Burrow v. Arce
Supreme Court of Texas
997 S.W.2d 229 (1999)
After a chemical-plant explosion killed 23 workers, five attorneys at a law firm (defendants) represented Carol Arce (plaintiff) and 125 other clients in wrongful-death and injury claims that settled for $190 million, generating a $60 million contingent fee. Forty-nine of the plaintiffs later sued the attorneys, alleging breach of fiduciary duty for charging a higher contingency fee than promised and for settling claims in the aggregate without individually assessing each plaintiff's specific injury, seeking forfeiture of the fees. The attorneys argued no breach occurred, and that even if one had, forfeiture wasn't warranted because every plaintiff received a fair settlement and suffered no actual harm; the trial court agreed and granted the attorneys summary judgment, but the court of appeals reversed, and the attorneys appealed further.
Whether an attorney who breaches his fiduciary duty to his client may be required to forfeit his fees even if the client suffered no actual harm as a result of the breach.