Stuart v. Bayless, 964 S.W.2d 920 (Tex. 1998). · Go Syfert
Stuart v. Bayless, 964 S.W.2d 920 (Tex. 1998). Cases Citing This Book View Copy Cite
125 citation events (124 in the last 25 years) across 8 distinct courts.
Strongest positive: Employees Retirement System of Texas// Cross- the Putnam Advisory Company, LLC v. Putnam, LLC, D/B/A Putnam Investments Putnam Investment Management, LLC And the Putnam Advisory Company, LLC// Cross-Appellee, Employees Retirement System of Texas (texapp, 2009-07-30) · Strongest negative: F.S. New Products, Inc. v. Strong Industries, Inc. (texapp, 2004-02-05)
Treatment trajectory · 2000 → 2026 · click a year to view as-of
2000 2013 2026
Top citers, strongest first. 50 distinct citers. How cited ↗
discussed Cited "but see" F.S. New Products, Inc. v. Strong Industries, Inc.
Tex. App. · 2004 · signal: but see · confidence high
See Holt Atherton v. Heine, 835 S.W.2d 80 , 87 n. 1 (Tex.1992) (stating correct measure of lost profits is net profits, not gross profits); see also Turner v. PV Int’l Corp., 765 S.W.2d 455, 465 (Tex.App.-Dallas 1988), writ denied per curiam, 778 S.W.2d 865 (Tex.1989) (same); but see Stuart v. Bayless, 945 S.W.2d 131, 140-41 (Tex.App.-Houston [1st Dist.] 1996), rev’d on other grounds, 964 S.W.2d 920 (Tex.1998) (recognizing that if defendant’s breach of contract or fraud reduces volume of plaintiffs business, but creates no reasonable opportunity for plaintiff to reduce its general overhe…
discussed Cited "but see" F.S. New Products, Inc. and Tesco/Williamsen, Inc. v. Strong Industries, Inc.
Tex. App. · 2004 · signal: but see · confidence high
See Holt Atherton v. Heine , 835 S.W.2d 80 , 87 n.1 (Tex. 1992) (stating correct measure of lost profits is net profits, not gross profits); see also Turner v. PV Int’l Corp ., 765 S.W.2d 455, 465 (Tex. App.—Dallas 1988), writ denied per curiam , 778 S.W.2d 865 (Tex. 1989) (same); but see Stuart v. Bayless , 945 S.W.2d 131, 140-41 (Tex. App.—Houston [1st Dist.] 1996), rev’d on other grounds , 964 S.W.2d 920 (Tex. 1998) (recognizing that if defendant’s breach of contract or fraud reduces volume of plaintiff’s business, but creates no reasonable opportunity for plaintiff to reduce it…
discussed Cited "but see" F.S. New Products, Inc. and Tesco/Williamsen, Inc. v. Strong Industries, Inc.
Tex. App. · 2003 · signal: but see · confidence high
See Holt Atherton v. Heine , 835 S.W.2d 80 , 87 n. 1 (Tex. 1992) (stating correct measure of lost profits is net profits, not gross profits); see also Turner v. PV Int’l Corp ., 765 S.W.2d 455, 465 (Tex. App.—Dallas 1988), writ denied per curiam , 778 S.W.2d 865 (Tex. 1989) (same); but see Stuart v. Bayless , 945 S.W.2d 131, 140-41 (Tex. App.—Houston [1st Dist.] 1996), rev’d on other grounds , 964 S.W.2d 920 (Tex. 1998) (recognizing that if defendant’s breach of contract or fraud reduces volume of plaintiff’s business, but creates no reasonable opportunity for plaintiff to reduce i…
examined Cited as authority (verbatim quote) Employees Retirement System of Texas// Cross- the Putnam Advisory Company, LLC v. Putnam, LLC, D/B/A Putnam Investments Putnam Investment Management, LLC And the Putnam Advisory Company, LLC// Cross-Appellee, Employees Retirement System of Texas (3×) also: Cited as authority (rule), Cited "see"
Tex. App. · 2009 · signal: see · quote attribution · 1 verbatim quote · confidence high
o be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.
