H.F. 2425 Section 1. NEW SECTION . 611.24 Costs —— attorney fees. 1 1. On the court’s granting or denial, in whole or in part, 2 of a motion to dismiss a cause of action that has no basis 3 in law or fact, the court shall award costs and reasonable 4 attorney fees to the prevailing party in the civil action. 5 2. This section does not apply to actions by or against the 6 state, other governmental entities, or public officials acting 7 in their official capacity or under color of law. 8 Sec. 2. NEW SECTION . 613.3 Designation of third parties —— 9 timely disclosure. 10 A defendant is prohibited from designating a person as a 11 responsible third party with respect to a plaintiff’s cause of 12 action after the applicable limitations period on the cause 13 of action has expired if the defendant has failed to timely 14 disclose that the person may be designated as a responsible 15 third party pursuant to rules of civil procedure 1.231 through 16 1.237. 17 Sec. 3. NEW SECTION . 624.12A Interlocutory appeal of order 18 involving controlling question of law. 19 1. On a party’s motion or on its own initiative, the 20 district court in a civil action, by written order, may permit 21 an appeal from an order that is not otherwise subject to appeal 22 if all of the following are met: 23 a. The order to be appealed involves a controlling question 24 of law upon which there is a substantial ground for difference 25 of opinion. 26 b. An immediate appeal from the order will materially 27 advance the ultimate termination of the litigation. 28 2. An appeal under this section does not stay proceedings in 29 the district court unless either of the following is met: 30 a. The parties agree to a stay. 31 b. The district court or appellate court orders a stay 32 of the proceedings pending appeal, regardless of whether the 33 parties agree to the stay. 34 3. The supreme court may accept an appeal permitted by 35 -1- LSB 5413HV (3) 84 rh/rj 1/ 6

H.F. 2425 this section if the appealing party files an application for 1 interlocutory appeal, explaining why an appeal is warranted 2 pursuant to subsection 1, within fifteen days after the date 3 the district court signs the order permitting the appeal. The 4 time period applicable to the filing of the notice of appeal 5 commences when the supreme court enters the order accepting the 6 appeal. 7 4. The supreme court shall prescribe rules providing for the 8 expediting of appeals pursuant to this section. 9 5. This section does not apply to an interlocutory appeal in 10 termination of parental rights or child in need of assistance 11 proceedings pursuant to chapter 232. 12 Sec. 4. NEW SECTION . 677.15 Offer requirements. 13 1. An offer to confess judgment made pursuant to this 14 chapter shall meet all of the following requirements: 15 a. Be in writing. 16 b. State that the offer is made pursuant to this chapter. 17 c. State the terms by which the claims may be settled. 18 d. State a deadline by which the offer must be accepted. 19 e. Be served on all parties to whom the settlement offer is 20 made. 21 2. A party is not required to file with the court an offer 22 to confess made pursuant to this chapter. 23 3. A party that makes an offer to confess that does not 24 comply with the requirements of this section shall not be 25 entitled to recover any costs pursuant to section 677.16. 26 Sec. 5. NEW SECTION . 677.16 Costs —— limitation. 27 1. For purposes of this chapter, “costs” means moneys 28 actually spent and obligations actually incurred that are 29 directly related to an action in which an offer is made, and 30 includes all of the following: 31 a. Court costs. 32 b. Reasonable deposition costs. 33 c. Reasonable fees for not more than two testifying expert 34 witnesses. 35 -2- LSB 5413HV (3) 84 rh/rj 2/ 6

H.F. 2425 d. Reasonable attorney fees. 1 2. Costs that may be awarded under this chapter shall not 2 be greater than the total amount that the plaintiff recovers 3 or would recover before adding an award of costs in favor of 4 the plaintiff or subtracting as an offset an award of costs in 5 favor of the defendant. 6 Sec. 6. REPEAL. Sections 677.2, 677.5, 677.10, and 677.13, 7 Code 2011, are repealed. 8 Sec. 7. MOTION TO DISMISS —— FAILURE TO STATE CLAIM —— 9 RULES. The supreme court shall prescribe rules to provide for 10 the dismissal of a civil action that has no basis in law or 11 fact on motion and without evidence. The rules shall provide 12 that the motion to dismiss shall be granted or denied within 13 forty-five days of the filing of the motion to dismiss. Such 14 rules shall not apply to termination of parental rights or 15 child in need of assistance proceedings pursuant to chapter 16 232. 17 Sec. 8. CIVIL JUSTICE REFORM TASK FORCE —— SUPREME COURT 18 REPORT. The supreme court, which established the civil justice 19 reform task force on December 18, 2009, to develop a plan for a 20 multi-option civil justice system, and to include proposals for 21 new court processes and improvements in current processes in 22 order to foster prompt, affordable, and high-quality resolution 23 of non-domestic civil cases, shall cause the task force to 24 submit a final report detailing its findings, conclusions, and 25 recommendations to the general assembly no later than July 1, 26 2012. 27 Sec. 9. APPLICABILITY. This Act applies to causes of 28 actions accrued on or after the effective date of this Act. 29 EXPLANATION 30 This bill relates to civil procedures, actions, and remedies 31 and includes an applicability provision. 32 MOTION TO DISMISS —— FAILURE TO STATE A CLAIM. 33 RULES. The bill provides that the supreme court shall 34 prescribe rules to provide for the dismissal of a civil 35 -3- LSB 5413HV (3) 84 rh/rj 3/ 6

