Ford Motor Co. v. Chacon

321 S.W.3d 534, 2010 Tex. App. LEXIS 3744, 2010 WL 1986326
CourtCourt of Appeals of Texas
DecidedMay 19, 2010
Docket08-08-00173-CV
StatusPublished
Cited by1 cases

This text of 321 S.W.3d 534 (Ford Motor Co. v. Chacon) 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
Ford Motor Co. v. Chacon, 321 S.W.3d 534, 2010 Tex. App. LEXIS 3744, 2010 WL 1986326 (Tex. Ct. App. 2010).

Opinion

OPINION

ANN CRAWFORD McCLURE, Justice.

We consider today the propriety of a fee award to a guardian ad litem in a wrongful death and survival action against Ford Motor Company and other defendants. Those claims were fully settled and are not at issue here. On appeal, Ford challenges the $17,087 awarded to G. Daniel Mena, who was appointed for the minor plaintiff. We reverse and render judgment for Mena in the amount of $10,562.50.

FACTUAL SUMMARY

This case arose from a tragic automobile accident involving a 1998 Ford Explorer that rolled over on Interstate Highway 25 when the tread on the right rear tire separated. Oscar Chacon, a passenger in the vehicle, sustained fatal injuries. His wife, Patricia Chacon, brought this wrongful death and survival action against Ford Motor Company, Pirelli Tire Corporation, and Darrel Brown. 1 She sued individually, on behalf of her husband’s estate, and on behalf of their minor daughter, Valerie Chacon. The lawsuit was assigned to the 120th District Court. Plaintiffs alleged products liability claims against Ford and Pirelli Tire. They also alleged that the owner of the vehicle was liable because he had negligently entrusted it to a “reckless driver” who was operating it at the time of the accident. The decedent’s father, Oscar Chacon, Sr., later joined the lawsuit as an additional plaintiff.

After the case had been on file almost a year, Plaintiffs informed the court that they had reached a “tentative settlement” with Cooper Tire, against whom they were then asserting their claims for the defective tire. In connection with that settlement, Plaintiffs requested the appointment of a guardian ad litem for Valerie Chacon. The trial court promptly signed an order appointing Mena to that role. The friendly suit hearing, severance, and judgment resolving those claims occurred in October 2006. At that time, Mena was awarded a fee of $11,000 for serving as guardian ad litem in.connection with the Cooper settlement.

At the friendly suit hearing in the Cooper litigation, Ford tendered a settlement offer that mirrored the terms of the Cooper settlement. According to Mena, Mrs. Chacon was not satisfied with the offer and from that moment in the Ford litigation, her interests conflicted with those of her daughter. The attorneys met in chambers with Judge Luis Aguilar, the then-presiding judge of the 120th District Court. In a “highly volatile” and emotional encounter, Judge Aguilar advised Mrs. *537 Chacon that she was foolish not to take the offer and that her decision was not in Valerie’s best interest. The case was set for trial a few weeks later in November 2006, but it was continued at Ford’s request. Having lost his re-election bid, Judge Aguilar left the bench at the end of December 2006. Because of concerns that the case would not proceed to trial for at least a year, the Ford litigation was transferred from the 120th District Court to County Court at Law No. 6, Judge M. Sue Kurita presiding.

In September 2007 — ten days before the final trial setting — Judge Kurita denied Ford’s motion for continuance and ordered mediation with regard to the Plaintiffs’ claims against Ford and Darrell Brown. That mediation was successful, and the parties reached a settlement. Again acting as guardian ad litem for Valerie, Mena submitted an ad litem report recommending the settlement. He attached a document entitled “Billable Hours Mena Ad Litem-Chacon v. Ford.” This document did not indicate an hourly rate or the total amount Mena sought in attorney’s fees. But it listed time entries totaling 87.25 hours, with additional time which would be incurred at attending the friendly suit hearing and in handling the Order of Investment. The chronology of these time entries began in August 2006. Ford asked for an evidentiary hearing.

On the morning of the hearing, Mena filed a verified Report of Hours that presented time entries totaling 80.75 hours for which he sought compensation. The trial court awarded Mena fees of $17,087. This appeal follows.

GUARDIAN AD LITEM FEES

Ford brings four issues for review, complaining that the trial court abused its discretion by awarding excessive guardian ad litem fees. We address each point in turn.

Standard of Review

A guardian ad litem must be appointed for a minor party when a conflict of interest exists between the child and the child’s guardian or next friend. Tex. R.Civ.P. 173.2(a); Brownsville-Valley Reg. Med. Ctr. v. Gamez, 894 S.W.2d 753, 755 (Tex.1995). However, the conflict need not be actual; potential for conflict during trial or settlement negotiations also authorizes the appointment of a guardian ad litem. Borden, Inc. v. Martinez, 19 S.W.3d 469, 472 (Tex.App.-San Antonio 2000, no pet.); Clark v. McFerrin, 760 S.W.2d 822, 828 (Tex.App.-Corpus Christi 1988, writ denied). Once appointed, the ad litem acts as both an officer and advisor to the court. Tex.R.Civ.P. 173.4(a). When a settlement of the child’s claim is proposed, the guardian ad litem has “the limited duty to determine and advise the court whether the settlement is in the party’s best interest.” Tex.R.Civ.P. 173.4(c). As the personal representative of the minor, he may seek reasonable compensation for necessary services performed. TexR.CivP. 173.6(a). “A reasonable hourly rate multiplied by the number of hours spent performing necessary services within the guardian ad litem’s role yields a reasonable fee.” Land Rover U.K., Ltd. v. Hinojosa, 210 S.W.3d 604, 608 (Tex.2006)(per curiam). Because the guardian ad litem has a limited role, not all litigation services are necessary or required. Id. at 607 (guardian ad litem may not recover fees for services that duplicate work performed by plaintiffs attorney); Brownsville-Valley Reg. Med. Ctr., 894 S.W.2d at 756-57 (guardian ad litem may not recover fees for services that duplicate duties imposed on the trustee and the minor’s parents). “If a guardian ad litem performs work beyond the scope of this role, such work is non-eompensable.” Land Rover U.K., Ltd., 210 S.W.3d at 607. We review a fee award under an abuse of discretion stan *538 dard based on the sufficiency of the evidence that the fee was reasonable and necessary. Id.; Garcia v. Martinez, 988 S.W.2d 219, 222 (Tex.1999)(per curiam). A trial court abuses its discretion in “ordering payment of a fee in excess of the product of the hours spent and the hourly fee supported by the testimony using the Andersen factors.” Land Rover U.K., Ltd, 210 S.W.3d at 608, referencing Arthur Andersen & Co. v. Perry Equip. Corp., 945 S.W.2d 812, 818 (Tex.1997).

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Related

Ford Motor Co. v. Chacon
370 S.W.3d 359 (Texas Supreme Court, 2012)

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Bluebook (online)
321 S.W.3d 534, 2010 Tex. App. LEXIS 3744, 2010 WL 1986326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-motor-co-v-chacon-texapp-2010.