examined Cited as authority (verbatim quote) Texas Department of State Health Services and David L. Lakey, M.D., Commissioner v. Nancy Holmes, CLHRP, CME (3×) also: Cited as authority (rule), Cited "see"
Tex. App. · 2009 · signal: see · quote attribution · 1 verbatim quote · confidence high
o be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.
examined Cited as authority (verbatim quote) Employees Retirement System of Texas// Cross- the Putnam Advisory Company, LLC v. Putnam, LLC, D/B/A Putnam Investments Putnam Investment Management, LLC And the Putnam Advisory Company, LLC// Cross-Appellee, Employees Retirement System of Texas (3×) also: Cited as authority (rule), Cited "see"
Tex. App. · 2009 · signal: see · quote attribution · 1 verbatim quote · confidence high
o be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.
examined Cited as authority (verbatim quote) Employees Retirement System of Texas// Cross- the Putnam Advisory Company, LLC v. Putnam, LLC, D/B/A Putnam Investments Putnam Investment Management, LLC And the Putnam Advisory Company, LLC// Cross-Appellee, Employees Retirement System of Texas (3×) also: Cited as authority (rule), Cited "see"
Tex. App. · 2009 · signal: see · quote attribution · 1 verbatim quote · confidence high
o be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.
examined Cited as authority (quoted) Brickley v. Scattered Corp. (In re H & M Oil & Gas, LLC) (2×) also: Cited as authority (rule)
Bankr. N.D. Tex. · 2014 · quote attribution · 1 verbatim quote · confidence low
t would be a rare case in which an attorney or law firm could demonstrate that the failure of a client to pay its bills gave rise to a recovery of contingent fees that might have been earned from other clients.
cited Cited as authority (rule) Signet Maritime Corporation v. International Shipbreaking Limited, LLC
S.D. Tex. · 2026 · confidence medium
Id. (citing Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998)).
cited Cited as authority (rule) In Lux Research v. Hull McGuire Pc
D.D.C. · 2025 · confidence medium
Servs., 638 S.W.3d at 186 (cleaned up) (quoting Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998)); accord Morfessis, 193 A.2d at 68 .
examined Cited as authority (rule) Cindi to v. David Funkhouser, Personally and on Behalf of Powershift Energy, LLC (3×) also: Cited "see"
Tex. App. · 2025 · confidence medium
Just., 135 S.W.3d 731, 737 (Tex. App.— Houston [1st Dist.] 2003, no pet.) (op. on reh’g) (observing that objections to an allegedly defective pleading “must be made in writing before the judgment is signed” or they are “deemed waived”). 7 964 S.W.2d 920, 921 (Tex. 1998)).
discussed Cited as authority (rule) Allen v. Navy Federal Credit Union (2×) also: Cited "see"
N.D. Tex. · 2025 · confidence medium
Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (citation omitted).
discussed Cited as authority (rule) MVT Services v. Great West Casualty Company
10th Cir. · 2024 · confidence medium
To recover consequential damages, the parties must have contemplated the damages at the time of the contract—so the damages “must be foreseeable and directly traceable to the wrongful act and result from it.” Stuart v. Bayless, 964 S.W.2d 920, at 921 (citing Mead, 615 S.W.2d at 687 ; Arthur Andersen, 945 S.W.2d at 816 ).
discussed Cited as authority (rule) Salt and Light Energy Equipment LLC v. Origin Bancorp
N.D. Tex. · 2024 · confidence medium
Servs., LLC v. Int’l Paper Co., 638 S.W.3d 179 , 189 (Tex. 2022); Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam) (categorizing an attorney’s claim for loss of fees on other cases as consequential damages); Mood v. Kronos Prods., 245 S.W.3d 8, 12 (Tex. App.—Dallas 2007, pet. denied) (“Lost profits may be in the form of direct damages, that is, profits lost on the contract itself, or in the form of consequential damages, such as profits lost on other contracts or relationships resulting from the breach.” (emphasis added)).
