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§ 38.0015.Recovery of Attorney's Fees as Compensatory Damages

Title 2. Trial, Judgment, and Appeal · Subtitle C. Judgments · Chapter 38. Attorney's Fees · Last amended 2021 · Last verified August 29, 2026

In one sentenceSection 38.0015 allows attorney's fees as compensatory damages for breach of a construction contract, without creating any independent right to fees.

Full Text of § 38.0015

Text sizeJump to: (a) (b)

(a)A person may recover reasonable attorney's fees from an individual, corporation, or other entity from which recovery is permitted under Section 38.001 as compensatory damages for breach of a construction contract as defined by Section 130.001.
(b)This section may not be construed to create or imply a private cause of action or independent basis to recover attorney's fees.
End

Plain-English Summary

A 2021 addition sitting alongside the general fee statute, and the distinction it draws is a fine one that matters.

A person may recover reasonable attorney's fees from an individual, corporation, or other entity from which recovery is permitted under the general fee section as compensatory damages for breach of a construction contract as defined by Section 130.001.

Fees as damages, not fees as costs. That is the point. Where a party incurs legal fees as a consequence of another's breach — defending a claim brought because the contractor failed to perform, for instance — those fees are a loss caused by the breach rather than the cost of prosecuting this suit. The section confirms they may be recovered on that footing in the construction context.

Subsection (b) forecloses the obvious over-reading. The section may not be construed to create or imply a private cause of action or independent basis to recover attorney's fees. It does not add a ninth category to the general fee statute. The claim must already exist, and recovery must already be permitted against that defendant.

The cross-reference to Section 130.001 matters: the definition of "construction contract" there governs, so whether an agreement qualifies is answered in that chapter rather than this one.

Frequently Asked Questions

What does this section add?

It confirms that attorney's fees may be recovered as compensatory damages for breach of a construction contract, rather than only as a fee award on top of a judgment.

Does it create a new right to fees?

No. Subsection (b) says expressly that it may not be construed to create or imply a private cause of action or an independent basis to recover fees.

What counts as a construction contract?

The definition in Section 130.001 governs.

Who can be made to pay under this section?

Only a party from which recovery is permitted under Section 38.001, so the exclusions in that section carry over.

Amendment History

  • Added by Acts 2021, 87th Leg., R.S., Ch. 1015 (H.B. 2416), Sec. 1, eff. September 1, 2021.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source