AUSTIN, Texas (Feb. 13, 2017) – The R Street Institute welcomes today’s introduction of S.B. 10, legislation to rein in the disturbing growth in Texas hail-related litigation.
Sponsored by state Sen. Kelly Hancock, R-North Richland Hills, the bill will provide needed revisions to Texas law, preserving the right to sue while removing incentives for attorney led abuse of the legal process, according to R Street Southwest Region Director Josiah Neeley.
“Trial attorneys are exploiting provisions in the law to run up large fee awards,” Neeley said. “Insurance companies often don’t even know there is an issue until a lawsuit is filed. Cases that should be resolved without litigation end up in a long and costly legal process.”
He noted that old provisions in state law that meant to ensure the prompt payment of claims are now having the opposite effect.
“Unless action is taken, all Texans will bear the costs of litigation abuse through less access to insurance and more costly policies,” Neeley said.
Hancock introduced the bill today in a news conference alongside Lt. Gov. Dan Patrick, who has listed the legislation among his top 10 priorities of the biennial session. Companion legislation has been introduced in the Texas House of Representatives as H.B. 1774, sponsored by state Rep. Greg Bonnen, R-Galveston.
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