Who is Liable for Attorney's Fees under Texas Civil Practice & Remedies Code Section 38.001 in breach of Contract Litigation

This article examines the question of who qualifies as an "individual" or "corporation" who may be held liable for attorney's fees in a breach of contract action pursuant to section 38.001 of the Texas Civil Practice & Remedies Code. After a discussion of the relevant legislative commentary regarding section 38.001, the author reviews a series of cases in which courts have applied the “individual or corporation” clause to governmental entities, partnerships, limited liability companies, and private associations and assesses whether the courts have correctly interpreted the statute as to the classes of defendants that it covers. The article concludes with suggestions for how the Texas Supreme Court might clarify the scope of application of section 38.001, as well as some possible amendments to the statute that the Texas legislature could enact to make its intended scope clearer.