Loser-Pays Bill Clears Texas House
Texas got one step closer today to becoming one of the few states with a rule that awards legal fees to prevailing parties in lawsuits.
After House Republicans "called the question" Saturday — suspending all debate to slap down Democratic efforts to derail the legislation on technicalities — HB 274, from Rep. Brandon Creighton, R-Conroe, got initial approval from the body. This afternoon, it passed the lower chamber on third reading. Now it goes on to the Senate.
The bill enacts a modified loser-pays rule that allows winning parties to recover litigation costs in breach of contract suits or if a judge ...

Comments (14)
Patrick Fortner via Texas Tribune on Facebook
Will this apply to home warranty suits, or does RCLA still apply and therefore, limit awards to the cost of fixing the house?
Mellen West via Texas Tribune on Facebook
Stacking the decks even higher in favor of corporate "people". I am depressed.
Candyce Byrne via Texas Tribune on Facebook
Texans, wake up.
Jason Stoddard via Texas Tribune on Facebook
And to think this is a declared legislative emergency. The Corporate Cronyism will never cease from Camp Perry. To make matters worse, I guarantee Suits brought by the State will be exempt. Stateism, FTL.
Jenni Sellers
Tribune explanation about Creighton's amendment today is incorrect. His amendment only applied to the section of the bill about breach of contract suits - and stipulated that if the contract at question contains provisions for allocation of litiagtion costs, then the contract controls over the bill.
Dusty Harshman via Texas Tribune on Facebook
I'm no lawyer, but I would bet that this is the one bill that will hurt Texans the most from this session of pain.
Austin Oldham
"And legal scholars aren't persuaded that a frivolous lawsuit problem even exists. According to Charles Silver, a professor at the University of Texas School of Law, "
How could the legal community feel a lawsuit is frivolous when attorneys on both sides are getting paid, what a buch of blood sucking leaches!
LuAnne Walker-Leonard via Texas Tribune on Facebook
"No, really, twist the knife and force it deeper into our backs" says the struggling ethical attorneys to the Corporate General Counsel...Force us to accept unreasonable settlement offers, why? Because the law is on your side. Justice was already dead in Texas, but now it's rolling over in the grave.
Marcus Aguilar via Texas Tribune on Facebook
Quite a shift in the balance of power in favor of monies entities, particularly in light of Perry's court appointments over the past decade. Those that are promoting this move may personally come to rue the day, when they find themselves facing a more powerful and monied opponent in a legal dispute. You can't live your life in a cocoon, sooner or late, you're going to have to come out and face risky unfair situations as an individual.
Jenni Sellers
My earlier assertion about Tribune being incorrect - I was, in fact incorrect. Morgan - my apologies.
Michael Merriman via Texas Tribune on Facebook
Extortionist lawyers should find another state to take advantage of. Cooler, rational heads have prevailed over dogma-led libertards and their collectivist politicians. Viva the GOP!
patricia edwards
gonna need some hip boots to walk through all the BS being shoveled out in this session.
Ron Harrison
As for Patrick's question about whether this applies to home warranty suits and RCLA, the answer is this applies to everything and every suit. RCLA was tort reform. And,this cocked-up form of loser pays is tort reform stacked upon tort reform stacked upon tort reform-- 20 years of it. Back in 2003, a massive tort reform bill passed and its proponents said with that effort they would be through. Guess what? They come back every session with more restrictions, more limitations, more barriers on those who assert their legal rights. Is the legislature studying whether this ridiculous settlement-offer-triggers-loser-pays is good policy, has been used successfully elsewhere, is endorsed by any sector of the bar, is endorsed by judges or former judges, is supported by legal scholars?? Or, is the legislature just doing what the tort reform groups and their lobbyists say to do? And why have we turned over to these tort reform groups the right to restructure our judicial system? The fact that this goes unquestioned and rammed through, yet will affect and hurt so many Texans, is amazing.
Wallis Parnelle
Get ready fo,r the corrpt, the flim-flamers, and criminal types waiting at the borders, to set up business in Texas. Texas will become as messed up as Florida. What next, tax breaks for criminals, you bet.