A Texas bill to restore fairness and transparency to the state’s civil justice system is nearing statehouse passage. The focus on lawsuit nuclear verdicts recently drew a crowd to the capitol, including trucking industry officials.
The House Judiciary and Civil Jurisprudence Committee voted Wednesday, May 21 to advance legislation that focuses on recovery of damages in civil actions. The bill is SB30.
Lt. Gov. Dan Patrick has identified inflated medical damage claims as one of his legislative priorities for change.
Patrick said that “nuclear verdicts have major financial consequences and can leave individuals and businesses in ruins.”
“These monstrous verdicts drive up insurance costs for Texans and make it harder for businesses to effectively operate in Texas.”
#SB30/HB 4806 aims to cut down on the frivolous lawsuits contributing to higher insurance rates by restoring transparency and fairness to Texas’s courts.
Watch the full #TLRTuesday Podcast Episode: https://t.co/yNE0UzvMW7. #txlege #StopLawsuitAbuse pic.twitter.com/hAW3pulYe1
— TLR (@lawsuitreform) May 21, 2025
Focus on nuclear verdicts
Described as a landmark tort reform bill, the bill is touted to bring uniformity to courtrooms by defining noneconomic damages such as pain and suffering.
Sen. Charles Schwertner, R-Georgetown, 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.
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,” Rep. Greg Bonnen, R-Friendswood, told the committee during a recent hearing on the bill.
OOIDA makes voice heard on issue
At the hearing, the Owner-Operator Independent Drivers Association and others said the bill addresses abuse of the legal system.
OOIDA Board Member Danny Schnautz, president of Clark Freight Lines in Pasadena, Texas, provided testimony for the hearing. He told committee members the 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.
The American Tort Reform Association has also highlighted a 2024 study that showed the Lone Star State produced the fourth-most nuclear verdicts in the nation between 2013 and 2022. During that time, 130 verdicts exceeded $10 million.
“These extreme awards are often the result of manipulated medical damages,” Schnautz wrote.
He said that the potential of large verdicts encourages more lawsuits, “not necessarily grounded in merit, but in the hope of securing a similar windfall.”
Another point made by Schnautz is 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,” he said.
Schnautz added that 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,” he noted.
Others share lawsuit concerns
The Texas Trucking Association told lawmakers that 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.”
The Lone Star Economic Alliance added that the bill represents a major step toward restoring balance and predictability in the state’s legal environment.
“The reforms included in SB30 would reduce the pressure to settle meritless claims and bring fairness and accountability back to the courtroom.”
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.
Texas Senate Republicans released a statement that nothing in the bill would keep Texans from receiving compensation if injured.
“Nor does the bill take away your right to file a lawsuit if you are injured,” a post on X reads. “Any claims otherwise are a lie.”
SB30 awaits further consideration in the House. If passed by the full chamber, the bill must return to the Senate for approval of changes before it can head to the governor’s desk. LL
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