Lieutenant Governor of Texas, Dan Patrick, announced in a press release that Senate Bill 30 (SB 30) is designed to protect individuals and businesses from financially devastating jury awards, often driven by what are termed "nuclear verdicts."
"Nuclear verdicts have major financial consequences and can leave individuals and businesses in ruins," said Patrick. "I thank Sen. Schwertner for his leadership on this critical issue."
According to the Texas Capitol, SB 30 proposes reforms to civil litigation by limiting the recovery of past and future healthcare expenses to amounts actually paid or capped at 150% of market rates from the state’s claims database. It imposes stricter evidentiary and disclosure requirements on claimants, particularly concerning medical billing and referral relationships. Additionally, it tightens standards for non-economic and exemplary damages, requiring objective proof and unanimous jury findings to support such awards.
As per the Institute for Legal Reform (ILR), a "nuclear verdict" refers to a jury award exceeding $10 million, typically arising in personal injury or wrongful death lawsuits. These verdicts often encompass noneconomic damages (such as pain and suffering), economic damages (like medical expenses), and punitive damages intended to punish the defendant. The term underscores the substantial financial impact these awards can have on defendants, potentially threatening business viability and influencing broader economic factors.
Along with the issue of nuclear verdicts, Baker Botts found that third-party litigation funding (TPLF) is fueling a rise in potentially frivolous lawsuits by enabling plaintiffs, especially patent assertion entities, to pursue litigation without bearing financial risk, often backed by deep-pocketed investors. This model distorts the legal process by encouraging profit-driven lawsuits, undermining the integrity of the courts, and pressuring defendants into costly settlements regardless of claim merit. Courts and policymakers are increasingly against TPLF for its lack of transparency, foreign involvement, and potential conflicts of interest.
Patrick has served as the Lieutenant Governor of Texas since first being elected in 2014 and re-elected in 2018 and 2022. Before holding statewide office, he represented Harris County in the Texas Senate and spent over four decades in media as a conservative radio host and TV anchor. According to his official biography, Patrick is known for leading efforts on conservative legislation, delivering the largest property tax cut in Texas history.