Contract clauses forcing suits outside Texas are void.
The bill voids any clause in a Texas construction or real-property-improvement contract that forces a lawsuit involving a Texas-resident contractor, subcontractor, or materials supplier to be filed outside Texas. When such a clause is voided, the case must be filed in a Texas county where the defendant lives, where the claim arose, or where the property sits, unless the parties agree on a different venue after the dispute starts. It covers contracts signed on or after September 1, 2025, so Texas builders and suppliers can no longer be pushed into out-of-state courts by contract fine print.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R HB 2879 by Rep. Oliverson (Vetoed) and this bill (Did not pass). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 2879 by Rep. Oliverson (Vetoed). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.STALLED AFTER COMMITTEE. Voted out of the Senate Jurisprudence committee 5-0 on Apr 9, 2025. Never placed on a calendar. The bill died.
relating to venue in certain actions involving a contract for an
improvement to real property.
WHAT IT DOES
Contract clauses forcing suits outside Texas are void.
The bill voids any clause in a Texas construction or real-property-improvement contract that forces a lawsuit involving a Texas-resident contractor, subcontractor, or materials supplier to be filed outside Texas. When such a clause is voided, the case must be filed in a Texas county where the defendant lives, where the claim arose, or where the property sits, unless the parties agree on a different venue after the dispute starts. It covers contracts signed on or after September 1, 2025, so Texas builders and suppliers can no longer be pushed into out-of-state courts by contract fine print.
CHARGES
[ ] NONE FOUND
TOTAL
No significant fiscal implication to the State is anticipated.
89R5447 MZM-F
By: Bettencourt
S.B. No. 1975
A BILL TO BE ENTITLED
AN ACT
relating to venue in certain actions involving a contract for an
improvement to real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 15, Civil Practice and
Remedies Code, is amended by adding Section 15.021 to read as
follows:
Sec. 15.021. CONTRACTS FOR IMPROVEMENTS TO REAL PROPERTY.
(a) A venue provision in a contract for an improvement to real
property located in this state that requires an action involving a
contractor, subcontractor, or materialman who is a resident of this
state to be brought outside this state is void as a matter of public
policy.
(b) To the extent that a venue provision in a contract is
void under this section, unless the parties stipulate to another
venue after the dispute arises, an action arising out of the
contract shall be brought only in this state in the county in which:
(1) the defendant resides;
(2) the cause of action accrued; or
(3) the property that is the subject of the litigation
is located.
SECTION 2. The change in law made by this Act applies only
to a contract entered into on or after the effective date of this
Act.
SECTION 3. This Act takes effect September 1, 2025.