Texas Governor Hails Frivolous Lawsuit Law as Employer-Friendly

Texas Gov. Rick Perry has signed into law a tort reform measure that institutes a “loser-pays” provision in lawsuits deemed to be frivolous.

The measure also allows a trial court to dismiss a lawsuit immediately if the case is not based in law or fact. In addition, it allows plaintiffs seeking less than $100,000 to seek an expedited civil action.

The new law “provides defendants and judges with a variety of tools that will cut down on frivolous claims in Texas,” Perry said in a written statement issued after he signed the measure into law this week.

“This important legislation will help make Texas that much more attractive to employers seeking to expand or relocate from countries all over the world by allowing them to spend less time in court and more time creating jobs,” the governor said.

Enactment of the law was the latest in series of tort reforms the Texas Legislature has approved in the past decade.  

Filed by Mark A. Hofmann of Business Insurance, a sister publication of Workforce Management. To comment, email editors@workforce.com.

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.