Eugene v. McMahon v. Marcia Zimmerman, Individually, and the Zimmerman Law Firm, LLP , 2014 Tex. App. LEXIS 3365 ( 2014 )


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  • Opinion issued March 27, 2014.
    In The
    Court of Appeals
    For The
    First District of Texas
    ————————————
    NO. 01-12-01090-CV
    ———————————
    EUGENE V. MCMAHON, Appellant
    V.
    MARCIA ZIMMERMAN, INDIVIDUALLY, AND THE ZIMMERMAN
    LAW FIRM, LLP, Appellees
    On Appeal from the 281st District Court
    Harris County, Texas
    Trial Court Case No. 1137680
    OPINION
    This appeal arises out of a legal malpractice suit by Eugene McMahon
    against Marcia Zimmerman and the Zimmerman Law Firm (collectively
    Zimmerman) concerning Zimmerman’s representation of McMahon in his divorce.
    McMahon contended that Zimmerman’s negligent legal advice caused him to
    agree to assume nearly all of the community debt, resulting in approximately
    $300,000 in damages to him. Zimmerman asserted counterclaims, including breach
    of contract for failure to pay attorney’s fees in the divorce proceeding.
    The trial court granted Zimmerman’s motion to strike portions of
    McMahon’s expert witness’s report and Zimmerman’s no-evidence motion for
    summary judgment on McMahon’s legal malpractice claim. Following a bench
    trial on the remaining counterclaims, Zimmerman obtained a judgment against
    McMahon for breach of contract and was awarded $6,000 in attorney’s fees.
    In three issues, McMahon contends that the trial court erred by (1) striking
    portions of McMahon’s expert witness’s report, (2) granting Zimmerman’s no-
    evidence motion for summary judgment on the legal malpractice claim, and
    (3) awarding $6,000 in attorney’s fees to Zimmerman on her breach-of-contract
    claim without any testimony from Zimmerman’s counsel segregating the fee for
    defense of the legal malpractice claim from the fee for prosecuting the breach-of-
    contract claim.
    We affirm.
    Background
    McMahon hired Zimmerman to represent him in a divorce. Before the
    divorce was finalized, Zimmerman withdrew her representation of McMahon. A
    2
    short time later, McMahon and his wife entered into an Agreed Final Decree of
    Divorce. The decree was not included in the appellate record.
    After his divorce was final, McMahon sued Zimmerman for legal
    malpractice. McMahon alleged that Zimmerman’s negligent representation of him
    caused him approximately $300,000 in damages because the division of
    community property under the terms of the agreed divorce decree was inequitable,
    leaving McMahon with the full amount of the community debt ($615,583) while
    giving his wife $30,000 in assets. McMahon retained an expert, Thomas Oldham,
    “to testify on the elements of causation and damages regarding [his] claims for
    legal malpractice against Defendants.”
    Oldham is a law professor at the University of Houston Law Center. His
    affidavit states that “the basic issue in the McMahon divorce was how to allocate
    the $600,000 in community debt that had been incurred by the parties.” Oldham
    offered the following opinions:
    If the issues had been litigated in the McMahon divorce . . . the court
    would have asked [the wife] to bear a significant portion of the debt,
    particularly in light of her substantial premarital savings that she
    retained after the divorce.
    ***
    In my expert opinion . . . it was negligent for Ms. Zimmerman to
    recommend to Mr. McMahon that he accept the proposed settlement
    whereby he would be responsible for all the community debt. This
    proximately caused Mr. McMahon damage, because, after receiving
    the recommendation from Ms. Zimmerman that he agree to the
    proposed settlement, I have been told that he did agree to it and . . .
    3
    Mr. McMahon thereby became solely responsible for the $599,000 in
    community debt that accrued during the marriage.
    Zimmerman filed a motion to exclude Oldham’s expert testimony, arguing
    that (1) Oldham’s opinions were unreliable; (2) he impermissibly sought to testify
    about “pure matters of law;” and (3) he was not adequately qualified. Zimmerman
    also filed a no-evidence motion for summary judgment on McMahon’s legal
    malpractice claim. After a hearing on both matters, the trial court entered an order
    striking key portions of Oldham’s testimony, including the opinions quoted above,
    and an order granting Zimmerman’s no-evidence motion for summary judgment on
    the legal-malpractice claim.
    Zimmerman proceeded to trial on her counter-claims for breach of contract
    and defamation. At the conclusion of the bench trial, the trial court entered a final
    judgment for Zimmerman on the breach-of-contract claim, awarding her $3,107 in
    damages and $6,000 in attorney’s fees. McMahon timely appealed.
    Expert Witness
    McMahon contends that the trial court erred in striking portions of his
    expert’s affidavit. The order striking Oldham’s opinions specifically states that the
    trial court sustained Zimmerman’s objections to the opinions “based on
    speculation, relevance, reliability, and matters purely of law.”
    4
    A.    Standard of review
    A trial court’s determination of whether an expert’s opinion is admissible
    under rule 702 of the Texas Rules of Evidence is reviewed for an abuse of
    discretion. See TEX. R. EVID. 702; Gammill v. Jack Williams Chevrolet, Inc., 
    972 S.W.2d 713
    , 718–19 (Tex. 1998); Cooper Tire & Rubber Co. v. Mendez, 
    204 S.W.3d 797
    , 800–01 (Tex. 2006). Under this standard, the trial court has broad
    discretion in deciding whether to admit or exclude expert testimony. Wilson v.
    Shanti, 
    333 S.W.3d 909
    , 913 (Tex. App.—Houston [1st Dist.] 2011, pet. denied).
    The trial court abuses its discretion when its ruling is arbitrary, unreasonable, or
    without reference to any guiding rules or legal principles. See Bocquet v. Herring,
    
