Jerry Spence D/B/A Big Country Irrigation v. Mark Hadley and Virginia Reger Morton, Trustee of the Virginia Reger Morton Revocable Living Trust ( 2021 )


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  • Opinion filed October 28, 2021
    In The
    Eleventh Court of Appeals
    __________
    No. 11-19-00389-CV
    __________
    JERRY SPENCE D/B/A BIG COUNTRY IRRIGATION, Appellant
    V.
    MARK HADLEY AND VIRGINIA REGER MORTON,
    TRUSTEE OF THE VIRGINIA REGER MORTON
    REVOCABLE LIVING TRUST, Appellees
    On Appeal from the 259th District Court
    Jones County, Texas
    Trial Court Cause No. 024543
    MEMORANDUM OPINION
    This is a restricted appeal from an “Order Granting Summary Motion to
    Remove Invalid Lien.” The motion upon which this order was based was limited in
    scope—it simply sought to remove a lien that had been filed in the Jones County
    property records. The hearing on the motion only addressed the limited relief that
    had been requested in the motion. But the order granting the motion, that was
    prepared by Appellees’ attorney, granted much more relief than simply removing
    the lien—it also provided that Appellant take nothing on all of his claims seeking
    payment from Appellees. Counsel for Appellant did not become aware of the “take
    nothing” component of the judgment until more than thirty days after it was entered.
    We conclude that Appellant may challenge the judgment by way of restricted appeal.
    We affirm in part, and reverse and remand in part.
    Factual and Procedural History
    Appellant, Jerry Spence d/b/a Big Country Irrigation, entered into an oral
    agreement with Appellees, Mark Hadley and Virginia Reger Morton, Trustee of the
    Virginia Reger Morton Trust, in which Appellant agreed to repair two water wells
    for Appellees in exchange for payment. On October 23, 2018, Appellant filed a
    petition in District Court in Jones County, Texas, alleging breach of contract and
    seeking damages, attorney’s fees, a decree recognizing Appellant’s mechanic’s lien,
    and foreclosure upon said lien. On November 19, 2018, Appellees answered and
    asserted an affirmative defense as to the mechanic’s lien on the grounds that the
    property on which the water wells are situated is Morton’s designated homestead
    and that the contract was not in writing.
    On January 30, 2019, Appellees filed a summary motion to remove the invalid
    lien from the homestead. On April 8, 2019, Appellees’ counsel e-mailed Appellant’s
    counsel to confirm that he received notice that the hearing on Appellees’ motion had
    been set for May 10, 2019. Appellant’s counsel explained that he would be out of
    the country on that day and requested that Appellees reschedule the hearing.
    Appellees’s counsel responded, “Yes, I’ll agree to a continuance.” However, the
    hearing was never rescheduled.
    At the May 10 hearing, the trial court asked Appellees whether anyone
    entitled to notice of the hearing was absent; Appellees responded that Appellant
    “has received notice and has not appeared.”       The hearing proceeded without
    2
    Appellant’s counsel, but the trial court revisited the matter of the absence of
    Appellant’s counsel, resulting in the following exchange:
    THE COURT: [H]ow did you serve Mr. Boone [Appellant’s
    Counsel] with notice of today’s hearing?
    [APPELLEES’ COUNSEL]: Electronic service and then I
    followed up with an e-mail directly to him. He did respond to my e-
    mail.
    THE COURT: And did he say he wouldn’t be here today?
    [APPELLEES’ COUNSEL]: He indicated that he was going to
    file for a continuance -- or he actually requested that I file a
    continuance; however, I cannot do that, sir, because my -- that would
    be indirect [sic] violation of the interest of my client. I did tell him that
    if he were to seek a continuance that I would not oppose him.
    (Brief pause. Court on the phone.)
    THE COURT: Mr. Campbell, Mr. Boone, he practices up here.
    The reason I called is he -- I don’t know that he’s ever missed a hearing
    or even been late for a hearing. He’s out of the country. His paralegal
    said she didn’t have it on the calendar. Are you wanting to proceed
    forward with your relief today?
    [APPELLEES’ COUNSEL]: Yes, sir.
