Fee Shifting Texas - UHLC

Journal of Texas Consumer Law36 TexasShiftingFeeinUnderstandingthe New Offerof SettlementPracticeby Elaine A. Carlson*I. IntroductionThe Texas Legislaturehas adopted an Offer ofSettlement statute as a part ofHouse Bill 4 (and as newChapter 42 of the Civil Practicesand Remedies Code) that willsignificantly affect settlementstrategies and potentially the ultimatejudgment rendered in Texas civil provides for Shifting of certain litigation costs when an offer to settleis rejected and the ultimate judgment isless favorable to the offeree, by a 20percent margin. (See Appendix A, HB4 Offer of Settlement StatutoryProvisions) The litigation expenses to be shifted and imposedon the party who unreasonably rejected an offer (eventhough they may win the case), include post-rejection costs,reasonable attorney s fees, and fees for two expert directs the Texas Supreme Court to adopt rules of civilprocedure implementing this new fee Shifting mechanismwithin

38 Journal of Texas Consumer Law fees. After reviewing congressional history, as well as the Civil Justice Reform Act of 1990, the Fifth Circuit found that there was no congressional

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