TLR Weekly News Roundup: April 2, 2025

April 2, 2025

Witnesses Reveal Widespread and Systemic Lawsuit Abuse in Marathon Texas Senate Hearing (Protecting American Consumers Together)

What happened: On March 31, the Senate State Affairs Committee held a hearing on SB 30, Sen. Charles Schwertner’s lawsuit abuse reform bill. The all-day hearing, which lasted past midnight, included testimony from witness after witness who shared their personal stories and firsthand experiences of lawsuit abuse in Texas, underscoring the dire need for reform in the state.

Witnesses Reveal Widespread and Systemic Lawsuit Abuse in Marathon Texas Senate Hearing (Protecting American Consumers Together)

By the numbers: According to an August 2023 LexisNexis survey of personal injury victims, 71% of respondents reported their attorney encouraged them to seek additional treatment, and 25% said their attorney was primarily responsible for setting their medical treatment. Almost half of respondents said their attorneys were involved in selecting doctors’ offices and determining specialists they saw.

In his words: “If [lawsuit abuse] does not stop, the Texas Miracle will stop.” – Lee Parsley, President and General Counsel, Texans for Lawsuit Reform

TLR Thoughts: Members of the Lone Star Economic Alliance showed up in force at the March 31 Senate State Affairs Committee hearing to support SB 30, which would restore transparency and fairness to Texas’s courts. Notably, SB 30 includes reforms that will (1) encourage doctors to treat accident victims; (2) stop the manipulation and inflation of medical damages; and (3) educate jurors on noneconomic damages by providing clear standards and definitions.

The Last Piece of the ‘Texas Miracle’ (The Dallas Morning News)

What happened: Texas has a chance to complete the triple crown of its pro-business legal environment. That’s why the Texas Legislature is advancing SB 29 by Sen. Bryan Hughes – legislation that will “ensure Texas businesses are protected from frivolous attacks by profit-seeking activists” and that will “guarantee company leaders can make decisions based on the best interests of the company’s stakeholders rather than outsiders.” Read more

Tell me more: SB 29 codifies a long-standing concept in corporate common law called the “business judgment rule,” ensuring corporate directors cannot be sued for decisions made in good faith, even if the outcome is unfavorable. It also establishes stricter requirements for shareholder lawsuits, preventing opportunistic legal attacks that could disrupt businesses.

The bill has passed out of the Senate State Affairs Committee and is headed to the Senate floor.

Why it matters: A stable and predictable legal framework attracts businesses, fuels economic and job growth and enhances Texas as a state of opportunity.

By codifying corporate protections against needless and disruptive litigation, SB 29 would ensure that companies can focus on innovation and expansion rather than legal battles – helping establish Texas the leading state for incorporations.

TLR Thoughts: TLR has long advocated for policies that protect businesses from abusive litigation while ensuring fairness in the legal system. TLR-backed SB 29 – and its House companion HB 15 by Rep. Morgan Meyer – are a crucial step in strengthening Texas’ pro-business legal environment, giving companies the certainty they need to grow and create jobs.

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TLR's mission is to foster freedom, innovation and job creation by advocating for a fair, efficient and predictable civil justice system staffed by competent and independent judges who apply the constitution and laws as written.