    972 S.W.2d 19
    , 21 (Tex. 1998). When a trial court excludes an expert’s testimony
    on multiple grounds, we will affirm the ruling so long as any one of the bases is
    legally valid. Buls v. Fuselier, 
    55 S.W.3d 204
    , 208 (Tex. App.—Texarkana 2001,
    no pet.) (“Because the trial court did not specify the grounds on which it excluded
    Naples’ testimony, we will affirm the trial court’s ruling if the ruling is correct on
    any theory supported by the pleadings and evidence.”).
    B.    Rule 702’s requirements
    Under Rule 702, an expert’s opinion is admissible if it satisfies three
    requirements: the expert is qualified, the opinion is sufficiently reliable under
    Robinson and its progeny, and the testimony assists the trier of fact. TEX. R. EVID.
    5
    702; E.I. du Pont de Nemours & Co. v. Robinson, 
    923 S.W.2d 549
    , 556 (Tex.
    1995). The reliability inquiry also requires satisfaction of three requirements—
    “namely, the expert’s methodology, foundational data, and whether too great an
    analytical gap exists as the expert connects the foundational data or methodology
    with the opinion.” 
    Wilson, 333 S.W.3d at 913
    ; see also Harris Cnty. Appraisal
    Dist. v. Hous. 8th Wonder Prop., L.P., 
    395 S.W.3d 245
    , 253–54 (Tex. App.—
    Houston [1st Dist.] 2012, pet. denied) (“As to reliability, the court must examine
    the expert’s methodology, foundational data, and whether too great an analytical
    gap exists between the data and methodology, on the one hand, and the expert’s
    opinions, on the other.”). Two other evidence rules may also be implicated in a
    challenge to an expert’s opinion: Rule 402, which requires the evidence to be
    relevant, and Rule 403, which permits a trial court to exclude relevant evidence if
    its probative value is substantially outweighed by the danger of unfair prejudice.
    TEX. R. EVID. 402, 403. Two of these requirements are at issue here. The trial court
    ruled that professor Oldham’s testimony was not relevant and was not reliable.
    There are also certain requirements of expert testimony adopted by the
    common law. One of these is at issue here: the trial court ruled that the opinion
    violated the well-established rule that expert testimony is improper on “pure
    questions of law.” See, e.g., Fleming v. Kinney ex rel. Shelton, 
    395 S.W.3d 917
    ,
    928 (Tex. App.—Houston [14th Dist.] 2013, pet. denied) (holding that a legal
    6
    expert may not testify on “pure questions of law.”) (citing Greenberg Traurig of
    N.Y. v. Moody, 
    161 S.W.3d 56
    , 94 (Tex. App.—Houston [14th Dist.] 2004, no
    pet.).
    The admissibility of Professor Oldham’s opinion is a threshold question
    because both parties acknowledge that expert testimony is required on whether
    Zimmerman’s conduct constituted legal malpractice and whether Zimmerman’s
    conduct proximately caused McMahon harm. See Alexander v. Turtur & Assocs.,
    
