIGATION COSTS. (a) The
amount of litigation costs awarded to a defendant under this
chapter shall not exceed the claimant's total recovery in
connection with the transactions or occurrences giving rise to the
claim and includes:
(1) the amount of any monetary relief awarded to the
claimant in the judgment; and
(2) the amount of any money paid or to be paid to the
claimant by any person in consideration of potential liability in
connection with the transactions or occurrences giving rise to the
claim.
(b) If litigation costs are awarded against a claimant under
this chapter, the claimant shall not be awarded the post-settlement
offer portion of any litigation costs to which the claimant would
otherwise be entitled under Chapter 38 or other applicable law.
Sec. 42.057. ADMISSIBILITY OF EVIDENCE. (a) This chapter
does not affect the admissibility or inadmissibility of evidence as
provided in the Texas Rules of Evidence.
(b) The provisions of this chapter may not be made known to
the jury through any means, including voir dire, introduction into
evidence, instruction, or argument.
SECTION 2.02. This article applies only to a civil action
described by Chapter 42, Civil Practice and Remedies Code, as added
by this article, commenced on or after the effective date of this
Act. An action commenced before the effective date of this Act is
governed by the law in effect immediately before the change in law
made by this article, and that law is continued in effect for that
purpose.
ARTICLE 3. VENUE; FORUM NON CONVENIENS
SECTION 3.01. Section 15.002(a), Civil Practice and
Remedies Code, is amended to read as follows:
(a) Except as otherwise provided by this subchapter or
Subchapter B, [or] C, or F, all lawsuits shall be brought:
(1) in the county in which all or a substantial part of
the events or omissions giving rise to the claim occurred;
(2) in the county of defendant's residence at the time
the cause of action accrued if defendant is a natural person;
(3) in the county of the defendant's principal office
in this state, if the defendant is not a natural person; or
(4) if Subdivisions (1), (2), and (3) do not apply, in
the county in which the plaintiff resided at the time of the accrual
of the cause of action.
SECTION 3.02. Chapter 15, Civil Practice and Remedies Code,
is amended by adding Subchapter F to read as follows:
SUBCHAPTER F. TRANSFER OF PRETRIAL VENUE IN MULTIDISTRICT
LITIGATION
Sec. 15.151. PURPOSE. (a) The purpose of this subchapter
is to facilitate the just and efficient resolution of multidistrict
litigation in the courts of this state.
(b) This subchapter shall be construed:
(1) to accomplish the purpose stated in Subsection
(a); and
(2) in harmony with federal judicial interpretation of
comparable federal multidistrict litigation statutes to the extent
consistent with this purpose.
Sec. 15.152. DEFINITION. In this subchapter, "panel" means
the judicial panel on multidistrict litigation authorized by
Subchapter H, Chapter 74, Government Code.
Sec. 15.153. APPLICABILITY. This subchapter does not apply
to any action in which this state is a complainant arising under the
antitrust laws.
Sec. 15.154. TRANSFER FOR COORDINATED OR CONSOLIDATED
PRETRIAL PROCEEDINGS. A proposed class action or two or more other
civil actions involving one or more common questions of fact
pending in different districts may be transferred by the panel to
any district for coordinated or consolidated pretrial proceedings.
Sec. 15.155. INITIATION OF TRANSFER. (a) Proceedings for
the transfer of an action under this subchapter may be initiated by:
(1) the panel on its own initiative; or
(2) a motion filed with the panel by a party in any
action in which transfer for coordinated or consolidated pretrial
proceedings under this subchapter may be appropriate.
(b) A copy of the motion shall be filed in the district court
in which the moving party's action is pending.
Sec. 15.156. NOTICE. (a) The panel shall give notice to
the parties in all actions in which transfers for coordinated or
consolidated pretrial proceedings are contemplated.
(b) The notice must specify the time and place of any
hearing to determine whether the transfer will be made.
Sec. 15.157. DETERMINATION OF TRANSFER. (a) The panel
shall order a transfer if it determines that the transfer:
(1) is for the convenience of parties and witnesses;
and
(2) will promote the just and efficient conduct of the
actions.
(b) The panel shall base its determination on a record of
the hearing at which material evidence may be offered by any party
to an action pending in any district that would be affected by the
proceedings under this subchapter.
(c) The panel shall support a transfer order by findings of
fact and conclusions of law based on the record.
