J. Bennett White, P.C., Appellant/Cross-Appellee v. Wendell Reeder, Appellee/Cross-Appellant

CourtCourt of Appeals of Texas
DecidedFebruary 14, 2018
Docket12-17-00026-CV
StatusPublished

This text of J. Bennett White, P.C., Appellant/Cross-Appellee v. Wendell Reeder, Appellee/Cross-Appellant (J. Bennett White, P.C., Appellant/Cross-Appellee v. Wendell Reeder, Appellee/Cross-Appellant) 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
J. Bennett White, P.C., Appellant/Cross-Appellee v. Wendell Reeder, Appellee/Cross-Appellant, (Tex. Ct. App. 2018).

Opinion

NO. 12-17-00026-CV

IN THE COURT OF APPEALS

TWELFTH COURT OF APPEALS DISTRICT

TYLER, TEXAS

J. BENNETT WHITE, P.C., § APPEAL FROM THE 402ND APPELLANT/CROSS-APPELLEE

V. § JUDICIAL DISTRICT COURT

WENDELL REEDER, APPELLEE/CROSS-APPELLANT § WOOD COUNTY, TEXAS

MEMORANDUM OPINION This is the appeal of a contract dispute between a law firm, J. Bennett White, P.C., and its client, Wendell Reeder. The judgment awards contract damages to White P.C. but the firm complains of the trial court’s refusal to award it attorney’s fees in conformance with jury findings. Reeder attacks the sufficiency of the evidence to support the damage award and contends the trial court committed charge error by failing to submit a question regarding unconscionability of the contract terms. We modify the judgment to reinstate the jury’s award of attorney’s fees and affirm as modified.

BACKGROUND Reeder owns a cattle ranch and several businesses, including Clarksville Oil and Gas. Attorney J. Bennett White did collections work for Clarksville Oil and Gas beginning in the late 1990’s or early 2000’s, while he worked for another law firm. Later, after White formed White P.C., Clarksville Oil and Gas became White P.C.’s client. In 2008, White P.C. also began representing Reeder personally on a few matters. All fee agreements between White P.C. and Reeder, including those for Clarksville Oil and Gas, were oral, based on an hourly fee, and required Reeder to pay as billed, usually monthly. Although Reeder continued to pay for the Clarksville Oil and Gas legal work, he fell behind on payments for the personal work and eventually stopped paying. White P.C. sued Reeder, alleging breach of seven distinct contracts, asserting as damages the balances it deemed Reeder still owed on seven different matters. Those matters are as follows: (1) the 2008 appeal of a Wood County judgment to the Twelfth Court of Appeals, referred to as the Fry appeal,1 (2) the 2010 appeal of that Wood County judgment to the Texas Supreme Court, referred to as the Fry supreme court appeal, 2 (3) a suit filed in 2011 to prevent the Fry parties from collecting on the Wood County judgment, (4) legal services in connection with Reeder’s involvement as an oil and gas operator of the Forest Hill/Harris Sand Unit, (5) the 2011 declaratory judgment action brought against Reeder by his insurance carrier, Jamestown Insurance Company, (6) the 2012 appeal of the Jamestown Insurance declaratory judgment proceeding,3 and (7) “legal representation in matters of a general nature” from 2008 through April 2015. White P.C. also requested attorney’s fees for amounts expended in this breach of contract suit. The jury determined that Reeder failed to perform his obligations under the terms of each of the seven agreements for legal services. However, the jury awarded damages to White P.C. for only three of the accounts. For the account involving the 2011 suit to prevent collection of the Wood County judgment, it awarded $14,500, for the Fry appeal it awarded $91,210, and for the Jamestown Insurance trial it awarded $24,011. The jury also awarded White P.C. $30,000 in attorney’s fees for trial of this lawsuit. Reeder filed a motion to disregard jury findings, complaining of the jury’s damage awards. The trial court rendered judgment incorporating the jury’s three damage awards, ordering that White P.C. recover from Reeder damages in the amount of $129,721. The court did not include the $30,000 award for attorney’s fees in the final judgment. This appeal ensued, with both sides complaining of the proceedings and judgment of the court below.

