Haden v. David J. Sacks, P.C.

222 S.W.3d 580, 2007 Tex. App. LEXIS 1758, 2007 WL 686998
CourtCourt of Appeals of Texas
DecidedMarch 8, 2007
Docket01-01-00200-CV, 01-03-00025-CV
StatusPublished
Cited by19 cases

This text of 222 S.W.3d 580 (Haden v. David J. Sacks, P.C.) 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
Haden v. David J. Sacks, P.C., 222 S.W.3d 580, 2007 Tex. App. LEXIS 1758, 2007 WL 686998 (Tex. Ct. App. 2007).

Opinions

OPINION ON MOTION FOR REHEARING

SHERRY RADACK, Chief Justice.

Appellants, Charles M. Haden, Jr., individually (Haden), and Charles McIntyre Haden, Jr. & Company d/b/a Haden & Company (the company),1 have filed motions for rehearing and for en banc reconsideration of our opinions issued on September 7, 2006, and appellee, David J. Sacks, P.C. (Sacks) d/b/a Sacks & Associates (the law firm) has filed responses to both motions. We grant rehearing, withdraw our opinions and judgments of September 7, 2006, and issue this opinion in their stead.2

These appeals derive from a dispute over whether and how a client agreed to pay a law firm for legal services. In Cause No. 01-01-00200-CV, the company challenges a series of interlocutory summary judgments and a final judgment rendered in favor of the law firm. In three issues, the company contends that the law firm did not establish its entitlement to judgment as a matter of law (1) for breach of a contract to pay $30,314.38 for legal services performed, (2) for $120,887.50 in attorney’s fees awarded the law firm in connection with pursuing the breach of [584]*584contract claim, or (3) on the company’s counterclaims for violations of the Deceptive Trade Practices and Consumer Protection Act (DTPA),3 breach of fiduciary duty, breach of contract, and fraud. We affirm the judgment in Cause No. 01-01-00200-CV in part and reverse and remand in part. Our disposition of Cause No. 01-01-00200-CV compels that we also reverse the judgment in Cause No. 01-03-00025-CV.

Factual Background

Haden and his predecessor company had an appeal pending to the United States Court of Appeals for the Fifth Federal Circuit (the Fifth Circuit) from an adverse judgment rendered in the United States District Court for the Southern District of Texas, Houston Division. That controversy involved a commercial landlord-tenant dispute and resulted in an adverse judgment that not only assessed liability against the company, but also eliminated the company’s counterclaims. Trial counsel who represented the company in the federal case had prepared a preliminary draft of an appellate brief when Sacks and Haden discussed the merits of hiring independent appellate counsel for the appeal instead of relying on trial counsel. As a result of the conversation, the company hired Sacks and his law firm for the appeal. Sacks is board certified in civil appellate law by the Texas Board of Legal Specialization.

The parties began their working relationship through a written engagement letter sent from the law firm and dated August 4, 1997. The letter, in its entirety, states as follows:

I am honored to represent you with regard to the above-referenced matter. At this point, you have requested that I assist with the writing of the Appellant’s Brief and any reply. If oral arguments are granted by the Fifth Circuit, a decision will have to be made on who should argue the case.
My normal rate is $300.00 per hour, but my rate for this particular matter will be $200.00 per hour. The other lawyers in my firm range from $150.00 to $200.00 per hour, and paralegals range from $50.00 to $100.00 per hour. You are responsible for all costs and expenses in the case as incurred. These expenses include, but are not limited to, copies; binding; fax transmissions; travel; lodging; parking; etc.
Please submit a $10,000 retainer to be applied to fees and expenses.
Please sign in the space provided below and return the original to my office as soon as possible.
Thank you for your cooperation and attention.

Sacks’s signature appears at the close of the letter. Below Sacks’s signature is the statement, “Your signature below indicates acceptance of the terms of this fee agreement.” The face of this letter shows that, on endorsing it, individually and as president of the company on August 21, 1997 and returning it to the law firm, Haden had altered the original $10,000 amount proposed by striking through that amount, superscripting the amount of $5,000 over the original typewritten numerals in handwriting, and adding his initials beside that change.

In addition to endorsing the law firm’s letter, Haden, again individually and on behalf of the company, forwarded a check for the $5,000 retainer by an August 21, 1997 letter, which stated the following:

Pursuant to our telephone conversation, enclosed herewith is a check in the amount of five thousand dollars ($5,000) to be applied to fees and expenses in [585]*585assisting with the writing of the Appellants’ Brief and reply. Also enclosed is an executed copy of your August 4, 1997 letter indicating that I have acknowledged acceptance of your fee agreement on behalf of Haden & Company and myself, except that the initial retainer amount has been reduced to $5,000 per our agreement. Thank you for your assistance in this matter. I look forward to reading your appellant [sic] brief.

The law firm filed the 48-page brief with the Fifth Circuit on September 10, 1997. The brief sought a remand on the merits and a new trial for Haden’s and the company’s counterclaims.

On September 15, 1997, the law firm finalized its invoice for work on the brief at a total due of $37,259.71. The invoice reflected 28 hours’ work by Sacks, 161.75 hours’ work by an associate, and 37 hours’ work by a paralegal, as well as expenses and disbursements. On the same day, Sacks wrote to Haden concerning the brief and forwarded the invoice. Concerning the brief and the invoice, Sacks’s letter states,

I hope you are happy with the Brief. There is an enormous amount of blood, sweat, and tears that went into it. I think it gives us the best possible chance of getting your case turned around.
In that regard, given the state of the record that we were eventually able to retrieve from the Court, putting together winning arguments took considerable [sic] more time than I anticipated after giving the cursory review of the initial documents. I have attached our bill for service rendered and expenses incurred through the completion of the Brief.
We are committed to excellence and will generally spend whatever time is necessary to develop a winning brief given the state of the record. Sometimes that gets a little more expensive than anticipated.
If you can take care of this bill within the next thirty (30) days, I will agree to do the work we have done so far for a flat fee of $30,000. With your $5,000, the balance due would be $25,000.

On November 24, 1997, an associate of the law firm sent a letter to Haden, along with a copy of the opponent’s appellee’s brief. The letter stated, as follows:

Please find enclosed for your review a copy of the Brief of Appellee. A reply brief must be filed no later than Tuesday, December 2, 1997. If you are interested in having our firm submit a reply brief, you must contact me as soon as possible; otherwise, I will presume you do not wish to submit a reply brief.

I look forward to hearing from you. The law firm filed the reply brief on December 4,1997.

On December 17,1997, the law firm sent an invoice reflecting an outstanding debt of $32,259.71 for the initial brief.

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Haden v. David J. Sacks, P.C.
222 S.W.3d 580 (Court of Appeals of Texas, 2007)

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Bluebook (online)
222 S.W.3d 580, 2007 Tex. App. LEXIS 1758, 2007 WL 686998, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haden-v-david-j-sacks-pc-texapp-2007.