‍1. Breach of Contract

One prevalent category of commercial litigation is breach of contract claims. These disputes arise when one party fails to fulfill its contractual obligations, either partially or entirely. To establish a breach of contract claim in Texas, the plaintiff must demonstrate the existence of a valid contract, their own performance under the contract, the defendant's breach, and damages resulting from the breach. Breach of contract cases are among the most frequently litigated business disputes in Texas courts.

Example: Hiring a Painter

Imagine you hire someone to paint your house. You both agree in writing that:

• The painter will paint the entire exterior of your house.
• The work will start on June 1 and be finished by June 10.
• You will pay the painter $2,000 when the job is done.

Now suppose the painter only paints the front of your house and says they’re done. They also want to be paid the full $2,000. That’s a breach of contract.

The painter didn’t fulfill their end of the agreement — they were supposed to paint the entire house, not just the front. Because of this, you may be entitled to:

• Refuse to pay until the job is completed as agreed.
• Pay less than the full amount.
• Sue for damages (for example, if you have to hire someone else to finish the job and it costs more).

This kind of situation is common and shows how a contract is a mutual promise — if one side doesn’t do what they promised, it’s a breach.

2. Fraud

Fraud claims are another significant area of commercial litigation. These cases typically involve allegations of false or misleading representations made to induce a party into a transaction. To succeed in a fraud claim under Texas law, the plaintiff must prove elements such as a false material representation, knowledge of its falsity, intent to induce reliance, justifiable reliance by the plaintiff, and resulting damages. Fraud claims are often used to challenge or avoid contractual obligations in business disputes.

Same example, you’re hiring a painter:

Let’s say the painter comes to your house and says: “I’ve painted houses for 20 years, I’m licensed and insured, and I only use top-quality paint that lasts 10 years. You’re in good hands!”

You agree to hire them based on that. But after you pay them and the job is done, you find out:

• They’ve only been painting for a year.
• They have no license or insurance.
• They used cheap, low-quality paint that’s already peeling after a few weeks.

That could be fraud.

Why? Because:

• The painter knowingly made false statements (about experience, license, and materials).
• They intended to trick you into hiring them.
• You relied on those false statements when deciding to hire them.
• You lost money because of it.

In simple terms, fraud is more than just breaking a promise — it’s intentionally lying to get someone to agree to something, and that lie causes harm.

3. Consumer Protection

Additionally, commercial litigation in Texas often includes disputes related to consumer and commercial law. This area covers a broad spectrum of issues, including claims under the Texas Deceptive Trade Practices Act (DTPA), the Uniform Commercial Code (UCC), and other statutes governing consumer rights, credit, and collection activities. These cases may involve allegations of deceptive practices, unfair trade practices, or violations of statutory obligations.

‍Another painter example: DTPA Claim Against a Painter

Let’s say you hire a painter after seeing their ad, which says: “We use 100% premium weatherproof paint that lasts 15 years — guaranteed!”

You hire them, they paint your house, and you pay $2,000. A few months later, the paint starts peeling and fading badly. You do some checking and find out:

• They used cheap paint you can buy at a hardware store for $20 a gallon.
• It’s not weatherproof, and there’s no real guarantee.
• The ad was false or misleading, and they knew it.

That could be a DTPA violation. Why? Because under the DTPA:

• They made a false or misleading claim about the quality of their service or materials.
• You relied on that claim when deciding to hire them.
• You suffered financial harm because of it.

You could potentially sue under the DTPA and ask for: your money back, the cost to repaint your house, or possibly extra damages if the deception was intentional.

A DTPA claim is like saying, “You tricked me as a consumer with false advertising or shady business practices, and that’s against the law.”

4. Complex Litigation

Complex commercial litigation, such as disputes involving large-scale contracts, business torts, and corporate governance issues, is also common. These cases often require extensive discovery, expert testimony, and significant legal resources spent reviewing agreements, drafting pleadings, and preparing for trial.

Sticking with the painter example: Painting Contract for an Apartment Complex

Let’s say you're the owner of a real estate company that manages several apartment buildings. You sign a contract with a painting company to:

• Repaint all 10 of your apartment buildings.
• Use a specific high-end brand of eco-friendly paint (important for your branding).
• Complete the project in 4 months.
• Total contract price: $500,000.
• You make a down payment of $200,000.

But then:

• The painter subcontracts the work to a cheaper, unlicensed crew without telling you.
• They use low-grade paint instead of the agreed brand.
• The job is sloppy and incomplete.
• You're now facing angry tenants, damage to your brand reputation, and you have to pay another company to fix the mess.

You sue the painter for:

1. Breach of contract (they didn’t follow the agreed terms),
2. Fraud (they may have lied about what they were doing),
3. Misrepresentation (about the paint and crew),
4. Violation of trade laws or codes (like the DTPA if in Texas),
5. Damages for lost profits, reputational harm, and costs to repair.

Why It’s Complex Commercial Litigation:

• High dollar value.
• Multiple legal issues (contract, fraud, trade practices).
• Business reputations at stake.
• Expert witnesses might be needed (on paint quality, construction standards, etc.).
• Possibly even cross-claims between the original painter and subcontractors.

This is no longer just “you hired a painter and got ripped off.” It’s a business dispute involving big money, complex facts, and legal layers — that’s complex commercial litigation.

Conclusion

In summary, commercial litigation in Texas spans a variety of legal issues, including breach of contract, fraud, consumer protection, and complex business disputes. Each type of case requires a tailored approach to address the unique legal and factual challenges involved.

Consulting with an attorney can help ensure you are properly guided in this complex process to ensure your long-term success.

Are you considering or involved in litigation? Reach out to Eric Sprott Law Firm to schedule a consultation to begin discussing your matter.

‍