Sec. 15.158. REMAND. The panel shall remand each
transferred action at or before the conclusion of pretrial
proceedings to the district from which it was transferred unless it
has been terminated, except that the panel may separate any claim,
cross claim, counterclaim, or third-party claim and remand the
separated claim before the remainder of the action is remanded.
Sec. 15.159. ASSIGNMENT. (a) On request of the panel, a
district judge may be assigned temporarily for service in the
transferee district by the chief justice of the supreme court or by
the presiding judge of the administrative judicial region in
accordance with Subchapter C, Chapter 74, Government Code.
(b) The panel may, with the consent of the transferee
district court, assign a judge or judges of the transferee
district.
Sec. 15.160. CONDUCTING THE PROCEEDINGS. The coordinated
or consolidated pretrial proceedings shall be conducted by a judge
or judges to whom the actions are assigned by the panel. The judge
or judges to whom the action is assigned, the members of the panel,
and other district judges designated when needed by the panel may
exercise the powers of a district judge in any district for the
purpose of conducting pretrial deposition in coordinated or
consolidated pretrial proceedings.
Sec. 15.161. FILING OF ORDERS. (a) An order of the panel to
set a hearing and any other order of the panel issued before the
order either directing or denying transfer shall be filed in the
office of the clerk of the district court in which a transfer
hearing is to be or has been held.
(b) A transfer order and any other order of the panel made
after the transfer order shall be filed in the office of the clerk
of the district court of the transferee district and is effective
when filed.
(c) The clerk of the transferee district shall immediately
transmit a certified copy of a transfer order by the panel to the
clerk of the district court from which the action is being
transferred.
(d) An order denying transfer shall be filed in each
district in which there is a case pending in which the motion for
transfer has been made.
Sec. 15.162. REVIEW. (a) A proceeding for review of any
order of the panel may only be by extraordinary writ.
(b) A petition for an extraordinary writ to review an order
of the panel to set a transfer hearing and any other order of the
panel issued before the transfer order either directing or denying
transfer may be filed only in the court of appeals having
jurisdiction over the district in which a hearing is to be or has
been held.
(c) A petition for an extraordinary writ to receive an order
to transfer or any order issued after transfer may be filed only in
the court of appeals having jurisdiction over the transferred
district.
(d) An order of the panel denying a motion to transfer for
consolidated or coordinated proceedings may not be appealed or
reviewed.
SECTION 3.03. Chapter 74, Government Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H. JUDICIAL PANEL ON MULTIDISTRICT LITIGATION
Sec. 74.161. JUDICIAL PANEL. (a) The judicial panel on
multidistrict litigation consists of seven justices of the courts
of appeals designated from time to time by the chief justice of the
supreme court. Two panel members may not be from the same court of
appeals district.
(b) The concurrence of four members shall be necessary to
any action by the panel.
Sec. 74.162. OPERATION; RULES. (a) The judicial panel on
multidistrict litigation shall operate subject to rules of
administration for multidistrict litigation practice and procedure
adopted by the supreme court under Section 74.024.
(b) The panel may prescribe additional rules for the conduct
of its business not inconsistent with Subchapter F, Chapter 15,
Civil Practice and Remedies Code, and the rules of judicial
administration.
SECTION 3.04. Section 15.003, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 15.003. MULTIPLE PLAINTIFFS AND INTERVENING
PLAINTIFFS. (a) In a suit in which there is [where] more than one
plaintiff, whether the plaintiffs are included by joinder, by
intervention, because the lawsuit was begun by more than one
plaintiff, or otherwise, [is joined] each plaintiff must,
independently of every [any] other plaintiff, establish proper
venue. If a plaintiff cannot independently [Any person who is
unable to] establish proper venue, that plaintiff's part of the
suit, including all of that plaintiff's claims and causes of
action, must be transferred to a county of proper venue or
dismissed, as is appropriate, [may not join or maintain venue for
the suit as a plaintiff] unless that plaintiff [the person],
independently of every [any] other plaintiff, establishes that:
(1) joinder or intervention in the suit by that
plaintiff is proper under the Texas Rules of Civil Procedure;
(2) maintaining venue in the county of suit does not
unfairly prejudice another party to the suit;
(3) there is an essential need to have that plaintiff's
[the person's] claim tried in the county in which the suit is
pending; and
(4) the county in which the suit is pending is a fair
and convenient venue for that plaintiff [the person seeking to join
in or maintain venue for the suit] and all [the] persons against
whom the suit is brought.
