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 defined parameters, with some discretion in a Texas Supreme Court through its AdvisoryCommittee (SCAC) has been working on a proposed offer ofjudgment/settlement rule for the last year and a half, and hassubstantially completed its work.

36 Journal of Texas Consumer Law Texas Shifting Fee in Understanding the New Offer of Settlement Practice by Elaine A. Carlson* I. Introduction The Texas Legislature has adopted an Offer of

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