cited Cited as authority (rule) Haight Family, LLC v. Germania Farm Mutual Insurance Association
Tex. App. · 2024 · confidence medium
Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam).
cited Cited as authority (rule) Joy & Yoo Properties, Inc. v. Roeder Holdings, LLC
Tex. App. · 2023 · confidence medium
Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998).
cited Cited as authority (rule) Occidental Petroleum Corporation v. Wells Fargo Bank, N.A.
S.D. Tex. · 2023 · confidence medium
Id. (citing Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998)).
discussed Cited as authority (rule) Msw Corpus Christi Landfill, Ltd. v. Gulley-Hurst L.L.C.
Tex. · 2023 · confidence medium
A plaintiff may recover consequential damages only if “the parties contemplated at the time they made the contract that such damages would be a probable result of the breach.” Id. (quoting Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998)).
cited Cited as authority (rule) Terence Jones v. Best Storage Center (Aka Best Storage), Richard Pickard, Mikayla's LLC, Richard Pickard D/B/A Best Storage Center, Mikayla's, LLC D/B/A Best Storage Center, Unknown \Buyer\" (Doe 1)
unknown court · 2022 · confidence medium
Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998); see also Signature Indus.
cited Cited as authority (rule) Cirilo Garza and Jeanette Garza v. Harlingen Consolidated Independent School District
Tex. App. · 2022 · confidence medium
Phillips v. Carlton Energy Grp., LLC, 475 S.W.3d 265, 279 (Tex. 2015); Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam).
cited Cited as authority (rule) Occidental Petroleum Corporation v. Wells Fargo Bank, N.A.
S.D. Tex. · 2022 · confidence medium
Id. (citing Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998)).
discussed Cited as authority (rule) Signature Industrial Services, LLC and Jeffry Ogden v. International Paper Company (2×)
Tex. · 2022 · confidence medium
Phillips v. Carlton Energy Grp., LLC, 475 S.W.3d 265, 279 (Tex. 2015); Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998).
cited Cited as authority (rule) Jatex Oil and Gas Exploration L.P., John A. Truitt, Inc., and John A. Truitt v. Nadel and Gussman Permian, L.L.C. and Scott Germann
Tex. App. · 2020 · confidence medium
Basic Capital, 348 S.W.3d at 901 ; Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998); Doud Media, 392 S.W.3d at 209 .
examined Cited as authority (rule) International Paper Company v. Signature Industrial Services, LLC and Jeffry M. Ogden (4×) also: Cited "see"
Tex. App. · 2020 · confidence medium
Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam).
cited Cited as authority (rule) Jeffrey Peace and Caroline Peace v. ITCOA, LLC D/B/A Independence Title Company Mona McMahan And Wm. Brian McMahan, P.C.
Tex. App. · 2018 · confidence medium
Basic Capital Mgmt., Inc. v. Dynes Commercial, Inc., 348 S.W.3d 894, 901 (Tex. 2011) (citing Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998)).
discussed Cited as authority (rule) Lakeway Regional Medical Center, LLC and Surgical Development Partners, LLC// Lake Travis Transitional LTCH, LLC N/K/A Lake Travis Specialty Hospital, LLC v. Lake Travis Transitional LTCH, LLC N/K/A Lake Travis Specialty Hospital, LLC// Lakeway Regional Medical Center, LLC Surgical Development Partners, LLC Brennan, Manna, & Diamond, LLC And Frank T. Sossi (2×) also: Cited "see"
Tex. App. · 2016 · confidence medium
We sustain appellants’ first issue on appeal.13 13 We further note that the evidence does not support the $7.9 million award for “loss of market value.” Consequential damages are not recoverable “unless the parties contemplated at the time they made the contract that such damages would be a probable result of the breach.” Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam). “[T]o be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.” Id.