    146 S.W.3d 113
    , 119 (Tex. 2004) (expert testimony necessary in attorney
    malpractice case to prove cause-in-fact); Onwuteaka v. Gill, 
    908 S.W.2d 276
    , 281
    (Tex. App.—Houston [1st Dist.] 1995, no writ) (stating, in legal malpractice case,
    “the breach of the standard of care and proximate cause must be proven by expert
    testimony”); see also W.C. LaRock, D.C., P.C. v. Smith, 
    310 S.W.3d 48
    , 56 (Tex.
    App.—El Paso 2010, no pet.) (applying same principle to medical negligence
    claim); Ocomen v. Rubio, 
    24 S.W.3d 461
    , 466 (Tex. App.—Houston [1st Dist.]
    2000, no pet.) (same).
    C.       The no-analytical-gap requirement
    “It is incumbent on an expert to connect the data relied on and his or her
    opinion and to show how that data is valid support for the opinion reached.”
    Whirlpool Corp. v. Camacho, 
    298 S.W.3d 631
    , 642 (Tex. 2009). “A court may
    conclude that there is simply too great an analytical gap between the data and the
    7
    opinion proffered.” Gen. Elec. Co. v. Joiner, 
    522 U.S. 136
    , 146, 
    118 S. Ct. 512
    ,
    519 (1997) (cited with approval by 
    Gammill, 972 S.W.2d at 727
    ). An expert’s
    opinion is unreliable if it is based on subjective belief or unsupported speculation.
    See 
    Comacho, 298 S.W.3d at 642
    –43. “Bare, baseless opinions will not support a
    judgment,” and “conclusory statement[s] of an expert witness [are] insufficient to
    create a question of fact to defeat summary judgment.” Elizondo v. Krist, 
    415 S.W.3d 259
    , 264 (Tex. 2013) (quoting City of San Antonio v. Pollock, 
    284 S.W.3d 809
    , 816 (Tex. 2009), and McIntyre v. Ramirez, 
    109 S.W.3d 741
    , 749–50 (Tex.
    2003)). Something is not true simply because an expert says it is so. Merrell Dow
    Pharms., Inc. v. Havner, 
    953 S.W.2d 706
    , 712 (Tex. 1997). “[A] claim will not
    stand or fall on the mere ipse dixit of a credentialed witness.” 
    Elizondo, 415 S.W.3d at 264
    (quoting Burrow v. Arce, 
    997 S.W.2d 229
    , 235 (Tex. 1999)). Thus,
    when an expert brings to court “little more than his credentials and a subjective
    opinion,” it is not evidence that will support a judgment. 
    Havner, 953 S.W.2d at 712
    ; Cooper 
    Tire, 204 S.W.3d at 800
    –01; 
    Buls, 55 S.W.3d at 208
    .
    The Texas Supreme Court has addressed the reliability requirement in two
    legal malpractice cases. See 
    Burrow, 997 S.W.2d at 229
    ; 
    Elizondo, 415 S.W.3d at 259
    . In Burrow, the Court held that the opinions offered by the defendants’ expert
    were too conclusory to support judgment for the attorneys as a matter of law on the
    plaintiffs’ legal-malpractice claims. 
    Burrow, 997 S.W.2d at 234
    . The expert sought
    8
    to testify that the settlements reached on behalf of the plaintiff-clients were
    reasonable and fair and, therefore, the clients suffered no damages as a matter of
    law due to the settlement of their claims. See 
    id. at 235.
    The Court held that there
    was an insufficient connection between the expert’s opinion on reasonableness and
    fairness and the underlying facts of the plaintiffs’ claims. 
    Id. at 235–36.
    Even a
    qualified expert “cannot simply say, ‘Take my word for it, I know: the settlements
    were fair and reasonable.’” 
    Id. at 236.
    Opinions must have a reasoned basis; an
    expert must explain how he reached his conclusion. See 
    id. The expert’s
    opinion
    was unreliable because he “does not explain why the settlements were fair and
    reasonable for each of the Clients.” 
    Id. Later, in
    Elizondo, it was the plaintiff’s expert who failed to explain how he
    connected his opinion with the data, leaving an analytical gap and making the
    opinion 
    conclusory. 415 S.W.3d at 259
    . The plaintiff’s expert sought to testify that
    the plaintiff’s case had a value of $2–3 million, which was far more than the
    $50,000 settlement obtained by the defendant lawyer. See 
    id. at 262.
    The court held
    that the expert’s opinion was not sufficiently tied to the facts to be reliable. See 
    id. at 265.
    There was a “fatal analytical gap” because he failed “to offer specifics on
    why the value of the case was $2–3 million as opposed to the $50,000 received in
    settlement.” 
    Id. 9 Oldham’s
    affidavit is similarly flawed. He states that he has 30 years’
    experience teaching family law courses. He correctly announces that community
    estates are divided in divorce through a “just and right” division that need not be
    equal. But he adds to that an assertion that it is common for the division to be “not
    that great.” He concludes as follows:
    If the issue [of division of community debt] had been litigated in the
    McMahon divorce, a court could have decided to divide the
    community debt somewhat in the wife’s favor, in light of her lower
    earning capacity. If that had occurred, and if the matter had gone to
    trial, Mrs. McMahon would have been asked to pay less than
    $300,000 of the total community debt of $600,000. But it seems clear
    that the court would have asked her to bear a significant portion of the
    debt, particularly in light of her substantial premarital savings that she
    retained after the divorce.
    ***
    [Further in] my expert opinion, if this occurred, and the description of
    the total community estate set forth above is accurate, it was negligent
    for Ms. Zimmerman to recommend to Mr. McMahon that he accept
    the proposed settlement whereby he would be responsible for all the
    community debt . . . Mr. McMahon thereby became solely responsible
    or the $599,000 in community debt that accrued during the marriage.
    Oldham states that he bases these opinions, in part, on his review of the
    documents, pleadings, affidavits and correspondence related to Zimmerman’s
    representation of McMahon in his divorce case as well as his conversations with
    McMahon. He fails to explain, though, how these documents or the facts asserted
    in them support his opinions. For example, Oldham notes in his affidavit that there
    were allegations in the McMahon divorce of spousal abuse and infidelity, yet he
    10
    bases his opinion that the debt would have been divided equally on his assertion
    that “the court had made no finding regarding these allegations. The final divorce
    decree grants them a divorce based on ‘no-fault’ or insupportability.” Oldham fails
    to explain why he believes the court would have disregarded those allegations—
    whether because of factual deficiencies in the proof or legal reasons—and still
    required Zimmerman, as Oldham states in his affidavit, to bear a significant
    portion of the community debt.
    Oldham’s affidavit fails to connect his opinion regarding the expected
    judicial division of community debt to actual divisions made in factually-similar
    divorces. See 
    Elizondo, 415 S.W.3d at 266
    (finding that expert failed to raise fact
    issue on settlement value after noting that “the expert might have compared this
    settlement ‘to those of similar claims, or provided other information showing a
    relationship between the plaintiffs’ circumstances and the amounts received [but
    he] did not do so.’”) (quoting 
    Burrow, 997 S.W.2d at 236
    ). His affidavit references
    two cases involving somewhat equal property divisions and two cases in which
    unequal divisions were reversed. But he offers no proof that these four cases—out
    of the thousands of divorce cases in Texas—are representative of what a
    reasonable court would be expected to do. Oldham fails to link these four cases to
    his opinion about the division that should have been expected in the McMahon
    divorce.
    11
    Oldham also purports to rely on his own experience for his division-of-
    property opinion. But his affidavit does not demonstrate his experience on the
    precise matter in question here: whether a reasonable Texas trial court would have
    entered an order granting a different division of property. While Oldham avers he
    has been an expert in a number of family law cases, he does not state the outcomes
    of those cases or how those cases support his conclusion in this case. Additionally,
    he makes no assertion that he has practiced family law in Texas.
    There is too large an analytical gap between the data relied upon by
    Oldham—the facts in the case, the four reported opinions, and his own
    experience—and his opinion that a reasonable court would have “asked her to bear
    a significant portion of the debt.” See Taylor v. Alonso, Cersonsky & Garcia, P.C.,
    
