• Turning the Tables on Attorneys' Fees: Offers of Settlement Under Rule 167
  • September 7, 2006 | Authors: Jennifer Barrett Poppe; Christopher V. Popov
  • Law Firm: Vinson & Elkins LLP - Austin Office
  • Litigation costs have an undeniable effect on trial strategy and settlement dynamics. For better or worse, American common law requires parties to bear their own litigation costs regardless of the outcome of the case -- a phenomenon that gives settlement value to even the most frivolous lawsuits. Rule 167 of the Texas Rules of Civil Procedure, however, allows parties to shift this burden and recover their litigation costs where the opposing party rejects a settlement offer that is significantly more favorable than the ultimate judgment. This article discusses the mechanics and strategic implications of invoking this relatively new rule as a tool for optimizing your party's litigation posture and settlement leverage.