HBA-MPM, ALS, NIK H.B. 2456 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2456 By: Hartnett Civil Practices 8/17/1999 Enrolled BACKGROUND AND PURPOSE In Williams v. Khalaf, 802 S.W. 2d 651 (Tex. 1990), the Texas Supreme Court held Section 16.004, Civil Practice and Remedies Code, to establish a four-year statute of limitations for fraud and breach of fiduciary duty. Prior to that holding, Texas courts held that fraud and breach of fiduciary duty were subject to a two-year statute of limitations. Numerous courts after Williams have held that the four-year statute of limitations also applies. H.B. 2456 codifies the holding by the Texas Supreme Court that puts a four-year statute of limitations on actions to be taken for fraud and breach of fiduciary duty. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 16.004(a), Civil Practice and Remedies Code, as follows: (a) Adds fraud and breach of fiduciary duty to the actions a person must bring suit on no later than four years after the day the cause of action accrues. Makes nonsubstantive changes. SECTION 2. Provides that it is the intent of this Act to clarify existing law by resolving a conflict in case law concerning the applicable statute of limitations for action for fraud and breach of fiduciary duty. Provides that it is not the intent of this Act to affect the two-year statute of limitations applicable to an action for breach of the duty of good faith and fair dealing. SECTION 3.Emergency clause. Effective date: 90 days after adjournment.