(b) An interlocutory appeal may be taken of a trial court's
determination under Subsection (a) that:
(1) a plaintiff did or did not independently establish
proper venue; or
(2) a plaintiff that did not independently establish
proper venue did or did not establish the items prescribed by
Subsections (a)(1)-(4) [A person may not intervene or join in a
pending suit as a plaintiff unless the person, independently of any
other plaintiff:
[(1) establishes proper venue for the county in which
the suit is pending; or
[(2) satisfies the requirements of Subdivisions (1)
through (4) of Subsection (a)].
(c) An [Any person seeking intervention or joinder, who is
unable to independently establish proper venue, or a party opposing
intervention or joinder of such a person may contest the decision of
the trial court allowing or denying intervention or joinder by
taking an] interlocutory appeal permitted by Subsection (b) must be
taken to the court of appeals district in which the trial court is
located under the procedures established for interlocutory
appeals. The appeal may be taken by a party that is affected by the
trial court's determination under Subsection (a). The appeal must
be perfected not later than the 20th day after the date the trial
court signs the order transferring or refusing to transfer venue or
dismissing or refusing to dismiss the case as to the plaintiff that
could not establish proper venue or finding that the items
prescribed by Subsections (a)(1)-(4) have or have not been
established [denying or allowing the intervention or joinder]. The
court of appeals shall:
(1) determine whether the trial court's determination
[joinder or intervention] is proper based on an independent
determination from the record and not under either an abuse of
discretion or substantial evidence standard; and
(2) render its decision not later than the 120th day
after the date the appeal is perfected [by the complaining party].
SECTION 3.05. Section 71.051, Civil Practice and Remedies
Code, is amended by amending Subsection (a) and adding Subsection
(j) to read as follows:
(a) If [With respect to a plaintiff who is not a legal
resident of the United States, if] a court of this state, on written
motion of a party, finds that in the interest of justice a claim or
action to which this section applies would be more properly heard in
a forum outside this state, the court shall [may] decline to
exercise jurisdiction under the doctrine of forum non conveniens
and shall [may] stay or dismiss the claim or action [in whole or in
part] on any conditions that may be just.
(j) This section does not affect the application of the
common-law doctrine of forum non conveniens to actions other than
actions for personal injury or wrongful death.
SECTION 3.06. The following sections of the Civil Practice
and Remedies Code are repealed:
(1) 71.051(b), (c), (d), (e), (f), (g), and (h); and
(2) 71.052.
SECTION 3.07. (a) Sections 3.01-3.03 of this article apply
only to a suit commenced or pending on or after the effective date
of this Act.
(b) Section 3.04 of this article applies only to a suit
commenced on or after the effective date of this Act. A suit
commenced before the effective date of this Act is governed by the
law in effect immediately before the change in law made by Section
3.04 of this article, and that law is continued in effect for that
purpose.
(c) Sections 3.05 and 3.06 of this article apply only to a
suit commenced on or after the effective date of this Act or pending
on the effective date of this Act and in which the trial, or any new
trial or retrial following motion, appeal, or otherwise, begins on
or after that date. In a suit commenced before the effective date
of this Act, a trial, new trial, or retrial that is in progress on
that date is governed with respect to the subject matter of Sections
3.05 and 3.06 of this article by the applicable law in effect
immediately before that date, and that law is continued in effect
for that purpose.
ARTICLE 4. PROPORTIONATE RESPONSIBILITY AND
DESIGNATION OF RESPONSIBLE PARTIES
SECTION 4.01. Section 33.002(a), Civil Practice and
Remedies Code, is amended to read as follows:
(a) This [Except as provided by Subsections (b) and (c),
this] chapter applies to:
(1) any cause of action based on tort in which a
defendant, settling person, or responsible third party is found
responsible for a percentage of the harm for which relief is sought;
or
(2) any action brought under the Deceptive Trade
Practices-Consumer Protection Act (Subchapter E, Chapter 17,
Business & Commerce Code) in which a defendant, settling person, or
responsible third party is found responsible for a percentage of
the harm for which relief is sought.
SECTION 4.02. Section 33.003, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 33.003. DETERMINATION OF PERCENTAGE OF
RESPONSIBILITY. (a) The trier of fact, as to each cause of action
asserted, shall determine the percentage of responsibility, stated
in whole numbers, for the following persons with respect to each
person's causing or contributing to cause in any way the harm for
which recovery of damages is sought, whether by negligent act or
omission, by any defective or unreasonably dangerous product, by
other conduct or activity that violates an applicable legal
standard, or by any combination of these:
(1) each claimant;
(2) each defendant;
(3) each settling person; and
(4) each responsible third party who has been
designated [joined] under Section 33.004.
