How Much Can You Sue for Breach of Contract in Texas?

When a party fails to fulfill their contractual obligations, it can lead to significant financial losses and legal disputes. If you’re considering filing a breach of contract claim in Texas, one of the most important questions you may have is, “How much can I sue for?”

The answer depends on various factors, but understanding the types of damages available and how they are calculated can help you assess your potential recovery.

Elements of a Breach of Contract Claim in Texas

To succeed in a breach of contract claim, you must establish four key elements:

• The existence of a valid contract
• Your performance under the contract (or excused nonperformance)
• The other party’s breach of the contract
• Resulting damages from the breach

It’s essential to gather evidence supporting each of these elements to build a strong case.

Texas Statute of Limitations for Breach of Contract Claims

In Texas, the statute of limitations for most breach of contract claims is four years from the date of the breach (Texas Civil Practice and Remedies Code § 16.004). However, there are some exceptions and special circumstances that may extend or shorten this time frame, so it’s crucial to consult with an experienced attorney to assess your case’s specific deadlines.

Types of Damages Available in Texas Breach of Contract Cases

When a contract is breached, the non-breaching party may be entitled to various types of damages, including:

• Compensatory damagesExpectation damages: Designed to put the plaintiff in the position they would have been in had the contract been fully performedReliance damages: Compensation for expenses incurred in reliance on the contractRestitution damages: Recovery of benefits conferred on the breaching party
• Consequential damages: Indirect losses that were foreseeable and caused by the breach
• Attorney’s fees: In certain cases, the prevailing party may recover reasonable attorney’s fees (Texas Civil Practice and Remedies Code § 38.001)

Liquidated Damages Clauses in Texas Contracts

Some contracts include liquidated damages clauses, which specify a predetermined amount of damages in case of a breach. These clauses are generally enforceable in Texas if the amount is reasonable and the actual damages are difficult to ascertain. However, if the liquidated damages are found to be excessive or function as a penalty, a court may refuse to enforce the clause.

Calculating Damages in a Texas Breach of Contract Case

When pursuing a breach of contract claim in Texas, damages are intended to compensate the non-breaching party for the losses caused by the breach.

Here are key considerations in calculating those damages:

• Compensatory Damages: These aim to cover the actual harm caused by the breach, restoring the non-breaching party to the position they would have been in if the contract had been fulfilled.
• Foreseeability: Damages must have been reasonably foreseeable at the time the contract was made, meaning both parties could have anticipated the potential losses from a breach.
• Proven Losses: The non-breaching party must provide clear, measurable evidence of the losses they incurred due to the breach.
• Limit on Recovery: Damages are intended to make the injured party whole, not to grant a windfall. You can recover no more than what you lost.

Limitations on Breach of Contract Damages in Texas

In Texas, while there is no general cap on compensatory damage awards, the non-breaching party is required to mitigate their damages. This framework helps ensure that damages in a breach of contract case are fair and proportional to the losses experienced.

Maximizing Your Recovery in a Texas Breach of Contract Case

To maximize your potential recovery in a breach of contract case, consider the following strategies:

1. Maintain thorough documentation of the contract, breach, and resulting damages.
2. Promptly notify the breaching party of the breach and your intention to seek damages.
3. Explore negotiation and alternative dispute resolution methods, such as mediation or arbitration, to reach a favorable settlement.
4. Consult with an experienced Texas civil litigation attorney early in the process to assess your case and develop an effective legal strategy.

At The Titus Law Firm, we have extensive experience representing clients in breach of contract disputes throughout Texas. Our attorneys thoroughly assess each case to determine the most appropriate damages to pursue and work tirelessly to maximize our client’s recovery.

We have a proven track record of success in contract litigation and are committed to providing personalized, strategic representation for every client. Whether through negotiation, alternative dispute resolution, or trial, we fight to protect our clients’ rights and interests.

Contact us today to schedule a consultation and take the first step toward resolving your breach of contract dispute.