cited Cited as authority (rule) Tri-County Electric Cooperative, Inc. v. GTE Southwest Incorporated D/B/A Verizon Southwest
Tex. App. · 2016 · confidence medium
Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998); AZZ Inc., 462 S.W.3d at 289 .
cited Cited as authority (rule) Tamimi Global Company, LTD v. Kellogg Brown & Root, L.L.C., Kellogg Brown & Root International, Inc., and Kellogg Brown & Root Services, Inc.
Tex. App. · 2015 · confidence medium
Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam) (internal citations omitted).
discussed Cited as authority (rule) Shirley Adams, Charlene Burgess, Willie Mae Herbst Jasik, William Albert Herbst, Helen Herbst and R. May Oil & Gas Company, Ltd. v. Murphy Exploration & Production Co.-USA, a Delaware Corporation
Tex. App. · 2015 · confidence medium
Dep't of Criminal Justice v. VitaPro Foods, Inc., 8 S.W.3d 316, 321 (Tex.1999); Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998) (per curiam); Formosa Plastics Corp. USA v. Presidio Eng'rs & Contractors, Inc., 960 S.W.2d 41, 43 (Tex.1998); Green Int'l, Inc. v. Solis, 951 S.W.2d 384, 386 (Tex.1997); Stewart Title Guar.
discussed Cited as authority (rule) Lakeway Regional Medical Center, LLC and Surgical Development Partners, LLC// Lake Travis Transitional LTCH, LLC N/K/A Lake Travis Specialty Hospital, LLC v. Lake Travis Transitional LTCH, LLC N/K/A Lake Travis Specialty Hospital, LLC// Lakeway Regional Medical Center, LLC Surgical Development Partners, LLC Brennan, Manna, & Diamond, LLC And Frank T. Sossi (2×)
Tex. App. · 2015 · confidence medium
Stated differently, consequential damages “are not recoverable unless the parties contemplated at the time they made the contract that such damages would be a probable result of the breach.” Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam) (emphasis added).
discussed Cited as authority (rule) the Port of Houston Authority of Harris County, Texas v. Zachry Construction Corporation
Tex. App. · 2015 · confidence medium
Thus, to be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.”) (quoting Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998) (per curiam)).
discussed Cited as authority (rule) AZZ Incorporated and AZZ Group, L.P. v. Michael Coleman Morgan Boyce Galvanizing, LLC And Big Spring Holdings, LLC (2×)
Tex. App. · 2015 · confidence medium
Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998) (citing Arthur Andersen & Co. v. Perry Equip.
discussed Cited as authority (rule) Elishah Sawyers, Pax Crate & Freight, Inc. and Robin Sawyers v. Marc Carter and Sally Carter
Tex. App. · 2015 · confidence medium
While HN8 964 S.W.2d 920, 921 (Tex. 1998)), the evidence is it is true that typically any challenge to a request for neither legally nor factually sufficient to support the admission must be in compliance with Rule 193.1, the default judgment's unliquidated damages award.
discussed Cited as authority (rule) Lynette Starr v. A. J. Struss & Company (2×) also: Cited "see"
Tex. App. · 2015 · confidence medium
Underwriters, 925 S.W.2d 607, 614 (Tex. 1996)...14 Senn v. Texaco, Inc., 55 S.W.3d 222, 225 (Tex. App.-Eastland 2001, pet. den'd)...7 Stuart v. Bayless, 964 S.W2d 920, 921 (Tex. 1998) .................................................. 14 Tex. Ass 'n of Bus.
discussed Cited as authority (rule) Zachry Construction Corporation v. Port of Houston Authority of Harris County, Texas
Tex. · 2014 · confidence medium
Thus, to be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.") (quoting Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998) (per curiam)). .
cited Cited as authority (rule) Spin Doctor Golf, Inc. v. Paymentech, L.P.
