LLCs Not Subject To Texas Attorney Fee Statute ... For Now

Law360, New York (May 15, 2015, 10:12 AM EDT) -- In a matter of first impression, the United States District Court for the Northern District of Texas recently held that Section 38.001 of the Texas Civil Practice and Remedies Code — the statutory provision allowing a plaintiff to recover reasonable and necessary attorneys' fees incurred in a successful action for breach of contract — does not apply to suits against limited liability companies. This ruling makes clear that Section 38.001 authorizes the award of attorneys' fees against only a single form of business entity — the corporation.

Change may be on the horizon, however, as the Texas Legislature considers a bill...

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