89R7892 AJA-F

By: Canales H.B. No. 3847

A BILL TO BE ENTITLED

AN ACT

relating to certain construction defect litigation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle B, Title 2, Civil Practice and Remedies Code, is amended by adding Chapter 28 to read as follows:

CHAPTER 28. CONSTRUCTION DEFECT LITIGATION

Sec. 28.001. DEFINITIONS. In this chapter:

(1) "Claimant" means a party pursuing a commercial construction defect claim. The term includes a party designated as a plaintiff, counterclaimant, cross-claimant, third-party plaintiff, or intervenor.

(2) "Commercial construction defect" means a defect, nonconformance, or deficiency in the design, engineering, material, workmanship, or construction of commercial property that is the result of:

(A) the use of defective materials, products, or components in the construction;

(B) a violation of a building code applicable by law to the construction;

(C) a failure of the design of an improvement to real property to meet the professional standards of care applicable at the time of governmental approval of the design or as otherwise applicable if no governmental approval of the design was required or obtained; or

(D) a failure to perform the construction in accordance with the accepted trade standards for good and workmanlike construction.

(3) "Commercial construction defect claim" means a request in a civil action to recover monetary damages arising from an alleged commercial construction defect.

(4) "Commercial property" means an improvement to publicly or privately owned real property that is used for human habitation or from which a governmental activity or commercial enterprise is conducted. The term does not include:

(A) a residence as defined by Section 53.001, Property Code;

(B) a highway, roadway, bridge, overpass, or other similar kind of physical infrastructure used by motor vehicles; or

(C) a civil works project, as defined by Section 2269.351, Government Code, regardless of whether the civil works project was procured under Chapter 2269, Government Code.

(5) "Petition" means a court pleading, whether original or amended, in which a claimant asserts a commercial construction defect claim. The term includes a petition, counterpetition, cross-petition, and third-party petition.

Sec. 28.002. PLEADING REQUIREMENTS. In asserting a commercial construction defect claim, a claimant's petition must, as to each defendant:

(1) describe with particularity the observed manifestation of each alleged failure in the commercial property that gives rise to the claimant's claim against the defendant;

(2) state the factual basis for the claimant's assertion that the defendant's services, labor, or materials caused or created, wholly or partly, each described failure; and

(3) be verified by a person with knowledge of the facts stated in the petition.

Sec. 28.003. DISMISSAL FOR INSUFFICIENT PLEADING; EFFECT ON LIMITATIONS PERIOD. (a) At the time of filing an original answer or on or before the 21st day after the date the claimant's petition was served, whichever is later, a defendant may move to dismiss a claimant's commercial construction defect claim against the defendant for failure to comply with the pleading requirements of Section 28.002.

(b) The filing by a defendant of a motion to dismiss under this section automatically abates response deadlines for discovery requests served on the defendant by the claimant who served the petition that is the subject of the motion until the motion has been resolved by court order or agreement of the parties.

(c) Not later than the seventh day before the date of the hearing on the defendant's motion to dismiss, the claimant may replead the commercial construction defect claim.

(d) If a claimant repleads a claim under Subsection (c), the affected defendant may supplement or amend the defendant's motion to dismiss without causing a postponement of a hearing on the motion.

(e) Unless extended by the court for good cause or by agreement of the parties, a hearing on the defendant's motion to dismiss shall be held not later than the 30th day after the date the motion is served on the claimant. Filing an insufficient petition to avoid the expiration of a limitations period may not be considered good cause to extend the deadline prescribed by this subsection if, in the exercise of reasonable diligence, the claimant could have filed a petition complying with Section 28.002 before the expiration of the limitations period.

(f) On motion of a defendant as provided by this section, the court shall dismiss without prejudice any commercial construction defect claim against the defendant that is not supported by a petition complying with Section 28.002.

(g) The filing of a petition that fails to comply with Section 28.002 with respect to a commercial construction defect claim does not toll any limitations period applicable to the claim.

Sec. 28.004. AWARD OF ATTORNEY'S FEES AND COSTS; SANCTIONS. (a) On ruling on a motion to dismiss filed under this chapter, the court may award costs and reasonable attorney's fees to the prevailing party.

(b) The court shall impose an appropriate sanction on a person who verifies a petition or motion or signs an affidavit filed under this chapter when the person knew or reasonably should have known the facts stated in the petition, motion, or affidavit were untrue.

Sec. 28.005. SUPREME COURT RULEMAKING. The supreme court may adopt rules to implement this chapter.

Sec. 28.006. SUPPLEMENTATION OF EXISTING LAWS. The procedures and remedies provided by this chapter are in addition to other procedures and remedies provided by law.

SECTION 2. Chapter 28, Civil Practice and Remedies Code, as added by this Act, applies only to an action commenced on or after the effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.