A Texas license holder receives a 60-day DTPA demand letter from a buyer. The license holder's attorney responds within 60 days with a written settlement offer that includes a full repair of the defect and $10,000 in damages. The buyer rejects the offer and proceeds to trial, where the jury awards $8,000 in actual damages. Under the DTPA, what is the effect of the rejected settlement offer on the buyer's recovery?
Correct Answer
A) The buyer recovers the $8,000 but cannot recover attorney's fees because the rejected offer exceeded the jury award
Under Texas Business & Commerce Code §17.5052(d), if the defendant's settlement offer is substantially the same or more favorable than the consumer's actual recovery at trial, the consumer may not recover attorney's fees for time spent after the settlement offer was rejected. Since the offer of $10,000 exceeded the $8,000 jury award, the buyer's attorney's fees are limited to those incurred before the offer was rejected.
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Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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Previous Question
A homebuyer in Waco files a DTPA complaint against a seller. The statute of limitations for DTPA claims in Texas requires the action to be filed within which timeframe?
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A Texas homeowner hires a contractor to remodel a kitchen. The contractor uses substandard materials but charges premium prices. The homeowner sues under the DTPA. The contractor argues that since the dispute involves construction, the Texas Residential Construction Liability Act (RCLA) applies instead of the DTPA. Under Texas law, what is the relationship between these two statutes?