    Appellees then submitted a proposed order to the trial court, granting Appellees’
    summary motion for removal of the invalid lien. The trial court instructed Appellees
    to e-file the proposed order and it would be entered.
    There was no discussion at the hearing, nothing in the title of the order, and
    nothing in the record, other than the fact that it had been e-filed, indicating that the
    trial court or Appellant’s counsel was actually aware that the proposed order, in
    addition to removing the lien, also included an inserted paragraph with the following
    language:
    IT IS ORDERED that [Appellant] . . . take nothing against
    [Appellees] . . . [and] that all claims asserted by [Appellant] are
    denied. . . .
    3
    ....
    . . . This judgment finally disposes of all parties and claims and
    is appealable.
    Although there was no discussion of it during the hearing or evidence of same
    submitted, the order also summarily ordered that Appellant “pay reasonable
    attorney’s fees in the amount of $5,000.00 to [Appellees].”1 The trial court signed
    this order on June 20, 2019.
    On November 21, 2019, Appellant moved for summary judgment on his
    breach of contract claim. Four days later, Appellees submitted a plea to the
    jurisdiction, arguing that the trial court lacked jurisdiction over Appellant’s breach
    of contract claim because the order it had signed five months earlier, drafted by
    Appellees’ counsel, “explicitly states that, ‘all claims asserted by [Appellant] are
    denied.’” Appellant’s counsel responded that “[d]espite no grounds for that relief
    and no notice to me of the proposed judgment, [Appellees’ counsel] attempted to
    defeat [Appellant’s] claims by trickery and deceit.” Appellant then filed a notice of
    1
    We are mindful of the following provisions of THE TEXAS LAWYER’S CREED—A MANDATE FOR PROFESSIONALISM:
    I know that Professionalism requires more than merely avoiding the violation of laws and rules.
    ....
    III. . . . A lawyer owes to opposing counsel, in the conduct of legal transactions and the pursuit of
    litigation, courtesy, candor, cooperation, and scrupulous observance of all agreements and mutual
    understandings.
    ....
    11. I will not take advantage, by causing any default or dismissal to be rendered, when I
    know the identity of an opposing counsel, without first inquiring about that counsel’s intention to
    proceed.
    12. I will promptly submit orders to the Court. I will deliver copies to opposing counsel
    before or contemporaneously with submission to the Court.
    4
    restricted appeal on December 12, 2019, eight days before the six-month deadline to
    do so. See TEX. R. APP. P. 26.1(c).
    On restricted appeal, Appellant advances two issues: (1) that, while the trial
    court correctly removed Appellant’s mechanic’s lien from Appellees’ homestead
    property, it reversibly erred when it also dismissed Appellant’s entire breach of
    contract claim and (2) that the trial court abused its discretion in awarding attorney’s
    fees in the amount of $5,000 to Appellees because it had no evidence or basis upon
    which to conclude that such an amount was necessary, just, and equitable. Appellees
    counter that we have no jurisdiction to consider this case on restricted appeal because
    Appellant participated in the decision-making process that resulted in the dismissal
    of all of his claims and only failed to timely appeal through the ordinary channels
    because of his own negligence. Appellees also argue that Appellant cannot prevail
    on his first issue because he failed to plead breach of contract alongside his
    foreclosure of mechanic’s lien claim and that Appellant cannot contest the
    sufficiency of the evidence to support the trial court’s award of attorney’s fees
    because the scope of a restricted appeal is confined to the face of the record.
    I. Jurisdiction – Appellant is entitled to a restricted appeal, under
    Tex. R. App. P. 30, because he did not participate in the decision-
    making event that erroneously and finally disposed of his claim for
    breach of contract, and any negligence on Appellant’s part is
    irrelevant.
    A. Standard of Review
    Under Rule 30 of the Texas Rules of Appellate Procedure: “A party who did
    not participate—either in person or through counsel—in the hearing that resulted in
    the judgment complained of and who did not timely file a postjudgment motion or
    request for findings of fact and conclusions of law, or a [timely] notice of appeal . . .
    may file a notice of appeal within [six months after the judgment or order is signed].”
