Great North American Stationers, Inc. v. Ball

770 S.W.2d 631, 1989 Tex. App. LEXIS 1440, 1989 WL 56451
CourtCourt of Appeals of Texas
DecidedMay 2, 1989
Docket05-87-00386-CV
StatusPublished
Cited by21 cases

This text of 770 S.W.2d 631 (Great North American Stationers, Inc. v. Ball) 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
Great North American Stationers, Inc. v. Ball, 770 S.W.2d 631, 1989 Tex. App. LEXIS 1440, 1989 WL 56451 (Tex. Ct. App. 1989).

Opinions

THOMAS, Justice.

Appellees, David L. Ball, Michael Flores and David Stinson, former employees of appellant, Great North American Stationers, Inc., (GNAS)2 sued GNAS to recover benefits under the GNAS profit-sharing plan. The trial court rendered judgment in favor of the former employees. GNAS raises seven points of error, contending that the former employees’ state law causes of action were preempted by federal law and that the amount of attorneys’ fees awarded was excessive. We conclude that GNAS has waived its claims of federal preemption. Further, we hold that the attorneys’ fees award was proper. Accordingly, we affirm the judgment of the trial court.

In points of error one through six, GNAS contends that the former employees’ state law causes of action to recover pension benefits have been preempted by the passage of the federal Employee Retirement Income Security Act (ERISA). We note, however, that GNAS has raised this federal preemption argument for the first time on appeal. The employees argue that federal preemption has been waived. GNAS contends that a claim of federal preemption is a challenge to the court’s subject matter jurisdiction and cannot be waived.

In International Longshoremen’s Association v. Davis, 476 U.S. 380, 106 S.Ct. 1904, 90 L.Ed.2d 389 (1986), the Supreme Court considered whether a preemption argument based on the National Labor Relations Act “is in the nature of an affirmative defense that must be asserted in the trial court or be considered forever waived or whether it is in the nature of a challenge to a court’s power to adjudicate that may be raised at any time.” Davis, 476 U.S. at 381-82, 106 S.Ct. at 1907, 90 L.Ed.2d at 395. The Court concluded that when a state proceeding is claimed to be waived by the National Labor Relations Act, which give the National Labor Relations Board exclusive power to determine certain disputes, the issue is a non-waivable choice-of-forum, rather than a choice-of-law question. Davis, 476 U.S. at 391, 106 S.Ct. at 1912, 90 L.Ed.2d at 401. From the Court’s conclusion we identify the following rule: a preemption argument that affects the choice of forum rather than the choice of law is not waivable; conversely, a preemption claim that affects only the law to be applied and not the court which may hear the dispute is waivable. Dueringer v. General American Life Ins. Co., 842 F.2d 127, 130 (5th Cir.1988); Gilchrist v. Jim Slemons Imports, Inc., 803 F.2d 1488, 1497 (9th Cir.1986).

We conclude that GNAS’s ERISA preemption claim implicates only a choice of law question. Even if the preemption claim were valid, it would not force the former employees to bring their action in a [633]*633different forum. State courts of competent jurisdiction have jurisdiction of actions by a plan participant to recover benefits due to him under the terms of the plan, to enforce his rights under the plan, or to clarify his rights to future benefits. 29 U.S.C.A. § 1132(a)(1)(B) & (e) (West 1985); Ames v. Ames, 757 S.W.2d 468, 478 (Tex. App. — Beaumont 1988, writ granted). GNAS’s preemption argument thus affects only the choice of law and not the choice of forum. GNAS has neglected the preemption issue too long to raise the issue first on appeal.3 Points of error one through six are overruled.

In point of error seven, GNAS contends that the award of attorneys’ fees is excessive. The trial court awarded the three former employees a total of $225,008 as attorneys’ fees through trial, $110,750 in the event of appeal to the court of appeals, and $37,950 in the event of appeal to the Texas Supreme Court. GNAS bases its argument that these fees are excessive in part upon its contentions that the former employees were not entitled to recover because of the ERISA preemption. We deem this argument waived. Nevertheless, GNAS argues that the amount of attorneys’ fees is excessive even if the employees were entitled to the full amount of damages assessed at trial.

GNAS contends that the $225,008 in attorneys’ fees awarded at trial were excessive because they were not reasonably related to the $90,724.38 in damages. One of the factors in determining the reasonableness of attorneys’ fees is the amount of damages awarded. Wayland v. City of Arlington, 711 S.W.2d 232, 233 (Tex.1986). However, this is only one among many factors to consider. In fact, there are twelve factors that are ordinarily considered to ascertain reasonable attorneys’ fees: (1) the time and labor required; (2) the novelty and difficulty of the question; (3) the skill requisite to perform the legal service properly; (4) the preclusion of other employment by the attorney due to acceptance of the case; (5) the customary fee; (6) whether the fee is fixed or contingent; (7) time limitations imposed by the client in the circumstances; (8) the amount involved and the results obtained; (9) the experience, reputation and ability of the attorneys; (10) the “undesirability” of the case; (11) the nature and length of the professional relationship with the client; and (12) awards in similar cases. See Gill Savings Association v. International Supply Co., 759 S.W.2d 697, 703-04 (Tex.App.—Dallas 1988, writ denied). These factors are consistent with those set out in Disciplinary Rule 2-106(B) of the Texas Code of Professional Responsibility.

Dean Armstrong, an attorney for the former employees, testified that he had spent 712.7 hours on pretrial matters for his three clients and 492 hours at trial. He anticipated spending an additional forty hours on post-verdict matters. Armstrong testified that his hourly rate was $150.00. William Wright, another attorney for the former employees, testified that he spent forty hours on pretrial matters and 492 hours at trial. He anticipated spending an additional forty hours on post-verdict matters. Wright testified that his hourly rate was $250.00.

Both Armstrong and Wright testified that the issues involved in this lawsuit were novel and difficult, requiring many hours of research. They both testified that they considered the pre-trial matters and the seven-week trial inordinately intense and complex. Armstrong stated that much of his pretrial time was taken up with combatting “excessive and abusive” depositions. He stated further that he had anticipated that trial would take only two to three weeks, but that it was unnecessarily prolonged by the conduct of GNAS’s trial [634]*634counsel. Armstrong testified further that during the seven weeks of trial it was impossible to work on other matters for other clients.

Armstrong testified further that he had graduated cum laude from Notre Dame Law School and began working as a lawyer in Dallas in 1977. He testified concerning his awards, honors and publications. Wright also testified concerning his credentials. GNAS’s trial counsel stipulated “to Mr.

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Great North American Stationers, Inc. v. Ball
770 S.W.2d 631 (Court of Appeals of Texas, 1989)

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Bluebook (online)
770 S.W.2d 631, 1989 Tex. App. LEXIS 1440, 1989 WL 56451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-north-american-stationers-inc-v-ball-texapp-1989.