Texas’ new ‘Loser Pays Law’: Employers score a win

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in Employment Law,Human Resources

by Dawn M. Knepper and F. Barham Lewis Jr., Esqs.

Texas employers have long been frustrated with the expense of defending against frivolous claims. Even when employers win a lawsuit, litigation can cost thousands in legal fees and lost productivity. Now at least some help is on the way.

The Texas Legislature has passed the much-hyped “Loser Pays Law,” which applies to all civil actions filed in Texas on or after Sept. 1, 2011.

The new law establishes for the first time that the losing party must pay the other side’s attorneys’ fees when motions to dismiss frivolous lawsuits are filed in civil actions.

A party may file a motion that a claim has “no basis in law or fact,” without having to provide evidence in support of the motion. Courts must rule on the motion within 45 days of filing. Whether the motion to dismiss is granted or denied in whole or in part, the prevailing party is entitled to their “costs and reasonable and n...(register to read more)

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