LEGAL MALPRACTICE DAMAGES Author & Presenter

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LEGAL MALPRACTICE DAMAGES Author & Presenter LEGAL MALPRACTICE DAMAGES Author & Presenter: WARREN W. HARRIS, Houston Bracewell & Giuliani [email protected] Co-Authors: JEFFREY L. OLDHAM LINDSAY E. HAGANS Bracewell & Giuliani LLP 711 Louisiana Street, Suite 2300 Houston, Texas 77002-2770 (713) 221-1490 State Bar of Texas 7th ANNUAL DAMAGES IN CIVIL LITIGATION February 26-27, 2015 Houston CHAPTER 23 WARREN W. HARRIS 711 Louisiana Street, Suite 2300 Houston, Texas 77002-2770 (713) 221-1490 [email protected] EMPLOYMENT: Bracewell & Giuliani LLP, Partner, Head of Appellate Group University of Texas School of Law, Adjunct Professor in Appellate Advocacy (2006-07) University of Houston Law Center, Adjunct Professor in Appellate Advocacy (2000-05) Supreme Court of Texas, Briefing Attorney (1988-89) BOARD CERTIFICATION: Civil Appellate Law, Texas Board of Legal Specialization (1993- ) RECOGNITION: Chambers USA: Guide to America’s Leading Lawyers for Business, Appellate Litigation (2006- ) The Best Lawyers in America, Appellate Practice (2007- ), Houston Appellate Practice “Lawyer of the Year” (2014) Texas Super Lawyers, Top 100 Lawyers in Texas (2006- ), Appellate Law (2003- ) Warren W. Harris Outstanding Nominating Chair Award, Texas Bar Foundation (2014) Gene Cavin Award (Excellence in Continuing Legal Education), State Bar of Texas (2014) A Standing Ovation Award (Exceptional Contribution to CLE Programming), TexasBarCLE (2013) Alumnus of the Year Award, University of Houston Law Alumni Association (2007) EDUCATION: University of Houston Law Center, Doctor of Jurisprudence Cum Laude (1988) ASSOCIATIONS AND JOURNALS: Texas Supreme Court Historical Society (President 2012-13) Texas Bar Foundation (Chair of Fellows 2010-11) University of Houston Law Alumni Association (President 2009-11) State Bar of Texas, Appellate Section (Chair 2005-06) Houston Bar Association (Director 2008- ), Appellate Practice Section (Chair 1998-99) Houston Volunteer Lawyers Program (Chair 2012-13) Houston Lawyer Referral Service (Chair 2013-14) International Association of Defense Counsel, Appellate Practice Committee (Chair 2003-09) American Bar Association TIPS, Appellate Advocacy Committee (Chair 2000-01) TEXAS BAR JOURNAL (Editorial Board Chair 2002-06) THE REVIEW OF LITIGATION (Advisory Board 2006- ) SELECTED SPEECHES AND Advanced Civil Appellate Practice Course, State Bar of Texas – 2014, 2013, 2012, 2009, 2008, 2007 PUBLICATIONS: (Course Director), 2006, 2005, 2004, 2003, 2002, 2001, 1999, 1998, 1996 Practice Before the Texas Supreme Court, State Bar of Texas – 2013, 2011, 2007, 2003 Advanced Civil Trial Course, State Bar of Texas – 2012, 2008, 2004 Advanced In-House Counsel Course, State Bar of Texas – 2013 (Course Director), 2011 (Co-course Director), 2010, 2005, 2004, 2003, 2002 Advanced Personal Injury Law Course, State Bar of Texas – 2014 Conference on Techniques for Handling Civil Appeals in State and Federal Court, University of Texas School of Law – 2003, 1995, 1994, 1993, 1992 Appellate Practice Section, Houston Bar Association – 2014, 2010, 2005, 2004, 2002, 1998, 1992, 1991 Appellate Law Section, Dallas Bar Association – 2005, 2000, 1993 Litigation Section, Houston Bar Association – 2006, 2005, 2004, 1998 International Association of Defense Counsel – 2008, 2007, 2006, 2005, 2003 Appellate Law, TEXAS BAR JOURNAL – 2015, 2014, 2013, 2012, 2011, 2010, 2009, 2008, 2007, 2006 JEFFREY L. OLDHAM 711 Louisiana Street, Suite 2300 Houston, Texas 77002-2770 (713) 221-1225 [email protected] EMPLOYMENT: Bracewell & Giuliani LLP, Partner, Appellate Group Counsel to the Attorney General, U.S. Department of Justice (2005-06) Law Clerk to Chief Justice William H. Rehnquist, U.S. Supreme Court (2004-05) Law Clerk to Judge J. Harvie Wilkinson, U.S. Court of Appeals for the Fourth Circuit (2003-04) BOARD CERTIFICATION: Civil Appellate Law, Texas Board of Legal Specialization (2011- ) RECOGNITION: The Best Lawyers in America, Appellate Practice (2014- ) Texas Super Lawyers (2013- ) Texas Rising Stars (2010-12) EDUCATION: Northwestern University School of Law, J.D., magna cum laude, Order of the Coif (2003) John Paul Stevens Award winner (first in class) Coordinating Articles Editor, Northwestern University Law Review University of Tulsa, B.S.B.A., summa cum laude, with honors (2000) Faculty Honor Medal winner (first in class) ASSOCIATIONS: Texas Bar Foundation: Sustaining Life Fellow; Nominating Committee Member Houston Bar Foundation, Fellow Houston Bar Association: Appellate Section Council member; Board Member of Houston Lawyer Referral Service; Co-Chair of CLE Committee; Member of Houston Lawyer editorial board State Bar of Texas, Appellate Section; Member and Co-Chair of CLE Committee SELECTED SPEECHES Advanced Civil Appellate Course, State Bar of Texas – 2014, 2013, AND PUBLICATIONS: 