    Appellees challenge our jurisdiction on the ground that Appellant sufficiently
    5
    participated in the summary judgment decision which eliminated all of his claims
    and failed to timely appeal, thus barring his entitlement to a restricted appeal.
    Appellees fail to demonstrate how Appellant runs afoul of Rule 30.
    With respect to the non-participation requirement, any doubts or ambiguities
    will be resolved in Appellant’s favor because, “[f]or over half a century, [the Texas
    Supreme Court] ha[s] required courts to liberally construe the non-participation
    requirement for restricted appeals in favor of the right of appeal.” Pike-Grant v.
    Grant, 
    447 S.W.3d 884
    , 886 (Tex. 2014); see also Lawyers Lloyds of Texas v. Webb,
    
    152 S.W.2d 1096
    , 1098 (Tex. 1941) (“statutes giving and regulating the right of
    appeal . . . should be liberally construed in favor of the right of appeal”). Ultimately,
    in determining whether Appellant participated for purposes of Rule 30, “the question
    is whether the appellant has participated in ‘the decision-making event’ that results
    in judgment adjudicating the appellant’s rights.” Texaco, Inc. v. Cent. Power &
    Light Co., 
    925 S.W.2d 586
    , 589 (Tex. 1996) (emphasis added). Making this
    determination defies bright-line rules because “[t]he nature and extent of
    participation that precludes [restricted] appeal . . . in any particular case is a matter
    of degree,” insofar as “trial courts decide cases in a wide variety of procedural
    settings.” Id. at 589; see also Stubbs v. Stubbs, 
    685 S.W.2d 643
    , 645 (Tex. 1985).
    Appellant’s alleged negligence in failing to timely file an ordinary appeal is
    inapposite. The Texas Supreme Court has made clear that an appellant in a restricted
    appeal “is not required to show diligence or lack of negligence before its complaints
    will be heard.”     Texaco, 925 S.W.2d at 590.           In short, “it is the fact of
    nonparticipation, not the reason for it, that determines the right to appeal by
    [restricted appeal].” Id. No further analysis is necessary to immediately dispose of
    Appellees’ argument that somehow Appellant’s negligence precludes a restricted
    appeal.
    6
    B. Analysis
    We address Appellees’ claim that Appellant participated in the summary
    judgment decision that disposed of his breach of contract claim, thereby barring a
    restricted appeal. The specific procedural setting in this case revolves around
    Appellees’ summary motion for removal of an invalid lien. The Texas Supreme
    Court has specifically stated that because “a summary judgment is decided on the
    evidence presented in support of, or in reply to, the motion for summary judgment,”
    “a party who has taken part in all steps of a summary judgment proceeding except
    the hearing on the motion has participated in the [decision-making event].” Id. at
    589. Thus, we examine whether Appellant participated in every step of the summary
    judgment on his breach of contract claim, other than attending the hearing.
    Appellees specifically argue that Appellant participated by:
    1. conducting a deposition of Virginia Morton,
    2. requesting and receiving written discovery,
    3. submitting a letter to the trial court in response to the hearing, and
    4. amending their pleadings to avoid the summary judgment.
    To evaluate the merits of this argument, we consider each of these acts and the
    context in which they occurred.
    Appellees’ motion presented grounds for removing Appellant’s mechanic’s
    lien but did not address Appellant’s breach of contract claim. At the hearing on
    May 10, from which Appellant was absent, Appellees reiterated their arguments for
    removing the mechanic’s lien but again made no mention of Appellant’s breach of
    contract claim. At no point would Appellant have had any reason to believe that the
    trial court’s disposition on the attachment of a mechanic’s lien would impact the
    merits of his cause of action for breach of contract or other pled causes. Accordingly,
    participation in breach of contract discovery or pleadings other than summary
    7
    judgment related to the removal/maintenance of the mechanic’s lien does not
    disqualify Appellant from pursuing a restricted appeal in this matter.
