At page 921 Foreseeability and traceability of consequential damages68 citing cases[T]o be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.
- Texas Dep't of State Health Servs. & David L. Lakey, M.D., Comm'r v. Nancy Holmes, CLHRP, CME, No. 03-08-00497-CV (Tex. App.—Austin July 30, 2009).published ([T]o be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.)
- Employees Ret. Sys. of Texas// Cross- the Putnam Advisory Co., LLC v. Putnam, LLC, D/B/A Putnam Investments Putnam Inv. Mgmt., LLC & the Putnam Advisory Co., LLC// Cross-Appellee, Employees Ret. Sys. of Texas, No. 03-08-00473-CV (Tex. App.—Austin July 30, 2009).published ([T]o be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.)
- Employees Ret. Sys. of Texas// Cross- the Putnam Advisory Co., LLC v. Putnam, LLC, D/B/A Putnam Investments Putnam Inv. Mgmt., LLC & the Putnam Advisory Co., LLC// Cross-Appellee, Employees Ret. Sys. of Texas, No. 03-08-00473-CV (Tex. App.—Austin July 15, 2009).published ([T]o be recoverable, consequential damages must be foreseeable and directly traceable to the wrongful act and result from it.)
- Brickley v. Scattered Corp. (In re H & M Oil & Gas, LLC), 514 B.R. 790 (Bankr. N.D. Tex. 2014).published Id. (“[I]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.”).
- Signet Mar. Corp. v. Int'l Shipbreaking Ltd., LLC, No. 4:24-cv-02904 (S.D. Tex. Mar. 5, 2026).Id. (citing Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998)).
- In Lux Rsch. v. Hull McGuire Pc, No. 2023-0523 (D.D.C. Sept. 19, 2025).publishedServs., 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 .
- Cindi to v. David Funkhouser, Personally & on Behalf of Powershift Energy, LLC, No. 02-24-00298-CV (Tex. App.—Fort Worth July 24, 2025).published 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…
- Allen v. Navy Fed. Credit Union, No. 3:24-cv-00949 (N.D. Tex. Feb. 13, 2025). Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (citation omitted).
- MVT Servs. v. Great West Cas. Co., 118 F.4th 1274 (10th Cir. 2024).published“must be foreseeable and directly traceable to the wrongful act and result from it”
- Salt & Light Energy Equip. LLC v. Origin Bancorp, 724 F. Supp. 3d 586 (N.D. Tex. 2024).publishedServs., 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 P…
Show 50 more citing cases
- Haight Fam., LLC v. Germania Farm Mut. Ins. Ass'n, No. 01-22-00508-CV (Tex. App.—Houston [1st Dist.] Jan. 23, 2024).publishedStuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam).
- Joy & Yoo Props., Inc. v. Roeder Holdings, LLC, No. 05-22-00699-CV (Tex. App.—Dallas Nov. 28, 2023).publishedStuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998).
- Occidental Petroleum Corp. v. Wells Fargo Bank, N.A., No. 4:21-cv-01126 (S.D. Tex. May 31, 2023).Id. (citing Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998)).
- Msw Corpus Christi Landfill, Ltd. v. Gulley-Hurst L.L.C., 664 S.W.3d 102 (Tex. 2023).publishedA 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)…
- Terence Jones v. Best Storage Ctr. (Aka Best Storage), Richard Pickard, Mikayla's LLC, Richard Pickard D/B/A Best Storage Ctr., Mikayla's, LLC D/B/A Best Storage Ctr., Unknown "Buyer" (Doe 1), & Does (2-10), No. 14-21-00731-CV (Dec. 6, 2022).publishedStuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998); see also Signature Indus.
- Cirilo Garza & Jeanette Garza v. Harlingen Consol. Indep. Sch. Dist., No. 13-21-00345-CV (Tex. App.—Corpus Christi–Edinburg Nov. 17, 2022).publishedPhillips 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).
- Occidental Petroleum Corp. v. Wells Fargo Bank, N.A., 622 F. Supp. 3d 495 (S.D. Tex. 2022).publishedId. (citing Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998)).
- Signature Indus. Servs., LLC & Jeffry Ogden v. Int'l Paper Co., 638 S.W.3d 179 (Tex. 2022).published 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).
- Jatex Oil & Gas Expl. L.P., John A. Truitt, Inc., & John A. Truitt v. Nadel & Gussman Permian, L.L.C. & Scott Germann, 629 S.W.3d 397 (Tex. App.—Eastland 2020).publishedBasic 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 .
- Int'l Paper Co. v. Signature Indus. Servs., LLC & Jeffry M. Ogden, No. 13-18-00186-CV (Tex. App.—Corpus Christi–Edinburg Apr. 30, 2020).published Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam).
