What Court Handles Breach of Contract and How Do I File in Texas?

When an individual needs to file a breach of contract lawsuit in Texas, it is important that they know which court handles breach of contract cases. In general, any civil court with general jurisdiction will have jurisdiction in a breach of contract case.

Even though there may be different courts that someone can file their claim in, the laws in certain places may be more advantageous. Because of this, an individual should consult with a local Texas attorney who will know which jurisdiction has laws that are most favorable for their claim.

Examples of courts where a breach of contract claim can be filed in Texas include:

• The state where the defendant resides or where a business has its principal place of business
• Any state where the court has a legal basis for exercising authority over a defendant, such as a state where the defendant is engaged in commerce
• The state where the contract at issue was negotiated or signed
• Federal court when the lawsuit is based on a federal law issue
• Federal court when the parties to the contract are residents of different states and the amount in controversy will likely exceed $75,000

In addition to filing a claim in a court with jurisdiction, the lawsuit has to be filed in a court with jurisdiction over the amount in controversy, or the dollar amount of damages in the case. Every state has unique amount-in-controversy requirements for the courts, with most having several different levels of trial courts, each with its own amount-in-controversy requirements.

How to Sue for Breach of Contract

A lawsuit for breach of contract begins when an individual files a complaint in the appropriate civil court. The complaint is the document that outlines the issues.

It must be served on the defendant. After that, the defendant will have 30 days to file their answer to the complaint.

A contract is defined as a legal agreement between two or more parties where one party makes an offer and the other accepts. Contracts must include specific elements to be valid, including:

• An offer
• An acceptance of the offer presented
• A promise to perform
• A valuable consideration
• A time or an event when the performance is required
• Terms and conditions for the performance
• Performance

Breach of contract arises when one of the parties to a contract does not perform as promised in the agreement and, as a result, another party suffers economic losses. It can be complex to determine where to file the lawsuit for breach of contract.

The factors that should be considered in these cases include:

• Venue: A defendant cannot be required to answer a lawsuit in just any location. Venue means the court has the ability to exercise authority over the defendant.
  • Typically, the venue for breach of contract claims is where the events leading to the lawsuit occurred or where the defendant conducts business or resides.
• Jurisdiction: The court must have jurisdiction over the subject matter, or breach of contract and the parties involved.
  • Some courts, for example, family law courts, do not handle breach of contract cases.
  • If the amount of controversy is too high, an individual cannot file their claim in small claims court.
• Forum selection clause: A contract may state where a lawsuit should be brought in a forum selection clause. Additionally, the contract can provide which state or national laws apply when a dispute arises.
• Statute of limitations: This is the time limit a party has to file their breach of contract claim.
  • Each state has its own statute of limitations for breach of contract cases.
• Mediation: Some contracts require parties to use alternative dispute (ADR) methods, such as mediation or arbitration to resolve a dispute.

How Long Do I Have to Sue for Breach of Contract?

In the State of Texas, an individual has four years from the date the contract was breached to file their claim. This time limit may, in some situations, also begin when the breach is discovered.

If an individual misses this deadline, they will lose their right to file a claim for damages. Because of this, it is very important to consult an attorney as soon as a party to a contract realizes it may have been breached.

What Are Some Possible Defenses to a Breach of Contract Claim?

There are several possible available defenses to breach of contract claims that defendants may present, including, but not limited to:

• A violation of the Statute of Frauds
• Missing elements of the contract
• An unconscionable contract

The Statute of Frauds requires certain types of agreements to be in writing in order to be enforceable in court, such as contracts:

• For the transfer or sale of land
• That cannot be performed in a year
• To pay the debts of another individual
• In consideration of marriage
• For the sale of goods over a specific value
• Related to the estate of a deceased individual

It is important to note that there can be exceptions to the Statute of Frauds, including:

• Admission: An exception may be made when the party against whom enforcement of a contract is sought admits in court that a contract was made.
• Partial performance: If one of the parties has partly fulfilled their obligations under an oral contract, a court may enforce it.
• Specially manufactured goods: When a seller has made a substantial start manufacturing custom goods, an oral contract may be enforced.
• Promissory estoppel: This legal principle can make an otherwise unenforceable promise binding if one of the parties has relied on a promise to their detriment.

A defendant may also argue that a contract was never actually formed because the plaintiff has not proven all of the elements of the contract, as discussed above. When the elements are not all proven, a lawsuit cannot succeed.

An unconscionable contract is one that is severely unfair and one-sided and is, therefore, deemed unenforceable under the law. This type of contract typically leaves one party with no real and meaningful choice, usually because of major differences in bargaining power between the parties.

An unconscionable contract can also be one that is against public policy because of the unequal terms. If this occurs, one party can assert that the contract is invalid because the terms are so obviously unfair to one of the parties.

Should I Get a Lawyer if I Want to File a Breach of Contract Lawsuit?

If you need to file a breach of contract lawsuit, it is essential to consult with a Texas breach of contract lawyer as soon as you can to determine the proper court and how long you have to file your claim. These cases can be complex and, if the defendant is a large company, they will most likely vigorously defend against any claims made against them.

Your attorney can review your contract, determine the nature of the breach and the amount of damages you should request, and advise you of the most favorable court in which to file. In addition, your attorney can help prepare for the defenses that the other party may use against your claims.

LegalMatch provides free and quick lawyer matching services that you can use in as little as 15 minutes, whether you need to file a breach of contract claim or if one has been filed against you. After you submit your concern on the website, within around 24 hours, you will receive responses from local breach of contract lawyers who can help, even if you are only seeking advice and are not ready to file a formal claim in court.