(b) This section does not require a submission to the jury
of a question regarding conduct by any person without sufficient
evidence to support the submission.
SECTION 4.03. The heading to Section 33.004, Civil Practice
and Remedies Code, is amended to read as follows:
Sec. 33.004. DESIGNATION [JOINDER] OF RESPONSIBLE THIRD
PARTY [PARTIES].
SECTION 4.04. Section 33.004, Civil Practice and Remedies
Code, is amended by amending Subsections (a) and (b) and adding
Subsections (f), (g), (h), (i), and (j) to read as follows:
(a) A [Except as provided in Subsections (d) and (e), prior
to the expiration of limitations on the claimant's claim for
damages against the defendant and on timely motion made for that
purpose, a] defendant may seek to designate a person as [join] a
responsible third party by filing a motion for leave to designate
that person as a responsible third party [who has not been sued by
the claimant]. The motion must be filed on or before the 60th day
before the trial date unless the court finds good cause to allow the
motion to be filed at a later date.
(b) Nothing in this section affects [shall affect] the
third-party practice as previously recognized in the rules and
statutes of this state with regard to the assertion by a defendant
of rights to contribution or indemnity. Nothing in this section
affects [shall affect] the filing of cross-claims or counterclaims.
(f) A court shall grant leave to designate the named person
as a responsible third party unless another party files an
objection to the motion for leave on or before the 15th day after
the date the motion is served.
(g) If an objection to the motion for leave is timely filed,
the court shall grant leave to designate a person as a responsible
third party unless the objecting party establishes:
(1) the defendant did not plead sufficient facts
concerning the alleged liability of the responsible person to
satisfy the pleading requirements of the Texas Rules of Civil
Procedure; and
(2) after having been granted leave to replead, the
defendant failed to plead sufficient facts concerning the alleged
liability of the responsible person to satisfy the pleading
requirements of the Texas Rules of Civil Procedure.
(h) By granting a motion for leave to designate a person as a
responsible third party, the person named in the motion is
designated as a responsible third party for purposes of this
chapter without further action by the court or any party.
(i) For a person whose identity is not known, the court
shall grant a motion for leave to designate that person as a
responsible third party if the court determines that the motion
otherwise should be granted under Subsection (f) or (g) and the
defendant has stated in the motion all known identifying
characteristics of the person. In that circumstance, the person
will be denominated as "Jane Doe" or "John Doe" until the person's
identity is known.
(j) The filing or granting of a motion for leave to
designate a person as a responsible third party or a finding of
fault against the person:
(1) does not by itself impose liability on the person;
and
(2) may not be used in any other proceeding, on the
basis of res judicata, collateral estoppel, or any other legal
theory, to impose liability on the person.
SECTION 4.05. Sections 33.011(1), (2), (5), and (6), Civil
Practice and Remedies Code, are amended to read as follows:
(1) "Claimant" means a person [party] seeking recovery
of damages [pursuant to the provisions of Section 33.001],
including a plaintiff, counterclaimant, cross-claimant, or
third-party plaintiff [seeking recovery of damages]. In an action
in which a party seeks recovery of damages for injury to another
person, damage to the property of another person, death of another
person, or other harm to another person, "claimant" includes:
(A) the person who was injured, harmed, or died
or whose property was damaged; and
(B) any person who is [both that other person and
the party] seeking, has sought, or could seek recovery of damages
for the injury, harm, or death of that person or for the damage to
the property of that person [pursuant to the provisions of Section
33.001].
(2) "Defendant" includes any person [party] from whom,
at the time of the submission of the case to the trier of fact, a
claimant seeks recovery of damages [pursuant to the provisions of
Section 33.001 at the time of the submission of the case to the
trier of fact].
(5) "Settling person" means a person who [at the time
of submission] has, at any time, paid or promised to pay money or
anything of monetary value to a claimant [at any time] in
consideration of potential liability [pursuant to the provisions of
Section 33.001] with respect to the personal injury, property
damage, death, or other harm for which recovery of damages is
sought.
