Benavidez-Hunt v. G.B.G. Ranch, Ltd.

CourtUnited States Bankruptcy Court, S.D. Texas
DecidedMarch 6, 2025
Docket16-05005
StatusUnknown

This text of Benavidez-Hunt v. G.B.G. Ranch, Ltd. (Benavidez-Hunt v. G.B.G. Ranch, Ltd.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benavidez-Hunt v. G.B.G. Ranch, Ltd., (Tex. 2025).

Opinion

IN THE UNITED STATES BANKRUPTCY COURT March 06, 2025 FOR THE SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk LAREDO DIVISION

IN RE: § § CASE NO: 14-50155 GBG RANCH, LTD, A TEXAS LIMITED § PARTNERSHIP, § CHAPTER 11 § Debtor. § § NORMA BENAVIDEZ-HUNT, § § Plaintiff, § § VS. § ADVERSARY NO. 16-5005 § G.B.G. RANCH, LTD. § THE ESTATE OF NORMA Z. BENAVIDES § GUILLERMO BENAVIDES Z § MANUAL A. BENAVIDES § CARL MICHAEL BARTO, § § Defendants. §

MEMORANDUM OPINION AND ORDER ON ATTORNEY’S FEES

After a ruling in Plaintiffs’ favor, Judge David R. Jones also awarded the plaintiff, Norma Benavidez-Hunt (“Ms. Hunt”) her reasonable attorney’s fees in the Memorandum Opinion entered on December 4, 2022, and gave Ms. Hunt’s counsel 30 days to “file an itemized request setting forth her requested attorney’s fees and expenses.” As the fees were to be paid individually by Manuel A. Benavides a/k/a Guero Benavides (“Guero Benavides”), one of the defendants in this case, Judge Jones gave Guero Benavides 14 days after the filing of the itemized request to object to the requested attorney’s fees and expenses. After a hearing held on August 17, 2023, Judge Jones ruled on the record that Ms. Hunt was awarded $2,393,009.35 in attorneys’ fees and expenses. Based on the record, a written judgment was entered on December 5, 2023, by Judge Jeffrey P. Norman, the successor judge. After appeal, the issue regarding the calculation of the amount of reasonable attorneys’ fees was remanded by the District Court. FACTUAL AND PROCEDURAL BACKGROUND This adversary was filed on August 16, 2016. After years of litigation, interim judgments,1 and a trial over three and one-half years2 on all remaining issues starting on August 28, 2019, continuing on August 30, 2019, November 6, 2019, May 3, 2021, May 4, 2021, through May 7, 2021, and November 30, 2021, through December 2, 2021. Closing arguments were heard on March 8, 2022, through March 9, 2022. Judge Jones issued a Memorandum Opinion on December 4, 2022,3 which found fraud on the court, voided a transfer of the Residuary Trust’s interest to Guero Benavides, his children and his affiliates/trust and that any release or exculpation provided to any non-debtor parry under the confirmed plan is not binding on Ms. Hunt. The Memorandum Opinion also awarded Ms. Hunt “reasonable attorney’s fees to be paid by Guero Benavides as the party responsible for implementing the Plan but intentionally failing to do so.” The Opinion further allowed Ms. Hunt to file an “itemized request setting forth her requested attorney’s fees and expenses” within 30 days. Guero Benavides would have 14 days from the filing of the itemization to object to the requested fees and expenses. The Memorandum Opinion admonished Guero Benavides that he must “specifically identify the time entry or expense objected to and the basis of the objection. Any specific fee request or expense to which no objection is filed is allowed. Any general objection or objection that fails to comply with this paragraph is waived.” Counsel for Ms. Hunt filed their Motion for the Award of Attorneys’ Fees on January 3, 20234 requesting a total amount of $2,579,023.70 in fees and expenses from February 19, 2016, through November 28, 2022. An Amended Response and Objection to Plaintiff’s Motion for Award of Attorney’s fees was filed by G.B.G. Ranch, Ltd. and Guero Benavides on January 27, 2023.5 Ms. Hunt filed a reply to the response on February 10, 2023.6 Two firms represented Ms. Hunt throughout this case. Jordan & Ortiz, P.C. (the “Jordan Firm”) was her original counsel, and they stated that they expended over 4,831.50 hours. Ms. Hunt then retained the Broocks Law Firm (“Broocks Firm”) in May of 2017 to assist Jordan & Ortiz, P.C., and the Broocks Firm billed over 3,792 hours. Both firms testified that they each

