Texas Omnibus Civil Justice Reform Bill Texas Omnibus Civil Justice Reform Bill HB 4 HB 4 Presented by Presented by Greg Curry and Rob Roby Greg Curry and Rob Roby Greg.Curry@tklaw.Com @tklaw.Com rroby@gwinnroby.com Greg.Curry rroby@gwinnroby.com G winn & R oby Attorneys and Counselors
Overview Overview Proportionate Responsibility, Responsible Third Proportionate Responsibility, Responsible Third � � Parties and Damages Parties and Damages Venue and Forum Non Conveniens Non Conveniens Venue and Forum � � Texas Judicial Panel on Multidistrict Litigation Texas Judicial Panel on Multidistrict Litigation � � Products Liability Products Liability � � Medical Legislation Medical Legislation � � Offer of Settlement Offer of Settlement � � Class Actions, I nterest and Appeal Bonds Class Actions, I nterest and Appeal Bonds � � Other Legislation Other Legislation � �
Proportionate Proportionate Responsibility, Responsible Responsibility, Responsible Third Parties and Damages Third Parties and Damages
Proportionate Responsibility Proportionate Responsibility � Application Application � Only to tort and DTPA cases Only to tort and DTPA cases � � Applies to suits filed on or after July 1, 2003 Applies to suits filed on or after July 1, 2003 � �
Proportionate Responsibility Proportionate Responsibility Settlement Credits Settlement Credits � � Defendant’s election of dollar- -for for- -dollar or sliding scale dollar or sliding scale Defendant’s election of dollar � � settlement credit eliminated settlement credit eliminated Now only credit is reduction by settling person’s percentage of Now only credit is reduction by settling person’s percentage of � � responsibility responsibility Defendant will now have to prove responsibility on settling co- - Defendant will now have to prove responsibility on settling co � � defendant defendant I f co- -defendant settles after everyone rests, it is too late to defendant settles after everyone rests, it is too late to I f co � � prove co- prove co -defendant’s percentage defendant’s percentage Will lead to collusion Will lead to collusion � � Status of “one satisfaction” rule Status of “one satisfaction” rule � �
Proportionate Responsibility Proportionate Responsibility � Joint and Several Liability Joint and Several Liability � Only if defendant’s percentage of responsibility greater Only if defendant’s percentage of responsibility greater � � than 50% than 50% or or Defendant, with intent to do substantial harm to others, Defendant, with intent to do substantial harm to others, � � acted in concert with another to commit a felony, causing acted in concert with another to commit a felony, causing harm to plaintiff harm to plaintiff
Responsible Third Parties Responsible Third Parties Now will be designated rather than joined Now will be designated rather than joined � � By motion at least 60 days before trial By motion at least 60 days before trial � � Leave will be granted unless objection filed within 15 days Leave will be granted unless objection filed within 15 days � � Can request disclosure of responsible third parties to be designated ated Can request disclosure of responsible third parties to be design � � Permits designation of “Doe” responsible third parties within 60 Permits designation of “Doe” responsible third parties within 60 � � days of filing original answer days of filing original answer Designation of responsible third party extends statute of limitations tions Designation of responsible third party extends statute of limita � � for plaintiff for plaintiff Can designate bankrupt parties and employer and obtain reduction Can designate bankrupt parties and employer and obtain reduction � � for their percentage of responsibility for their percentage of responsibility
Damages Damages
Damages Damages Applies to cases filed on or after September 1, 2003 Applies to cases filed on or after September 1, 2003 � � Reintroduces gross negligence as basis for exemplary damages Reintroduces gross negligence as basis for exemplary damages � � Exemplary damages can be awarded only if jury is unanimous both Exemplary damages can be awarded only if jury is unanimous both � � as to liability and amount as to liability and amount Mandatory jury instruction on unanimity of finding exemplary Mandatory jury instruction on unanimity of finding exemplary � � damages damages Exemplary damages not available if only nominal damages awarded Exemplary damages not available if only nominal damages awarded � �
Damages Damages Exemplary damages limited to the greater of: Exemplary damages limited to the greater of: � � Two times economic damage plus up to $750,000 in non- -economic economic Two times economic damage plus up to $750,000 in non � � damages damages Or Or $200,000 $200,000 Cap busting for certain criminal acts Cap busting for certain criminal acts � � Medical expenses paid by a collateral source not recoverable Medical expenses paid by a collateral source not recoverable � � Adds cap for liability for felony conduct causing injury to a child, ild, Adds cap for liability for felony conduct causing injury to a ch � � elderly individual, or disabled individual “if the conduct occur elderly individual, or disabled individual “if the conduct occurred red while providing health care as defined under CPRC § 74.001 while providing health care as defined under CPRC § 74.001
Damages Damages Recovery of medical expenses limited to costs actually paid Recovery of medical expenses limited to costs actually paid � � or incurred by the plaintiff or incurred by the plaintiff Recovery of lost earnings must be net of income taxes Recovery of lost earnings must be net of income taxes � �
Venue Venue and and Forum Non Conveniens Non Conveniens Forum
Venue for Multiple Plaintiffs Venue for Multiple Plaintiffs Applies to cases f iled on or after September 1, 2003 Applies to cases f iled on or after September 1, 2003 � � Each plaintiff must establish venue independently of any Each plaintiff must establish venue independently of any � � other plaintiff other plaintiff Mandatory dismissal or transfer of any plaintiff who cannot Mandatory dismissal or transfer of any plaintiff who cannot � � establish venue except under exceptional circumstances establish venue except under exceptional circumstances Allows immediate appeal of trial court’s decision granting or Allows immediate appeal of trial court’s decision granting or � � denying transfer or dismissal, staying trial until resolution of denying transfer or dismissal, staying trial until resolution of appeal appeal Appeal must be made to appellate court district in which the Appeal must be made to appellate court district in which the � � trial court is located trial court is located
Forum Non Conveniens Non Conveniens Forum Applies to cases filed on or after September 1, 2003 Applies to cases filed on or after September 1, 2003 � � Creates single standard based on federal law for determining Creates single standard based on federal law for determining � � whether case should be dismissed so that it may be pursued whether case should be dismissed so that it may be pursued in more appropriate state or country in more appropriate state or country No longer requires party seeking to dismiss claim to prove six No longer requires party seeking to dismiss claim to prove six � � factors by a preponderance of the evidence factors by a preponderance of the evidence Does not address Subsection (f), which provides that court Does not address Subsection (f), which provides that court � � may not stay or dismiss claim if party opposing motion makes may not stay or dismiss claim if party opposing motion makes prima facie showing that act or omission that was proximate prima facie showing that act or omission that was proximate or producing cause of injury or death occurred in Texas or producing cause of injury or death occurred in Texas
Texas Judicial Panel Texas Judicial Panel on on Multidistrict Litigation Multidistrict Litigation
Judicial Panel on Multidistrict Litigation Judicial Panel on Multidistrict Litigation � Applies to cases filed on or after September 1, 2003 Applies to cases filed on or after September 1, 2003 � � Standard: For convenience of parties and witnesses, Standard: For convenience of parties and witnesses, � and promotion of just and efficient conduct of actions and promotion of just and efficient conduct of actions � No funding available No funding available �
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