Loser Pays: The Next Attack on Texans

The one right Texans and Americans enjoy as a means of protecting themselves is the right to legal recourse before the law; in this case, the right to having a dispute tried before a court of law. Conservatives in Texas have fought repeatedly to limit a Texans' right to trial and have succeeded; most recently placing a cap on the amount a jury may award an individual who is successful in trying a medical malpractice lawsuit.

This past weekend, after some rule-play, the anti-consumer side of the Texas Legislature voted and passed HB 274, the "Loser Pays" bill. The bill is another one of Governor Rick Perry's "emergency" measures, along with Voter ID, the intrusive sonogram bill, and a bill of little value which calls on the federal government to pass a balanced budget amendment. In the case of "loser pays," an individual who files a lawsuit against an entity or corporation and loses the trial is required to pay the defendant's costs.

As explained by the Texas Tribune:

The bill enacts a modified loser-pays rule that allows winning parties to recover litigation costs in breach of contract suits or if a judge grants a motion to dismiss. (On the floor, Creighton offered an amendment, which was accepted, that would make it only apply in situations in which parties have not already made an contractual attorneys' fees arrangement.) It directs the Texas Supreme Court to create a procedure for the early dismissal of certain civil claims and expedites the discovery process for cases with claims between $500 and $100,000. And, most objectionable to some Democrats and the plaintiff's bar, it contains a provision that awards attorneys' fees to defendants if they make an offer to settle, and it's turned down — if the jury finds for the plaintiff and makes an award less than 80 percent of the initial settlement offer.

According to consumer protection orgnization, Texas Watch, the bill threatens families and small businesses who would be forced to pay the bloated legal costs of big insurance companies and corporations.

The bottom line is that their proposals are designed to intimidate families and small business owners into foregoing the legal accountability process, immunizing polluters, insurance companies, and other big corporate defendants from responsibility.

The bill will now be considered by the Texas Senate; however, if Lt. Governor Dewhurst allows the Senate to pass the bill without amendments or debate, much like the Texas House did, then Texans can consider themselves railroaded and without the constitutional protection of a fair trial by jury.

SomosTejanos.org urges all Tejanos to call their State Senators and advise them that HB 274 is a threat to families and small business and should be rejected. You may find your Texas Senator at the Texas Tribune's interactive search site by simply inputing your zip code.