    With respect to the discovery conducted, Appellant did depose Virginia Reger
    Morton on March 22, 2019, and questioned her about whether Appellees contracted
    with Appellant for services and whether she failed to make any payments, eliciting
    mostly affirmative answers. The deposition focused on whether a contract existed
    and whether Appellees were in breach—in support of Appellant’s contractual cause
    of action—should Appellant prove his entitlement to the relief requested. The
    deposition did not discuss Appellant’s attachment of a lien to the property in order
    to ensure recovery of damages, nor did it address Appellees’ designation of the
    property or the grant of a homestead exemption by the county. See TEX. PROP. CODE
    ANN. § 41.005(c) (West 2014). Appellant’s deposition of Morton was conducted
    for the general purposes of gathering evidence to support the breach of contract
    claim. The same is true as to the written discovery vaguely referenced by Appellees.
    They, therefore, are not evidence of participation that would run contrary to Rule 30
    in Appellant’s pursuit of a restricted appeal.
    Appellees claim that Appellant’s May 10 e-mail to the trial court also
    constituted participation that excludes Appellant from a restricted appeal. However,
    that e-mail sought merely to inform the trial court of the reason for Appellant’s
    absence from the hearing and did not argue the merits of the motion. On the record
    before us, Appellant never appears to have contested Appellees’ right to removal of
    the mechanic’s lien, perhaps because he conceded to its removal. Given that there
    was never any prehearing notice to Appellant that anything other than the validity of
    the mechanic’s lien was being addressed on May 10, it is not surprising that the e-
    mail from Appellant’s trial counsel amounted to no more than a polite explanation
    of his absence. It is unlikely that trial counsel would have written such a casual and
    disinterested e-mail had he known otherwise.           In any event, under these
    8
    circumstances, the e-mail does not constitute participation in the decision-making
    event. It merely constitutes an explanation of absence from a decision-making event.
    Appellant’s amended original petition, which added quantum meruit as an
    alternative theory for the recovery of damages and attorney’s fees for breach of
    contract, was filed over a month after the May 10 hearing. It was not responsive to
    Appellees’ summary motion for removal of the invalid lien. The amended petition
    included additional theories of recovery that were neither raised nor discussed with
    the trial court at the May 10 hearing for nonpayment of work done. Again, such
    alleged participation does not disqualify Appellant from pursuing a restricted appeal.
    In support of their position, Appellees point to Thacker v. Thacker, which held
    that a party participated in summary judgment proceedings by filing an opposing
    affidavit and directing interrogatories to the movant. 
    496 S.W.2d 201
    , 202 (Tex.
    App.—Amarillo 1973, no writ). This case is inapposite, however, because the
    appellant in Thacker took prehearing actions directly by responding to and attacking
    the grounds upon which the appellee sought summary judgment. 
    Id.
     By contrast,
    Appellant in this case did not file any opposing affidavit, and his interrogatories
    sought general discovery relevant to all of his claims but not anything uniquely
    relevant to the issue of whether a mechanic’s lien was valid. Importantly, in
    Thacker, the trial court’s order granting summary judgment only disposed of matters
    actually raised in the motion for summary judgment and argued by both parties. 
    Id.
    The same cannot be said for the present case, in which the trial court signed an order
    disposing of claims that were never addressed in Appellees’ summary motion for
    removal of the mechanic’s lien. Indeed, even if Appellant had participated in every
    step of proceedings regarding Appellees’ summary motion for removal of the invalid
    lien, this still would not have constituted participation in summary judgment on the
    breach of contract claim, since that issue was never raised by the movant and thus
    was never on the chopping block. See infra Section II.
    9
    In this case, Appellant did not participate in every step of the summary
    judgment proceedings, minus physical attendance at the hearing, on the validity of
    the mechanic’s lien. See Aldrete v. City of McAllen, No. 13-16-00587-CV, 
    2018 WL 1417485
    , at *3 (Tex. App.—Corpus Christi–Edinburg Mar. 22, 2018, pet. denied)
    (mem. op.). Appellant received no notice from the content of Appellees’ motion for
    summary removal of the lien (or elsewhere) that any claim besides the validity of
    Appellant’s mechanic’s lien would be determined by the trial court’s ruling on the
    motion. Appellant did not file a response to Appellees’ motion, and as he had
    advised opposing counsel, Appellant’s trial counsel was absent from the hearing on
    Appellees’ motion. Appellant had no notice that the trial court, in deciding whether
    Appellant’s mechanic’s lien needed to be removed from Appellees’ homestead
    property, would also dispose of claims that in no way depended on the fate of the
    mechanic’s lien. On these facts, and in light of our mandate to construe such matters
    in favor of an appellant’s right to appeal, we cannot accept Appellees’ contention
    that Appellant is prohibited from a restricted appeal because he participated in the
    decision-making event that adversely affected his rights. Therefore, we conclude
    that we have jurisdiction to consider Appellant’s restricted appeal. Accordingly,
    Appellees’ motion to dismiss the appeal is denied.