- Jeffrey Peace & Caroline Peace v. ITCOA, LLC D/B/A Indep. Title Co. Mona McMahan & Wm. Brian McMahan, P.C., No. 13-16-00370-CV (Tex. App.—Corpus Christi Oct. 18, 2018).publishedBasic 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)).
- Lakeway Reg'l Med. Ctr., LLC & Surgical Dev. Partners, LLC// Lake Travis Transitional LTCH, LLC N/K/A Lake Travis Specialty Hosp., LLC v. Lake Travis Transitional LTCH, LLC N/K/A Lake Travis Specialty Hosp., LLC// Lakeway Reg'l Med. Ctr., LLC Surgical Dev. Partners, LLC Brennan, Manna, & Diamond, LLC & Frank T. Sossi, No. 03-15-00025-CV (Tex. App.—Austin July 1, 2016).published “unless the parties contemplated at the time they made the contract that such damages would be a probable result of the breach”
- Tri-Cnty. Elec. Coop., Inc. v. GTE Sw. Inc. D/B/A Verizon Sw., 490 S.W.3d 530 (Tex. App.—Fort Worth 2016).publishedStuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998); AZZ Inc., 462 S.W.3d at 289 .
- Tamimi Global Co., LTD v. Kellogg Brown & Root, L.L.C., Kellogg Brown & Root Int'l, Inc., & Kellogg Brown & Root Servs., Inc., No. 14-13-00824-CV (Tex. App.—Houston [14th Dist.] Nov. 23, 2015).publishedStuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam) (internal citations omitted).
- Lakeway Reg'l Med. Ctr., LLC & Surgical Dev. Partners, LLC// Lake Travis Transitional LTCH, LLC N/K/A Lake Travis Specialty Hosp., LLC v. Lake Travis Transitional LTCH, LLC N/K/A Lake Travis Specialty Hosp., LLC// Lakeway Reg'l Med. Ctr., LLC Surgical Dev. Partners, LLC Brennan, Manna, & Diamond, LLC & Frank T. Sossi, No. 03-15-00025-CV (Tex. App.—Austin Nov. 23, 2015).publishedStuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam).
- Shirley Adams, Charlene Burgess, Willie Mae Herbst Jasik, William Albert Herbst, Helen Herbst & R. May Oil & Gas Co., Ltd. v. Murphy Expl. & Prod. Co.-USA, a Delaware Corp., No. 04-15-00118-CV (Tex. App.—San Antonio Oct. 12, 2015).publishedDep'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)…
- Lakeway Reg'l Med. Ctr., LLC & Surgical Dev. Partners, LLC// Lake Travis Transitional LTCH, LLC N/K/A Lake Travis Specialty Hosp., LLC v. Lake Travis Transitional LTCH, LLC N/K/A Lake Travis Specialty Hosp., LLC// Lakeway Reg'l Med. Ctr., LLC Surgical Dev. Partners, LLC Brennan, Manna, & Diamond, LLC & Frank T. Sossi, No. 03-15-00025-CV (Tex. App.—Austin Sept. 21, 2015).published “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”
- the Port of Houston Auth. of Harris Cnty., Texas v. Zachry Constr. Corp., No. 14-10-00708-CV (Tex. App.—Houston [14th Dist.] June 12, 2015).publishedThus, 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)).
- AZZ Inc. & AZZ Grp., L.P. v. Michael Coleman Morgan Boyce Galvanizing, LLC & Big Spring Holdings, LLC, 462 S.W.3d 284 (Tex. App.—Fort Worth 2015).published Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998) (citing Arthur Andersen & Co. v. Perry Equip.
- Elishah Sawyers, Pax Crate & Freight, Inc. & Robin Sawyers v. Marc Carter & Sally Carter, No. 01-14-00870-CV (Tex. App.—Houston [1st Dist.] Apr. 8, 2015).publishedWhile 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 judgm…
- Lynette Starr v. A. J. Struss & Co., No. 01-14-00702-CV (Tex. App.—Houston [1st Dist.] Jan. 14, 2015).published 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 T…
- Zachry Constr. Corp. v. Port of Houston Auth. of Harris Cnty., Texas, 449 S.W.3d 98 (Tex. 2014).publishedThus, 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)). .
- Spin Doctor Golf, Inc. v. Paymentech, L.P., No. 05-11-01014-CV, 2013 WL 3355199 (Tex. App.—Dallas July 2, 2013).publishedStuart v. Bayless, 964 S.W.2d 920, 921 (Tex. 1998) (per curiam).
- Superior Broadcast Prods. v. Doud Media Grp., L.L.C., 392 S.W.3d 198 (Tex. App.—Eastland 2012).publishedBasic Capital, 348 S.W.3d at 901 ; Stuart v. Bayless, 964 S.W.2d 920, 921 (Tex.1998).
