Texas Business Court Extends Attorney Immunity to In-House Counsel
In-house counsel in Texas advising on executive for-cause terminations now have expanded attorney immunity protection from related wrongful termination claims.
A Texas business court issued a landmark ruling extending attorney immunity protections to corporate in-house counsel accused of facilitating a CEO’s ouster in a $350 million wrongful termination claim. The court held that advising on whether a CEO termination qualifies as for cause is a quintessential legal judgment, entitling in-house counsel to the same immunity as outside lawyers for such conduct. In-house counsel in Texas who advise on executive termination decisions should review this ruling to understand its scope, and may want to adjust documentation practices for related legal advice to align with the court’s reasoning.