Elrod V. A-Legal Case Study

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FACTS: David W. Elrod, litigation law firm, hired A-Legal, litigation support services, on January 26, 2009 and delivered to them documents and computer disks to start electronic discovery work on the “R Project”. A few days after A-Legal received the necessary files to begin working they informed Elrod that their services were going to be twice as much than what had been previously mentioned. Elrod, subsequently, cancelled their arrangements and looked elsewhere for services. A-Legal submitted its files as requested and billed Elrod $15,000.00, which Elrod refused to pay. A-Legal filed suite for breach of contract and Elrod counterclaimed for breach of contract, as well. Elrod argued that A-Legal violated the contract because they did not perform the work they requested at A-Legal. Instead, Elrod claims that A-Legal had an outside company do their work; furthermore, the work delivered was not completed as agreed upon. While at trial A-Legal claimed damages for the bill that was unpaid and Elrod claimed damages from lost revenue and lost business opportunity due to A-Legal’s breach. The trial court ruled in favor of Elrod and awarded $20,000 in damages and $60,000 in attorney’s fees. Before a written judgment was rendered, Elrod filed a motion to re-open evidence under Texas Rule of Civil Procedure 270. The motion was granted and the trial court rendered a written judgment, almost three months later, in favor of Elrod.

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