The Texas State Capitol from the top of the Dewitt C. Greer building. Photo by Stan A. Williams
Today Governor Abbott vetoed HB 2879, which would have added § 15.021, CPRC, to provide that a venue provision in a contract for an improvement to real property that requires an action involving a contractor, subcontractor, or materialman who is a Texas resident to be brought outside the state is void as a matter of public policy. The bill further provided that if a venue provision is void and the parties do not stipulate as to venue after a dispute arises, an action arising out of the contract shall be brought in the county in which the defendant resides, the cause of action accrued, or the property that is the subject of the litigation is located.
In our view, HB 2879 would have resulted in widespread venue shopping in construction disputes. We commend Governor Abbott for letting the parties decide where they want to litigate their disputes.