    395 S.W.3d 178
    , 187 (Tex. App.—Houston [1st Dist.] 2012, no pet.) (concluding
    that expert in legal malpractice case failed to establish causal link due to analytical
    gap between opinion on anticipated trial outcome and realities at time of
    settlement). And, without a reliable basis for Professor Oldham’s opinion that the
    property division would have been different, there is no stated basis for his second
    opinion that Zimmerman was negligent in advising McMahon to settle under the
    terms of the agreed divorce. See 
    Elizondo, 415 S.W.3d at 266
    .
    Because too great an analytical gap exists, we conclude that Professor
    Oldham’s opinions lack connective reliability. See 
    Elizondo, 415 S.W.3d at 266
    ;
    12
    
    Gammill, 972 S.W.2d at 726
    . Accordingly, we hold that the trial court did not err
    by striking portions of Oldham’s expert affidavit in which he opines that the
    McMahons’ community debt would have been equally divided by a trial court and
    that Zimmerman was negligent in recommending the alternate division contained
    in the agreed divorce.
    Therefore, we overrule McMahon’s first issue.
    Summary Judgment
    In his second issue, McMahon argues that the trial court erred by granting
    Zimmerman’s no-evidence motion for summary judgment on his legal malpractice
    claim. His sole basis for claiming error is that Oldham’s expert report provided
    more than a scintilla of evidence on each element of the tort and was, therefore,
    sufficient to preclude summary judgment.
    A.    Standard of review
    A party may move for summary judgment on the ground that no evidence
    exists of one or more essential elements of a claim on which the nonmovant bears
    the burden of proof at trial. TEX. R. CIV. P. 166a(i); Flameout Design &
    Fabrication, Inc. v. Pennzoil Caspian Corp., 
    994 S.W.2d 830
    , 834 (Tex. App.—
    Houston [1st Dist.] 1999, no pet.) The burden then shifts to the nonmovant to
    produce evidence that raises a genuine issue of fact on the elements included in the
    motion. TEX. R. CIV. P. 166a(i); Mack Trucks, Inc. v. Tamez, 
    206 S.W.3d 572
    , 582
    13
    (Tex. 2006). The nonmovant need not marshal all of his evidence; instead, his only
    requirement is to present “more than a scintilla of evidence” on the challenged
    elements. Flameout 
    Design, 994 S.W.2d at 834
    ; Hoover v. Larkin, 
    196 S.W.3d 227
    , 230–31 (Tex. App.—Houston [1st Dist.] 2006, pet. denied); see also 
    Havner, 953 S.W.2d at 711
    . We review de novo the trial court’s ruling on the motion for
    summary judgment. Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 
    289 S.W.3d 844
    , 848 (Tex. 2009).
    B.    McMahon has no evidence of negligence or causation
    To prevail on a claim for legal malpractice, a plaintiff must demonstrate that
    (1) the attorney owed the plaintiff a duty, (2) the attorney breached that duty,
    (3) the breach proximately caused the plaintiff’s injuries, and (4) damage occurred.
    
