OOIDA, others call on Texas lawmakers to curb lawsuit abuse
Pursuit to restore fairness and transparency to the Texas civil justice system continues at the statehouse. The focus on lawsuit nuclear verdicts drew a crowd to the capitol this week, including representatives from the trucking industry.
The House Judiciary and Civil Jurisprudence Committee met Wednesday, May 7, to receive testimony on legislation that focuses on recovery of damages in civil actions.
The issue of inflated medical damage claims was identified by Lt. Gov. Dan Patrick early this year as one of his legislative priorities for change.
“Nuclear verdicts have major financial consequences and can leave individuals and businesses in ruins,” Patrick said in written remarks. “These monstrous verdicts drive up insurance costs for Texans and make it harder for businesses to effectively operate in Texas.”
My Statement on the Passage of Senate Bill 30 – Curbing Nuclear Verdicts:https://t.co/uanxcszbhe#txlege pic.twitter.com/4QwSGTtsUI
— Office of the Lieutenant Governor Dan Patrick (@LtGovTX) April 16, 2025
Nuclear verdicts
Sen. Charles Schwertner, R-Georgetown, and Rep. Greg Bonnen, R-Friendswood, are behind the tort reform effort.
Schwertner said in a bill analysis that successful plaintiffs in tort cases are entitled to recover both economic and noneconomic damages deemed just and fair by a jury. He added, however, that current state law lacks clear guidelines on how past and future medical damages should be determined by a jury.
To address the problem, HB4806 and SB30 are described as bringing uniformity to courtrooms by defining noneconomic damages such as pain and suffering.
Additionally, awards for such damages could not be used to punish defendants, “make an example to others or serve a social good.”
“Juries deserve to have the full picture in front of them when they are deciding on how to rule, and courtrooms should have a degree of uniformity in how personal injury lawsuits are tried,” Bonnen told the committee.
The nearly three-hour hearing included testimony from bill supporters and opponents.
Supporters, including the Owner-Operator Independent Drivers Association, said the bill addresses abuse of the legal system.
OOIDA Board Member Danny Schnautz, president of Clark Freight Lines in Pasadena, Texas, told the committee that the Lone Star State is headed in the wrong direction with nuclear verdicts.
In 2023, Schnautz pointed out that six of the top 10 verdicts in the country were handed down in Texas. The outcomes totaled more than $200 million.
“These extreme awards are often the result of manipulated medical damages,” Schnautz said in submitted testimony.
He added that the potential of large verdicts encourages more lawsuits, “not necessarily grounded in merit but in the hope of securing a similar windfall.”
Schnautz also highlighted the effect the issue has on consumers.
“Nuclear verdicts lead to inflated insurance premiums and legal costs. Companies may pass these costs onto consumers, affecting prices and market competitiveness. Companies facing excessive liability might resort to cost-cutting measures, including layoffs. This creates ripple effects in local economies, contributing to unemployment and economic instability.”
The Texas Trucking Association said small businesses are closing their doors daily due to the lawsuit abuse.
“Trial attorneys and doctors are working with one another to drive up the cost, often charging their clients 10 times more than they would charge any other patient,” stated TTA’s John Craddock. “We believe we should pay our fair share, but 10 times the cost is nothing more than fraud.”
Critics have said placing a cap on damages could strip juries of their authority. They’ve also contended the legislation would diminish compensation for victims of catastrophic injuries.
Criticism countered
In addition to Bonnen and Schwertner, Sen. Louis Kolkhorst, R-Brenham, has addressed criticisms of the reform effort.
Specifically, she said the legislation “does not cap any damages, does not set medical billing rates and does not prevent a plaintiff from recovering the full measure of compensatory damages if an employee’s negligence injured a plaintiff.”
Kolkhorst added that a plaintiff would not be prevented from recovering punitive damages for an employer or his or her employee whose gross negligence caused the injury. “It merely provides transparency to the information submitted during the trial.”
HB4806 was left pending in the committee. The companion, SB30, also resides in the committee. Senate lawmakers already approved the bill. LL