    II. Issue One – The trial court erred in granting summary judgment on
    Appellant’s breach of contract claim because only removal of
    Appellant’s mechanic’s lien had been raised in Appellees’ Summary
    Motion to Remove Invalid Lien.
    A. Standard of Review
    We review a grant of summary judgment de novo. KCM Fin. LLC v.
    Bradshaw, 
    457 S.W.3d 70
    , 79 (Tex. 2015); Nall v. Plunkett, 
    404 S.W.3d 552
    , 555
    (Tex. 2013). If a trial court’s grant of summary judgment decrees that “plaintiff take
    nothing,” even if the movant sought summary judgment “on only one of [multiple]
    claims asserted by the plaintiff,” then “the judgment is final—erroneous, but final.”
    10
    Jacobs v. Satterwhite, 
    65 S.W.3d 653
    , 655 (Tex. 2001) (alteration in original)
    (quoting Lehmann v. Har–Con Corp., 
    39 S.W.3d 191
    , 200 (Tex. 2001)). Thus, with
    respect to any claim that the movant does not specifically attack in its motion,
    “summary judgment on that claim [i]s erroneous.” 
    Id.
     Indeed, not only may a trial
    court not grant summary judgment on any claim not specifically addressed in the
    motion, but an appellate court may not consider any matter outside the scope of the
    movant’s motion in reviewing a grant of summary judgment.               McConnell v.
    Southside Indep. Sch. Dist., 
    858 S.W.2d 337
    , 339 (Tex. 1993) (“The motion for
    summary judgment must itself state specific grounds on which judgment is
    sought. . . . The motion for summary judgment must stand or fall on the grounds it
    specifically and expressly sets forth. . . . [And] a summary judgment cannot be
    sustained on a ground not specifically set forth in the motion.” (quoting Westbrook
    Constr. Co. v. Fid. Nat’l Bank of Dallas, 
    813 S.W.2d 752
    , 754–55 (Tex. App.—Fort
    Worth 1991, writ denied))). Thus, “if the grounds for summary judgment are not
    expressly presented in the motion . . . itself, the motion is legally insufficient as a
    matter of law.” Id. at 342.
    B. Analysis
    Appellees in this case filed a summary motion for removal of an invalid
    mechanic’s lien, and specifically stated the grounds upon which they were entitled
    to such relief. However, Appellees did not state specific grounds on which they
    sought or believed they were entitled to summary judgment on Appellant’s breach
    of contract claim. Thus, as a matter of law, Appellees’ summary motion was legally
    insufficient to warrant a grant of summary judgment on Appellant’s breach of
    contract and other remaining claims. Id. Thus, “because the breach of contract claim
    was not addressed in [Appellees’] motion, summary judgment on that claim was
    erroneous.” Satterwhite, 65 S.W.3d at 655.
    11
    Appellees contend that the trial court’s grant of summary judgment on all of
    plaintiff’s claims was not erroneous because “Appellant failed to plead any cause of
    action other than to foreclose its mechanic’s lien.” Appellees acknowledge our
    mandate to “liberally construe the pleadings in the pleader’s favor,” but ultimately
    characterize Appellant’s breach of contract claim as “plainly not there.” See Bos v.
    Smith, 
    556 S.W.3d 293
    , 306 (Tex. 2018). We disagree with that characterization.
    Appellant’s original petition plainly alleges a claim for breach of contract.
