Requirements For Recovery

Sec. 2006.013. REQUIREMENTS FOR RECOVERY. (a) In an administrative adjudicatory proceeding or a civil action resulting from a complaint issued by a state agency against a small business under the agency's administrative or regulatory functions, the small business may be awarded reasonable attorney fees and court costs if: (1) it is a small business at the time it becomes a party to the proceeding or action; (2) it prevails in the proceeding or action; and (3) the proceeding or action was groundless and brought: (A) in bad faith; or (B) for purposes of harassment. (b) For purposes of this section, a small business prevails in a proceeding or action if there is not: (1) an adjudication, stipulation, or acceptance of liability; or (2) a determination of noncompliance, violation, infringement, deficiency, or breach on the part of the small business. (c) A small business may not recover under this subchapter if the parties have executed a settlement agreement that, while not stipulating liability or violation, requires the small business to take corrective action or pay a monetary sum. Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.