It's that time again – the 85th Texas Legislature is underway in Austin, and a number of bills could affect civil litigation in state courts. Below are a few bills that trial lawyers may want to follow.

Chapter 38 Attorney's Fees. Section 38.001 of the Texas Civil Practice & Remedies Code currently permits an award of attorney's fees against only an "individual" or "corporation," not against limited liability companies, partnerships, or other entities. HB 744 would expand the statute to permit recovery against other non-governmental entities. This "fix" to Section 38.001 was attempted in the 2015 session but failed to pass.

Foreign Law. HB 45 would prohibit a court or arbitrator from basing a decision on foreign law (or enforcing a contractual choice-of-law provision) if the application of foreign law would violate a right guaranteed by the Constitution of Texas or the United States. This bill is similar to others filed in previous sessions that failed to pass.

Health Care Liability Limits. HB 719 would amend Chapter 74 of the Civil Practice & Remedies Code to provide for increases in the caps on noneconomic damages based on the consumer price index.

Constitutionality of State Statutes. HJR 45 and SJR 5 propose a constitutional amendment that would authorize the legislature to require a court to notify the attorney general of a challenge to the constitutionality of a state statute and prescribe a waiting period before the court may enter a judgment holding the statute unconstitutional. (This is the legislative response to a 2015 decision of the Court of Criminal Appeals that the existing statute, which precludes a court from entering judgment until the attorney general is notified, is unconstitutional.)

Justice Court Jurisdictional Limit. SB 409 would increase the civil amount-in-controversy jurisdiction of justice courts to $20,000. Currently, the limit is $10,000.

Litigation Financing. HB 584 would add Chapter 354 to the Finance Code and establish statutory requirements for litigation financing agreements, including that such agreements be in writing and clearly disclose the amounts to be funded, fees to be charged, amounts assigned by the litigation financing company and schedule for repayment.

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