HBA-NRS C.S.H.B. 1905 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1905
By: Hinojosa
Civil Practices
4/23/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Civil Practice and Remedies Code and Rule 13 of the Texas Rules of
Civil Procedure establish sanctions and violations for liability for filing
bad faith or groundless claims. However, these laws are limited in scope
and only a court can impose them. Physicians' reputations have been ruined
by groundless or frivolous lawsuits leading to the possibility of these
physicians losing their practices with little or no compensation for the
damage such lawsuits inflict. C.S.H.B. 1905 allows a cause of action when a
health care liability claim is brought with a reckless disregard as to
whether reasonable grounds exist to bring the lawsuit.  

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. 

ANALYSIS

C.S.H.B. 1905 amends the Medical Liability and Insurance Improvement Act of
Texas to authorize a person to bring a cause of action that a health care
liability claim (claim) is brought in bad faith if the claim is maintained
or filed with reckless disregard as to whether or not reasonable grounds
exist for asserting the claim. The bill authorizes a cause of action that a
claim is brought in bad faith to be brought against any claimant or the
attorney of any claimant if the person is responsible for conduct
constituting a reckless disregard as to whether or not reasonable grounds
exist for asserting the health care liability claim. It is a defense for
the claimant that the person could not reasonably have had knowledge of the
absence of reasonable grounds to assert the claim. The bill provides that a
person asserting a bad faith claim with reckless disregard as to whether or
not reasonable grounds exist for asserting the claim may be liable to the
defendant for reasonable expenses in defending the lawsuit, including
attorney's fees and court costs. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1905 modifies the original bill by removing the requirement of
giving notice to the party asserting the health care liability claim by the
person bringing a cause of action for bad faith. The substitute removes the
provision authorizing certain venues where a cause of action for bad faith
can be brought. The substitute provides that a person asserting a bad faith
claim may be liable to the defendant for reasonable expenses. The
substitute provides that it is a defense for the claimant that the person
could not reasonably have had knowledge of the absence of reasonable
grounds to assert the claim. The substitute adds definitions of "reasonable
grounds" and "reckless disregard."