Bills of interest to TCJL members set for hearing next week.
NUCLEAR VERDICTS
Senate State Affairs
9:00, Monday, March 24, 2025
Senate Chamber
Hearing Notice
Video Link
Please attend the hearing or send a representative to sign a card FOR SB 30 by Schwertner | et al. Relating to recovery of damages in civil actions.
SB 30 by Schwertner | et al. Relating to recovery of damages in civil actions.
Texas’s unpredictable litigation environment is impeding economic growth in the state. Runaway lawsuits and “nuclear verdicts” – verdicts of $10 million or more – are placing Texas businesses of all sizes, across all sectors, in an extremely tenuous position.
- Texas job creators are being forced to raise prices, lay off employees or close their doors – ultimately harming the Texans these businesses serve every day.
- As Texas faces increasing concerns over out-of-control litigation costs, SB 30 offers a common-sense solution to ensure fair compensation, protect Texas businesses, and maintain an affordable legal system for all.
- Specifically, SB 30 will protect Texans from higher insurance costs; guarantee fair restitution for legitimate injuries; and create a legal environment that encourages medical providers to treat accident victims without fear of litigation abuse.
- Notable provisions:
- SB 30 will ensure that personal injury claims are based on real medical costs and suffering – not inflated numbers designed to exploit the process. SB 30 limits recoverable medical expenses to actual payments, expected payments, or 150% of the median market rate based on the Texas All Payor Claims Database.
- SB 30 will set clear guidelines for noneconomic damages, requiring unanimous jury agreement for pain and suffering awards and enforcing evidence-based limits to curb excessive payouts. Additionally, SB 30 bans emotional appeals intended to sway juries toward inflated damages, ensuring that compensation reflects actual harm.
- SB 30 will make letters of protection admissible in evidence, requiring plaintiffs to provide defendants with “letters of protection,” kick-back agreements, and other medical records. Juries are kept in the dark about letters of protection – i.e., arrangements in which certain healthcare providers agree to over-diagnose, overbill, and overtreat on the condition that they will be paid from the judgment or settlement in the plaintiff’s case.
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GOVERNMENT CONTRACT DELAYS
This bill is of interest to a wide variety of TCJL members. It will be heard in committee in both chambers next week. This alert is included for your information.
Senate Business & Commerce
8:00, Tuesday, April 1, 2025
E1.012
Hearing Notice
Video Link
House State Affairs
8:00, Wednesday, April 2, 2025
JHR 140
Hearing Notice
Video Link
SB 776 by Hughes (R-Tyler)/HB 2463 by Leach (R-Plano)
Relating to the award of compensatory damages caused by certain delays under governmental construction contracts. Bars a construction contract between a governmental entity and a contractor from prohibiting the award of compensatory damages to the contractor for a delay caused solely by the governmental entity or by a party for which the entity is responsible. Defines “compensatory damages” as special damages, consequential damages, home office overhead, profit or markup on indirect costs, cost of performing additional work separately agreed upon by the entity and contractor, or indirect costs not related to the project. Does not prohibit a provision in the contract requiring the contractor to meet certain conditions for the recovery of compensatory damages, including notice, justification, or a duty to mitigate or for proving actual cost or schedule impact of a delay. Prohibits waiver. Does not apply to services related to recovery or relief from a natural disaster involving the repair or renovation of a residence or various types of TxDOT contracts enumerated in § 201.112, Transportation Code.
