Bill Text: TX HB2437 | 2011-2012 | 82nd Legislature | Introduced

Texas House Bill 2437 (Prior Session Legislation)

Introduced

Bill Title: Relating to an award of litigation costs after the rejection of certain settlement offers.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2011-04-06 - Left pending in subcommittee [HB2437 Detail]

Download: Texas-2011-HB2437-Introduced.html



	By: Sheets	H.B. No. 2437



	A BILL TO BE ENTITLED
	AN ACT
	relating to an award of litigation costs after the rejection of
	certain settlement offers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 42.004, Civil Practice and Remedies
	Code, is amended by amending Subsections (a) and (d) and adding
	Subsection (d-1) to read as follows:
	(a) If a settlement offer is made and rejected and the
	judgment to be rendered will be significantly less favorable to the
	rejecting party than was the settlement offer, the offering party
	shall recover litigation costs from the rejecting party. Subject
	to Subsections (d) and (d-1), the amount of litigation costs
	awarded under this chapter shall be determined by the court prior to
	the entry of judgment. The court must, upon request, conduct a
	hearing on a request for an award of litigation costs, at which the
	affected parties may present evidence.
	(d) If damages are awarded to the claimant, the [~~The~~]
	litigation costs that may be awarded under this chapter may not be
	greater than an amount computed by:
	(1) determining the sum of:
	(A) 50 percent of the economic damages to be
	awarded to the claimant in the judgment;
	(B) 100 percent of the noneconomic damages to be
	awarded to the claimant in the judgment; and
	(C) 100 percent of the exemplary or additional
	damages to be awarded to the claimant in the judgment; and
	(2) subtracting from the amount determined under
	Subdivision (1) the amount of any statutory or contractual liens in
	connection with the occurrences or incidents giving rise to the
	claim.
	(d-1) If damages are not awarded to the claimant, the
	litigation costs that may be awarded under this chapter to the
	defendant may not be greater than the amount of the defendant's most
	recent settlement offer.
	(e) If a claimant or defendant is entitled to recover fees
	and costs under another law, that claimant or defendant may not
	recover litigation costs in addition to the fees and costs
	recoverable under the other law.
	(f) If a claimant or defendant is entitled to recover fees
	and costs under another law, the court must not include fees and
	costs incurred by that claimant or defendant after the date of
	rejection of the settlement offer when calculating the amount of
	the judgment to be rendered under Subsection (a).
	(g) If litigation costs are to be awarded against a
	claimant, those litigation costs shall be awarded to the defendant
	in the judgment as an offset against the claimant's recovery from
	that defendant, or if damages are not awarded to the claimant, as a
	judgment against the claimant.
	SECTION 2. The change in law made by this Act applies only
	to an action 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 that date, and that
	law is continued in effect for that purpose.
	SECTION 3. This Act takes effect September 1, 2011.