HBA-ATS S.B. 321 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 321
            By: Ellis 
Civil Practices
4/20/1999
Engrossed



BACKGROUND AND PURPOSE 

Texas law specifies that a person is authorized to recover reasonable
attorney's fees from an individual or corporation, in addition to the
amount of a valid claim and costs, but only if the person files a claim for
rendered services, performed labor, furnished material, freight or express
overcharges, lost or damaged freight or express, killed or injured stock, a
sworn account, or an oral or written contract.  Under the statute, a person
may not recover reasonable attorney's fees based on a contract issued by an
insurer that is subject to the provisions of certain articles of the
Insurance Code. 

S.B. 321 includes Article 21.55 (Prompt Payment of Claims), Insurance Code,
among the provisions under which recovery of reasonable attorney's fees is
precluded to the extent fees are recovered under that article, and deletes
Article 3.62, Insurance Code (repealed), and  Section 1, Chapter 387, Acts
of the 55th Legislature, Regular Session, 1957 (Article 3.62-1, Insurance
Code) (repealed) from the Insurance Code provisions excepted from the
recovery of reasonable attorney's fees.   

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 38.006, Civil Practice and Remedies Code, to
provide that this chapter (Attorney's Fees) does not apply to a contract
issued by an insurer to the extent fees are recovered under, rather than is
subject to the provisions of, Chapter 9 (Texas Title Insurance Act),
Insurance Code, Article 21.21 (Unfair Competition and Unfair Practices),
Insurance Code, or Unfair Claim Settlement Practices Act (Article 21.21-2,
Insurance Code).  Includes Article 21.55, Insurance Code, among the
provisions under which recovery of reasonable attorney's fees is precluded
to the extent fees are recovered under that article, and deletes Article
3.62, Insurance Code (repealed), and Section 1, Chapter 387, Acts of the
55th Legislature, Regular Session, 1957 (Article 3.62-1, Insurance Code)
(repealed) from the Insurance Code provisions excepted from the recovery of
reasonable attorney's fees.  Makes conforming changes. 

SECTION 2.Emergency clause.
  Effective date: upon passage.