    Paragraph four of Appellant’s original petition describes the parties as having
    “entered into a [sic] oral contract by which [Appellant] agreed to provide materials
    and labor relating to the pulling and repair of two water wells . . . [and Appellees]
    agreed to pay . . . the reasonable and necessary charges for the repair.” Paragraph
    five states that “[Appellant] fully performed all conditions, covenants, and promises
    required under the contract.” And finally, the very title of paragraph six itself is:
    “Damages; Balance Due on Contract.” In short, Appellant’s breach of contract claim
    is, in fact, plainly there.
    Appellees alternatively argue that, even if breach of contract was pleaded by
    Appellant, it was not clear because it was not in a separate count from the lien claim,
    as required by Rule 50 of the Texas Rules of Civil Procedure. This argument has no
    merit. Paragraphs four through six of Appellant’s original petition allege breach of
    contract, whereas Appellant’s claim for foreclosure of a mechanic’s lien is confined
    entirely to paragraph eight and the prayer for relief. Moreover, in the prayer for
    relief, Appellant makes nine requests, with damages for breach of contract being
    number one, and a judgment recognizing Appellant’s mechanic’s lien and
    foreclosure of said lien at numbers four and five. Not only are these prayers for
    relief clearly separate, but they are separated by two other separate forms of relief.
    Because Appellant plainly alleged breach of contract in his original petition,
    separate from his mechanic’s lien claims, we conclude that the trial court’s grant of
    12
    summary judgment, denying “all claims asserted by [Appellant],” is erroneous as a
    matter of law. Appellant does not dispute the trial court’s removal of the mechanic’s
    lien, nor do we find error with the court’s judgment in that respect. Thus, we sustain
    Appellant’s first issue, but we affirm the trial court’s removal of Appellant’s
    mechanic’s lien.
    III. Issue Two – The trial court erred in awarding attorney’s fees of
    $5,000 to Appellees because there is insufficient evidence on the face
    of the record to indicate that an award in that amount is reasonable,
    just, and equitable.
    A. Standard of Review
    On restricted appeal, the error complained of must be apparent on the face of
    the record. See Ex parte E.H., 
    602 S.W.3d 486
    , 495 (Tex. 2020). This is not a
    jurisdictional requirement. Rather, when an appellate court does have jurisdiction
    over an appellant’s restricted appeal, the appellant can only prevail on their alleged
    point of error if it appears on the face of the record. Id. at 497. With the exception
    of being confined to the face of the record, a review by restricted appeal “affords an
    appellant the same scope of review as an ordinary appeal, that is, a review of the
    entire case.” Norman Commc’ns v. Tex. Eastman Co., 
    955 S.W.2d 269
    , 270 (Tex.
    1997). The face of the record “consists of all the papers on file in the appeal,
    including the statement of facts,” and “review of the entire case includes review of
    legal and factual insufficiency claims.” 
    Id.
    Section 53.156 of the Texas Property Code states that in any proceedings to
    either foreclose on a lien or to declare a lien invalid or unenforceable, “the court
    shall award costs and reasonable attorney’s fees as are equitable and just.” PROP.
    § 53.156 (emphasis added). Prior to September 1, 2011, this statute instructed that
    courts “may” award reasonable, just, and equitable attorney’s fees, but the legislature
    has since made such an award—when reasonable, just, and equitable—mandatory.
    See Act of May 2, 2011, 82d Leg., R.S., ch. 51, § 1, 
    2011 Tex. Gen. Laws 80
    . Thus,
    13
    trial courts no longer have discretion with respect to whether to award attorney’s
    fees in lien proceedings, unless there is no amount which, if awarded, would be
    reasonable, just, and equitable.
    In reviewing an award of attorney’s fees under Section 53.156, appellate
    courts “must determine whether the trial court abused its discretion by awarding fees
    when there was insufficient evidence that the fees were reasonable and necessary, or
    when the award was inequitable or unjust.” Bocquet v. Herring, 
    972 S.W.2d 19
    , 21
    (Tex. 1998). Trial courts have discretion to refuse an award of attorney’s fees when
    doing so would be unjust or inequitable. See, e.g., Acme Energy Servs., Inc. v. Staley,
    
    569 S.W.3d 841
    , 851 (Tex. App.—El Paso 2019, no pet.) (Court of appeals upheld
    trial court’s refusal to award attorney’s fees under Section 53.156, concluding that,
    “[a]warding fees in an equitable and just way is a matter squarely within the trial
    court’s discretion.”).    And courts may not award attorney’s fees that are
    unreasonable, based on the evidence presented to the trial court in support of such
    an award. See Bocquet, 972 S.W.2d at 21 (“Unreasonable fees cannot be awarded,
    even if the court believed them just[.]”). Thus, there must be sufficient evidence to
    support a finding that the amount of fees awarded is reasonable and then the trial
    court has additional discretion to determine whether such an award would also be
    equitable and just. Id.
