In 1973, Texas passed the Deceptive Trade Practices Act, more commonly known as the DTPA, to protect consumers against false, misleading, and deceptive business practices; unconscionable actions; and breaches of warranty. In practice, claims under the DTPA are widely coupled with claims for breach of contract and fraud.
Typically, consumers only recover actual damages they have incurred, not including attorney’s fees. A consumer can only recover attorney’s fees if such fees are allowed by contract or by statute. Without the possibility of recovery of attorney’s fees, most consumers are reluctant to bring suit to remedy wrongdoings against them.
The DTPA, however, provides an economical approach for consumers to bring lawsuits against those that engage in deceptive trade practices. Under the DTPA, consumers can recover economic damages, damages for mental anguish, and attorney’s fees. Moreover, consumers could potentially recover up to three times the economic damages and mental anguish suffered by the consumer if the merchant acted knowingly and/or intentionally.
These types of relief are especially pivotal in cases where the loss is insignificant in comparison to the attorney’s fees. For instance, if a merchant sells a consumer a lawnmower for $100.00 as a new item when it is, in fact, used, the typical consumer would hesitate to spend thousands of dollars to vindicate the wrongdoing and recover $100.00. However, under the DTPA, it becomes practical for a consumer to bring suit because the merchant is required to pay for attorney’s fees if the consumer is successful in bringing a lawsuit.
Due to the extensive liabilities a merchant can face under the DTPA, merchants are encouraged to settle cases. This pressure does not apply solely to merchants under the DTPA. Consumers are also encouraged to settle cases because those who do not accept a merchant’s settlement offer can expect to pay the merchant’s attorney’s fees. In these cases, the merchant can obtain attorney’s fees from the time the settlement offer was made if the consumer obtains a substantially similar or less award at trial.
For more information about how our firm can help you and your case, contact us at 832.594.9771 or fill out a case information form.
Typically, consumers only recover actual damages they have incurred, not including attorney’s fees. A consumer can only recover attorney’s fees if such fees are allowed by contract or by statute. Without the possibility of recovery of attorney’s fees, most consumers are reluctant to bring suit to remedy wrongdoings against them.
The DTPA, however, provides an economical approach for consumers to bring lawsuits against those that engage in deceptive trade practices. Under the DTPA, consumers can recover economic damages, damages for mental anguish, and attorney’s fees. Moreover, consumers could potentially recover up to three times the economic damages and mental anguish suffered by the consumer if the merchant acted knowingly and/or intentionally.
These types of relief are especially pivotal in cases where the loss is insignificant in comparison to the attorney’s fees. For instance, if a merchant sells a consumer a lawnmower for $100.00 as a new item when it is, in fact, used, the typical consumer would hesitate to spend thousands of dollars to vindicate the wrongdoing and recover $100.00. However, under the DTPA, it becomes practical for a consumer to bring suit because the merchant is required to pay for attorney’s fees if the consumer is successful in bringing a lawsuit.
Due to the extensive liabilities a merchant can face under the DTPA, merchants are encouraged to settle cases. This pressure does not apply solely to merchants under the DTPA. Consumers are also encouraged to settle cases because those who do not accept a merchant’s settlement offer can expect to pay the merchant’s attorney’s fees. In these cases, the merchant can obtain attorney’s fees from the time the settlement offer was made if the consumer obtains a substantially similar or less award at trial.
For more information about how our firm can help you and your case, contact us at 832.594.9771 or fill out a case information form.