AI-assisted research summary: This section limits what can be paid as actual damages under the manufactured homeowner consumer claims program, and gives the director and board rule-making and review powers.
Sec. 1201.405. LIMITATIONS ON CLAIMS. (a) The payment of actual damages is limited to the lesser of: (1) the amount of actual, reasonable costs, not including attorney's fees, that the consumer has incurred or will incur to resolve the act or omission found to be a violation under Section 1201.404; or (2) $35,000. (b) Repealed by Acts 2009, 81st Leg., R.S., Ch. 77, Sec. 15(3), eff. September 1, 2009. (c) Under the manufactured homeowner consumer claims program, the department is not liable for and the director may not pay: (1) punitive, exemplary, double, or treble damages; or (2) damages for pain and suffering, mental anguish, emotional distress, or other analogous tort claims. (d) Notwithstanding other provisions of this subchapter, this subchapter does not apply to, and a consumer may not recover through the manufactured homeowner consumer claims program as a result of, a claim against a license holder that results from a cause of action directly related to the sale, exchange, brokerage, or installation of a manufactured home before September 1, 1987. (e) In determining the amount of actual damages under this section, the director shall make an independent inquiry as to the damages actually incurred, unless the damages have been previously established through a contested trial. (f) Under the manufactured homeowner consumer claims program, the department is not liable for and the director may not pay: (1) actual damages to reimburse an affiliate or related person of a licensee, except when the director issues an order under Sections 1201.358(b) and (c); (2) actual damages to correct matters that are solely cosmetic in nature; (3) for attorney's fees; or (4) actual damages to address other matters, unless the matters involve: (A) a breach of warranty; (B) a failure to return or apply as agreed money received from a consumer or money for which the consumer was obligated; (C) the breach of an agreement to provide goods or services necessary to the safe and habitable use of a manufactured home such as steps, air conditioning, access to utilities, or access to sewage and wastewater treatment; or (D) perfected and enforceable tax liens not extinguished and canceled in accordance with Section 32.015, Tax Code. (g) The board by rule may place reasonable limits on the costs that may be approved for payment under the manufactured homeowner consumer claims program, including the costs of reassigned warranty work, and require consumers making claims that may be subject to reimbursement under the manufactured homeowner consumer claims program to provide estimates establishing that the cost will be reasonable. Such rules may also specify such procedures and requirements as the board may deem necessary and advisable for the administration of the manufactured homeowner consumer claims program. Added by Acts 2001, 77th Leg., ch. 1421, Sec. 2, eff. June 1, 2003. Amended by: Acts 2005, 79th Leg., Ch. 1284 (H.B. 2438), Sec. 23, eff. June 18, 2005. Acts 2007, 80th Leg., R.S., Ch. 863 (H.B. 1460), Sec. 48, eff. January 1, 2008. Acts 2009, 81st Leg., R.S., Ch. 77 (H.B. 2238), Sec. 15(3), eff. September 1, 2009. Acts 2013, 83rd Leg., R.S., Ch. 530 (S.B. 499), Sec. 1, eff. September 1, 2013. Acts 2017, 85th Leg., R.S., Ch. 408 (H.B. 2019), Sec. 54, eff. September 1, 2017.