    Alexander, 146 S.W.3d at 117
    . The only summary judgment evidence McMahon
    offered to support negligence, or causation specifically, was Oldham’s opinion.
    McMahon concedes that, without Oldham’s testimony on this issue, his “case was
    gutted.” We have concluded that Oldham’s expert opinions were unreliable.
    Because McMahon presented no other evidence to support his contention that
    Zimmerman’s conduct caused him to suffer damages, we hold that he failed to
    raise a fact issue on causation and the trial court properly granted Zimmerman’s
    no-evidence summary judgment motion on that basis.
    We overrule McMahon’s second issue.
    14
    Fee Award
    In his third issue, McMahon argues that there was legally and factually
    insufficient evidence to support the award of $6,000 in attorney’s fees on
    Zimmerman’s breach-of-contract claim. McMahon contends that Zimmerman’s
    failure to segregate the portion of the fees related to the breach-of-contract claim
    from the fees prosecuting her defamation claim and the fees defending McMahon’s
    legal-malpractice claim left the trial court with insufficient evidence on which to
    award a fee.
    A party seeking recovery of attorney’s fees must “segregate fees between
    claims for which they are recoverable and claims for which they are not.” 
    Chapa, 212 S.W.3d at 311
    . Only fees that relate solely to unrecoverable claims are
    segregated out for non-payment. 
    Id. at 313.
    The party seeking to recover attorney’s
    fees carries the burden of proof. Stewart Title Guar. Co. v. Sterling, 
    822 S.W.2d 1
    ,
    10 (Tex. 1991).
    The extent to which certain claims can be segregated is a mixed question of
    law and fact. See 
    Chapa, 212 S.W.3d at 313
    ; Bair Chase Prop. Co. v. S & K Dev.
    Co., 
    260 S.W.3d 133
    , 138 (Tex. App.—Austin 2008, pet. denied). The fact-finder
    should consider the work actually performed to decide whether those legal services
    advanced a recoverable claim. See Allan v. Nersesova, 
    307 S.W.3d 564
    , 573 (Tex.
    App.—Dallas 2010, no pet.) (noting that drafting petition for tort claim not
    15
    necessary to pursue contract claim); see also 
    Bocquet, 972 S.W.2d at 21
    (“[T]he
    reasonableness of attorney’s fees, the recovery of which is authorized by . . .
    statute, is a question of fact for the [factfinder’s] determination.”). In this case, the
    trial court was the fact-finder, and it awarded $6,000 in fees on the breach-of-
    contract claim.
    A.    The fee claim
    Zimmerman had a statutory basis for seeking attorney’s fees on her breach-
    of-contract claim but no independent basis for attorney’s fees on her defamation
    claim or her defense of the legal malpractice claim. See TEX. CIV. PRAC. & REM.
    CODE ANN. § 38.001(8) (West 2008) (permitting attorney’s fees on breach-of-
    contract claim); cf. Am. Int’l Indus., Inc. v. Scott, 
    355 S.W.3d 155
    , 162 (Tex.
    App.—Houston [1st Dist.] 2011, no pet.) (holding that court may award attorney’s
    fees only when authorized by statute or by parties’ contract). Zimmerman’s
    attorney testified that $72,810 in attorney’s fees—which was nearly the entire
    amount invoiced to Zimmerman—should have been recoverable because the
    breach-of-contract claim and the legal-malpractice claim were too intertwined to
    require segregation. This was based on Zimmerman’s contention that she could not
    prevail on her breach-of-contract claim unless she also defeated McMahon’s legal-
    malpractice claim. Zimmerman offered no testimony attempting to further
    segregate the fees between the breach-of-contract claim, the defamation claim, and
    16
    her defense of the legal-malpractice claim. To support the award of attorney’s fees,
    Zimmerman offered, and the trial court admitted, 49 pages of detailed legal bills
    from Zimmerman’s attorney covering all aspects of the litigation.
    B.    The trial court’s findings
    The trial court made findings of fact, including the following:
    • The Law Firm offered evidence that it incurred over $70,000 in
    attorneys’ fees during the case. . . . The bulk of the fees were
    incurred in defending the legal malpractice action and not in
    prosecuting the breach of contract action.
    • The Law Firm and Zimmerman did not offer any specific evidence
    to segregate the fees related to the breach of contract action from
    the fees incurred in defending the legal malpractice action or in
    pursuing the defamation claim.
