Texas recently enacted a litigation reform bill, House Bill 274, which has the stated purpose of curbing frivolous lawsuits. The bill contains a provision that shifts litigation costs, in certain circumstances, to parties bringing such lawsuits. It also contains measures to encourage settlement, liberalize the use of interlocutory appeals to resolve questions of controlling law early in the litigation, and limit the designation of responsible third parties late in the litigation process.

H.B. 274 applies to most types of civil litigation, however, the potential impacts on environmental claims may be more pronounced, because environmental claims are sometimes...

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