    For purposes of our review, it is important to note that “[i]t is an abuse of
    discretion for a trial court to rule . . . without supporting evidence.” Id. (citing
    Beaumont Bank v. Buller, 
    806 S.W.2d 223
    , 226 (Tex. 1991). Indeed, when a statute
    authorizes the awarding of attorney’s fees to a prevailing party, “the party seeking a
    fee award must prove the reasonableness and necessity of the requested attorney’s
    fees.” Rohrmoos Venture v. UTSW DVA Healthcare, LLP, 
    578 S.W.3d 469
    , 484
    (Tex. 2019). The purpose of statutes that authorize the awarding of attorney’s fees
    is “to compensate the prevailing party for its reasonable losses resulting from the
    14
    litigation process,” and thus, “only fees reasonable and necessary for the legal
    representation will be shifted . . . and not necessarily the amount contracted for
    between the prevailing party and its attorney.” Id. at 487. A trial court must possess
    “sufficient information to make a meaningful evaluation of the application for
    attorney’s fees,” and any charges for “duplicative, excessive, or inadequately
    documented work should be excluded.” El Apple I, Ltd. v. Olivas, 
    370 S.W.3d 757
    ,
    762 (Tex. 2012).
    The standard for determining whether an award of attorney’s fees is
    reasonable and necessary is the lodestar method, according to which the factfinder
    must begin by determining “the reasonable hours worked multiplied by a reasonable
    hourly rate,” and the party seeking the award of attorney’s fees “bears the burden of
    providing sufficient evidence on both counts.” Rohrmoos, 578 S.W.3d at 498. This
    calculation requires some basic information, “including itemizing specific tasks, the
    time required for those tasks, and the rate charged by the person performing the
    work.” City of Laredo v. Montano, 
    414 S.W.3d 731
    , 736 (Tex. 2013). To establish
    these details, an attorney may simply testify. However, “in all but the simplest cases,
    the attorney would probably have to refer to some type of record or documentation
    to provide this information.” El Apple, 370 S.W.3d at 763. And even in the rare
    case, where testimony alone might suffice, “testimony in generalities about tasks
    performed in a case that d[o] not provide enough information for a meaningful
    review of whether the tasks and hours were reasonable and necessary [i]s an
    insufficient basis for a lodestar calculation.” Montano, 414 S.W.3d at 735–36.
    B. Analysis
    In the present case, Appellees argue that because our review is confined to the
    face of the record, we are not permitted to review the sufficiency of the evidence.
    Appellees offer no caselaw to support this contention. Nevertheless, we need not
    search for controlling authority other than that the Texas Supreme Court has said
    15
    precisely the opposite in Norman, holding that appellate courts review the entire case
    on restricted appeal, which “necessarily . . . includes review of legal and factual
    insufficiency claims.” 955 S.W.2d at 270.
    Appellees also point out that Appellant misstates the law by characterizing the
    statute authorizing attorney’s fees in lien proceedings as instructing trial courts that
    they “may” award such fees, when the statute currently states that they “shall” award
    them. Appellees are correct on this point. The statute has been amended to replace
    the word “may” with the word “shall.” See PROP. § 53.156. However, as previously
    explained, by its plain language this linguistic substitution only removed a trial
    court’s discretion to refuse to award attorney’s fees even when they are reasonable,
    just, and equitable. It did not, however, change the requirement that “[u]nreasonable
    fees cannot be awarded” or the principle that “[i]t is an abuse of discretion . . . to
    rule without supporting evidence.” Bocquet, 972 S.W.2d at 21.
