HBA-NIK H.B. 2456 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2456
By: Hartnett
Civil Practices
3/14/1999
Introduced



BACKGROUND AND PURPOSE 

In Williams v. Khalaf, 802 S.W. 2d 651 (Tex. 1990), the Texas Supreme Court
held Section 16.004, Civil Procedures and Remedies Code, to establish a
four-year statute of limitations for fraud and breach of fiduciary duty.
Prior to that holding, Texas courts held that fraud and breach of fiduciary
duty were subject to a two-year statute of limitations.  Numerous courts
after Williams have held that the four-year statute of limitations also
applies.  H.B. 2456 codifies the holding by the Texas Supreme Court that
puts a four-year statute of limitations on actions to be taken for fraud
and breach of fiduciary duty. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 16.004(a), Civil Practice and Remedies Code, as
follows: 

(a)  Adds fraud and breach of fiduciary duty to the actions a person must
bring suit on no later than four years after the day the cause of action
accrues. 

SECTION 2.  Effective date: September 1, 1999.
            Makes application of this Act prospective.

SECTION 3.  Emergency clause.