(6) [(A)] "Responsible third party" means any person
who is alleged to have caused or contributed to cause in any way the
harm for which recovery of damages is sought, whether by negligent
act or omission, by any defective or unreasonably dangerous
product, by other conduct or activity that violates an applicable
legal standard, or by any combination of these. [to whom all of the
following apply:
[(i) the court in which the action was filed
could exercise jurisdiction over the person;
[(ii) the person could have been, but was
not, sued by the claimant; and
[(iii) the person is or may be liable to the
plaintiff for all or a part of the damages claimed against the named
defendant or defendants.
[(B)] The term "responsible third party" does not
include a seller eligible for indemnity under Section 82.002
unless there is alleged against the seller a claim for relief based
on the seller's negligence, intentional misconduct, or other act or
omission, such as negligently modifying or altering a product, for
which the seller is independently liable to the claimant [:
[(i) the claimant's employer, if the
employer maintained workers' compensation insurance coverage, as
defined by Section 401.011(44), Labor Code, at the time of the act,
event, or occurrence made the basis of the claimant's suit; or
[(ii) a person or entity that is a debtor in
bankruptcy proceedings or a person or entity against whom this
claimant's claim has been discharged in bankruptcy, except to the
extent that liability insurance or other source of third party
funding may be available to pay claims asserted against the
debtor].
SECTION 4.06. Section 33.012(b), Civil Practice and
Remedies Code, is amended to read as follows:
(b) If the claimant has settled with one or more persons,
the court shall further reduce the amount of damages to be recovered
by the claimant with respect to a cause of action by a percentage
equal to each settling person's percentage of responsibility
[credit equal to one of the following, as elected in accordance with
Section 33.014:
[(1) the sum of the dollar amounts of all settlements;
or
[(2) a dollar amount equal to the sum of the following
percentages of damages found by the trier of fact:
[(A) 5 percent of those damages up to $200,000;
[(B) 10 percent of those damages from $200,001 to
$400,000;
[(C) 15 percent of those damages from $400,001 to
$500,000; and
[(D) 20 percent of those damages greater than
$500,000].
SECTION 4.07. Section 33.013, Civil Practice and Remedies
Code, is amended by amending Subsections (a) and (b) and adding
Subsections (e) and (f) to read as follows:
(a) Except as provided in Subsection [Subsections] (b) [and
(c)], a liable defendant is liable to a claimant only for the
percentage of the damages awarded in the judgment [found by the
trier of fact] equal to that defendant's percentage of
responsibility with respect to the personal injury, property
damage, death, or other harm for which the damages are allowed.
(b) Notwithstanding Subsection (a), each liable defendant
is, in addition to his liability under Subsection (a), jointly and
severally liable for the damages recoverable by the claimant under
Section 33.012 with respect to a cause of action if:
(1) the percentage of responsibility attributed to the
defendant with respect to a cause of action is greater than 50
percent; or
(2) the defendant, with the specific intent to do harm
to others, acted in concert with another person to engage in the
conduct described in the following sections of the Penal Code and in
so doing proximately caused the damages legally recoverable by the
claimant:
(A) Section 19.02 (murder);
(B) Section 19.03 (capital murder);
(C) Section 20.04 (aggravated kidnapping);
(D) Section 22.02 (aggravated assault);
(E) Section 22.011 (sexual assault);
(F) Section 22.021 (aggravated sexual assault);
(G) Section 22.04 (injury to child, elderly
individual, or disabled individual);
(H) Section 32.21 (forgery);
(I) Section 32.43 (commercial bribery);
(J) Section 32.45 (misapplication of fiduciary
property or property of financial institution);
(K) Section 32.46 (securing execution of
document by deception);
(L) Section 32.47 (fraudulent destruction,
removal, or concealment of writing); or
(M) conduct described in Chapter 31 the
punishment level for which is a felony of the third degree or
higher.
(e) Notwithstanding anything to the contrary stated in the
sections of the Penal Code listed in Subsection (b)(2), that
subsection applies only if the claimant proves the defendant acted
or failed to act with specific intent to do harm. A person acts with
specific intent to do harm with respect to the nature of the
person's conduct and the result of the person's conduct when it is
the person's conscious effort or desire to engage in the conduct for
the purpose of doing substantial harm to others.
(f) The jury may not be made aware through voir dire,
introduction into evidence, instruction, or any other means that
the conduct to which Subsection (b)(2) refers is defined by the
Penal Code.
