Benge General Contracting hired Hertz Electric and HTJ Global Electric for electrical work on commercial sites. A dispute arose over contract scope and performance. The trial court awarded attorney's fees against the electrical contractors, but the appeals court reversed that decision, ruling that Texas law only allows attorney's fees against individuals and corporations—not limited liability companies (LLCs). The court affirmed all other damages and findings.
If you're sued as an LLC, the other party cannot recover attorney's fees under Texas Section 38.001, even if they win. This protection doesn't apply to sole proprietors or corporations.
Get written approval on contract scope before starting work. Benge stamped acceptance terms on bids, but disputes still arose over what was included versus excluded.
Lien waivers and change orders matter. Document every scope change in writing to avoid disputes over what work was actually required under the original bid.