LITIGATION ALERT: "LOSER PAY" LEGISLATION IN TEXAS: A Model for Change

For the second time in eight years, the Texas legislature instituted significant changes to the state’s civil litigation practice in the form of H.B. 274, which will become effective on September 1, 2011.  To its proponents, H.B. 274 is a salutary piece of legislation designed to facilitate settlements, quickly dispose of "junk lawsuits," and allow for the more efficient administration of justice.  To its detractors, the new law is the latest attempt of vested interests to deprive citizens of their right to redress and "close the courthouse doors" to the injured and the powerless by imposing new procedural hurdles and unpalatable risks.  In addition, the legislature delegated much of the work to the Texas Supreme Court, which must promulgate new rules in compliance with the statute within twelve (12) months.

wpengine