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A BILL TO BE ENTITLED
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AN ACT
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relating to offers of settlement in certain civil actions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (c), Section 42.002, Civil Practice |
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and Remedies Code, is amended to read as follows: |
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(c) This chapter does not apply until a party to an action |
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[defendant] files a declaration that the settlement procedure |
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allowed by the chapter is available in the action. The [If there is
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more than one defendant, the] settlement procedure allowed by this |
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chapter is available only in relation to the party [defendant] that |
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filed the declaration and to the parties that make or receive offers |
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of settlement in relation to that party [defendant]. |
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SECTION 2. Section 42.004, Civil Practice and Remedies |
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Code, is amended by amending Subsection (b) and by adding |
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Subsection (h) to read as follows: |
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(b) A judgment will be significantly less favorable to the |
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rejecting party than is the settlement offer if: |
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(1) the rejecting party is a claimant and the award |
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will be less than 80 percent of the rejected offer; or |
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(2) the rejecting party is a defendant and the verdict |
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[award] will be more than 120 percent of the rejected offer. |
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(h) If litigation costs and expenses are to be awarded |
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against a defendant in a case in which one or more statutory |
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limitations on damages apply, the limitations on damages do not |
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limit the recovery of costs and expenses under this chapter. Costs |
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and expenses recoverable by a claimant under this chapter are |
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independent of and may be awarded in addition to any damages, even |
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if the award results in payment to the claimant of an amount in |
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excess of applicable statutory limitations on damages. |
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SECTION 3. Subsection (b), Section 42.005, Civil Practice |
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and Remedies Code, is amended to read as follows: |
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(b) The rules promulgated by the supreme court must provide: |
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(1) the date by which a party [defendant] or parties |
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[defendants] must file the declaration required by Section |
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42.002(c); |
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(2) the date before which a party may not make a |
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settlement offer; |
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(3) the date after which a party may not make a |
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settlement offer; and |
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(4) procedures for: |
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(A) making an initial settlement offer; |
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(B) making successive settlement offers; |
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(C) withdrawing a settlement offer; |
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(D) accepting a settlement offer; |
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(E) rejecting a settlement offer; and |
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(F) modifying the deadline for making, |
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withdrawing, accepting, or rejecting a settlement offer. |
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SECTION 4. The change in law made by this Act applies only |
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to an action filed on or after the effective date of this Act. An |
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action filed before the effective date of this Act is governed by |
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the law in effect immediately before that date, and that law is |
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continued in effect for that purpose. |