A Guide to Breach of Contract in Texas
One of the most common types of litigation in Houston involves the breach of contract. The law regarding contract disputes is quite extensive and generally recognized in most parts of the United States. At the same time, there are many nuances that vary from state to state. This article addresses some of the elements relevant to a breach of contract action in Texas.
In order to prevail on a breach of contract claim in Texas, a person must establish the following:
It is also important to note that in order to be held liable for breach of contract, a party must be a party to the contract at issue. In other words, a breach of contract claim cannot succeed if it’s based on an alleged contract between other parties and plaintiff has not been named as a party to the contract in question. For example, if you hire an attorney to represent you in a case, you could not bring a lawsuit for breach of contract against other side’s attorney based on the terms of the settlement between you and the other side. Even if your lawyer committed malpractice and did not negotiate the deal that was favorable to you, you could not sue the other side’s attorney directly because they were not a party to the agreement in question.
Sometimes a party will claim a breach of contract without specifying how the other party violated the contract. Pursuant to Texas Rule of Civil Procedure 47, if the amount of damages exceed $100,000 , then a plaintiff is required to plead in the alternative and specify the value of their damages. Failure to comply with this rule may result in the dismissal of the action.
Under Texas law, a reasonable time to perform is assumed unless the nature of the contract or other circumstances shows that it was intended to be performed within a particular time. If there is a timely opportunity to perform a contract, then privity of contract is required. Privity of contract between parties who have not agreed to new terms is not essential in an action for consequential damages. A person can recover consequential damages for a breach of contract when the damages are within the contemplation of the parties at the time of contracting and arise from the failure to perform.
Treble damages are available under Texas law if a party proves that the breach was intentional, knowing and made with the specific intent to cause injury or harm to plaintiff. In Texas, breach of a fiduciary duty is an exception to the general rule that consequential damages are not recoverable.
Res judicata is a limitation on reopening litigation from prior lawsuits. It prevents a plaintiff from using res judicata to file another lawsuit in a different court with different causes of action. Res judicata requires that a final judgment be rendered in a former suit on the merits by a court with jurisdiction of the subject matter and the parties and the action be between the same parties and their privies.
The Importance of a Breach of Contract Lawyer
A breach of contract lawsuit can seem simple on the surface, but it is not a good idea to attempt to represent yourself. Even a minor misunderstanding over the meaning of contract terms can result in significant delays and unexpected expenses. Only an attorney can tell you if you a valid case, how strong that case is, and what your legal options are. They can also help you to evaluate whether or not to pursue a lawsuit, or where appropriate, how to negotiate a settlement.
Given the complexities of contract law, a breach of contract attorney can help you avoid the worst of these mistakes. An experienced attorney will know how the law applies to your case and what legal procedures you need to follow to protect your own interests. An attorney can draw on their experience and expert knowledge of the law to determine if the times involved in the breach should be categorized as a minor violation or a more significant breach that could be costly for the other party as well as for you. They can help you decide which form of action to take and where to file. They can also help you prepare for court and file all of your paperwork correctly.
How to Choose a Houston Breach of Contract Attorney
When looking to find the right breach of contract lawyer in Houston, there are multiple factors to consider. First and foremost, experience and specialization are crucial. An attorney who focuses on business torts – including breach of contract – will offer a deeper understanding of the legal landscape than someone who has experience across a wide range of unrelated legal disciplines. However, broad experience with a diverse range of different businesses and industries can also be beneficial. A potential client should be on the lookout for any firms or individuals that have handled similar breach of contract cases for previous clients.
Another factor to consider is peer reputation. A good attorney may have received nominations from other attorneys in the community, or may have received recognition from industry publications. You should also be aware of client reviews, or testimonials that can be found on the firm or attorney’s website. You might also ask for a list of former clients, and follow up to see what their experience was like. Finally, success rates are important, and can be a good indication of whether or not an attorney is going to be able to handle your case.
Prior to agreeing to work with an attorney, you should schedule an initial consultation. During this meeting, you should observe the attorney’s communication style and whether you feel comfortable confiding in them. You should also get a sense of their expertise by asking questions that are specific to your case.
