Texas House Bill HB1162

Texas 2021 - 87th Regular

Caption

Relating to recovery of attorney's fees in certain civil cases.

Impact

The bill is designed to streamline the process for recovering attorney's fees, which may encourage more individuals and businesses to pursue legitimate claims without the fear of incurring excessive legal costs. By establishing that attorney's fees can be included as part of the recovery process, the legislation promotes a more equitable legal environment, where victims of breaches in service, material supply, or contracts can seek full recompense for their losses. This reform could potentially reduce frivolous cases by ensuring only valid claims are pursued, as parties might be more cautious about engaging in litigation knowing that legal fees will be part of potential recoveries.

Summary

HB1162 aims to amend Section 38.001 of the Civil Practice and Remedies Code related to the recovery of attorney's fees in certain civil cases. The bill allows individuals or corporations, defined as the prevailing parties in specific legal claims, to recover reasonable attorney's fees in addition to the awarded amount. This change would primarily impact cases involving rendered services, performed labor, and various contractual disputes, providing a clearer pathway for prevailing parties to recoup their legal expenses when pursuing claims in court.

Contention

While the bill may enjoy support due to its intent to bolster legal rights for prevailing parties, there may be contention surrounding the exact definition of 'reasonable attorney's fees' and how they will be assessed by the courts. Critics might express concerns over the potential for abuse, where parties could exploit the system by unnecessarily inflating legal costs. Additionally, questions may arise about the implications for defendants, who may face increased financial risks if a court determines that attorney's fees should be awarded beyond the claim amount, potentially leading to a chilling effect on legitimate defenses and increasing the stakes of civil litigation.