Ford Motor Co. v. Chacon

370 S.W.3d 359, 55 Tex. Sup. Ct. J. 1025, 2012 WL 2476793, 2012 Tex. LEXIS 557
CourtTexas Supreme Court
DecidedJune 29, 2012
DocketNo. 10-0506
StatusPublished
Cited by6 cases

This text of 370 S.W.3d 359 (Ford Motor Co. v. Chacon) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ford Motor Co. v. Chacon, 370 S.W.3d 359, 55 Tex. Sup. Ct. J. 1025, 2012 WL 2476793, 2012 Tex. LEXIS 557 (Tex. 2012).

Opinion

PER CURIAM.

In this case, we determine whether a guardian ad litem was awarded fees for [360]*360work that exceeded the scope of the authority given to him by the trial court. The trial court appointed the guardian ad litem to represent the interests of a minor-plaintiff during the resolution of a proposed settlement with one defendant in a multiple-defendant lawsuit. After the settlement was finalized, the guardian ad li-tem continued to represent, without court order, the minor-plaintiffs interests in her claims against the remaining defendants. Because the guardian ad litem continued representing the minor-plaintiffs interests without court order, we reverse the court of appeals’ judgment and render judgment that the guardian ad litem’s activities following resolution of the initial settlement are not compensable.

In 2005, Oscar Chacon suffered fatal injuries in an automobile accident. The accident allegedly occurred because a tire tread separated from the rear right tire of the 1998 Ford Explorer in which he was a passenger. Chacon’s wife, Patricia Cha-con, brought a wrongful death and survival action on behalf of herself, her husband’s estate, and her minor daughter, Valerie Chacon (collectively, the Chacons).1 The Chacons alleged products liability claims against Ford Motor Company and Cooper Tire & Rubber Company,2 and a negligent entrustment claim against Darrel Brown, the owner of the vehicle.

Almost one year after filing their original petition, the Chacons informed the trial court that they had reached a tentative settlement with Cooper Tire. In connection with that settlement, the Chacons requested that the trial court appoint a guardian ad litem to represent Valerie’s interests. The court granted the motion and appointed G. Daniel Mena as guardian ad litem.

With Mena’s approval, the settlement with Cooper Tire was finalized, and in October 2006, following a hearing to obtain court approval of the settlement, a judgment was entered that successfully resolved the Chacons’ claims against Cooper Tire. At that time, Mena submitted to the trial court an application for $11,000 in compensation for his service as guardian ad litem in connection with the Cooper Tire settlement. The trial court approved the $11,000 award and taxed it against Cooper Tire in full. Subsequently, the case was transferred to a different court to avoid potential delays resulting from the election of a new trial judge.

Despite resolution of the Cooper Tire settlement, Mena continued his involvement in the suit. In September 2007, almost one year after the Cooper Tire settlement, the trial court ordered mediation on all of the Chacons’ still-pending claims against the remaining defendants, Ford and Brown. The order for referral to mediation was sent to all of the attorneys in the case as well as Mena. The mediation, which Mena attended, was successful and resulted in the parties reaching a settlement. Mena, apparently acting as Valerie’s guardian ad litem, submitted to the trial court a report recommending the settlement. Attached to the report was a document listing billable hour entries for Mena’s work as guardian ad litem on behalf of Valerie’s interests against Ford. The entries totaled 87.25 hours of work, beginning in August 2006 during the Cooper Tire settlement. The list included two pending entries for future activities — attending the hearing to obtain court approval of the Ford settlement and handling [361]*361the investment of Valerie’s settlement proceeds.

Ford objected to Mena’s fee request on several grounds, including that Mena had already been paid for his work in connection with the Cooper Tire settlement and that he was seeking fees for activities beyond the scope of his duties as a guardian ad litem under Texas Rule of Civil Procedure 173. Ford requested an evidentiary hearing on the matter. On the morning of the hearing, Mena filed a verified report that presented entries totaling 80.75 hours of allegedly compensable work. Asserting that a reasonable hourly rate would be $200 to $250 an hour, Mena sought a total fee in the range of $16,150 to $20,187.50. When questioned by Ford about the entries, Mena stated that some of the entries were for work he had already performed during the Cooper Tire settlement. He explained that he sought compensation again for those hours because he spent that time also ensuring “that Ford Motor Company was not let out of this case” and because he “did some of the work simultaneously” in connection with all three defendants.

The trial court awarded Mena $17,087 in fees for his service on behalf of Valerie’s interests against Ford. In reaching this total, the court began by removing two entries totaling half an hour for time in which Mena discussed his fees with Ford’s attorneys. The court then compensated Mena for the remaining 80.25 hours at a rate of $350 per hour — $100 more than the highest rate requested by Mena. To avoid double payment, the court credited Ford $11,000, which was the amount previously awarded to Mena for his 38.00 hours of work in connection with the Cooper Tire settlement. Thus, the trial court ordered fees in the amount of $17,087 for 42.25 hours of work and taxed them in full against Ford.

The court of appeals reversed and rendered judgment, reducing Mena’s award to $10,562.50. 321 S.W.3d 534, 544-45.3 The court found nothing in the record to support the trial court’s $350 hourly rate and reduced the rate to $250 per hour. Id. The court additionally noted that the high hourly rate impacted the double-billing credit, as Ford should have been credited $13,300 for the 38.00 hours of work at $350 per hour related to the Cooper Tire settlement. Id. at 544. The court of appeals otherwise upheld the fee award, holding that the trial court did not abuse its discretion in compensating Mena for the billing entries listed subsequent to the Cooper Tire settlement. Id. at 544-45. After multiplying the remaining 42.25 hours by an hourly rate of $250, the court rendered judgment for Mena in the amount of $10,562.50. Id. at 545.

On appeal, Ford challenges the court of appeals’ fee award on two grounds. First, Ford contends that Mena’s role as guardian ad litem ended after the Cooper Tire settlement was finalized on October 16, 2006, and that he should therefore not be compensated for any work done after that settlement. Second, Ford argues that, even if Mena’s appointment as guardian ad litem extended past the Cooper Tire settlement, Mena billed for activities that are prohibited under Rule 173.

A guardian ad litem is an officer appointed by the court to assist in protecting a party’s interests when that party’s next friend or guardian appears to have an interest adverse to the party. See Tex.R. [362]*362Civ. P. 173; Land Rover U.K., Ltd. v. Hinojosa, 210 S.W.3d 604, 607 (Tex.2006). Texas Rule of Civil Procedure 173 governs the procedure for appointing and compensating a guardian ad litem. See Tex.R. Civ. P. 173. Rule 173 requires that a guardian ad litem’s “appointment must be made by written order” of the trial court. Tex.R. Civ. P. 173.3(b). A guardian ad litem has the burden to ensure that his services do not exceed the scope of the role assigned by the trial court. See Tex.R. Civ. P. 173.6(a); Stewart Title Guar. Co. v. Sterling,

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Bluebook (online)
370 S.W.3d 359, 55 Tex. Sup. Ct. J. 1025, 2012 WL 2476793, 2012 Tex. LEXIS 557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-motor-co-v-chacon-tex-2012.