1 Reeder v. Wood Cty. Energy L.L.C., 320 S.W.3d 433 (Tex. App.−Tyler 2010) (op. on reh’g), rev’d, 395 S.W.3d 789 (Tex. 2012). 2 Reeder v. Wood Cty. Energy, L.L.C., 395 S.W.3d 789 (Tex. 2012) 3 Jamestown Ins. Co. v. Wendell Reeder, d/b/a Clarksville Oil & Gas Co., Ltd., 508 Fed. Appx. 306 (5th Cir. 2013).

2 JURY CHARGE In his second issue, Reeder contends the trial court erred in failing to include a jury question in the charge asking if the contract terms were unconscionable and instructing the jury on the definition of the term “unconscionable.” He complains that White P.C. charged excessive fees and unilaterally tacked on punitive, high interest charges after the parties entered into the contract. Applicable Law We review the trial court’s decisions on the jury charge for an abuse of discretion. Sw. Energy Prod. Co. v. Berry-Helfand, 491 S.W.3d 699, 727 (Tex. 2016). A party is entitled to submission of a jury question, instruction, or definition if the pleadings and evidence raise a fact issue. TEX. R. CIV. P. 278; Union Pac. R.R. Co. v. Williams, 85 S.W.3d 162, 166 (Tex. 2002). A lawyer shall not enter into an arrangement for, charge, or collect an illegal fee or an unconscionable fee. TEX. DISCIPLINARY RULES PROF’L CONDUCT R. 1.04(a), reprinted in TEX. GOV’T CODE ANN., tit. 2, subtit. G, app. A (West 2013) (TEX. STATE BAR R. art. X, § 9). A fee is unconscionable if a competent lawyer could not form a reasonable belief that the fee is reasonable. Id. Whether a particular fee amount charged by the attorney is unconscionable under all relevant circumstances of the representation is an issue for the fact finder. Hoover Slovacek LLP v. Walton, 206 S.W.3d 557, 561 (Tex. 2006); Celmer v. McGarry, 412 S.W.3d 691, 706 (Tex. App.−Dallas 2013, pet. denied). Unconscionability has no single definition and must be determined on a case by case basis in light of a variety of factors. Lee v. Daniels & Daniels, 264 S.W.3d 273, 280 (Tex. App.−San Antonio 2008, pet. denied) (op. on reh’g). To be held unconscionable, a term of the contract must be so extreme as to shock the conscience. Besteman v. Pitcock, 272 S.W.3d 777, 789 (Tex. App.−Texarkana 2008, no pet.); Ski River Devel., Inc. v. McCalla, 167 S.W.3d 121, 136 (Tex. App.−Waco 2005, pet. denied). Analysis The terms of the original oral agreement are simple. Reeder agreed to pay an hourly fee in exchange for legal work done by White P.C., and he would pay his bill when he received it. The record shows that Reeder is an experienced businessman who not only was familiar with the attorney-client relationship, but had worked with White P.C. for a number of years. Nothing about the original terms of the contract are shocking. See Besteman, 272 S.W.3d at 789.

3 The oral agreement was later changed by written notice of White P.C.’s imposition of interest on unpaid balances. The record includes a copy of the letter sent to Reeder explaining that White P.C. would begin charging interest in the near future. Additionally, beginning with the May 20, 2012 bill, each bill included the statement: “All past due balances shall be charged interest at the rate of 12% per annum, compounded monthly.” The June 2012 bill, and every bill thereafter, included interest in the itemized charges. Reeder made sporadic payments after receiving notice of the new term, including a large payment in February 2015 in response to bills that clearly stated that interest was being charged. White P.C. continued to do legal work on Reeder’s behalf until November 2014. By his actions, Reeder accepted the change. See Price Pfister, Inc. v. Moore & Kimmey, Inc., 48 S.W.3d 341, 349-50 (Tex. App.−Houston [14th Dist.] 2001, pet.

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J. Bennett White, P.C., Appellant/Cross-Appellee v. Wendell Reeder, Appellee/Cross-Appellant, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-bennett-white-pc-appellantcross-appellee-v-wendell-reeder-texapp-2018.