    • The Court reviewed the invoices Zimmerman received from her
    defense counsel to determine how much time was spent on
    prosecuting the breach of contract action.
    • Time entries related to a potential counterclaim first appeared on
    October 17, 2011. Additional fees were incurred near the time the
    counterclaim was filed in February 2012. Prior to trial, the invoices
    indicate that no more than three hours were spent on matters
    related to the breach of contract claim.
    It also made the following conclusions of law:
    • By a preponderance of the evidence, Defendant breached a valid
    and enforceable contract. The Law Firm suffered damages as a
    result.
    • The Law Firm is entitled to recover attorneys’ fees related to the
    breach of contract claim.
    17
    • Litigants seeking to recover attorneys’ fees are required to
    segregate fees between claims for which they are recoverable and
    those claims for which fees are not recoverable.
    • Based on the evidence presented and considering the factors for
    determining a reasonable fee, the Law Firm shall recover
    attorneys’ fees in the amount of $6,000 for representation in the
    trial court.
    When the appellate record includes the reporter’s record, the trial court’s
    factual findings, whether express or implied, may be challenged for legal and
    factual sufficiency. See Miranda v. Byles, 
    390 S.W.3d 543
    , 569 (Tex. App.—
    Houston [1st Dist.] 2012, pet. denied); Middleton v. Kawasaki Steel Corp., 
    687 S.W.2d 42
    , 44 (Tex. App.—Houston [14th Dist.]), writ ref’d n.r.e., 
    699 S.W.2d 199
    (Tex. 1985). We review the sufficiency of the evidence supporting a trial
    court’s challenged factual findings under the same standards used to review a
    jury’s findings. Catalina v. Blasdel, 
    881 S.W.2d 295
    , 297 (Tex. 1994).
    The test for legal sufficiency is “whether the evidence at trial would enable
    reasonable and fair-minded people to reach the verdict under review.” City of
    Keller v. Wilson, 
    168 S.W.3d 802
    , 827 (Tex. 2005). In reviewing a factual
    sufficiency challenge, we consider and weigh all of the evidence supporting and
    contradicting the challenged finding and set the finding aside only if the evidence
    is so contrary to the overwhelming weight of the evidence as to make the finding
    clearly wrong and manifestly unjust. Cain v. Bain, 
    709 S.W.2d 175
    , 176 (Tex.
    1986) (per curiam).
    18
    C.    Remand not required
    Zimmerman’s counsel did not attempt to segregate the work performed on
    the breach-of-contract claim, relying instead on the argument—which the trial
    court rejected and which she does not contest—that the claims were too
    intertwined to segregate. Typically, if segregation is required and the claimant does
    not provide testimony from counsel on the proper segregation of the fee, the cause
    is remanded for a factual determination of the portion of the attorney’s work that is
    attributable to the recoverable claim. See, e.g., CA Partners v. Spears, 
    274 S.W.3d 51
    , 84 (Tex. App.—Houston [14th Dist.] 2008, pet. denied) (remanding for
    determination of attorney’s fees based on holding that segregation was required).
    In this case, though, the trial court reviewed the billing records and made factual
    findings regarding the amount of the fee that was attributable to the breach-of-
    contract claim. The question, then, is whether remand is appropriate given that the
    trial court already has made factual findings to segregate the fee based on the
    court’s review of the evidence, and, if not, whether the evidence before the trial
    court was legally and factually sufficient to support the award.
    While trial courts have no obligation to delve into billing records to
    segregate fees on behalf of litigants who do not offer segregation testimony, the
    trial court did not err in electing to do so. There was a statutory basis for awarding
    Zimmerman attorney’s fees. See TEX. CIV. PRAC. & REM. CODE ANN. § 38.001(8)
    19
    (permitting recovery of attorney’s fees on breach-of-contract claim). A related
    provision, section 38.004, permits a trial court to take judicial notice of usual and
    customary attorney’s fees as well as the contents of a case file to award attorney’s
    fees under the statute, even without receiving additional evidence. See TEX. CIV.
    PRAC. & REM. CODE ANN. § 38.004 (permitting judicial notice on claim for
    attorney’s fees under § 38.001); Superior Ironworks, Inc. v. Roll Form Prods., Inc.,
    
