Accent Builders, Inc. v. R.A. Session II and Lily Teklu

CourtCourt of Appeals of Texas
DecidedJune 24, 2024
Docket05-23-00675-CV
StatusPublished

This text of Accent Builders, Inc. v. R.A. Session II and Lily Teklu (Accent Builders, Inc. v. R.A. Session II and Lily Teklu) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Accent Builders, Inc. v. R.A. Session II and Lily Teklu, (Tex. Ct. App. 2024).

Opinion

Reversed and Rendered in Part, Reversed and Remanded in Part, and Affirmed in Part, and Opinion Filed June 24, 2024

S In The Court of Appeals Fifth District of Texas at Dallas No. 05-23-00675-CV

ACCENT BUILDERS, INC., Appellant V. R.A. SESSION II AND LILY TEKLU, Appellees

On Appeal from the 101st Judicial District Court Dallas County, Texas Trial Court Cause No. DC-22-07492

MEMORANDUM OPINION Before Justices Partida-Kipness, Pedersen, III, and Carlyle Opinion by Justice Partida-Kipness Appellant Accent Builders, Inc. (Accent) sued Appellees R.A. Session, II and

Lily Teklu (together, Teklu) for breach of contract related to Accent’s construction

work on Teklu’s residence. After Teklu failed to appear at trial, Accent secured a

favorable judgment. In this appeal, Accent raises five issues, asserting the trial court

erred in refusing to award: (1) attorney’s fees through trial; (2) pre-judgment interest;

(3) post-judgment interest; (4) costs; and (5) attorney’s fees on a motion for new

trial. We reverse and render in part, reverse and remand in part, and affirm in part. BACKGROUND

In November 2021, Accent and Teklu entered an agreement for Accent to

perform renovations to Teklu’s real property in Dallas, Texas. The initial project

price was approximately $62,000. The scope of the work and price were

memorialized in a written sales agreement. Teklu authorized the work and made an

initial deposit, and Accent began the renovations. As the project progressed, Teklu

requested numerous changes which substantially increased the project price to over

$100,000. Each of these change requests and the associated costs were memorialized

in writing. Teklu made a few additional progress payments but began falling behind

in January 2022. Accent substantially completed the project and demanded payment

several times from January through April 2022.

After Teklu did not respond to Accent’s demands, Accent filed suit in July

2022. Accent’s theories of recovery included breach of contract and suit a sworn

account. Accent sought approximately $25,000 in damages for the unpaid balance

on Teklu’s account, plus attorney’s fees, costs, and pre- and post-judgment interest.

Teklu filed a general denial.

The case proceeded to trial on May 2, 2023. However, Teklu and counsel did

not appear. Accent put on evidence in support of the contract, Accent’s damages,

and attorney’s fees. The trial court entered judgment on May 2, 2023, awarding

Accent $25,355.31 in damages. However, the trial court struck Accent’s request for

–2– trial attorney’s fees, costs, and pre- and post-judgment interest. The judgment

awarded some conditional appellate attorney’s fees.

Accent filed a motion to reform the judgment, asserting its entitlement to

attorney’s fees, interest, and costs. The motion was set for submission but ultimately

overruled by operation of law. Accent timely appealed.

STANDARDS OF REVIEW

In this appeal, Accent complains of the trial court’s refusal to award attorney’s

fees, pre- and post-judgment interest, and costs. We review each of these issues for

an abuse of discretion. R.J. Suarez Enterprises Inc. v. PNYX L.P., 380 S.W.3d 238,

248–49 (Tex. App.—Dallas 2012, no pet.) (attorney’s fees); DeGroot v. DeGroot,

369 S.W.3d 918, 926 (Tex. App.—Dallas 2012, no pet.) (pre- and post-judgment

interest); Mitchell v. Bank of Am., N.A., 156 S.W.3d 622, 630 (Tex. App.—Dallas

2004, pet denied) (costs). A trial court abuses its discretion when it acts arbitrarily

or unreasonably, without reference to guiding rules or principles. Iliff v. Iliff, 339

S.W.3d 74, 78 (Tex. 2011) (citations omitted). A trial court also abuses its discretion

by failing to analyze or apply the law correctly. Id.

ANALYSIS

I. Attorney’s Fees

In its first issue, Accent asserts the trial court abused its discretion in failing

to award attorney’s fees at trial. In its fifth issue, Accent contends the trial court

–3– abused its discretion by excluding recovery of attorney’s fees for Accent’s prevailing

on a motion for new trial. We address these attorney’s fees issues together.

A. Attorney’s fees generally

A party may recover reasonable attorney’s fees on a claim based on a sworn

account or oral or written contract. TEX. CIV. PRAC. & REM. CODE § 38.001(b). To

recover attorney’s fees under Section 38.001, a party must prevail on the underlying

claim and recover damages. Ventling v. Johnson, 466 S.W.3d 143, 154 (Tex. 2015)

(citing Intercontinental Grp. P’ship v. KB Home Lone Star L.P., 295 S.W.3d 650,

653 (Tex. 2009)).

Generally, an appellate court reviews a trial court’s decision to award

attorney’s fees for an abuse of discretion. R.J. Suarez Enterprises Inc. v. PNYX L.P.,

380 S.W.3d 238, 248–49 (Tex. App.—Dallas 2012, no pet.). However, under

Section 38.001 of the Civil Practice and Remedies Code, the trial court has no

discretion to deny attorney’s fees when presented with evidence of the same.

Ventling, 466 S.W.3d at 154. Chapter 38 “shall be liberally construed to promote its

underlying purpose.” Id. at 155 (quoting TEX. CIV. PRAC. & REM. CODE § 38.005).

This purpose is to “encourage contracting parties to pay their just debts and

discourage…vexatious, time-consuming and unnecessary litigation.” Id. (quoting

Gates v. City of Dallas, 704 S.W.2d 737, 740 (Tex. 1986)). Toward that same

purpose, “if trial attorney’s fees are mandatory under section 38.001, then appellate

–4– attorney’s fees are also mandatory when proof of reasonable fees is presented.”

Ventling, 466 S.W.3d at 154.

B. Sufficiency of evidence to support attorney’s fees

A claimant seeking an award of attorney’s fees must prove the attorney’s

reasonable hours worked and reasonable rate by presenting sufficient evidence to

support the fee award sought. Rohrmoos Venture v. UTSW DVA Healthcare, LLP,

578 S.W.3d 469, 501–02 (Tex. 2019) (citations omitted). General, conclusory

testimony devoid of any real substance will not support a fee award. Id. at 501.

Sufficient evidence includes, at a minimum, evidence of (1) particular services

performed, (2) who performed those services, (3) approximately when the services

were performed, (4) the reasonable amount of time required to perform the services,

and (5) the reasonable hourly rate for each person performing such services. Id. at

502. Contemporaneous billing records are not required to prove the requested fees

are reasonable and necessary. Id. However, billing records are strongly encouraged

to prove the reasonableness and necessity of requested fees when those elements are

contested. Id.

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