Tex. App. · 2013 · confidence medium
Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam).
cited Cited as authority (rule) Superior Broadcast Products v. Doud Media Group, L.L.C.
Tex. App. · 2012 · confidence medium
Basic Capital, 348 S.W.3d at 901 ; Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998).
discussed Cited as authority (rule) City of Houston v. Christopher A. Rhule (2×)
Tex. App. · 2012 · confidence medium
These may include consequential damages, or those damages that “result naturally, but not necessarily, from the defendant’s wrongful acts.” Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998) (per curiam) (quoting Arthur Andersen & Co. v. Perry Equip.
discussed Cited as authority (rule) Lucas v. Clark
Tex. App. · 2011 · confidence medium
As no evidence other than this request for admission exists supporting the Appel-lees’ claims for unliquidated damages or proving the foreseeability of such damages, see Mood v. Kronos, 245 S.W.3d 8, 12 (Tex.App.-Dallas 2007, pet. denied) (“[(Consequential damages may not be recovered unless they are foreseeable and traceable to the wrongful act and result from it.”) (citing Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998)), the evidence is neither legally nor factually sufficient to support the default judgment’s unliquidat-ed damages award.
discussed Cited as authority (rule) C. Michael Lucas v. James Jolly Clark & Eonic Creations Inc.
Tex. App. · 2011 · confidence medium
As no evidence other than this request for admission exists supporting the Appellees' claims for unliquidated damages or proving the foreseeability of such damages, see Mood v. Kronos , 245 S.W.3d 8, 12 (Tex. App.--Dallas 2007, pet. denied) ("[C]onsequential damages may not be recovered unless they are foreseeable and traceable to the wrongful act and result from it.") (citing Stuart v. Bayless , 964 S.W.2d 920, 921 (Tex. 1998)), the evidence is neither legally nor factually sufficient to support the default judgment's unliquidated damages award.
discussed Cited as authority (rule) Barry Michael Smith, Jr. v. State
Tex. App. · 2011 · confidence medium
As no evidence other than this request for admission exists supporting the Appellees’ claims for unliquidated damages or proving the foreseeability of such damages, see Mood v. Kronos, 245 S.W.3d 8, 12 (Tex. App.—Dallas 2007, pet. denied) (“[C]onsequential damages may not be recovered unless they are foreseeable and traceable to the wrongful act and result from it.”) (citing Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998)), the evidence is neither legally nor factually sufficient to support the default judgment’s unliquidated damages award.
cited Cited as authority (rule) Basic Capital Management, Inc. v. Dynex Commercial, Inc.
Tex. · 2011 · confidence medium
Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998) (per curiam) (citations and internal quotation marks omitted). 26 . 9 Exch. 341, 354, 156 Eng.
discussed Cited as authority (rule) Elijah Ragira/Vip Lodging Group, Inc. v. Vip Lodging Group, Inc.
Tex. App. · 2009 · confidence medium
See Restatement (Second) of Contracts § 351(1) (1981) (“Damages are not recoverable for loss that the party in breach did not have reason to foresee as a probable result of the breach when the contract was made.”); Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998) (in a breach of contract case, consequential damages are not recoverable “unless the parties contemplated at the time they made the contract that such damages would be a probable result of the breach”); Basic Capital Mgmt. v. Dynex Commercial, Inc., 254 S.W.3d 508, 520-21 (Tex.App.-Dallas 2008, pet. granted) (“in the event…
discussed Cited as authority (rule) Cherokee County Cogeneration Partners, L.P. v. Dynegy Marketing & Trade
Tex. App. · 2009 · confidence medium
By contrast, consequential damages “result naturally, but not necessarily, from the defendant’s wrongful acts.” Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998) (quoting Arthur Andersen, 945 S.W.2d at 816 ).
discussed Cited as authority (rule) Cherokee County Cogeneration Partners, LP v. Dynegy Marketing and Trade, Dynegy GP, Inc., DMT Holdings, LP, DMT G.P., LLC and Chevron U.S.A. Inc.
