February 22, 2021 - The Senate Government Accountability and Fiscal Oversight Committee today approved SB 179, sponsored by Sen. Tony Luetkemeyer.
The bill would correct a loophole exploited by clever plaintiffs' attorneys when a defendant enters into an agreement with a plaintiff to cooperate with the plaintiff against the defendant's own insurance company.
In some of these "set up" situations, the defendant and the plaintiff enter into an arbitration agreement, settle on a large amount, then send the bill to the insurer. In others, the courts have held our previous reform legislation allows insurance companies to "participate" but not file motions or take other meaningful actions in the case. This bill would correct both situations.
The bill will now be considered by the full Senate.