Public Announcements

DFW RIMS External Affairs Committee | October Update
Tracking Policy, Courts & Advocacy Shaping the Risk Landscape

The External Affairs Committee continues to track legislative discussions in the run-up to the 90th legislative session. As more information is received, we will continue to report to members on any new headlines. Here is a recap of what is going on in the political environment down in Austin.

🏛️ Texas Legislative & Regulatory Updates

On September 28, Liberty Mutual hosted its Impact Change Series—an ongoing virtual event bringing together risk management professionals and thought leaders to address legislative trends and legal system abuse reform. 

Legal experts provided audience updates on nationwide legislative reforms. Positive changes are occurring across the country, ranging from Kentucky adopting modified comparative negligence (SB 1985) to lower the risk of frivolous claims inflating carrier and buyer costs, to North Carolina enacting outright bans on third-party legal funding (HB 315). 

While momentum for tort reform is building nationally, the Texas landscape remains heavily politically driven and hinges on upcoming elections. With political control of the legislature and governor’s mansion potentially shifting, securing positive tort reform could become a steeper uphill battle. Furthermore, with the Speaker of the House position up for grabs in 2027, a pro-plaintiff candidate could significantly shape the future of Texas tort litigation. As conservatives aim to maintain Texas as the premier destination for economic utopia, any adverse policy shifts could introduce an anti-corporate stigma into the state’s political landscape. 

🏛️ Supreme Court & Appellate Decisions

In Esurance v. Flexsteel et al., the First District Court of Appeals in Texas dismissed an attempted appeal of a partial summary judgment order on jurisdictional grounds. The court reaffirmed that trial court orders disposing of fewer than all claims or defendants remain non-appealable interlocutory orders unless explicitly authorized by statute or rendered final through unequivocal language. 

For risk managers acting as corporate defendants in auto liability litigation, early motions should be prioritized during the litigation process rather than waiting until trial prep to seek dismissal. Early discovery should aggressively target the plaintiff’s evidence to test whether liability can be tied to the defendant. A lack of action could lead to catastrophic consequences for corporate defendants if they allow juries to determine their fate.

💥 Nuclear Verdicts - Texas

Nuclear verdicts have decreased sharply over the past few months, largely driven by summer vacation schedules and lighter dockets that are expected to ramp back up soon. As civil litigation activity resumes shortly, recent findings from a report issued by Marathon Strategies provide helpful context on the current litigation landscape: 

Thermonuclear Verdicts: For the second consecutive year, jury awards reaching or exceeding $100 million surpassed 40 cases, with 4 exceeding the $1 billion threshold. This underscores that nuclear verdicts continue to grow in frequency and severity across diverse industries and regions. 

State & Venue Trends: Texas now ranks among the top five states for nuclear verdicts, while Georgia led the nation with a reported $4.9 billion in total jury awards for 2025. Geographically, these verdicts are expanding across 28 states and 97 courts, indicating that traditional "safe haven" venues are becoming a distant memory of corporate defendant leverage.

Impact of Reform: Despite ranking in the top five with 20 nuclear verdicts handed down in 2025, Florida's aggressive tort reforms have shown measurable success in curbing these awards. Nationally, eight states enacted significant tort reform legislation—the highest level of legislative activity seen in two decades. While high-exposure litigation risks remain, this momentum offers hope for stabilizing courtroom exposure across the country. 

⚡ Data Center Risk & Implications

Texas has expanded its regulatory oversight of proposed data center developments. After directing ERCOT to audit projects seeking grid connections and requiring closer scrutiny of water usage, Governor Abbott directed the Texas Commission on Environmental Quality (TCEQ) on September 21 to pause issuing data center-related permits until ERCOT completes its review. Earlier directives also require data center developers to cover the electrical infrastructure costs needed to serve their facilities. 

ERCOT is gathering information from proposed data centers of 25 MW or larger regarding power and water demands, cooling technology, public incentives, community impact, and ownership structures. Responses are due October 12, and ERCOT plans to publish its report by December 10. The primary concerns for risk managers are potential delays to grid connection timelines, environmental permitting, and overall project completion. The state has not yet announced when the permit pause will be lifted. 

The External Affairs Committee will continue monitoring legislative activity, key judicial opinions, and regulatory developments affecting commercial risk profiles across Texas. As strategies for the upcoming legislative session take shape, we remain dedicated to keeping DFW RIMS members informed and equipped to navigate evolving market conditions. Please feel free to reach out with any questions or topics you would like highlighted in future editions. 

___________
Interested in getting involved?

The External Affairs Committee welcomes insurance professionals and attorneys who want to stay engaged in legislative, regulatory, and legal developments impacting the industry. Join us as we continue to monitor key issues and help shape meaningful dialogue across Texas.

Cory Mangum  
DFW RIMS External Affairs Committee Chair
[email protected]