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This month, Texas Lt. Governor Dan Patrick announced his second round of priority legislation for the 89th legislative session, with Senate Bill (SB) 30 among the highlighted bills. SB 30 filed recently—just under the wire before the bill filing deadline—proposes significant reforms aimed at curbing “nuclear verdicts”, which continue to drive up the cost of doing business in Texas.
The U.S. Chamber of Commerce highlights Texas as a state with particularly high legal costs, pointing to the prevalence of large, high-stakes jury awards—often referred to as nuclear verdicts. These substantial awards don’t just affect the businesses involved in a single case; they have a broader impact, driving up insurance premiums and legal expenses across the board. Over time, those added costs trickle down, making it more expensive for businesses to operate and ultimately increasing costs for consumers. It’s a challenge that touches everyone, from small business owners to everyday Texans.
This issue may sound familiar. As we reported in our legislative preview last November, bills of this nature were anticipated. Additionally, proposals like SB 30 were discussed in detail during the TPGA Legislative Committee meeting earlier this month in San Antonio for those who may have been in attendance.
SB 30 focuses on:
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Reasonable Costs: Ensuring damages are based on actual, paid, or customary costs.
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Clear Evidence Rules: Simplifying how medical bills and damage claims are presented.
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Limits on Emotional Damages: Placing caps on non-economic awards to avoid excessive payouts.
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Streamlined Process: Standardizing procedures to reduce prolonged legal battles.
The bill offers greater predictability and fairness in civil cases, particularly benefiting small businesses vulnerable to unpredictable, burdensome verdicts. SB 30 will be closely monitored throughout the session.
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