SECTION 4.08. Section 33.015(a), Civil Practice and
Remedies Code, is amended to read as follows:
(a) If a defendant who is jointly and severally liable under
Section 33.013 pays a percentage of the damages for which the
defendant is jointly and severally liable greater than his
percentage of responsibility, that defendant has a right of
contribution for the overpayment against each other liable
defendant to the extent that the other liable defendant has not paid
the percentage of the damages awarded in the judgment [found by the
trier of fact] equal to that other defendant's percentage of
responsibility.
SECTION 4.09. Section 33.017, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 33.017. PRESERVATION OF EXISTING RIGHTS OF INDEMNITY.
Nothing in this chapter shall be construed to affect any rights of
indemnity granted by [to a seller eligible for indemnity by Chapter
82, the Texas Motor Vehicle Commission Code (Article 4413(36),
Vernon's Texas Civil Statutes), or] any [other] statute, [nor shall
it affect rights of indemnity granted] by contract, or by [at]
common law. To the extent of any conflict between this chapter and
any right to indemnification granted by [Section 82.002, the Texas
Motor Vehicle Commission Code (Article 4413(36), Vernon's Texas
Civil Statutes), or any other] statute, contract, or common law,
those rights of indemnification shall prevail over the provisions
of this chapter.
SECTION 4.10. Section 417.001(b), Labor Code, is amended to
read as follows:
(b) If a benefit is claimed by an injured employee or a legal
beneficiary of the employee, the insurance carrier is subrogated to
the rights of the injured employee and may enforce the liability of
the third party in the name of the injured employee or the legal
beneficiary. The insurance carrier's subrogation interest is
limited to the amount of the total benefits paid or assumed by the
carrier to the employee or the legal beneficiary, less the amount by
which the court reduces the judgment based on the percentage of
responsibility determined by the trier of fact under Section
33.003, Civil Practice and Remedies Code, attributable to the
employer, only if the employer maintained workers' compensation
insurance coverage, as defined by Section 401.011(44), at the time
of the act, event, or occurrence that is the basis of the employee's
injury. If the recovery is for an amount greater than the amount of
the insurance carrier's subrogation interest [that paid or assumed
by the insurance carrier to the employee or the legal beneficiary],
the insurance carrier shall:
(1) reimburse itself and pay the costs from the amount
recovered; and
(2) pay the remainder of the amount recovered to the
injured employee or the legal beneficiary.
SECTION 4.11. The following sections of the Civil Practice
and Remedies Code are repealed:
(1) 33.002(b), (d), (e), (f), (g), and (h);
(2) 33.004(c), (d), and (e);
(3) 33.011(7);
(4) 33.012(c);
(5) 33.013(c); and
(6) 33.014.
SECTION 4.12. (a) Except as provided by Subsection (b) of
this section, this article applies only to a suit commenced or
pending on or after the effective date of this Act.
(b) This article does not apply to a suit in which the trial
on the merits commenced on or before the effective date of this Act
and that suit is governed by the law in effect immediately before
the change in law made by this article, and that law is continued in
effect for that purpose.
ARTICLE 5. PRODUCTS LIABILITY
SECTION 5.01. Section 16.012, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 16.012. PRODUCTS LIABILITY [: MANUFACTURING
EQUIPMENT]. (a) In this section, "claimant," [:
[(1) "Claimant,"] "products liability action,"
"seller," and "manufacturer" have the meanings assigned by Section
82.001.
[(2) "Manufacturing equipment" means equipment and
machinery used in the manufacturing, processing, or fabrication of
tangible personal property but does not include agricultural
equipment or machinery.]
(b) Except as provided by Subsection (c), a claimant must
commence a products liability action against a manufacturer or
seller of a product [manufacturing equipment] before the end of 15
years after the date of the sale of the product [equipment] by the
defendant.
(c) If a manufacturer or seller expressly represents that
the product [manufacturing equipment] has a useful safe life of
longer than 15 years, a claimant must commence a products liability
action against that manufacturer or seller of the product
[equipment] before the end of the number of years represented after
the date of the sale of the product [equipment] by that seller.
(d) This section does not reduce a limitations period that
applies to a products liability action involving the product
[manufacturing equipment] that accrues before the end of the
limitations period under this section.
(e) This section does not extend the limitations period
within which a products liability action involving the product
[manufacturing equipment] may be commenced under any other law.
(f) This section applies only to the sale and not to the
lease of a product [manufacturing equipment].
