A Texas lawsuit reform effort on the verge of statehouse passage is focused on nuclear verdicts.
Trucking industry officials recently provided testimony to lawmakers about the bill touted to restore fairness and transparency to the state’s civil justice system.
House lawmakers voted 87-51 on Wednesday, May 28 to approve an amended version of the bill that addresses 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.” He added that “these monstrous verdicts drive up insurance costs for Texans and make it harder for businesses to effectively operate in Texas.”
Phantom damages
Inflated medical costs, or phantom damages, are the focus of the lawsuit reform bill.
SB30 specifies that those who sue in personal injury or wrongful death cases could submit only the amount actually paid for medical services, not the “sticker price.”
Supporters have said that jurors cannot fairly determine the value of medical care based on manufactured medical bills and a “one-sided presentation of evidence.”
Evidence that must be disclosed and/or produced by the parties and admitted into evidence at trial would also be established.
OOIDA shares concern on issue with lawmakers
At a recent House committee hearing, the Owner-Operator Independent Drivers Association said SB30 addressed abuse of the legal system.
OOIDA Board Member Danny Schnautz, president of Clark Freight Lines in Pasadena, Texas, explained to legislators that 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 state produced the fourth-most nuclear verdicts in the nation over a 10-year period. From 2013 to 2022, there were 130 verdicts in the Lone Star State that exceeded $10 million.
“These extreme awards are often the result of manipulated medical damages,” Schnautz explained to lawmakers.
He added that the potential of large verdicts only encourages more lawsuits “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,” Schnautz said.
Schnautz told Land Line that most people are not aware of the tactics and schemes used by attorneys, doctors and plaintiffs in lawsuits to manipulate the justice system.
“These bad actors poison the system in hopes of bringing improper verdicts and awards,” he said. “Most of the time, their fraud is successful. The burden this places on trucking companies, their insurance companies and the drivers is immense.”
Schnautz said he welcomes progress made at the statehouse to address lawsuit reform. He added that actions taken will hinder those who abuse the court system to benefit from truck crashes.
Others share similar sentiment
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 TXTA’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 lawsuit reform bill represents a major step toward restoring balance and predictability in the state’s legal environment.
#SB30 #txlege pic.twitter.com/N76S2mPVZ2
— Lone Star Economic Alliance (@lseatx) May 21, 2025
Noneconomic damages are no longer addressed in the bill.
Removed from SB30 was language described as bringing uniformity to courtrooms by defining noneconomic damages such as pain and suffering.
Sen. Charles Schwertner, R-Georgetown, said he included the provision in the bill because Texas law “lacks clear guidelines on how past and future medical damages should be determined by a jury.”
The original bill specified that awards for such damages could not be used to punish defendants, “make an example to others or serve a social good.”
The provision was recently removed to help secure House passage.
SB30 now heads back to the Senate for approval of changes. If approved, the lawsuit reform bill would head to the governor’s desk. Senate lawmakers could also request a conference with the House to hash out differences before sending the bill to the governor. LL
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