- City of Houston v. Christopher A. Rhule, 377 S.W.3d 734 (Tex. App.—Houston [1st Dist.] 2012).published “result naturally, but not necessarily, from the defendant’s wrongful acts”
- Lucas v. Clark, 347 S.W.3d 800 (Tex. App.—Austin 2011).publishedAs 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)…
- Barry Michael Smith, Jr. v. State, No. 03-10-00807-CR (Tex. App.—Austin June 15, 2011).publishedAs 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. Michael Lucas v. James Jolly Clark & Eonic Creations Inc., No. 03-10-00474-CV (Tex. App.—Austin June 15, 2011).publishedAs 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…
- Basic Capital Mgmt., Inc. v. Dynex Com., Inc., 348 S.W.3d 894 (Tex. 2011).publishedStuart 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.
- Elijah Ragira/Vip Lodging Grp., Inc. v. Vip Lodging Grp., Inc., 301 S.W.3d 747 (Tex. App.—El Paso 2009).published(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)
- Cherokee Cnty. Cogeneration Partners, L.P. v. Dynegy Mktg. & Trade, 305 S.W.3d 309 (Tex. App.—Houston [14th Dist.] 2009).published “result naturally, but not necessarily, from the defendant’s wrongful acts”
- McKinney & Moore, Inc. v. City of Longview, Texas, No. 14-08-00628-CV, 2009 WL 4577348 (Tex. App.—Houston [14th Dist.] Dec. 8, 2009).publishedStuart v. Bayless , 964 S.W.2d 920, 921 (Tex. 1998).
- Elijah Ragira/VIP Lodging Grp., Inc. v. VIP Lodging Grp., Inc., Atmex Corp. & J. Santos Espinoza/Elijah Ragira, No. 08-07-00182-CV (Tex. App.—El Paso Nov. 12, 2009).published(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)
- MBM Fin. Corp. v. Woodlands Operating Co., 292 S.W.3d 660 (Tex. 2009).published 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. 19…
- Employees Ret. Sys. of Texas v. Putnam, LLC, 294 S.W.3d 309 (Tex. App.—Austin 2009).published “must be foreseeable and directly traceable to the wrongful act and result from it”
- Basic Capital Mgmt. v. Dynex Com., Inc., 254 S.W.3d 508 (Tex. App.—Dallas 2008).published“are those damages that ‘result naturally, but not necessarily, from the defendant’s wrongful acts”
- Mood v. Kronos Prods., Inc., 245 S.W.3d 8 (Tex. App.—Dallas 2007).published
- ExxonMobil Corp. v. Valence Operating Co., 174 S.W.3d 303 (Tex. App.—Houston [1st Dist.] 2005).published
- Petco Animal Supplies, Inc. v. Schuster, 144 S.W.3d 554 (Tex. App.—Austin 2004).published
- Avco Corp., Textron Lycoming Reciprocating Engine Div. of Avco Corp. v. Interstate Sw., Ltd., 251 S.W.3d 632 (Tex. App.—Houston [14th Dist.] 2008).published
- Powell Elec. Sys., Inc. v. Hewlett Packard Co., 356 S.W.3d 113 (Tex. App.—Houston [1st Dist.] 2011).published
- S. Elec. Servs., Inc. v. City of Houston, 355 S.W.3d 319 (Tex. App.—Houston [1st Dist.] 2011).published
- State Farm Lloyds/Sheila Fitzgerald & Charles Lanham v. Sheila Fitzgerald & Charles Lanham/State Farm Lloyds, No. 03-99-00177-CV, 2000 WL 1125217 (Tex. App.—Austin Aug. 10, 2000).published
- Glenda Gotch v. David Terry Gotch, 416 S.W.3d 633 (Tex. App.—Houston [14th Dist.] 2013).published
- Powell Elec. Sys., Inc., F/K/A Powell Elec. Mfg. Co. v. Hewlett Packard Co., No. 01-09-00876-CV (Tex. App.—Houston [1st Dist.] Apr. 28, 2011).published
- T & C Devine v. Stericycle, No. 21-20310 (5th Cir. Nov. 15, 2022).unpublished
- Farooqi v. Carroll (In re Carroll), 464 B.R. 293 (Bankr. N.D. Tex. 2011).published
- White Knight Dev., LLC v. Dick B. Simmons, Sr., & Julie M. Simmons, 718 S.W.3d 203 (Tex. 2025).published
- Berrocal v. Samsung, No. 25-50259 (5th Cir. Dec. 4, 2025).unpublished
- Strauss v. Cont'l Airlines, Inc., 67 S.W.3d 428 (Tex. App.—Houston [14th Dist.] 2002).published
At page 920 “must be foreseeable and directly traceable to the wrongful act and result from it.”1 citing case
- Brickley v. Scattered Corp. (In re H & M Oil & Gas, LLC), 514 B.R. 790 (Bankr. N.D. Tex. 2014).published “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.”
v.
Bobbie BAYLESS, Bayless & Stokes and Burta Rhoads Raborn, Respondents
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.