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State and Local Government Law

Southern Methodist University

SMU Law Review Forum

Journal

2021

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The Texas Legislature Has Significantly Broadened The Statute Governing Recovery Of Attorney's Fees In Breach Of Contract Cases, Gregory Scott Crespi, West Menefee Bakke Aug 2021

The Texas Legislature Has Significantly Broadened The Statute Governing Recovery Of Attorney's Fees In Breach Of Contract Cases, Gregory Scott Crespi, West Menefee Bakke

SMU Law Review Forum

Texas recently enacted amendments that significantly expand the scope of section 38.001 of the Texas Civil Practice & Remedies Code, a statute that awards attorney’s fees to successful claimants in breach of contract cases. Under the new amendments, which take effect September 1, 2021, the prevailing party may recover reasonable attorney’s fees from most forms of business organizations, including partnerships and limited liability companies—not just from individuals and corporations, as the statute previously provided. And although there has been some confusion on this point, the amended statute continues to protect governments and governmental agencies from attorney’s fees liability. Additionally, the …