HBA-NLM S.B. 274 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 274 By: Bivins Civil Practices 5/3/1999 Engrossed BACKGROUND AND PURPOSE Class action lawsuits promote judicial economy and facilitate the efficient resolution of complex, mass claims. A trial court approves, under rules adopted by the Texas Supreme Court, a case as a class action. The court's decision can be appealed to the court of appeals, but as a result of this appeal process, several interpretations by the courts have become contradictory and confusing to litigants and lawyers. Authorizing the Texas Supreme Court to hear the interlocutory appeals of class certification decisions would clarify the standards for class certification and ultimately save litigants from expensive discovery and pretrial proceedings in cases that may not properly be tried as class actions. Several more claims can also be settled as a class action, if the supreme court created a special type of class action that had less stringent standards than a trial class. Authorizing the supreme court to investigate the creation of a special class action could lead to the more efficient resolution of a large number of claims. S.B. 274 authorizes the Texas Supreme Court to establish certain class actions, and require interlocutory appeals of class certification decisions to be appealed by the supreme court, rather than the court of appeals. In addition, this bill authorizes appeal of class action decisions to the Texas Supreme Court and authorizes the supreme court to investigate authorization for special class actions. 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 22.001, Government Code, by adding Subsection (e), as follows: (e)(1) Authorizes review of an order of a trial court that certifies or refuses to certify a class pursuant to Rule 42, Texas Rules of Civil Procedure, or that rule's successor, to be had exclusively by an interlocutory appeal taken directly to the supreme court by petition for review. (2) Authorizes the supreme court to decline to review an order certifying or refusing to certify a class if the court determines that the case is not of such importance to the jurisprudence of the state that a review should be allowed. (3) Prohibits the supreme court and the courts of appeals from having mandamus jurisdiction from an order certifying or refusing to certify a class. (4) Requires an appeal filed under Subdivision (1) to be given precedence by the supreme court over other petitions for review and pending matters. (5) Requires notice of appeal brought pursuant to Subdivision (1) to be filed with the supreme court on or before the 20th day after the date the order certifying or refusing to certify the class is signed. Requires failure to file within the time allowed by this subdivision to constitute a waiver of the right granted by Subdivision (1). (6) Requires a petition for review under Subdivision (1) to be deemed denied unless the supreme court grants the petition on or before the 60th day after a response to the petition is filed or, if a party files a waiver of response, no later than the 60th day after the waiver is filed. (7) Requires the supreme court, if review is granted, to render judgment on an appeal filed under Subdivision (1) on or before the 90th day after the respondent's brief is due, or the appeal to be deemed denied. (8) Requires a motion for rehearing to be filed within 15 days from the date the supreme court renders judgment or makes an order disposing of a petition for review. Requires the court to rule on a motion for rehearing within 30 days or it shall be deemed denied. (9) Requires the class counsel, if notice of class certification is directed to members of the class during the pendency of an interlocutory appeal, to provide notice to members of the class of a final judgment of the supreme court that reverses the order granting class certification. (10) Provides that Section 22.004 (Rules of Civil Procedure) does not apply to this subsection. (11) Specifies that this subsection controls to the extent of any conflict between this subsection and the Texas Rules of Appellate Procedure. SECTION 2. Amends Subchapter D, Chapter 16, Civil Practice and Remedies Code, by adding Section 16.073, as follows: Sec. 16.073. CLASS ACTIONS. Specifies that the applicable limitations period is suspended for members of a putative class on the filing of a class action petition or complaint and remains suspended until the request for class certification is finally denied or the class is finally decertified. SECTION 3. Amends Section 51.014, Civil Practice and Remedies Code, to require an interlocutory appeal to have the effect of staying the commencement of a trial in the trial court pending resolution of the appeal, except as otherwise provided by this section. Requires an interlocutory appeal under Section 22.01(e) to have the effect of staying the commencement of a trial in a court pending resolution of the appeal. SECTION 4. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 5. Emergency clause.