Tex. App. · 2009 · confidence medium
By contrast, consequential damages “result naturally, but not necessarily, from the defendant’s wrongful acts.” Stuart v. Bayless , 964 S.W.2d 920, 921 (Tex. 1998) (quoting Arthur Andersen , 945 S.W.2d at 816 ).
cited Cited as authority (rule) McKinney & Moore, Inc. v. City of Longview, Texas
Tex. App. · 2009 · confidence medium
Stuart v. Bayless , 964 S.W.2d 920, 921 (Tex. 1998).
discussed Cited as authority (rule) Elijah Ragira/VIP Lodging Group, Inc. v. VIP Lodging Group, Inc., Atmex Corporation and J. Santos Espinoza/Elijah Ragira
Tex. App. · 2009 · confidence medium
See Restatement (Second) of Contracts § 351(1) (1981) ("Damages are not recoverable for loss that the party in breach did not have reason to foresee as a probable result of the breach when the contract was made."); Stuart v. Bayless , 964 S.W.2d 920, 921 (Tex. 1998) (in a breach of contract case, consequential damages are not recoverable "unless the parties contemplated at the time they made the contract that such damages would be a probable result of the breach"); Basic Capital Mgmt. v. Dynex Commercial, Inc. , 254 S.W.3d 508, 520-21 (Tex. App.-Dallas 2008, pet. granted) ("in the event of a …
discussed Cited as authority (rule) Elijah Ragira/VIP Lodging Group, Inc. v. VIP Lodging Group, Inc., Atmex Corporation and J. Santos Espinoza/Elijah Ragira
Tex. App. · 2009 · confidence medium
See Restatement (Second) of Contracts § 351(1) (1981) (“Damages are not recoverable for loss that the party in breach did not have reason to foresee as a probable result of the breach when the contract was made.”); Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (in a breach of contract case, consequential damages are not recoverable “unless the parties contemplated at the time they made the contract that such damages would be a probable result of the breach”); Basic Capital Mgmt. v. Dynex Commercial, Inc., 254 S.W.3d 508, 520-21 (Tex. App.–Dallas 2008, pet. granted) (“in the e…
discussed Cited as authority (rule) MBM Financial Corp. v. Woodlands Operating Co.
Tex. · 2009 · confidence medium
Dep’t of Criminal Justice v. Vita-Pro Foods, Inc., 8 S.W.3d 316, 321 (Tex.1999); Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998) (per curiam); Formosa Plastics Corp. USA v. Presidio Eng’rs & Contractors, Inc., 960 S.W.2d 41, 43 (Tex.1998); Green Int'l, Inc. v. Solis, 951 S.W.2d 384, 386 (Tex.1997); Stewart Title Guar.
Retrieving the full opinion text from the archive…
Kae STUART F/K/A Kae Sandifer Chamberlain, Petitioner,
v.
Bobbie BAYLESS, Bayless & Stokes and Burta Rhoads Raborn, Respondents
96-1298.
Texas Supreme Court.
Mar 13, 1998.
964 S.W.2d 920
Randall J. Cook, Gregory D. Smith, Andy G. Navarro, Tyler, Charles R. Dunn, Chris C. Pappas, Houston, Steven D. Strickland, Be-laire, Sarajane Milligan, James D. Smith, Houston, for Petitioner., Julius Glickman, Houston, Eddie M. Kre-nek, Katy, Bobbie G. Bayless, Spencer W. Creed, Buta Rhoads Raborn, Houston, for Respondents.
Per Curiam.
