A lot of my friends have asked me about the new “loser pays” law and how I expect it to affect litigation in Texas. For years, Texas and most other states followed the so-called, “American Rule” whereby litigants pay their own attorneys’ fees. There were exceptions, such as certain statutory provisions that allowed recovery of attorneys fees in breach of contract, declaratory judgments, and other types of lawsuits. The new law is a departure from our historical approach, and represents a Texas version of the “English Rule,” allowing the prevailing party to recoup … [Read more...]