    Appellees, as the parties seeking an award of attorney’s fees following
    removal of an invalid lien in the present case, had the burden of producing sufficient
    evidence of (1) the reasonable hours worked on specific, itemized tasks undertaken
    to litigate the removal of the lien and (2) the reasonable hourly rate for that work.
    See Rohrmoos, 578 S.W.3d at 498. Appellant argues that Appellees did not provide
    sufficient evidence and that the trial court thereby abused its discretion in granting a
    $5,000 award of attorney’s fees based on insufficient evidence. Appellees claim that
    they did provide sufficient evidence in their “Supplemental Response to Appellant’s
    Request for Disclosures” and by the sheer fact of having filed pleadings and
    attending depositions and hearings. However, the only information Appellees
    provided in their supplemental response was anemic, conclusory, and overly general:
    “Attorney’s fees billed and estimated through arguments on Summary Motion to
    Remove Invalid Lien pursuant to Texas Property Code § 53.156. Attorney’s fees
    are billed at a rate of $200 per hour.” This assertion that the rate is $200 per hour
    16
    does not, however, establish that $200 per hour is the reasonable rate for such work.
    See id. at 487. Moreover, there is no indication of the specific, itemized tasks that
    were conducted, nor the number of hours dedicated to conducting each one. See
    Montano, 414 S.W.3d at 736. As such, there is insufficient information on the face
    of the record to calculate even the lodestar baseline for a reasonable award of
    attorney’s fees in this case. See Rohrmoos, 578 S.W.3d at 498; Montano, 414
    S.W.3d at 736; El Apple, 370 S.W.3d at 763.
    Furthermore, Appellees cannot cure the above deficiency and establish the
    reasonableness of the trial court’s award of $5,000 in attorney’s fees by simply
    pointing out that Appellees filed pleadings, attended depositions, and attended
    hearings. See, e.g., El Apple, 370 S.W.3d at 763 (holding that attorneys presented
    insufficient evidence to establish the reasonableness of their requested award of
    attorney’s fees because they “based their time estimates on generalities such as the
    amount of discovery in the case, the number of pleadings filed, the number of
    witnesses questioned, and the length of the trial,” noting that while such facts are
    relevant, “it provides none of the specificity needed for the trial court to make a
    meaningful lodestar determination”). Moreover, this general argument about the
    pleadings filed and the attendance at depositions and hearings was not made to the
    trial court but, rather, was made for the first time in Appellees’ brief to this court.
    While the trial court would not have had enough information to conduct a lodestar
    calculation even if it had been presented with these generalities, it most certainly did
    not have enough information considering that these generalities were only addressed
    to us.
    For all of these reasons, we hold that the trial court lacked sufficient evidence
    to award attorney’s fees in the amount of $5,000 to Appellees. Therefore, we sustain
    Appellant’s second issue. This does not mean that an award of attorney’s fees is
    improper but, rather, that the amount awarded in this case is not based on sufficient
    17
    evidence on the face of the record. As such, we remand this issue to the trial court
    for redetermination of the attorney’s fees, if any, that should be awarded. See
    Rohrmoos, 578 S.W.3d at 505; El Apple, 370 S.W.3d at 765; Montano, 414 S.W.3d
    at 736.
    This Court’s Ruling
    Appellees’ motion to dismiss the appeal is denied. We affirm the judgment
    of the trial court insofar as it ordered that Appellant’s mechanic’s lien on Appellees’
    homestead be removed from the county records. We reverse the judgment of the
    trial court insofar as it entered a take-nothing judgment in favor of Appellees on
    Appellant’s claim for breach of contract, and we remand that claim to the trial court
    for further proceedings. We vacate the trial court’s judgment insofar as it awarded
    $5,000 in attorney’s fees to Appellees, and we remand for a redetermination of the
    proper amount of attorney’s fees to be awarded, consistent with this opinion.
    W. BRUCE WILLIAMS
    JUSTICE
    October 28, 2021
    Panel consists of: Bailey, C.J.,
    Trotter, J., and Williams, J.
    18
    

Document Info

Docket Number: 11-19-00389-CV

Filed Date: 10/28/2021

Precedential Status: Precedential

Modified Date: 10/30/2021