Both houses of the Texas Legislature passed measures designed to reduce the number of multi-million-dollar verdicts in this state. However, neither measure got to the Governor’s desk because of wrangling between the two legislative houses.
The Senate version of the bill would have both limited the type of evidence allowed in tort cases and imposed caps on certain types of damages.
By amending the original bill, the House version scaled back many of the reforms the bill’s sponsor included when he proposed the bill in the Senate. Ultimately, the House and the Senate could not agree on a compromise measure.
Not surprisingly, while the measure was still in play, plaintiffs’ lawyers as a group pushed hard to defeat it.
On the other hand, more business-friendly groups decried the measure’s failure, claiming that frequently disproportionate verdicts are a symptom of an abuse in the justice system that is necessary for lawmakers to fix.
In 2024, Texas juries delivered 23 verdicts of at least $10 million. With this number, Texas had more verdicts over $10 million than any other state. The combined dollar value of these verdicts was around $3 billion, putting Texas among the top five states with respect to dollars awarded.
Texas businesses will need to shield themselves from mammoth awards
Even without the proposed reforms becoming law, businesses in the Dallas area still can do a lot to protect themselves from large jury awards.
On the front end, how a business conducts its affairs can go a long way at reducing liability risk. Business owners should pay attention to their legal rights and obligations at the crossroads of every significant decision, and they should also frequently check for areas in which their operations may be vulnerable to legal liability.
However, even the best prevention strategies cannot stop all claims and lawsuits. Any organization will also need to develop a strategy for making sure they defend themselves when it is threatened with litigation.