    789 S.W.2d 430
    , 431 (Tex. App.—Houston [1st Dist.] 1990, no writ) (explaining
    same). Appellate courts may presume that the trial court did take such judicial
    notice. Alford v. Johnston, 
    224 S.W.3d 291
    , 300 (Tex. App.—El Paso 2005, pet.
    denied).
    In Alford, the appellant challenged the award of attorney’s fees, contending
    that they had not been adequately segregated. See 
    id. at 298.
    The court held that—
    even assuming the fees were not adequately segregated—“the award would still
    stand” because “the trial court did have sufficient information upon which to
    determine the usual and customary attorney’s fees for the contract claim at issue.”
    
    Id. at 300.
    The court held that an award of $2,000 in attorney’s fees for services
    rendered through trial was neither arbitrary nor unreasonable and that the trial
    court did not abuse its discretion in awarding that amount. See id.; see also Flint &
    Assocs. v. Intercont’l Pipe & Steel, 
    739 S.W.2d 622
    , 625–26 (Tex. App.—Dallas
    1987, writ denied) (stating that trial court has discretion to determine portion of
    20
    requested fees reasonably attributable to services for which fees could be
    recovered); Express One Int’l. v. Kitty Hawk Charters, No. 05-95-01741-CV, 
    1998 WL 261783
    (Tex. App.—Dallas May 26, 1998, pet. denied) (mem. op.) (not
    designated for publication) (same); but see Metal Bldg. Components, LP v. Raley,
    No. 03-05-00823-CV, 
    2007 WL 74316
    , at *18 (Tex. App.—Austin Jan. 10, 2007,
    no pet.) (remanding case for redetermination of attorney’s fees where claimant
    declined to offer opinion segregating fees and record was silent on trial court’s
    segregation analysis).
    We, therefore, conclude that remand is not required for a factual
    determination of reasonable fees; the trial court was permitted to determine a fee
    based on the available information. See TEX. CIV. PRAC. & REM. CODE ANN.
    § 38.004; 
    Alford, 224 S.W.3d at 300
    .
    D.    Evidence supports award
    A trial court determines the reasonableness of an attorney’s fee award by
    considering the following factors: (1) the time and labor required, novelty, and
    difficulty of the question presented and the skill required to properly perform the
    legal service; (2) the likelihood that the acceptance of employment precluded other
    employment by the lawyer; (3) the fee customarily charged in the locality for
    similar services; (4) the amount involved and the results obtained; (5) the time
    limitations imposed by the client or by the circumstances; (6) the nature and length
    21
    of the professional relationship with the client; (7) the experience, reputation, and
    ability of the lawyer performing the services; and (8) whether the fee is fixed or
    contingent. Arthur Andersen & Co. v. Perry Equip. Corp., 
    945 S.W.2d 812
    , 818
    (Tex. 1997).
    “Trial judges can draw on their common knowledge and experience as
    lawyers and as judges in considering the testimony, the record, and the amount in
    controversy in determining attorney’s fees.” Protect Envtl. Servs. v. Norco Corp.,
    
    403 S.W.3d 532
    , 543 (Tex. App.—El Paso 2013, pet. denied) (holding that trial
    court could reduce fee even though attorney’s testimony was uncontroverted);
    McCall v. AXA Equitable Life Ins. Co., No. 14-04-01111-CV, 
    2006 WL 17861
    , at
    *4 (Tex. App.—Houston [14th Dist.] Jan. 5, 2006, no pet.) (same); see also In re
    Guardianship of Hanker, No. 01-12-00507-CV, 
    2013 WL 3233251
    , at *5 (Tex.
    App.—Houston [1st Dist.] June 25, 2013, no pet.) (holding that trial judge may
    “draw[] on her knowledge of the case, review of the court file, and her experience
    in other . . . proceedings in determining whether a requested fee is reasonable”).
    Trial courts are considered experts on the reasonableness of attorney’s fees. See
    Primrose Operating Co. v. Nat’l Am. Ins. Co., 
    382 F.3d 546
    , 562 (5th Cir. 2004)
    (holding that trial courts are experts on reasonableness of attorney’s fees); In re
    TMT Trailer Ferry, Inc., 
    577 F.2d 1296
    , 1304 (5th Cir. 1978) (“[A]ppellate courts,
    as trial courts, are themselves experts as to the reasonableness of attorneys’
    22
    fees . . . .”). Further, courts are free to look at the entire record, the evidence
    presented on reasonableness, the amount in controversy, the common knowledge
    of the participants as lawyers and judges, and the relative success of the parties to
    determine a reasonable fee. Garrod Invs., Inc. v. Schlegel, 
    139 S.W.3d 759
    , 767
    (Tex. App.—Corpus Christi 2004, no pet.); In re Marriage of C.A.S. & D.P.S.,
    
