Bell Nunnally Senior Associate Perrin B. Fourmy authored the Texas Lawyer article “A Change is Finally Coming — Texas Legislature Closes the Chapter 38 Attorney Fees Loophole.” The piece details the implications of recently passed House Bill 1578, which amends section 38.001 of the Civil Practices and Remedies Code to allow recovery of attorney fees against any type of “organization” as defined under the Business Organizations Code, Section 1.002. Fourmy notes that, for lawsuits commencing after September 1, the bill’s enactment date, “the Chapter 38 loophole will finally be closed, and parties will be able to recover attorney fees from LLCs, LLPs, LPs or other organizations.” With this change, he adds, “a new day dawns in Texas under Chapter 38 that should level the playing field for those with meritorious claims. For many attorneys in Texas, this change was a long time coming.”
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Perrin B. Fourmy