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CSSB 10 Bill Analysis (Rev 3/16/17)
CSSB 10 Bill Analysis (Rev 3/16/17)
Premiums in areas with hail litigation have not risen faster than the rest of Texas
Texas insurance market has been competitive and has become increasingly competitive
Insurance companies posted higher profits between 2012 and 2015 than over the longer term
Additionally, TDI found that after the storms insurers:
VIOLENCE OF NATURE - CSSB 10 creates a new Chapter 542A dealing with real property claims
caused by the violence of nature, which is a standard that does not exist in law. Not only does
this definition extend the bill well beyond the alleged problem, but it seems to approximate Acts
of God without saying so, creating confusion. Additionally, the standard will likely lead to legal
disputes over damage caused by intentional acts which result in a natural disaster (e.g. wildfires
sparked by arson).
ATTORNEY FEES CSSB 10 keeps juries from determining reasonable attorney fees and requires
judges to apply never before seen provisions regarding the calculation and ultimate award of
attorney fees. Reasonable and necessary, hours actually worked, hourly rate that is
customary, and numerous other provisions all become areas of dispute that required discovery,
litigation between the parties, and decisions by Judges.
BARRATRY CSSB 10 takes a serious criminal offense and civil action away from the client and
gives it to the insurance company to use against its own policyholder. This taking threatens the
policyholder with losing her lawyer and forfeiting the right to recover attorney fees. (Sec.
542A.006(e)). Once pled as an affirmative defense, the policyholders attorney will be forced to
defend herself in discovery, potentially divulge attorney-client privileged materials, be deposed,
and defend her professional reputation instead of prosecuting their clients claims against the
insurer. CSSB 10 adds an entirely separate and additional trial of alleged barratry claims
duplicating time and expense for both parties.
CSSB 10 creates serious questions about whether the policyholder can be made whole, what law pertains,
what notice is due, and what penalty applies.
All such concerns increase both the cost and amount of litigation. All in favor of the insurance companies
and at the expense of Texas property owners.
Leg. Adv. Paid for by Texas Trial Lawyers Association, John L. (Lin) McCraw, III, President
1220 Colorado Street, Suite 500, Austin, TX 78701
Rev. 3/16/17