Texas 2021 - 87th Regular

Texas House Bill HB2416

Caption

Relating to the recovery of attorney's fees as compensatory damages for certain claims.

Impact

If enacted, HB2416 would significantly impact the landscape of construction contract disputes in Texas. By permitting the recovery of attorney's fees as part of compensatory damages, it aims to empower claimants to seek redress for grievances without the fear of incurring prohibitive legal costs. The bill applies only to causes of action that accrue on or after its effective date, September 1, 2021, indicating that existing cases would not benefit from this change. This legislative measure aligns with broader efforts to enhance the enforceability of contractual obligations and seeks to deter breaches by increasing potential liabilities for wrongful actions in the construction industry.

Summary

House Bill 2416 focuses on the recovery of attorney's fees as compensatory damages in cases of breach of construction contracts. The bill amends Chapter 38 of the Civil Practice and Remedies Code by introducing Section 38.0015, allowing individuals and entities the right to recover reasonable attorney's fees from parties responsible for such breaches. This legislative change is designed to provide financial relief and support to parties who pursue legal action for unresolved issues in construction contracts, addressing a notable gap in the existing legal framework where attorney's fees were often borne solely by the claimant regardless of the outcome.

Sentiment

The sentiment regarding HB2416 has been largely positive among contractor and consumer advocacy groups who view it as a progressive step toward ensuring fairness in construction contract disputes. Supporters argue that the ability to recover attorney fees will encourage more parties to pursue legitimate claims, thereby enhancing accountability among construction firms. However, there may be concerns expressed by opponents who worry about the potential for abuse of this provision, where claims could be exaggerated or pursued solely for the attorney fees rather than genuine breaches, thereby leading to more litigation overall.

Contention

While the bill is generally supported, some raise concerns regarding its implications for the relationship between contractors and clients. The flexibility it provides could lead to increased litigation in an already contentious area of law. Critics may argue that more robust consumer protections should not come at the expense of a fair and efficient contracting process, fearing that the ease of claiming attorney's fees might lead to an over-saturation of minor or frivolous cases, straining the judicial system.

Companion Bills

No companion bills found.

Previously Filed As

TX HB2265

Relating to the award of compensatory damages caused by certain delays under governmental construction contracts.

TX HB5253

Relating to recovery of attorney's fees in common law and statutory tort claims.

TX SB803

Relating to the award of compensatory damages caused by certain delays under governmental construction contracts.

TX HB4349

Relating to compensatory time off for certain state employees.

TX SB2214

Relating to compensatory time off for certain state employees.

TX HB2115

Relating to damages in certain claims involving sexual assault or sexual harassment.

TX HB1546

Relating to the recovery of fees, court costs, and expenses in family law proceedings.

TX HB2772

Relating to the recovery of attorney's fees in cases involving veterinary malpractice or negligence.

TX HB102

Relating to the recovery of exemplary damages based on a compensable death under the Texas Workers' Compensation Act.

TX SB1352

Relating to the recovery of exemplary damages based on a compensable death under the Texas Workers' Compensation Act.

Similar Bills

No similar bills found.