From Arthur Andersen to Rohrmoos Venture: New leading case for attorney fee awards in Texas

THE LODESTAR COMES TO ALL LONE STAR STATE COURTS Last month the Texas Supreme Court handed down an important decision on attorney’s fees in a case involving a dispute over a commercial lease. Rohrmoos Venture v. UTSW DVA Healthcare, LLP, No. 16-0006 (Tex. Apr. 26, 2019).While the resolution of the case pivots on issues of contract law in the leasing context, the lengthy portion of the opinion addressing the matter of attorneys fees [see cut & pasted below] will have much broader impact across a wide array of practice areas. This is because the Texas Supreme Court blessed and adopted the Lodestar approach in reversing an award of more than $800,000 in attorney’s in the case for insufficient supporting evidence in the record. The Lodestar approach has long been in use in the federal courts when fees may be awarded under a fee-shifting statute (such as the civil rights act), but was limited in Texas state court mostly to employment discrimination cases…

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