SECTION 5.02. Chapter 82, Civil Practice and Remedies Code,
is amended by adding Sections 82.003, 82.007, and 82.008 to read as
follows:
Sec. 82.003. LIABILITY OF NONMANUFACTURING SELLERS. A
seller that did not manufacture a product is not liable for harm
caused to the claimant by that product unless the claimant proves:
(1) that the seller altered or modified the product
and the claimant's harm resulted from that alteration or
modification;
(2) that:
(A) the seller exercised substantial control
over the content of a warning or instruction that accompanied the
product;
(B) the warning or instruction was inadequate;
and
(C) the claimant's harm resulted from the
inadequacy of the warning or instruction;
(3) that:
(A) the seller made an express factual
representation about an aspect of the product;
(B) the representation was incorrect;
(C) the claimant relied on the representation in
obtaining or using the product; and
(D) if the aspect of the product had been as
represented, the claimant would not have been harmed by the product
or would not have suffered the same degree of harm; or
(4) that:
(A) the seller actually knew of a defect to the
product at the time the seller supplied the product; and
(B) the claimant's harm resulted from the defect.
Sec. 82.007. EVIDENCE OF SUBSEQUENT IMPROVEMENTS AND
MEASURES. In a products liability action, a court may not admit,
except for purposes of impeachment, evidence of a subsequent
improvement made or measure taken with respect to the defect
alleged to have caused harm, or a similar product, that, if made or
taken before the product was supplied, would have made the
claimant's harm less likely.
Sec. 82.008. COMPLIANCE WITH GOVERNMENT STANDARDS. (a)
Notwithstanding any other law, a manufacturer or seller of a
product that allegedly caused the claimant's harm is not liable if
the product was manufactured or sold in compliance with a federal or
state law, rule, or regulation governing the manufacture or sale of
the product, including specifications for manufacturing, using,
packaging, or labeling of the product.
(b) Subsection (a) does not apply to a manufacturer or
seller if the claimant proves by clear and convincing evidence
that:
(1) the manufacturer or seller intentionally withheld
from or misrepresented to the applicable regulatory agency
information concerning the product;
(2) the manufacturer or seller knew or should have
known that the withheld or misrepresented information could result
in a potentially harmful product defect; and
(3) the claimant's injuries resulted from the
anticipated defect.
SECTION 5.03. Section 82.005(d), Civil Practice and
Remedies Code, is repealed.
SECTION 5.04. (a) Section 5.01 of this article applies only
to a suit commenced on or after the effective date of this Act. A
suit commenced before the effective date of this Act is governed by
the law in effect immediately before the change in law made by
Section 5.01 of this article, and that law is continued in effect
for that purpose.
(b) Sections 5.02 and 5.03 of this article apply only to a
suit commenced on or after the effective date of this Act or pending
on the effective date of this Act and in which the trial, or any new
trial or retrial following motion, appeal, or otherwise, begins on
or after that date. In a suit commenced before the effective date
of this Act, a trial, new trial, or retrial that is in progress on
that date is governed with respect to the subject matter of Section
5.02 and 5.03 of this article by the applicable law in effect
immediately before that date, and that law is continued in effect
for that purpose.
ARTICLE 6. INTEREST
SECTION 6.01. Section 304.003(c), Finance Code, is amended
to read as follows:
(c) The postjudgment interest rate is:
(1) the weekly average 1-year constant maturity
treasury yield [auction rate quoted on a discount basis for 52-week
treasury bills issued by the United States government] as most
recently published by the Board of Governors of the Federal Reserve
System [Federal Reserve Board] before the date of computation;
(2) five [10] percent a year if the weekly average
1-year constant maturity treasury yield [auction rate] described by
Subdivision (1) is less than five [10] percent; or
(3) 15 [20] percent a year if the weekly average 1-year
constant maturity treasury yield [auction rate] described by
Subdivision (1) is more than 15 [20] percent.
SECTION 6.02. Subchapter B, Chapter 304, Finance Code, is
amended by adding Section 304.1045 to read as follows:
Sec. 304.1045. FUTURE DAMAGES. Prejudgment interest may
not be assessed or recovered on an award of future damages.
SECTION 6.03. This article applies only to a suit in which a
judgment is signed on or after the effective date of this Act,
without regard to whether the suit commenced before, on, or after
that date.
