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

The question of how to seek damages for a broken contract surfaces frequently among individuals and business owners who face contract dissolution. How much can you sue for breach of contract in Texas? Unpaid invoices, as well as missed deadlines and broken promises, all constitute contract breaches that lead to genuine financial loss.

The legal system in Texas enables plaintiffs to claim different types of damages, including actual losses and attorney’s fees, based on the breach circumstances. Before initiating legal proceedings, it is critical to understand both the available forms of compensation and the methods courts use to calculate them.

Types of Damages You Can Recover in a Texas Breach of Contract Case

Texas law allows breach of contract cases to yield multiple categories of damages. Compensatory damages work to reimburse actual financial losses that stem directly from a breach, including lost profits and incurred costs.

Consequential damages cover indirect losses that parties could foresee at the time the contract was created, including missed business opportunities. Incidental damages include expenses that arise from efforts to prevent additional losses through tasks like searching for replacement services.

The court can award nominal damages if there was a breach, yet no significant loss could be demonstrated. Punitive damages seldom occur in contract disputes, but they are imposed when a breach features fraudulent or malicious behavior.

How Texas Courts Calculate Contract Damages

In Texas breach of contract cases, courts determine damages with the objective of restoring the non-breaching party to their expected position if the contract had been performed as agreed. The process requires evaluation of all losses resulting from the breach, encompassing direct damages as well as consequential damages when relevant.

The plaintiff needs to present clear and convincing evidence of their losses, which must not appear speculative. The non-breaching party must fulfill the obligation to mitigate damages by taking reasonable steps to lessen their losses. When the non-breaching party neglects their duty to mitigate damages, they may encounter reduced recoverable damages.

When Can You Recover Attorney’s Fees in Texas Contract Disputes?

Texas Civil Practice and Remedies Code § 38.001 permits a winning party in a breach of contract case to recover reasonable attorney’s fees if specific conditions exist. The claimant needs legal representation and must have delivered the claim to the opposing party, who failed to make payment within 30 days. Recent amendments have broadened the types of entities eligible for attorney’s fees recovery to include various organizations aside from just individuals and corporations.

Understanding the Legal Process for a Breach of Contract Case in Texas

A breach of contract claim in Texas starts when a plaintiff files their petition in a suitable court. After filing the petition, the appropriate court serves the defendant, who receives an opportunity to respond. Discovery follows, where both parties exchange evidence. Parties may engage in mediation or settlement discussions prior to their trial proceedings.

When and if the breach of contract case goes to trial, a judge or jury determines liability and damages. Hiring an attorney allows you to properly file your case with supporting evidence and present it effectively to increase your likelihood of winning.

Factors That Affect the Value of Your Breach of Contract Claim

The worth of a breach of contract claim in Texas depends on multiple elements. Determining breach claims requires analysis of breach severity and extent, along with the actual losses and their foreseeability at the time of contract creation.

Contractual provisions that restrict liability or damages can change the total amount that can be recovered. The non-breaching party must actively work to lessen damages since failure to perform reasonable mitigation actions could lead to reduced compensation. Successful claims require clear, non-speculative proof of damages.

Recent Breach of Contract Case in Texas

A class-action lawsuit emerged in San Antonio, Texas, against Holt Group in March 2025 after a major data breach compromised personal information belonging to over 12,000 people. The lawsuit alleges negligence and breach of an implied contract, seeking damages, restitution, and attorney fees.

This case demonstrates how companies may encounter substantial financial penalties and legal ramifications if they fail to fulfill contractual duties pertaining to data security.

FAQs

What Types of Damages Can I Recover for Breach of Contract in Texas?

You may recover actual (compensatory) damages, which cover the financial losses caused by the breach. Texas also allows for consequential damages in specific situations, along with attorney’s fees and interest, provided certain legal requirements are satisfied. In some contracts, liquidated damages (pre-agreed amounts) may apply. The aim of remedies is to restore the non-breaching party to their expected contractual position.

Is There a Limit to How Much I Can Sue for in Texas?

Texas law does not set statutory limits on breach of contract damages but allows recovery only to the extent that damages can be substantiated through proof. The claimed amount should have factual support, while speculative damages are prohibited. Several contracts contain provisions that restrict liability and limit potential damages.

Attorney’s fees can be awarded under Texas law, but they must conform to the conditions stated in Texas Civil Practice & Remedies Code § 38.001.

Do I Need a Lawyer to File a Breach of Contract Lawsuit in Texas?

Even though you have no legal obligation to hire a lawyer, you should seriously consider doing so. Navigating a breach of contract case requires understanding complex legal standards while meeting strict evidence requirements and following procedural rules that most individuals find difficult to handle independently.

If the other party has legal representation, you need an experienced attorney who can calculate damages accurately and present your case effectively to increase your chances of success.

How Long Do I Have to Sue for Breach of Contract in Texas?

Texas law generally allows four years to file a breach of contract claim after the date the breach occurs. Certain written contracts can legally shorten the filing period to two years instead of four. You should seek legal advice immediately if you think a contract has been violated because missing the deadline can eliminate your ability to file a claim.

Contact Yocom Rine P.C.

Breach of contract cases can be complex, but understanding your rights and potential recovery is the first step toward protecting your interests. Whether you’re seeking damages or defending against a claim, having knowledgeable legal counsel makes a significant difference.

At Yocom Rine P.C., we guide clients through every stage of the legal process with clarity and strategic focus. Contact our team today to discuss your situation and explore the right path forward for your case.