2012, 2011, 2009, 2008 Advanced Civil Trial Course, State Bar of Texas – 2012, 2011 Advanced Personal Injury Law Course, State Bar of Texas – 2014 State Bar of Texas Litigation Section’s The Advocate – 2013 HBA’s Houston Lawyer Magazine – 2013 LINDSAY E. HAGANS 111 Congress Avenue, Suite 2300 Austin, Texas 78701-4061 (512) 472-7800 [email protected] EMPLOYMENT: Bracewell & Giuliani LLP, Associate, Appellate Group Briefing Attorney to Chief Justice Nathan L. Hecht, Supreme Court of Texas (2013-14) EDUCATION: University of Texas School of Law, Doctor of Jurisprudence, with honors (2013) • Texas Journal of Oil, Gas, and Energy Law, Staff Editor University of Southern California, Bachelor of Arts, magna cum laude (2006) ASSOCIATIONS: Texas Supreme Court Historical Society Austin Young Lawyers Association State Bar of Texas, Appellate Section Austin Bar Association SPEECHES AND PUBLICATIONS: Appellate Law, 78 TEXAS BAR JOURNAL 28 (2015) Damages in the Jury Charge, Damages in Civil Litigation Course, State Bar of Texas – 2015 Legal Malpractice Damages, Damages in Civil Litigation Course, State Bar of Texas – 2015 Legal Malpractice Damages Chapter 23 TABLE OF CONTENTS Page TABLE OF AUTHORITIES .......................................................................................................................................... ii I. OVERVIEW OF A LEGAL MALPRACTICE CLAIM ................................................................................... 1 A. Duty ................................................................................................................................................................ 1 B. Breach ............................................................................................................................................................. 2 C. Causation ........................................................................................................................................................ 3 D. Damages ......................................................................................................................................................... 3 II. THE DISTINCTION BETWEEN CAUSATION AND DAMAGES ............................................................... 4 III. THE CASE-WITHIN-A-CASE REQUIREMENTS ......................................................................................... 4 IV. USE OF SETTLEMENT-VALUE IN LEGAL MALPRACTICE CASES ....................................................... 5 A. An Alternative to Case-Within-A-Case .......................................................................................................... 5 B. Texas Law on Settlement-Value ..................................................................................................................... 5 1. The Texas Supreme Court Pre-Elizondo v. Krist: Focus is on Case-Within-A-Case ........................... 5 2. The Courts of Appeals Pre-Elizondo v. Krist ........................................................................................ 6 3. Elizondo v. Krist: Opening the Door for Settlement-Value .................................................................. 8 C. Other States’ Law on Settlement-Value ......................................................................................................... 9 1. States generally allowing settlement-value ........................................................................................... 9 2. States requiring case-within-a-case methodology ............................................................................... 12 3. States that have an additional settlement measure of damages ........................................................... 12 4. States rejecting claims for inadequate settlement ............................................................................... 14 D. Lost Settlement Opportunity ......................................................................................................................... 15 E. The Future of Settlement-Value: Limited to Mass Torts? ............................................................................ 16 V. EXPERT TESTIMONY FOR CAUSATION AND DAMAGES ................................................................... 17 A. When Expert Testimony Is Required ............................................................................................................ 17 B. Validity of Expert Testimony ....................................................................................................................... 19 iv Legal Malpractice Damages Chapter 23 TABLE OF AUTHORITIES Page(s) Cases Akin, Gump, Strauss, Hauer & Feld, L.L.P. v. Nat’l Dev. & Research Corp., 299 S.W.3d 106 (Tex. 2009) ...........................................................................................................................
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