ARTICLE 7. APPEAL BONDS
SECTION 7.01. Section 35.006, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 35.006. STAY. (a) If the judgment debtor shows the
court that an appeal from the foreign judgment is pending or will be
taken, that the time for taking an appeal is not expired, or that a
stay of execution has been granted, requested, or will be requested
and proves that the judgment debtor has furnished the security for
the satisfaction of the judgment required by the state in which it
was rendered, the court shall stay enforcement of the foreign
judgment until the appeal is concluded, the time for appeal
expires, or the stay of execution expires or is vacated.
(b) If the judgment debtor shows the court a ground on which
enforcement of a judgment of the court of this state would be
stayed, including that an appeal is pending or will be taken, that
the time for taking an appeal is not expired, or that a stay of
execution has been granted, has been requested, or will be
requested, the court shall stay enforcement of the foreign judgment
for an appropriate period and require the same security for
satisfaction of the judgment that is required in this state in
accordance with Section 52.002.
SECTION 7.02. Chapter 52, Civil Practice and Remedies Code,
is amended by adding Section 52.006 to read as follows:
Sec. 52.006. AMOUNT OF SECURITY FOR MONEY JUDGMENT. (a)
Subject to Subsection (b), when a judgment is for money, the amount
of security must equal the sum of:
(1) the amount of compensatory damages awarded in the
judgment;
(2) interest for the estimated duration of the appeal;
and
(3) costs.
(b) Notwithstanding any other law or rule of court, when a
judgment is for money, the amount of security must not exceed the
lesser of:
(1) 50 percent of the judgment debtor's net worth; or
(2) $25 million.
(c) On a showing by the judgment debtor that the judgment
debtor will suffer substantial economic harm if required to post
security in an amount required under Subsection (a) or (b), the
trial court shall lower the amount of the security to an amount that
will not cause the judgment debtor substantial economic harm.
(d) An appellate court may review the amount of security as
allowed under Rule 24, Texas Rules of Appellate Procedure, except
that when a judgment is for money, the appellate court may not
modify the amount of security to exceed the amount allowed under
this section.
SECTION 7.03. The following sections of the Civil Practice
and Remedies Code are repealed:
(1) 52.002;
(2) 52.003; and
(3) 52.004.
SECTION 7.04. This article applies only to a suit in which a
judgment is signed on or after the effective date of this Act,
without regard to whether the suit commenced before, on, or after
that date.
ARTICLE 8. EVIDENCE RELATING TO SEAT BELTS
SECTION 8.01. Section 545.413(g), Transportation Code, is
repealed.
SECTION 8.02. (a) Except as provided by Subsection (b) of
this section, this article applies only to a suit commenced or
pending on or after the effective date of this Act.
(b) This article does not apply to a suit in which the trial
on the merits commenced on or before the effective date of this Act.
ARTICLE 9. LIABILITY FOR CIVIL SUITS OF A FOREIGN CORPORATION
SECTION 9.01. Section A, Article 8.02, Texas Business
Corporation Act, is amended to read as follows:
A. A foreign corporation which shall have received a
certificate of authority under this Act shall, until its
certificate of authority shall have been revoked in accordance with
the provisions of this Act or until a certificate of withdrawal
shall have been issued by the Secretary of State as provided in this
Act, enjoy the same, but no greater, rights and privileges as a
domestic corporation organized for the purposes set forth in the
application pursuant to which such certificate of authority is
issued; and, as to all matters affecting the transaction of
intrastate business in this State, it and its officers and
directors shall be subject to the same duties, restrictions,
penalties, and liabilities now or hereafter imposed upon a domestic
corporation of like character and its officers and directors;
provided, however, that only the laws of the jurisdiction of
incorporation of a foreign corporation shall govern (1) the
internal affairs of the foreign corporation, including but not
limited to the rights, powers, and duties of its board of directors
and shareholders and matters relating to its shares, [and] (2) the
liability, if any, of shareholders of the foreign corporation for
the debts, liabilities, and obligations of the foreign corporation
for which they are not otherwise liable by statute or agreement, and
(3) the successor liability of a foreign corporation in relation to
civil suits of the foreign corporation.
SECTION 9.02. This article applies to the liability of a
foreign corporation in relation to a civil suit on or after the
effective date of this Act without regard to whether the civil suit
commenced before, on, or after that date.
ARTICLE 10. EFFECTIVE DATE
SECTION 10.01. (a) This Act takes effect September 1, 2003.
(b) The articles of this Act apply as provided by each
article.