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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 civil cases. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 42.002(c), Civil Practice and Remedies |
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Code, is amended to read as follows: |
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(c) This chapter does not apply until a claimant or |
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defendant files a declaration that the settlement procedure allowed |
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by this chapter is available in the action. The [If there is more
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than one defendant, the] settlement procedure allowed by this |
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chapter is available only in relation to the claimant or defendant |
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that filed the declaration and to the parties that make or receive |
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offers of settlement in relation to that claimant or defendant. |
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SECTION 2. Section 42.004, Civil Practice and Remedies |
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Code, is amended by amending Subsections (a) and (b) and adding |
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Subsection (h) to read as follows: |
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(a) If a settlement offer is made and rejected and the |
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judgment to be awarded by the trier of fact [rendered] will be |
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significantly less favorable to the rejecting party than was the |
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settlement offer, the offering party shall recover litigation costs |
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from the rejecting party. |
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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 amount of |
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the judgment awarded by the trier of fact [award] will be less than |
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80 percent of the rejected offer; or |
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(2) the rejecting party is a defendant and the amount |
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of the judgment awarded by the trier of fact [award] will be more |
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than 120 percent of the rejected offer. |
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(h) For a claim in which there is a statutory cap on the |
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amount of damages that may be awarded against a defendant: |
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(1) a court may not consider that litigation costs |
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awarded under this chapter to a claimant are damages for purposes of |
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the statutory cap; and |
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(2) the statutory cap does not limit the recovery of |
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litigation costs awarded under this chapter, without regard to |
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whether the inclusion of those costs in the overall award to the |
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claimant results in payment to the claimant of an amount in excess |
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of the statutory cap. |
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SECTION 3. The change in law made by this Act applies to any |
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settlement offer made in a civil cause of action on or after the |
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effective date of this Act, without regard to whether the cause of |
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action accrued before, on, or after that date. |
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SECTION 4. This Act takes effect September 1, 2011. |