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Fryar Law Firm Appellate Victory: Texas Partnership Fiduciary Duty

Eric Fryar

14th Court of Appeals Affirms Victory for Texas Limited Partner Fiduciary Duty Claims

The 14th Court of Appeals (Houston, Texas) today affirmed Fryar Law Firm's $1.7 million judgment in favor of a Texas limited partner for breach of fiduciary duties. The judgment included more than $1 million in punitive damages.

Bruce v. Cauthen, No. 14-15-00693-CV (Tex. App.--Houston [14th Dist.] February 2, 2017). 

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Topics: Fiduciary Duties, Attorney's Fees, Limited Partnerships

Texas Civil Practice and Remedies Code 38.001 for Breach of Fiduciary Duty

Eric Fryar

 

 

Can a Plaintiff Recover Attorney’s Fees Under Texas Civil Practice and Remedies Code 38.001 for a Tort Cause of Action

Texas is one of the more liberal jurisdictions in allowing the recovery of attorney’s fees in breach of contract actions, but generally attorney’s fees are not recoverable in tort actions. The typical claim for wrongdoing among owners of closely-held companies sounds in tort—usually breach of fiduciary duties or conversion.

Section 38.001 of the Texas Civil Practice and Remedies Code provides: “A person may recover reasonable attorney’s fees from an individual or corporation, in addition to the amount of a valid claim and costs, if the claim is for: (8) an oral or written contract.” Texas courts have developed a significant exception to the general rule that permits recovery of attorney’s fees on a tort claim that is so intertwined with the contract which underlies the cause of action such that the tort action is “intrinsically founded on the interpretation of the contract.”[1]

[1] See High Plains Wire Line Servs., Inc. v. Hysell Wire Line Servs., Inc., 802 S.W.2d 406, 408 (Tex. App.—Amarillo 1991, no writ).

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Topics: Fiduciary Duties, Attorney's Fees
Fryar Law Firm Knows Shareholder Oppression-Knowledge Makes the Difference

About this blog

The Shareholder Oppression Blog provides timely updates and commentary on the development of Texas Shareholder Oppression law in the wake of the Texas Supreme Court's Ritchie v. Rupe decision, together with legal analysis of the rights, duties, and legal remedies in disputes among business owners in all types of closely-held businesses.

Visit Shareholder Oppression complete legal resource

Fryar Law Firm | Shareholder Oppression Attorneys

About the Author

Eric Fryar

Eric Fryar is a Houston, Texas business litigation attorney, whose practice focuses almost exclusively on shareholder oppression and similar disputes among business owners. Recognized as an authority in this area of the law, Eric Fryar has written, taught, and practiced the law the governing shareholder and business owner rights for more than a quarter century. He achieved the largest fraud verdict in the state of Texas for a group of minority shareholders in 2015--one of the largest verdicts in the country that year, and has recently published a law review article in the Texas Journal of Business Law on the future of shareholder oppression litigation in Texas.

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