Several new bills affecting the construction industry have been filed in the Texas Legislature’s current session, some of which have been filed and are in the process of being referred to committees.

H.B. 2310 by Representative Canalas would require a plaintiff in a commercial construction defect cases, at the time the lawsuit it filed, to attach a sworn verification describing with particularity the alleged defects and the factual basis for why each defendant’s work is implicated.  If the pleading is insufficient, the defendant can ask that the lawsuit be dismissed. If the court finds the pleading insufficient the case will be dismissed with prejudice so that the claim cannot be re-filed.

H.B. 5253 by Representative Johnson would amend Chapter 38 of the Civil Practice and Remedies Code to allow for the award of attorneys’ fees for “a common law tort or a cause of action created by statute for which an award of actual damages is authorized. If passed this would greatly change the legal landscape and allow for the recovery of attorneys’ fees in general negligence cases, which are currently not allowed.

H.B. 2024 by Representative Leach would reduce the statute of repose related to residential construction defect case to 8 years from the date of substantial completion, from the current 10 years.

H.B. 1963 by Representative Leach would amend the Construction Trust Fund Act to clarify that funds held in retainage are subject to the requirement of the Act and mandate an award of attorneys’ fees for any party who prevails against the trustee who is hold the funds and fails to make the required payments.

H.B. 2879 by Representative Oliverson would void venue requirements in a construction contracts as against public policy to the extent the contract attempts to establish venue in a place other than where the defendant resides, where the cause of action accrued or where the property is located.

H.B. 2928 by Representative Turner would make cross-default provisions in contracts voidable.  It would find that offsetting or withholding funds from a separate agreement for another claim does not comprise a “good faith” basis to refuse to pay a contractor, using language found in the Prompt Pay Act.

S.B. 27 by Senator Hughes would establish a specific court for business disputes in which the amount in controversy in specific types of business disputes of the amount in  controversy exceeds $10 million.  The court would have specially appointed judges who must have a background in business litigation.  The  seven proposed judges would be selected by Governor, subject to Senate approval, and be appointed to two year terms.  Judges would be re-appointed to additional terms.  In prior Legislative sessions, similar bills have failed to make it out of committee.

The attorneys in our Austin and Dallas office are monitoring these and other bills that may shape and influence construction transactions and disputes in Texas.  We welcome any questions you may have.  Please contact us at info@gstexlaw.com.

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