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Texas Governor Rick Perry Signs “Loser Pays” Bill

Texas Governor Rick Perry will sign the “loser pays” bill Wednesday. The measure, which will go into effect Sept. 1, will levy fees on unsuccessful plaintiffs and allowing meritless suits to be dismissed early in the process.

According to a July 27 CBS Local story on the subject, titled “Perry Signs ‘Loser Pays’ Bill Into Law” :

Perry made the measure a top priority for the Legislature, saying Texas needs to crack down on junk lawsuits.

Some plaintiffs who sue and lose will be required to pay the court costs and attorney fees of those they are suing.

Trial lawyer groups and the AFL-CIO opposed the measure, arguing it would give corporations the upper hand in lawsuits and prevent individuals with legitimate claims from filing suit.