Base-Seal, Inc. v. Jefferson County

901 S.W.2d 783, 1995 WL 372049
CourtCourt of Appeals of Texas
DecidedJuly 13, 1995
Docket09-93-344 CV
StatusPublished
Cited by34 cases

This text of 901 S.W.2d 783 (Base-Seal, Inc. v. Jefferson County) 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
Base-Seal, Inc. v. Jefferson County, 901 S.W.2d 783, 1995 WL 372049 (Tex. Ct. App. 1995).

Opinions

[785]*785OPINION

STOVER, Justice.

Jefferson County received road surfacing stabilizer worth $8,371 from Base-Seal, Inc., but rejected the invoices for noncompliance with the County Purchasing Act1. Base-Seal sued the County on alternative theories of contract and quantum meruit. Following trial on stipulated facts, Base-Seal recovered a judgment in quantum meruit against Jefferson County. Base-Seal raises two points of error.

Point of error one contends that the trial court abused its discretion by denying any recovery for attorney fees and urges that under Texas statutes and case law the appel-lee, Jefferson County, is liable for attorney’s fees. Point of error two avers that the trial court abused its discretion in failing to award prejudgment interest, because under Texas statutes and case law appellant should recover prejudgment interest on its implied contract and quantum meruit judgment. We hold that Jefferson County is not liable for attorney’s fees or prejudgment interest; we, therefore, overrule appellant’s points of error one and two and affirm the trial court’s denial of appellant Base-Seal’s request for attorney’s fees and prejudgment interest.

Base-Seal argues in point of error one that an award of attorney’s fees in a quantum meruit action is authorized by Tex. Civ.Prac. & Rem.Code Ann. § 38.001(3) (Vernon 1986). Citing this Court’s earlier opinion in Wickersham Ford, Inc. v. Orange County, 701 S.W.2d 344 (Tex.App. — Beaumont 1985, no writ), appellant further contends that it can recover attorney’s fees in a quantum meruit action against a county, because a county is a corporation under § 38.001 and, pursuant to the language of the statute, falls within the two classes of those against whom attorney’s fees may be recovered.

The general rule in Texas regarding attorney’s fees is that each litigant must compensate his own attorney. Turner v. Turner, 385 S.W.2d 230, 233 (Tex.1964). Recovery of attorney’s fees from an opposing party is allowed, however, when a statute or a contract between the parties authorizes such recovery. New Amsterdam Casualty Co. v. Texas Industries, Inc., 414 S.W.2d 914, 915 (Tex.1967).

The problem for appellant in the instant case is the lack of a contract or statute authorizing recovery of attorney’s fees. As reflected by the express language in the judgment, there was no valid contract between Jefferson County and Base-Seal for the purchase of the road surfacing stabilizer. Therefore, no attorney’s fees can be recovered on the basis of contract. As to authorization by statute, Base-Seal alleges that it is entitled to attorney’s fees under Tex.Civ. PRAC. & Rem.Code Ann. § 38.001 (Vernon 1986), as well as under Tex.Rev.Civ.Stat. Ann. art. 601f § 10 (Vernon Supp.1993) (repealed by Acts 1993, 73rd Leg., ch. 268, § 46(1), codified as Tex.Gov’t Code Ann. § 2251.043 (Vernon Supp.1995).

Art. 601f § 10, however, does not provide statutory authorization for recovery of attorney’s fees by Base-Seal, since Art. 601f § 10 depends upon the existence of a contract between the county and Base-Seal. Since no contract exists, attorney’s fees cannot be awarded pursuant to Art. 601f § 10.

The other statutory basis alleged by Base-Seal for an award of attorney’s fees is § 38.001, the general attorney’s fee statute. Section 38.001 allows for recovery of attorney’s fees in a quantum meruit action where the claim is for materials furnished. Olivares v. Porter Poultry & Egg Co., 523 S.W.2d 726 (Tex.Civ.App. — San Antonio 1975, no writ). Since the instant ease is based upon a quantum meruit claim, it falls within the subject matter confines of § 38.001.

The question then arises as to whether § 38.001 authorizes recovery of attorney’s fees against a county. Section 38.001 does not mention a county or the state; it does, however, specifically provide that “[a] person 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 ... furnished material_” The wording in § 38.001 represents a change [786]*786from the wording of Tex.Rev.Civ.Stat.Ann. art. 2226 (Vernon Supp.1985) (repealed 1986), the predecessor of § 38.001. Art. 2226 provided as follows:

Any person, corporation, partnership, or other legal entity having a valid claim against a person or corporation for services rendered, labor done, material furnished ... may present the same to such persons or corporation or to any duly authorized agent thereof; and if, at the expiration of 30 days thereafter, payment for the just amount owing has not been tendered, the claimant may, if represented by an attorney, also recover, in addition to his claim and costs, a reasonable amount as attorney’s fees....

The legislature repealed Art. 2226, codified the attorney’s fee statute in § 38.001 of the Texas Civil Practices and Remedies Code, and changed the wording used to specify the classifications of those entitled to recover attorney’s fees, as well as those against whom attorney’s fees can be recovered.

Pertinent to this case is the change in the wording which identifies those against whom attorney’s fees can be recovered. The phrase “person or corporation” in Art. 2226 was changed to “individual or corporation” in § 38.001. The effect of the change is to specify more clearly the classifications of those against whom attorney’s fees may be recovered. The classifications of “individual or corporation” do not include a county, since a county is neither an individual (human being) nor a corporation, but is, instead, a political subdivision of the state.

In a well-reasoned opinion, the court in Lake LBJ Mun. Utility Dist. v. Coulson, 839 S.W.2d 880 (Tex.App. — Austin 1992, no writ), discusses at length the change in terminology in § 38.001 and concludes that a county is neither an individual nor a corporation. The opinion cites the revisor’s note to Tex.Civ. PRAc. & RejvlCode Ann. § 38.001, which points out the reason for the change in wording in the statute:

(1) The revised law omits the source law reference [Art. 2226] to a “corporation, partnership, or other legal entity” in the description of a claimant because the Code Construction Act (V.A.C.S. Article 5429b-2) includes those entities in the definition of “person.”
(2) The revised law does not use “person” in the reference to an opposing party because the Code Construction Act definition of “person” is broader than the source law [Art. 2226] meaning of the term, (emphasis added)

As the note makes clear, § 38.001 makes a distinction between the classes of those allowed to recover attorney’s fees and those made liable for attorney’s fees. The wording used to specify the claimants of attorney’s fees is changed from “corporation, partnerships, or other legal entities,” to the word “person.” The reason for the change regarding claimants

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Cite This Page — Counsel Stack

Bluebook (online)
901 S.W.2d 783, 1995 WL 372049, Counsel Stack Legal Research, https://law.counselstack.com/opinion/base-seal-inc-v-jefferson-county-texapp-1995.