Bill Expands Attorney Fees in Breach of Contract Suits
The House passed a bill that clarifies that plaintiffs in a breach of contract lawsuit can seek attorney fees from individuals and all types of business entities—not just corporations.
April 17, 2015 at 09:22 AM
3 minute read
The House voted 133-10 to pass a bill that clarifies that plaintiffs in a breach of contract lawsuit can seek attorney fees from individuals and all types of business entities—not just corporations.
House Bill 230 by Rep. Jessica Farrar, D-Houston, amends the attorney fee provision in Civil Practice & Remedies Code Section 38.001, which applies to breach of contract cases. Current law says that someone can recover fees from an individual or corporation. The bill would add “other legal entity” to the list. It also adds a provision that makes it clear that the law doesn't authorize fees from the governmental entities, but that someone still might recover those fees from the government under other statutes.
When presenting her bill to the House Judiciary & Civil Jurisprudence Committee on March 10, Farrar noted that Houston's 14th Court of Appeals recently found that CPRC §38.001 did not apply to a plaintiff seeking to recover fees from a partnership.
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