One of the most common assumptions business owners make when a dispute turns legal is simple: If I win, the other side pays my attorney’s fees.
In Texas, that’s usually not how it works.
Under the general rule applied in Texas (and across most U.S. courts), each party is responsible for its own attorney’s fees, even if it wins. This is often called the “American Rule.” However, that rule comes with important exceptions. In the right circumstances, a business can recover attorney’s fees and court costs from the opposing party.
The key is knowing when fee recovery is allowed, what must be proven, and how early planning affects the outcome. This article walks through the most common paths Texas businesses use to recover attorney’s fees, and the practical realities that come with each.