Understanding the Legal Process in Breach of Contract Litigation
Breach of contract cases generally follow a series of legal steps from the initial pleading through resolution. If the parties are unable to reach an acceptable compromise, your attorney will utilize the law through negotiation and potential lawsuits to advocate on your behalf.
The first step in the legal process is the filing of a lawsuit. This is done with the appropriate court and must be served on the other party in a specific manner. If a lawsuit is filed against you, you must respond through a Statement of Defense by a certain date or risk being defaulted. The goal of the lawsuit is ultimately to determine whether the other party has incurred damages, and whether they can recover those damages from you. Although it is almost always advisable to settle a matter pre-court proceedings if possible, this is not always the case, and often the matter will move into the resolution phase outlined below: Discovery – the process of obtaining evidence from the opposing party – allows both parties to request all information necessary to the case, which either party must answer in an exacting amount of detail . This can be done through interrogatories, documents, records, expert witnesses, depositions, and testimony, among other things. Pre-Trial Motions – are motions made to either party, usually to dismiss or resolve the matter, prior to the case going to trial. Depositions – are basically testimonies outside the courtroom, which take place in the presence of attorneys and under the advice of a court reporter. They are used to obtain testimony from both parties, and sometimes witnesses if they are unavailable at the time of the actual trial. A deposition is legally binding, so it is redundant to go through the process again when the actual trial begins. Trial – if neither party can come to an agreement during any of the above steps, the case goes to trial. And this takes place in a court of law, where a judge oversees the evidence presented and ultimately determines whether the plaintiff will be awarded damages, or whether the defendant will be exonerated from liability.
Breach of Contract and the Cost of Retaining an Attorney
One of the most important factors when considering hiring an attorney is the cost. It’s essential to have an honest discussion about fees with any prospective lawyer you are considering hiring. Generally, when you hire a breach of contract lawyer, you will pay them either on an hourly basis or on a contingency fee basis.
An hourly basis means you pay the attorney for every hour they work on your case. Usually, this includes time spent meeting with you and other time getting prepared for or discussing the particulars of your case. Hourly attorney fees varies widely by the level of sophistication of the attorney, the size of the firm, and the needs of your case. Additionally, there are often costs that go along with an attorney working on a case. Deposition charges, costs for court filing, and even printing and copying charges can appear on an attorney’s invoice. It is important to discuss all of these charges with your prospective lawyer.
Attorneys are sometimes paid on a contingency basis. This means that the attorney recoups their fees out of the proceeds of litigation. Since this place a significant risk on the attorney as they are not guaranteed the investment of their time will be recouped, often, fees are higher for the contingency fee.
Frequently Asked Questions about Breach of Contract in Houston
Q: How long do I have to file a case for breach of contract in Houston?
A: The statute of limitations for a Texas breach of contract lawsuit is four years from the date of the breach. Filing sooner is highly recommended, as evidence and witness testimony may be lost if a case is put off for years.
Q: What outcomes can I expect in a breach of contract lawsuit?
A: People typically reach out to an attorney because they feel a clear breach of contract has occurred. That leads to one of the most common misconceptions about a breach of contract case — that the outcome is guaranteed. The truth is, you must prove damages in a breach of contract lawsuit, and you must do so by the preponderance of the evidence. That means more likely than not, or at least a 51 percent chance of being right. When looking for a breach of contract attorney in Houston, ensure you only consider lawyers who are honest when discussing how strong the case against the other party is and how likely it is to win a judgment .
Q: What kind of damages can I collect from a breach of contract lawsuit?
A: Damages vary from case to case. In most cases, the plaintiff collects compensatory damages. That’s the financially verifiable harm experienced. That includes lost wages and income, medical payments, lost profits (in business disputes) and more. Other forms of damages include: Expect the judge to take all possible damages into account in a breach of contract suit. It does not matter whether those damages were in the mind of the defendant or even promised in writing. Consider seeking damages for any possible diminishment of economic value, especially in business disputes.
Q: Should I be thinking about how to prepare for meeting with my Houston breach of contract attorney?
A: Yes. When you meet with your attorney, be prepared to discuss the details of the contract or agreements with which you feel the defendant has breached the clause. Discuss the losses you have incurred as a result of this breach. Talk about your personal reaction to the breach, but do not dwell on it to the exclusion of all else.