1 ECF No. 370, Order Granting Summary Judgment for the Estate of Norma Z. Benavides 2 The lengthy time period was caused in part by the COVID 19 pandemic shutting down personal appearances in the courts in March of 2020. See General Order 2020-4 entered on March 9, 2020. 3 ECF No. 561. 4 ECF No. 563. 5 ECF No. 568. 6 ECF No. 569. granted discounts and did not charge the full extent of their fees. Shelby Jordan explained in his Declaration7 that the Jordan Firm incurred gross hourly fees of $1,497,275.00 and expenses of $169,224.82, but that the firm wrote off $158,036.59, resulting in a request of $1,339,608.608 in fees and expenses of $197,597.639 for a total of $1,537,188.23. Attached to Mr. Jordan’s Declaration are 277 pages of entries for fees and expenses set forth in monthly invoices from February 19, 2016 to December 2022. Ben C. Broocks filed his Declaration on behalf of the Broocks Firm stating that it expended approximately 3,792 hours and requested $1,012,951.30 in fees and $28,884.17 in expenses totaling $1,041.835.47. His Declaration is accompanied with 146 pages of billing entries beginning on May 8, 2017, through April 6, 2022. The Defendants filed a response on January 27, 2023,10 (”Defendants’ Objection”) stating that they are aware that the Court required specific objections to time entries, but they were unable to comply as the time entries were “block-billed and not discerned by category, claim or defendant.”11 They also objected to fees related to litigation involving Guillermo Benavides Benavidez (“Memo Benavidez”), stated that the requested fees were excessive, citing to their much lower fees, and advised that a reasonable total fee “should not have exceeded $1.5 million.” Lastly, they objected to fees billed due to time spent on unsuccessful appeals, multiple parties billing for the same work, and for work related to a separate probate proceeding in state court. In her Reply,12 Ms. Hunt reiterated that the fees were specific and that she is not seeking an award against the bankruptcy estate, but only against a non-debtor party, that the requested fees were reasonable under the Johnson13 factors, that the fees requested were not excessive as they were not so “grossly out of proportion with the fees charged for similar services by other attorneys in the locale as to constitute an unquestionable abuse of the attorney’s professional responsibility to the public.”14 Furthermore, the burden of proof was on the plaintiff and it is irrelevant how much defendants’ attorneys’ billed for the same time period. Lastly, Ms. Hunt disputes that the

7 ECF No. 563-1, page 7 of 294. 8 $1,497,275.00 less $158,036.69 equals $1,339,238.41. The Declaration does not explain the difference between this amount of $1,339,238.41 and the amount requested of $1,339,608.60, a difference of $370.19. 9 The Declaration does not explain why the expenses increased from the $169,224.82 in paragraph 23 of the Declaration to the amount requested of $197,579.63 in Paragraph 23(b), a difference of $28,354.81. 10 ECF No. 568, the Amended Response and Objection to Plaintiff’s’ Motion for Award of Attorneys’ Fees. 11 ECF No. 568, page 2, ¶2. 12 ECF No. 569. 13 Johnson v. Georgia Highway Express, Inc., 488 F. 2d 714, 717-719 (CA5 1974), 14 Citing to Webb v. Dolgencorp, LLC, No. 15-6949, 2016 U.S. Dist. LEXIS 169909, at *12 (E.D. La. 2016) appeals were “an incredible waste of time and judicial resources” as set forth in the Defendants’ Objection. Instead, she argues that she obtained an excellent result, notwithstanding that the appeals were unsuccessful. A hearing was held on August 17, 2023, on the Motion for the Award of Attorneys’ Fees, the Response and the Reply. Judge Jones issued a ruling on the record. In the transcript of that hearing, Judge Jones reiterates that he had requested that specific objections were to be raised, but the Response failed to do so, defendants failed to request him to “do anything about it.”15 So he went through the billing entries himself and decided to award $2,293,009.35 in fees and expenses.

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Benavidez-Hunt v. G.B.G. Ranch, Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/benavidez-hunt-v-gbg-ranch-ltd-txsb-2025.