Bill Text: TX SB735 | 2015-2016 | 84th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to discovery of evidence of the net worth of a defendant in connection with a claim for exemplary damages.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2015-06-19 - Effective on 9/1/15 [SB735 Detail]

Download: Texas-2015-SB735-Comm_Sub.html

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By: Fraser, et al. S.B. No. 735
(King of Hemphill)

A BILL TO BE ENTITLED
AN ACT
relating to discovery of evidence of the net worth of a defendant in
connection with a claim for exemplary damages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 41.001, Civil Practice and Remedies
Code, is amended by adding Subdivision (7-a) to read as follows:
(7-a) "Net worth" means the total assets of a person
minus the total liabilities of the person on a date determined
appropriate by the trial court.
SECTION 2. Chapter 41, Civil Practice and Remedies Code, is
amended by adding Section 41.0115 to read as follows:
Sec. 41.0115. DISCOVERY OF EVIDENCE OF NET WORTH FOR
EXEMPLARY DAMAGES CLAIM. (a) On the motion of a party and after
notice and a hearing, a trial court may authorize discovery of
evidence of a defendant's net worth if the court finds in a written
order that the claimant has demonstrated a substantial likelihood
of success on the merits of a claim for exemplary damages. Evidence
submitted by a party to the court in support of or in opposition to a
motion made under this subsection may be in the form of an affidavit
or a response to discovery.
(b) If a trial court authorizes discovery under Subsection
(a), the court's order may only authorize use of the least
burdensome method available to obtain the net worth evidence.
(c) When reviewing an order authorizing or denying
discovery of net worth evidence under this section, the reviewing
court may consider only the evidence submitted by the parties to the
trial court in support of or in opposition to the motion described
by Subsection (a).
SECTION 3. The change in law made by this Act applies only
to an action filed on or after the effective date of this Act.
SECTION 4. This Act takes effect September 1, 2015.