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Cameron and Horres Prevail in First Texas Supreme Court Decision on the Hughes Doctrine Since Intermediate Appellate Courts Expanded the Doctrine

December 26, 2019

Lee Cameron (Partner-Dallas) and Stratton Horres (Partner-Dallas) obtained summary judgment on behalf of a law firm and individual lawyer that provided legal advice to the plaintiff in connection with an $8.5 million asset transfer among related companies. As a result of that transaction, the U.S. government sued the plaintiff under the Priority Statute and received a judgment against the plaintiff for about $12.5 million. The plaintiff then sued the firm and lawyer for legal malpractice, seeking the full amount of that judgment as damages. On appeal, the intermediate court of appeals held that a fact issue existed regarding application of Hughes tolling and, accordingly, reversed. Lee and Stratton appealed to the Texas Supreme Court, which reversed the court of appeals' decision and rendered judgment for our clients that claimant takes nothing. This was the first decision by the Texas Supreme Court concerning the Hughes doctrine in nearly 20 years, and in that period intermediate appellate courts had expanded the doctrine.

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