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.