Can the winner recover attorney's fees on this contract claim in Texas?
On a breach-of-contract claim, yes, subject to who the defendant is, to the chapter's presentment preconditions in § 38.002 (represented by an attorney; claim presented; just amount not tendered within 30 days), and to § 38.006, which takes insurer contracts under the named Insurance Code provisions out of the chapter altogether. A person may recover reasonable attorney's fees in addition to the amount of a valid claim and costs, from an individual or ORGANIZATION (other than a quasi-governmental entity authorized to perform a function by state law, a religious organization, a charitable organization, or a charitable trust) if the claim is for rendered services, performed labor, furnished material, freight or express overcharges, lost or damaged freight or express, killed or injured stock, a sworn account, or an oral or written contract. 'Organization' takes its meaning from § 1.002, Business Organizations Code.
The trap
The 2021 amendment cuts both ways and makes older authority unreliable in BOTH directions. It added 'organization' to the entities fees can be recovered from, and at the same time carved out quasi-governmental entities, religious and charitable organizations, and charitable trusts. So pre-2021 case law about which entity forms are amenable to a § 38.001 award can be stale either way. Second trap: this section creates a statutory claim-type right to fees. It is not the same question as whether a contractual prevailing-party clause is enforceable, which this rule does not reach.
6 authorities
- statuteTex. Civ. Prac. & Rem. Code § 38.001enacted 2021-09-01
The words that state the rule
(b) A person may recover reasonable attorney's fees from an individual or organization other than a quasi-governmental entity authorized to perform a function by state law, a religious organization, a charitable organization, or a charitable trust, in addition to the amount of a valid claim and costs, if the claim is for: (1) rendered services; (2) performed labor; (3) furnished material; (4) freight or express overcharges; (5) lost or damaged freight or express; (6) killed or injured stock; (7) a sworn account; or (8) an oral or written contract.
- statuteTex. Civ. Prac. & Rem. Code § 38.001enacted 2021-09-01
The words that state the rule
In this section, "organization" has the meaning assigned by Section 1.002 , Business Organizations Code.
- statuteTex. Civ. Prac. & Rem. Code § 38.001enacted 2021-09-01
The words that state the rule
Acts 1985, 69th Leg., ch. 959, Sec. 1, eff. Sept. 1, 1985. Amended by: Acts 2021, 87th Leg., R.S., Ch. 665 (H.B. 1578 ), Sec. 1, eff. September 1, 2021.
- statuteTex. Civ. Prac. & Rem. Code § 38.002enacted 1985-09-01
The words that state the rule
To recover attorney's fees under this chapter: (1) the claimant must be represented by an attorney; (2) the claimant must present the claim to the opposing party or to a duly authorized agent of the opposing party; and (3) payment for the just amount owed must not have been tendered before the expiration of the 30th day after the claim is presented.
- statuteTex. Civ. Prac. & Rem. Code § 38.006enacted 2005-09-01
The words that state the rule
This chapter does not apply to a contract issued by an insurer that is subject to the provisions of: (1) Title 11, Insurance Code; (2) Chapter 541 , Insurance Code; (3) the Unfair Claim Settlement Practices Act (Subchapter A , Chapter 542 , Insurance Code); or (4) Subchapter B , Chapter 542 , Insurance Code.
- caseNo. 05-22-01231-CV (Tex. App.—Dallas Feb. 2, 2024)House of Raeford Farms, Inc. v. Somma Food Group, LLCTex. App.—Dallasdecided 2024
The words that state the rule
The version of section 38.001 in force when SOMMA commenced this action provided that a “person” asserting a claim for breach of contract could recover “reasonable attorney’s fees from an individual or corporation.” The Legislature amended the statute in 2021 to include other forms of business organizations, but the amendment applies only to those actions initiated after the amendment became effective in September 2021.
“Defective” means that reading found something to correct. What you are reading is the rule as it stands after that reading.