Aperia Solutions Inc v. OLB Group Inc

District Court, N.D. Texas·Decided August 19, 2021·No. 3:18-cv-03276·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

APERIA SOLUTIONS, INC., § § Plaintiff and Counter- § Defendant, § § Civil Action No. 3:18-CV-03276-X v. §

§ EVANCE, INC., § § Defendant and Counter- § Plaintiff.

MEMORANDUM OPINION AND ORDER Aperia Solutions, Inc. sued Evance, Inc. for breach of contract, promissory estoppel, and quantum meruit stemming from alleged non-payment for services. Evance, Inc. responded with a counterclaim, alleging that it actually overpaid for the services in question. The Court held a jury trial, and the jury returned a verdict in favor of Aperia. The Court entered a judgment in favor of Aperia based on the verdict. Aperia filed a Motion for Attorney’s Fees [Doc. No. 148], Evance, Inc. filed a Second Motion for New Trial [Doc. No. 151], and Aperia filed a Motion to Strike Declaration of Andrew Ryan [Doc. No. 160]. For the forgoing reasons, the Court DENIES the motion for new trial, DENIES the motion to strike, and GRANTS the motion for attorney’s fees. I. Legal Standards Under Texas law, litigants may recover attorney’s fees only if a statute or contract allows it.1 Texas Civil Practice and Remedies Code § 38.001(8) establishes

that a party “may recover reasonable attorney’s fees from an individual or corporation, in addition to the amount of a valid claim and costs, if the claim is for . . . an oral or written contract.”2 “To recover attorney’s fees under section 38.001, a party must (1) prevail on a cause of action for which attorney’s fees are recoverable, and (2) recover damages.”3 An award of reasonable fees is mandatory under section 38.001 if there is proof that the fees are reasonable.4

When lawsuits advance both recoverable and unrecoverable claims, “a claimant must segregate recoverable from unrecoverable fees.”5 But “when discrete legal services advance both a recoverable and unrecoverable claim” the services are “so intertwined that they need not be segregated.”6 To determine the reasonableness of attorney’s fees, courts look to eight factors identified by the Texas Supreme Court in Arthur Andersen & Co. v. Perry Equip. Corp.:7 (1) the time and labor required, the novelty and difficulty of the questions involved, and the skill required to perform the legal service properly;

1 1/2 Price Checks Cashed v. United Auto. Ins. Co., 344 S.W.3d 378, 382 (Tex. 2011). 2 TEX. CIV. PRAC. & REM. CODE § 38.001(8). 3 Green Int’l, Inc. v. Solis, 951 S.W.2d 384, 390 (Tex. 1994). 4 See Kona Tech. Corp. v. S. Pac. Transp. Co., 225 F.3d 595, 614 n.2 (5th Cir. 2000). 5 Tony Gullo Motors I, L.P. v. Chapa, 212 S.W.3d 299, 313–14 (Tex. 2006). 6 Id. 7 945 S.W.2d 812 (Tex. 1997). (2) the likelihood . . . that the acceptance of particular employment will preclude other employment by the lawyer; (3) the fee customarily charged in the locality for similar legal 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 of the professional relationship with the client; (7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and (8) whether the fee is fixed or contingent on results obtained or uncertainty of collection before the legal services have been rendered.8

To determine the amount of fees and costs awarded, the Court must determine the lodestar. The lodestar is the number of hours reasonably expended multiplied by the prevailing hourly rate in the community for similar work.9 “In calculating the lodestar, the court should exclude all time that is excessive, duplicative, or inadequately documented.”10 The Supreme Court of Texas has recognized that “the base lodestar figure accounts for most of the relevant Arthur Andersen considerations.”11 II. Analysis A. Motion for New Trial After carefully reviewing the briefings, as well as the arguments and authorities therein, the Court DENIES the motion for new trial.

8 Id. at 818. 9 Combs v. City of Huntington, Tex., 829 F.3d 388, 391 (5th Cir. 2016). 10 Id. 11 Rohrmoos Venture v. UTSW DVA Healthcare, LLP, 578 S.W. 469, 500 (Tex. 2019). B. Motion to Strike After carefully reviewing the briefings, as well as the arguments and authorities therein, the Court DENIES the motion to strike the affidavit of Mr. Ryan.

C. Motion for Attorney’s Fees Here, Texas law provides an attorney fee award to the prevailing parties in breach of contract lawsuits. There is no dispute that Aperia was the prevailing party and is entitled to attorney’s fees by statute. Evance, Inc., however, disputes the amount of fees and costs that Aperia can collect. 1. Reasonable and Necessary

i. Number of individuals assigned to the case and their respective workloads. Evance, Inc. takes issue with the reasonableness of Underwood Perkins’s rates and hours billed in this case. Evance, Inc. first argues that Underwood Perkins assigned too many individuals to work on the case. Six individuals billed time for Underwood Perkins: two senior litigation partners, one senior litigation associate, two junior associates, and one paralegal. Evance, Inc. argues that the senior associate, Mr. Pierce, and paralegal, Ms. Andrews, would have been enough to

manage a case of this size and complexity. But Evance, Inc.’s evidence for this conclusion is based solely on its owns counsel’s decision to employ a “one riot, one ranger” cost-saving approach to the case. The Court greatly admires Mr. Ryan’s single-handed, excellent representation in this case. But Texas law does not mandate this approach for all clients. The Court is unaware of any industry consensus that assigning more than one attorney to any particular type of case is de facto unreasonable.12 This case involved multiple and alternative claims as well as a counterclaim. Employing multiple attorneys in this case was not unreasonable.

Further, the number of individuals assigned to the case was not unreasonable. Evance, Inc. argues that the case did not warrant two partners assigned to it. Underwood Perkins’s standard practice is to assign two partners to each case that is likely to go to trial.13 This way, if the primary partner encounters a scheduling conflict, the secondary partner can easily step into his or her place and prevent delays in the case. The system is designed to ensure the work is not duplicative, so

effectively only one partner’s worth of work is billed. Evance, Inc. points to no industry consensus that this approach is unreasonable. A similar situation occurred with the associates Underwood Perkins assigned to this case. Mr. Pierce handled the lion’s share of the workload. Another associate, Mr. Campbell, contributed 3.8 hours to the case.14 And a third associate, Ms. Sherman, contributed 90 hours of trial prep work and support during the trial.15 It appears she completed this work while Mr. Pierce handled other aspects of the case,

and she did so at a rate lower than his. Again, while Evance, Inc.’s counsel opines that this distribution of labor could have been condensed to fewer attorneys, it

12 Further, although talented, Mr. Pierce possessed little experience litigating in federal court and never tried a case to a jury prior to this case. The Court sees no objective reason to conclude that Mr.

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Aperia Solutions Inc v. OLB Group Inc, (N.D. Tex. 2021).

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