Cited by 80 opinions  |  Published
1 passage pin-cited by 1 case
Pinpoint authority: bottom 89%
Citer courts: N.D. Texas (1)

OPINION

PER CURIAM.

In this case, we address whether, in a fee dispute between a lawyer and a client, a lawyer may recover, in addition to the fees owed, lost contingency fees from other eases. We conclude that in this ease lost contingency fees were not reasonably foreseeable and thus are not recoverable. Accordingly, we reverse the judgment of the court of appeals in part and affirm in all other respects. 945 S.W.2d 131.

Burta Rhodes Raborn, Bobbie Bayless, and the law firm of Bayless & Stokes (B & S) represented Kae Stuart in a divorce proceeding and in two subsequent eases arising out of that divorce. Ultimately, Bayless, B & S, and Raborn (Plaintiffs) sued Stuart to recover their unpaid legal fees and expenses and also sought damages for slander. Stuart counterclaimed and asserted, among other claims, breach of contract, breach of fiduciary duty, and legal malpractice. The jury found that Stuart had breached her contracts with Plaintiffs and had committed fraud but failed to find that Stuart had slandered any of the Plaintiffs. The jury rejected Stuart’s counterclaim. The trial court rendered judgment against Stuart in accordance with the verdict. In addition to an award for fees due under the fee agreements between Stuart and Plaintiffs, the trial court awarded B & S $500,000 in lost contingent fees that B & S contended it would have earned from other cases. The trial court also awarded mental anguish and punitive damages.

On appeal, the court of appeals held that there was no evidence of fraud and deleted the awards for mental anguish and punitive damages. The court of appeals affirmed the trial court’s judgment in all other respects, including the award of lost contingent fees.

Both Stuart and Plaintiffs filed applications for writ of error in this Court. We address only the question of whether lost contingency fees were recoverable by B & S, and because of our disposition of that issue, we do not consider whether the evidence was legally sufficient to establish that B & S did in fact forego contingency fees it otherwise would have collected.

B & S offered evidence that it pays its overhead and expenses out of collections from clients who are charged for legal services based on hourly rates. B & S also accepts some contingent fee matters. B & S contended at trial that as long as the firm is able to collect the hourly rate fees from clients, it can financially afford to take on contingent fee cases. B & S took the position that Stuart’s failure to pay the fees she owed resulted in the firm’s inability to take on contingent fee matters.

B & S was awarded lost contingency fees as consequential damages arising out of Stuart’s breach of contract. Consequential damages are those damages that “result naturally, but not necessarily, from the defendant’s wrongful acts.” Arthur Andersen & Co. v. Perry Equip. Corp., 945 S.W.2d 812, 816 (Tex.1997). They are not recoverable unless the parties contemplated at the time they made the contract that such damages would be a probable result of the breach. Mead v. Johnson Group, Inc., 615 S.W.2d 685, 687 (Tex.1981) (citing Hadley v. Baxendale, 9 Ex. Ch. 341, 354 (1854)). Thus, to be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it. Arthur Andersen, 945 S.W.2d at 816; Mead, 615 S.W.2d at 687. We conclude that as a matter of law this type of injury was not foreseeable under the facts presented here. Indeed, it would be a rare case in which an attorney or law firm could demonstrate that the failure of a client to pay its bills gave rise to a recovery of contingent fees that might have been earned from other clients. The fee agreement between B & S and Stuart makes no mention of this possibility and certainly contains no agreement to pay damages for the loss of potential contingent fees from[*922] other client matters. Because such a loss was not reasonably foreseeable, the $500,000 awarded for lost contingent fees was not a proper element of recovery. The court of appeals erred in affirming this award.

Accordingly, we grant Stuart’s application for writ of error, deny the cross-application of B & S, and, without hearing oral argument, reverse the judgment of the court of appeals to delete the award for lost contingent fees. We affirm the judgment of court of appeals in all other respects. Tex.R.App. P. 59.1.