H.F. 2425 action that has no basis in law or fact on motion and without 1 evidence. The rules shall provide that the motion to dismiss 2 shall be granted or denied within 45 days of the filing of the 3 motion to dismiss. Such rules shall not apply to termination 4 of parental rights or child in need of assistance proceedings 5 pursuant to Code chapter 232. 6 COSTS AND ATTORNEY FEES. The bill provides that upon the 7 court’s granting or denial, in whole or in part, of a motion to 8 dismiss a cause of action that has no basis in law or in fact, 9 the court shall award costs and reasonable attorney fees to the 10 prevailing party in a civil action. The bill does not apply to 11 actions by or against the state, other governmental entities, 12 or public officials acting in their official capacity or under 13 color of law. 14 DESIGNATION OF THIRD PARTIES IN CIVIL ACTION —— TIMELY 15 DISCLOSURE. The bill prohibits a defendant from designating 16 a person as a responsible third party with respect to a 17 plaintiff’s cause of action after the applicable limitations 18 period on the cause of action has expired if the defendant has 19 failed to timely disclose that the person may be designated as 20 a responsible third party pursuant to rules of civil procedure 21 1.231 through 1.237. 22 INTERLOCUTORY APPEAL OF ORDER INVOLVING CONTROLLING QUESTION 23 OF LAW. The bill provides that, on a party’s motion or on 24 its own initiative, the district court in a civil action, by 25 written order, may permit an appeal from an order that is 26 not otherwise subject to appeal if the order to be appealed 27 involves a controlling question of law upon which there is a 28 substantial ground for difference of opinion and an immediate 29 appeal from the order will materially advance the ultimate 30 termination of the litigation. Such an appeal does not stay 31 proceedings in the district court unless either the parties 32 agree to a stay or the district court or appellate court orders 33 a stay of the proceedings, regardless of whether the parties 34 agree to a stay. The appealing party must file an application 35 -4- LSB 5413HV (3) 84 rh/rj 4/ 6

H.F. 2425 for interlocutory appeal explaining why an appeal is warranted 1 within 15 days after the date the district court signs the 2 order permitting the appeal. The time period applicable to 3 the filing of the notice of appeal starts when the supreme 4 court enters the order accepting the appeal. The bill provides 5 that the supreme court shall prescribe rules which provide 6 for the expediting of appeals. The bill does not apply to an 7 interlocutory appeal in termination of parental rights or child 8 in need of assistance proceedings pursuant to Code chapter 232. 9 SETTLEMENT OFFERS. 10 REQUIREMENTS. The bill provides that an offer to confess 11 judgment made pursuant to Code chapter 677 (offer to confess 12 judgment) shall be in writing, state that the offer is made 13 pursuant to Code chapter 677, state the terms by which the 14 claims may be settled, state a deadline by which the offer 15 must be accepted, and be served on all parties to whom the 16 settlement offer is made. A party is not required to file with 17 the court an offer to confess made pursuant to the bill. A 18 party that makes an offer to confess that does not comply with 19 the requirements of the bill is not be entitled to recover any 20 costs. 21 COSTS. The bill defines “costs” to mean money actually spent 22 and obligations actually incurred that are directly related to 23 an action in which an offer is made, and includes court costs, 24 reasonable deposition costs, reasonable fees for not more 25 than two testifying expert witnesses, and reasonable attorney 26 fees. Costs that may be awarded shall not be greater than 27 the total amount that the plaintiff recovers or would recover 28 before adding an award of costs in favor of the plaintiff or 29 subtracting as an offset an award of costs in favor of the 30 defendant. The bill makes conforming repeals to Code sections 31 677.2, 677.5, 677.10, and 677.13 relating to costs awarded for 32 settlements based upon the time the settlement offer is made 33 and accepted in the civil action. 34 CIVIL JUSTICE REFORM TASK FORCE —— REPORT. The supreme 35 -5- LSB 5413HV (3) 84 rh/rj 5/ 6

H.F. 2425 court, which established the civil justice reform task force 1 on December 18, 2009, to develop a plan for a multi-option 2 civil justice system, and to include proposals for new court 3 processes and improvements, shall cause the task force to 4 submit a final report detailing its findings, conclusions, and 5 recommendations to the general assembly no later than July 1, 6 2012. 7 APPLICABILITY. The bill applies to causes of actions 8 accrued on or after the effective date of the bill. 9 -6- LSB 5413HV (3) 84 rh/rj 6/ 6