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A BILL TO BE ENTITLED
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AN ACT
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relating to settlement of certain civil actions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 42.001(5) and (6), Civil Practice and |
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Remedies Code, are amended to read as follows: |
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(5) "Litigation costs" means money actually spent and |
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obligations actually incurred that are directly related to the |
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action [case] in which a settlement offer is made. The term |
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includes: |
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(A) court costs; |
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(B) reasonable fees for not more than two |
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testifying expert witnesses; [and] |
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(C) reasonable attorney's fees; and |
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(D) reasonable deposition costs. |
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(6) "Settlement offer" means an offer to settle or |
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compromise a claim made in compliance with Section 42.003 [this
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chapter]. |
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SECTION 2. Sections 42.002(b), (d), and (e), Civil Practice |
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and Remedies Code, are amended to read as follows: |
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(b) This chapter does not apply to: |
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(1) a class action; |
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(2) a shareholder's derivative action; |
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(3) an action by or against a governmental unit; |
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(4) an action brought under the Family Code; |
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(5) an action to collect workers' compensation |
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benefits under Subtitle A, Title 5, Labor Code; or |
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(6) an action filed in a justice of the peace court or |
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a small claims court. |
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(d) This chapter does not limit or affect the ability of any |
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person to: |
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(1) make an offer to settle or compromise a claim that |
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does not comply with Section 42.003 [this chapter]; or |
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(2) offer to settle or compromise a claim in an action |
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to which this chapter does not apply. |
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(e) An offer to settle or compromise that does not comply |
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with Section 42.003 [is not made under this chapter] or an offer to |
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settle or compromise made in an action to which this chapter does |
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not apply does not entitle any [the offering] party to recover |
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litigation costs under this chapter. |
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SECTION 3. Section 42.003, Civil Practice and Remedies |
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Code, is amended to read as follows: |
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Sec. 42.003. MAKING SETTLEMENT OFFER. (a) After a |
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defendant files a declaration under Section 42.002(c), the |
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defendant filing the declaration and any party with a claim against |
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that defendant may make a settlement offer to settle all claims in |
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the action between the parties. |
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(b) A settlement offer must: |
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(1) be in writing; |
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(2) state that it is made under this chapter; |
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(3) state the terms by which the claims may be settled; |
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(4) state a deadline by which the settlement offer |
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must be accepted; and |
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(5) be served on all parties to whom the settlement |
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offer is made. |
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(c) The parties are not required to file a settlement offer |
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with the court. |
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SECTION 4. Section 42.004(c), Civil Practice and Remedies |
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Code, is amended to read as follows: |
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(c) The litigation costs that may be recovered by the |
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offering party under this section are limited to those litigation |
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costs incurred by the offering party after the date the rejecting |
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party rejected the earliest settlement offer that entitles the |
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party to an award of litigation costs under this section. |
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SECTION 5. Sections 42.004(d) and (g), Civil Practice and |
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Remedies Code, are repealed. |
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SECTION 6. The changes in law made by this Act to Chapter |
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42, Civil Practice and Remedies Code, apply only to a civil action |
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commenced on or after the effective date of this Act. A civil |
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action commenced before the effective date of this Act is governed |
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by the law in effect immediately before the effective date of this |
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Act, and that law is continued in effect for that purpose. |
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SECTION 7. This Act takes effect September 1, 2011. |