S.B. No. 31
AN ACT
1-1 relating to the assessment of attorney's fees, costs, and damages
1-2 for certain frivolous lawsuits and defenses.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle A, Title 2, Civil Practice and Remedies
1-5 Code, is amended by adding Chapter 10 to read as follows:
1-6 CHAPTER 10. SANCTIONS FOR FRIVOLOUS PLEADINGS AND MOTIONS
1-7 Sec. 10.001. SIGNING OF PLEADINGS AND MOTIONS. The signing
1-8 of a pleading or motion as required by the Texas Rules of Civil
1-9 Procedure constitutes a certificate by the signatory that to the
1-10 signatory's best knowledge, information, and belief, formed after
1-11 reasonable inquiry:
1-12 (1) the pleading or motion is not being presented for
1-13 any improper purpose, including to harass or to cause unnecessary
1-14 delay or needless increase in the cost of litigation;
1-15 (2) each claim, defense, or other legal contention in
1-16 the pleading or motion is warranted by existing law or by a
1-17 nonfrivolous argument for the extension, modification, or reversal
1-18 of existing law or the establishment of new law;
1-19 (3) each allegation or other factual contention in the
1-20 pleading or motion has evidentiary support or, for a specifically
1-21 identified allegation or factual contention, is likely to have
1-22 evidentiary support after a reasonable opportunity for further
1-23 investigation or discovery; and
1-24 (4) each denial in the pleading or motion of a factual
2-1 contention is warranted on the evidence or, for a specifically
2-2 identified denial, is reasonably based on a lack of information or
2-3 belief.
2-4 Sec. 10.002. MOTION FOR SANCTIONS. (a) A party may make a
2-5 motion for sanctions, describing the specific conduct violating
2-6 Section 10.001.
2-7 (b) The court on its own initiative may enter an order
2-8 describing the specific conduct that appears to violate Section
2-9 10.001 and direct the alleged violator to show cause why the
2-10 conduct has not violated that section.
2-11 (c) The court may award to a party prevailing on a motion
2-12 under this section the reasonable expenses and attorney's fees
2-13 incurred in presenting or opposing the motion, and if no due
2-14 diligence is shown the court may award to the prevailing party all
2-15 costs for inconvenience, harassment, and out-of-pocket expenses
2-16 incurred or caused by the subject litigation.
2-17 Sec. 10.003. NOTICE AND OPPORTUNITY TO RESPOND. The court
2-18 shall provide a party who is the subject of a motion for sanctions
2-19 under Section 10.002 notice of the allegations and a reasonable
2-20 opportunity to respond to the allegations.
2-21 Sec. 10.004. VIOLATION; SANCTION. (a) A court that
2-22 determines that a person has signed a pleading or motion in
2-23 violation of Section 10.001 may impose a sanction on the person, a
2-24 party represented by the person, or both.
2-25 (b) The sanction must be limited to what is sufficient to
2-26 deter repetition of the conduct or comparable conduct by others
2-27 similarly situated.
3-1 (c) A sanction may include any of the following:
3-2 (1) a directive to the violator to perform, or refrain
3-3 from performing, an act;
3-4 (2) an order to pay a penalty into court; and
3-5 (3) an order to pay to the other party the amount of
3-6 the reasonable expenses incurred by the other party because of the
3-7 filing of the pleading or motion, including reasonable attorney's
3-8 fees.
3-9 (d) The court may not award monetary sanctions against a
3-10 represented party for a violation of Section 10.001(2).
3-11 (e) The court may not award monetary sanctions on its own
3-12 initiative unless the court issues its order to show cause before a
3-13 voluntary dismissal or settlement of the claims made by or against
3-14 the party or the party's attorney who is to be sanctioned.
3-15 (f) The filing of a general denial under Rule 92, Texas
3-16 Rules of Civil Procedure, shall not be deemed a violation of this
3-17 chapter.
3-18 Sec. 10.005. ORDER. A court shall describe in an order
3-19 imposing a sanction under this chapter the conduct the court has
3-20 determined violated Section 10.001 and explain the basis for the
3-21 sanction imposed.
3-22 Sec. 10.006. CONFLICT. Notwithstanding Section 22.004,
3-23 Government Code, the supreme court may not amend or adopt rules in
3-24 conflict with this chapter.
3-25 SECTION 2. This Act takes effect September 1, 1995, and
3-26 applies only to a pleading or motion in a suit commenced on or
3-27 after that date. A pleading or motion in a suit commenced before
4-1 the effective date of this Act is governed by the law applicable to
4-2 the pleading or motion immediately before the effective date of
4-3 this Act, and that law is continued in effect for that purpose.
4-4 SECTION 3. The importance of this legislation and the
4-5 crowded condition of the calendars in both houses create an
4-6 emergency and an imperative public necessity that the
4-7 constitutional rule requiring bills to be read on three several
4-8 days in each house be suspended, and this rule is hereby suspended.