Supreme Court of Texas

An attorney hired on a contingent-fee basis may not include in the fee agreement a provision stating that, in the event the attorney is discharged before completing the representation, the client must immediately pay a fee equal to the present value of the attorney's interest in the client's claim. Such a termination fee provision was contrary to public policy and unenforceable.

Appellate Information

• Argued 12/01/2005
• Decided 11/03/2006
• Published 11/03/2006

Judges

• Chief Justice JEFFERSON delivered the opinion of the Court, in which Justice O'NEILL, Justice WAINWRIGHT, Justice BRISTER, Justice GREEN, and Justice JOHNSON joined.

Court

• Supreme Court of Texas

Counsel

• For Appellant:
  
• Mike A. Hatchell, Molly H. Hatchell, Charles R. Watson Jr., Locke Liddell & Sapp, LLP, Thomas R. Phillips, Baker Botts L.L.P., Austin, and Steven L. Hughes, Mounce, Green, Myers, Safi & Galatzan, El Paso, for Petitioner.


• For Appellees:
  
• John M. Phalen Jr., Daniel J. Sheehan Jr., Michael L. Atchley, Daniel Sheehan & Associates, L.L.P., Dallas, for Respondent.