How does a settlement offer affect a Texas DTPA claim?

    Direct Answer

    Settlement offers have significant effects on Texas DTPA claims. If a defendant makes a written settlement offer during the 60-day pre-suit notice period and the consumer rejects it, the consumer's damages may be limited if they recover less at trial than the offer. A reasonable settlement offer that is rejected can reduce or eliminate the consumer's recovery of enhanced damages and attorney's fees.

    Rule Under Texas Law

    • Tex. Bus. & Com. Code § 17.5052 governs settlement offers and their effects.
    • A defendant may make a settlement offer within 60 days of receiving the pre-suit notice.
    • If the consumer rejects the offer and recovers less at trial, recovery may be limited.
    • The offer must be in writing and include specific amounts for each type of damages.

    What You Must Prove

    • The defendant made a written settlement offer.
    • The offer was made within the required timeframe.
    • The consumer rejected the offer.
    • The consumer recovered the same or less at trial than the rejected offer.

    Common Defenses

    • The consumer rejected a reasonable settlement offer and recovered less at trial.
    • The settlement offer was reasonable and made in good faith.
    • The consumer's rejection of the offer limits their fee recovery.

    Deadlines and Notice

    • Settlement offer must be made within 60 days of receiving pre-suit notice.
    • The consumer must respond to the offer before the deadline expires.
    • Failure to respond to an offer may be treated as rejection.

    Related Texas DTPA Pages

    Is pre-suit notice required?Can attorney's fees be recovered?What damages are available?What steps should a consumer take before filing?What are common defenses?When can a consumer recover treble damages?

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