In an ongoing effort toward tort reform, two Texas lawmakers recently introduced bills into the state Senate and House of Representatives. The proposed legislation would create a 'loser pays' system for Texas lawsuits, requiring an unsuccessful plaintiff to reimburse the defendant for court costs associated with the lawsuit. If it passes and is made law, this legislation will add a significant burden to potential plaintiffs, and will likely deter many plaintiffs with a valid claim from filing lawsuits.

Senate Bill 13, filed by Senator Joan Huffman, and House Bill 274, filed by Representative Brandon Creighton, have been lauded by Texas Governor Rick Perry, who has advocated for lawsuit reform throughout his time in office. The bills are very similar, and would require a losing plaintiff to pay the defendant's court costs if a judge decides that a lawsuit is groundless and may not proceed, or if a jury decides that a lawsuit is frivolous and unnecessary.

The amounts that could be recovered by a winning defendant include litigation costs, which the House bill defines as including attorney's fees, travel expenses and payment for two or fewer expert witnesses, and filing and other court costs. The House bill also seeks to hold an attorney liable if he or she knowingly participates in what it calls an "abusive civil action".

The Senate bill includes a clause requiring the Texas Supreme Court to perform a study in conjunction with the loser pays system. The goal of the study will be to figure out the most effective system in which the winning party to a lawsuit can recover court costs and attorney's fees.

Source: SE Texas Record, "Texas lawmakers file 'loser pays' bills in House, Senate", Marilyn Tennissen, 18 March 2011