Tex. Codes » Insurance Code · TITLE 5. PROTECTION OF CONSUMER INTERESTS · SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES · CHAPTER 541. UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE ACTS OR PRACTICES
Texas Codes

Tex. Ins. Code § 541.159 (2026)

Limit On Recovery After Settlement Offer

✓ current as of May 2026
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Sec. 541.159. LIMIT ON RECOVERY AFTER SETTLEMENT OFFER. (a) If the court finds that the amount stated in the settlement offer for damages under Section 541.157(1) is the same as, substantially the same as, or more than the amount of damages found by the trier of fact, the claimant may not recover as damages any amount in excess of the lesser of:

(1) the amount of damages stated in the offer; or

(2) the amount of damages found by the trier of fact.

(b) If the court makes the finding described by Subsection (a), the court shall determine reasonable and necessary attorney's fees to compensate the claimant for attorney's fees incurred before the date and time the rejected settlement offer was made. If the court finds that the amount stated in the offer for attorney's fees under Section 541.157(2) is the same as, substantially the same as, or more than the amount of reasonable and necessary attorney's fees incurred by the claimant as of the date of the offer, the claimant may not recover any amount of attorney's fees in excess of the amount of fees stated in the offer.

(c) This section does not apply if the court finds that the offering party:

(1) could not perform the offer at the time the offer was made; or

(2) substantially misrepresented the cash value of the offer.

(d) The court shall award:

(1) damages as required by Section 541.152 if Subsection (a) does not apply; and

(2) attorney's fees as required by Section 541.152 if Subsection (b) does not apply.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

Notes of Decisions
Cited in 4 cases, 2016–2020 · leading case: United Servs. Auto. Ass'n v. Joseph Hayes, Jr & Joanne Hayes, 507 S.W.3d 263 (Tex. App. 2016).
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United Servs. Auto. Ass'n v. Joseph Hayes, Jr & Joanne Hayes, 507 S.W.3d 263 (Tex. App. 2016). · cites it 4× “” The Hayeses then filed a Motion 4 See TEX. INS. CODE ANN. § 541.159 (Vernon 2009).”
Dennis Webb v. State Farm Lloyds (Tex. 2017). · cites it 5× “14 TEX. INS. CODE § 541.159(a) .............”
United Servs. Auto. Ass'n v. Joseph Hayes, Jr & Joanne Hayes (Tex. App. 2016). “See TEX. INS. CODE § 541.159 (describing circumstances in which claimant’s rejection of settlement offer may operate to cap recovery).”
Lawrence E. Meyers, as Manager of the Ramon Burstyn Irrevocable Trust v. 8007 Burnet Holdings, LLC John Reese Nelson Magen Bullock Nelson Antonio Calvo J.M.N. Enter., LLC & 8007 Burnet Road, Austin, Texas, in Rem (Tex. App. 2020). “”); TEX.INS.CODE ANN. § 541.159 (for offer of settlement determination, “the court shall determine reasonable and necessary attorney's fees to compensate the claimant for attorney's fees incurred before the date and time the rejected settlement offer was made.”
— Tex. Ins. Code § 541.159(a) — 1 case
Dennis Webb v. State Farm Lloyds (Tex. 2017). “14 TEX. INS. CODE § 541.159(a) .............”
— Tex. Ins. Code § 541.159(b) — 1 case
Dennis Webb v. State Farm Lloyds (Tex. 2017). “14 TEX. INS. CODE § 541.159(a) .............”
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