A Refresher On Exceptions To The 'American Rule' In Texas

By David Salton, Porter Hedges LLP (May 5, 2017, 12:27 PM EDT) -- Deeply rooted in this country's jurisprudence is the "American Rule," which recognizes that parties to a lawsuit must bear their own litigation expenses. Texas entities and foreign entities doing business in Texas (or performing a contract governed by Texas law) should be aware that: (i) Texas generally follows the American Rule[1]; but (ii) the Texas legislature also departed from that rule when enacting §38.001(8) of the Texas Civil Practice and Remedies Code, which allows a party to recover attorneys' fees on valid contract claims.

Courts — including appellate courts in Texas — seem split on the extent to which a party...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Related Sections

Law Firms

Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!