What Is a Rule 167 / CPRC Chapter 42 'Offer of Settlement' in Texas Civil Litigation?
Direct Answer Under Texas Law
Under Texas Civil Practice and Remedies Code Chapter 42 and Texas Rule of Civil Procedure 167, a defendant can file a formal declaration invoking Chapter 42 (no later than 45 days before trial) and make a formal written settlement offer. If the plaintiff rejects the offer and the final judgment awarded at trial is significantly less favorable—specifically, LESS than 80% of the rejected offer (or if the defendant rejects a plaintiff's counter-offer and the verdict is MORE than 120% of the plaintiff's offer)—the rejecting party must pay the offering party's post-rejection litigation costs (attorney's fees, up to two experts, and court costs, capped by the statutory formula in § 42.004(d))!
Critical Texas Procedural Trap to Watch Out For
Once a defendant invokes Rule 167, it is a TWO-WAY street: the plaintiff can immediately serve a Rule 167 Counter-Offer, putting the defense at risk of paying the plaintiff's attorney's fees if the jury verdict beats 120% of the plaintiff's offer!
Recommended Action Plan for Texas Claimants
Whenever defense counsel files a Rule 167 declaration, respond with a strategic, well-calibrated Rule 167 Plaintiff's Settlement Offer to flip the fee-shifting pressure back onto the defense.
Detailed Texas Statutory & Case Law Breakdown
Under Tex. Civ. Prac. & Rem. Code §§ 42.001–42.005; Tex. R. Civ. P. 167 and controlling Texas appellate precedent in 80% / 120% Litigation Costs Fee-Shifting Threshold (TRCP 167.4), Texas trial and appellate courts apply strict statutory rules to this exact issue. Unlike generic multi-state legal summaries, Texas tort procedure under the Civil Practice and Remedies Code (CPRC), Insurance Code, Transportation Code, and Labor Code enforces specific statutory formulas—including the 51% proportionate responsibility bar (CPRC § 33.001), paid-or-incurred medical expense admissibility (CPRC § 41.0105 / Haygood), and mandatory statutory lien caps (Prop. Code Ch. 55 & Ins. Code Ch. 140).
Step-by-Step Texas Procedural Checklist
- Verify the exact statutory text of Tex. Civ. Prac. & Rem. Code §§ 42.001–42.005; Tex. R. Civ. P. 167 and how Texas courts apply 80% / 120% Litigation Costs Fee-Shifting Threshold (TRCP 167.4) in your county's appellate district.
- Beware of the Texas Procedural Trap: Once a defendant invokes Rule 167, it is a TWO-WAY street: the plaintiff can immediately serve a Rule 167 Counter-Offer, putting the defense at risk of paying the plaintiff's attorney's fees if the jury verdict beats 120% of the plaintiff's offer!
- Execute the Texas Action Plan: Whenever defense counsel files a Rule 167 declaration, respond with a strategic, well-calibrated Rule 167 Plaintiff's Settlement Offer to flip the fee-shifting pressure back onto the defense.
- Preserve all physical, electronic, and medical billing records early so your CPRC § 18.001 affidavits and TRCP 194.2 Initial Disclosures are complete.
Frequently Asked Questions Under Texas Law
What Is a Rule 167 / CPRC Chapter 42 'Offer of Settlement' in Texas Civil Litigation?
Under Texas Civil Practice and Remedies Code Chapter 42 and Texas Rule of Civil Procedure 167, a defendant can file a formal declaration invoking Chapter 42 (no later than 45 days before trial) and make a formal written settlement offer. If the plaintiff rejects the offer and the final judgment awarded at trial is significantly less favorable—specifically, LESS than 80% of the rejected offer (or if the defendant rejects a plaintiff's counter-offer and the verdict is MORE than 120% of the plaintiff's offer)—the rejecting party must pay the offering party's post-rejection litigation costs (attorney's fees, up to two experts, and court costs, capped by the statutory formula in § 42.004(d))! Key Texas Trap to Avoid: Once a defendant invokes Rule 167, it is a TWO-WAY street: the plaintiff can immediately serve a Rule 167 Counter-Offer, putting the defense at risk of paying the plaintiff's attorney's fees if the jury verdict beats 120% of the plaintiff's offer!
What Texas statute and Supreme Court / appellate precedent control texas rule 167 offers of settlement (ch. 42)?
This question is governed in Texas by Tex. Civ. Prac. & Rem. Code §§ 42.001–42.005; Tex. R. Civ. P. 167 and the legal standards articulated in 80% / 120% Litigation Costs Fee-Shifting Threshold (TRCP 167.4). Recommended step: Whenever defense counsel files a Rule 167 declaration, respond with a strategic, well-calibrated Rule 167 Plaintiff's Settlement Offer to flip the fee-shifting pressure back onto the defense.
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