Texas governor to sign “loser pays” bill

State Republicans will gather today for ceremonial signing

While Texas Governor Rick Perry didn’t accomplish his ultimate goal of a strict loser-pays bill in his quest to reform the state’s tort laws, today marks the day when he will make good on his campaign promises by signing a watered-down version of the bill into law. A number of Houston-area Republicans are slated to join the Governor for the ceremonial signing of the 2011 Omnibus Tort Reform Bill, which is designed to limit frivolous lawsuits.

The statute, which will go into effect Sept. 1, will levy fees against the loser when a case is disposed of on a motion to dismiss.

Prior to passage of the bill, Texas was one of just eight states that didn’t permit parties to file motions to dismiss, which challenge the legal sufficiency of the allegations in the complaint. Not only does the new law create a motion-to-dismiss procedure, but it also makes it mandatory that the loser pays the winner’s fees for litigation of the motion.

InsideCounsel covered the topic of frivolous lawsuits in the August issue, and also took an in-depth look at Texas’ loser-pays bill

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