HBA-ATS H.B. 3577 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3577
By: Corte
Civil Practices
4/26/1999
Introduced



BACKGROUND AND PURPOSE 

Some of the lawsuits filed in Texas courts have little or no merit and are
based on deceptive or fraudulent testimony.   These meritless or frivolous
suits  unnecessarily burden the judicial system. In addition, meritless
suits raise the costs of lawsuits by increasing the costs for legal
services and products.  Awarding attorney's fees against persons who bring
meritless lawsuits based on deceptive or fraudulent testimony may limit or
eliminate these lawsuits in Texas.  H.B. 3577 requires a court to award a
party in a civil action attorney's fees (fees) if the party shows that at
any time during the pendency of the action another party to the action
engaged in actual fraud or committed perjury with respect to information
provided or testimony given pertaining to the action.  A court must award
these fees without regard to whether the party awarded the fees prevails in
the action. 

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.   Redesignates Sections 38.001-38.006, Civil Practice and
Remedies Code, to Subchapter A, Chapter 38, Civil Practice and Remedies
Code.  Adds the heading of Subchapter A, as follows: SUBCHAPTER A.
ATTORNEY'S FEES FOR CERTAIN CLAIMS 

SECTION 2.  Amends Chapter 38, Civil Practice and Remedies Code, by adding
Subchapter B, as follows: 

SUBCHAPTER B.  ATTORNEY'S FEES AFTER PERJURY OR FRAUD

Sec. 38.041.  AWARD OF ATTORNEY'S FEES.  Requires a court to award a party
in a civil action attorney's fees (fees) if the party shows that at any
time during the pendency of the action another party to the action engaged
in actual fraud or committed perjury with respect to information provided
or testimony given pertaining to the action.  Provides that the amount of
the award is reasonable fees incurred by the party in pursuing the action.
Requires a court to award these fees without regard to whether the party
awarded the fees prevails in the action. 

SECTION 3.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 4.Emergency clause.