    405 S.W.3d 373
    , 387 (Tex. App.—Dallas 2013, no pet.) (stating that trial court
    need not hear evidence on every relevant factor to determine reasonable attorney
    fees and holding that court can look at entire record and use common knowledge of
    participants as lawyers and judges to decide reasonable fee).
    Zimmerman’s counsel testified that $72,810 of the $77,202 total amount
    billed was a reasonable and proper fee award, based on the theory that all of it was
    intertwined with the breach-of-contract claim. The trial court also had available, in
    evidence, detailed time entries describing work performed to advance the breach-
    of-contract claim. For example, an entry on October 17, 2011 stated that the
    attorney “identified potential counterclaim for unpaid attorney’s fees . . . .” Entries
    on February 2, 3, 6, and 14 detail the drafting of the counterclaim, conferences
    with the client concerning the claim, and the finalizing and filing of the pleading.
    The trial court was aware that counsel’s fee would need to take into account both
    pre-trial and trial phases of the litigation, based on counsel’s testimony. The trial
    lasted two days. Further, counsel testified that the customary fee charged in the
    23
    area for legal services was $300 per hour, and the evidence established that counsel
    charged Zimmerman that same amount per hour.
    Based on this evidence, the trial court made findings of fact and conclusions
    of law. The findings of fact include the following:
    • The Law Firm offered evidence that it incurred over $70,000 in
    attorneys’ fees during the case. . . . The bulk of the fees were
    incurred in defending the legal malpractice action and not in
    prosecuting the breach of contract action.
    • The Law Firm and Zimmerman did not offer any specific evidence
    to segregate the fees related to the breach of contract action from
    the fees incurred in defending the legal malpractice action or in
    pursuing the defamation claim.
    • The Court reviewed the invoices Zimmerman received from her
    defense counsel to determine how much time was spent on
    prosecuting the breach of contract action.
    • Prior to trial, the invoices indicate that no more than three hours
    were spent on matters related to the breach of contract claim.
    The court’s conclusions of law included that (1) the fact-finder should
    consider the Arthur Andersen factors when determining the reasonableness of the
    fee, and (2) “[b]ased on the evidence presented and considering the factors for
    determining a reasonable fee, the Law Firm shall recover attorneys’ fees in the
    amount of $6,000 for representation in the trial court.” Arthur 
    Andersen, 945 S.W.2d at 818
    (explaining factors).
    Based on our review of the record, we conclude that there was legally and
    factually sufficient evidence to support the award of $6,000 in attorney’s fees on
    24
    the breach-of-contract claim. The detailed invoices and counsel’s testimony
    concerning the customary fee and his fee for legal services were some evidence in
    support of the award, meeting the legal sufficiency requirement. See Jocson v.
    Crabb, 
    196 S.W.3d 302
    , 310–11 (Tex. App.—Houston [1st Dist.] 2006, no pet.)
    (determining fee where attorney failed to segregate by reviewing attorney’s billing
    records for compensable entries and applying counsel’s stated hourly rate); see
    also City of 
    Keller, 168 S.W.3d at 827
    (explaining legal sufficiency standard).
    Further, a $6,000 fee on a fully litigated breach-of-contract claim is not so
    clearly wrong or manifestly unjust to require reversal, given that there were
    detailed billing records in evidence describing the legal services performed, the
    trial lasted two days, Zimmerman’s counsel testified about the total fee incurred,
    his billable rate, and the standard rate in the legal community, and the trial court
    could take judicial notice of the standard and customary fee as well as the content
    of the case file. See 
    Cain, 709 S.W.2d at 176
    (discussing factual sufficiency
    standard).
    Having concluded that there was both legally and factually sufficient
    evidence to support the trial court’s award of $6,000 in attorney’s fees, we overrule
    McMahon’s third issue.
    25
    Conclusion
    Having overruled all three of McMahon’s issues, we affirm the trial court’s
    judgment.
    Harvey Brown
    Justice
    Panel consists of Justices Keyes, Bland, and Brown.
    26
    

Document Info

Docket Number: 01-12-01090-CV

Citation Numbers: 433 S.W.3d 680, 2014 WL 1258815, 2014 Tex. App. LEXIS 3365

Judges: Keyes, Bland, Brown

Filed Date: 3/27/2014

Precedential Status: Precedential

Modified Date: 11/14/2024

Authorities (36)

Jocson v. Crabb , 2006 Tex. App. LEXIS 4531 ( 2006 )

WC LAROCK, DC, PC v. Smith , 310 S.W.3d 48 ( 2010 )

CA PARTNERS v. Spears , 274 S.W.3d 51 ( 2008 )

Whirlpool Corp. v. Camacho , 53 Tex. Sup. Ct. J. 179 ( 2009 )

Buls v. Fuselier , 55 S.W.3d 204 ( 2001 )

General Electric Co. v. Joiner , 118 S. Ct. 512 ( 1997 )

Kawasaki Steel Corp. v. Middleton , 28 Tex. Sup. Ct. J. 607 ( 1985 )

Ocomen v. Rubio , 2000 Tex. App. LEXIS 3782 ( 2000 )

Burrow v. Arce , 42 Tex. Sup. Ct. J. 932 ( 1999 )

in-the-matter-of-tmt-trailer-ferry-inc-debtor-irwin-l-langbein , 577 F.2d 1296 ( 1978 )

Cooper Tire & Rubber Co. v. Mendez , 49 Tex. Sup. Ct. J. 751 ( 2006 )

Alford v. Johnston , 2005 Tex. App. LEXIS 5658 ( 2005 )

Wilson v. Shanti , 2011 Tex. App. LEXIS 116 ( 2011 )

Flint & Associates v. Intercontinental Pipe & Steel, Inc. , 1987 Tex. App. LEXIS 8857 ( 1987 )

MacK Trucks, Inc. v. Tamez , 50 Tex. Sup. Ct. J. 80 ( 2006 )

Allan v. Nersesova , 2010 Tex. App. LEXIS 1662 ( 2010 )

Superior Ironworks, Inc. v. Roll Form Products, Inc. , 1990 Tex. App. LEXIS 1101 ( 1990 )

Bair Chase Property Co. v. S & K Development Co. , 260 S.W.3d 133 ( 2008 )

Hoover v. Larkin , 2006 Tex. App. LEXIS 3405 ( 2006 )

Bocquet v. Herring , 972 S.W.2d 19 ( 1998 )

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