James E. Cox James E. Cox D/B/A European Import Car Repair And European Import Car Repair, Inc. v. Doug Wilkins, CPA

CourtCourt of Appeals of Texas
DecidedMarch 31, 2006
Docket03-05-00110-CV
StatusPublished

This text of James E. Cox James E. Cox D/B/A European Import Car Repair And European Import Car Repair, Inc. v. Doug Wilkins, CPA (James E. Cox James E. Cox D/B/A European Import Car Repair And European Import Car Repair, Inc. v. Doug Wilkins, CPA) 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
James E. Cox James E. Cox D/B/A European Import Car Repair And European Import Car Repair, Inc. v. Doug Wilkins, CPA, (Tex. Ct. App. 2006).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN



NO. 03-05-00110-CV

James E. Cox; James E. Cox d/b/a European Import Car Repair; and

European Import Car Repair, Inc., Appellants



v.



Doug Wilkins, CPA, Appellee



FROM THE COUNTY COURT AT LAW NO. 2 OF TRAVIS COUNTY

NO. 278796, HONORABLE ORLINDA L. NARANJO, JUDGE PRESIDING

M E M O R A N D U M O P I N I O N


Appellants James E. Cox and European Import Car Repair, Inc. (collectively "Cox"), challenge only the trial court's award of attorney's fees to appellee Doug Wilkins. Cox hired Wilkins to prepare income tax returns for himself and his corporate business, but did not pay Wilkins for his services. After unsuccessful attempts at collecting the debt and settling the dispute, Wilkins brought suit alleging breach of contract, quantum meruit and promissory estoppel. The trial court awarded Wilkins actual damages and attorney's fees. Cox does not appeal the damages awarded, but in his first three issues on appeal he contends that the trial court erred by (1) allowing Wilkins to reopen his case to present evidence of attorney's fees, (2) admitting a detailed invoice describing Wilkins's time and charges in the matter, and (3) awarding attorney's fees without taking judicial notice of the usual and customary attorney's fees for this type of case. In issues four through eight, Cox challenges the sufficiency of the evidence supporting the trial court's award of attorney's fees. In issues nine and ten, Cox insists that the trial court's final judgment assesses liability against a non-existent party. In his final issue, Cox claims that the trial court erroneously awarded post-judgment interest prior to the date on which the final judgment was rendered. We will modify the judgment and affirm it as modified.



BACKGROUND

James Cox is the president of European Import Car Repair, Inc. In 2002, Cox hired Doug Wilkins, CPA, to prepare and file his individual income tax return and the corporate income tax return for his business for 2001. Wilkins charged Cox approximately $3,300 to complete both returns. Cox testified that he was surprised by the amount of the bill because in the past he had paid substantially less. Wilkins explained to Cox that the corporation's books were not in order and consequently it took extra time to prepare the forms. Cox acknowledged that the bookkeeping discrepancies could have been due to a recent fire at his business, or to the fact that a former employee had been embezzling funds from the corporation. Cox also asserted that Wilkins took time to teach the corporation's bookkeeper how to properly categorize expenses so that the following year's taxes could be prepared more efficiently. Despite his reservations, Cox paid Wilkins the amount billed for his services.

The following year, Cox again hired Wilkins to prepare and file his individual and corporate income tax returns for 2002. Wilkins testified that he sent Cox a bill for his services around the end of May 2003; Wilkins charged $3,200, $450 for preparation of the individual return and $2,750 for the corporate return. When Cox did not respond, Wilkins sent a second invoice in August 2003. On both bills, Wilkins noted that the "invoices are seriously past due." Again, Cox failed to respond.

In December 2003, Wilkins sent Cox two final demand notices, one for the individual return and the other for the corporate return. Cox testified that in January 2004 the parties agreed to settle the dispute for $1,950--$450 for the individual income taxes and $1,500 for the corporate income taxes. Cox then sent Wilkins two checks, a personal check for $450 and a corporate check for $1,500. Wilkins admits that Cox did tender these two checks to Wilkins's attorney, J.P. Cody, who drafted a settlement agreement and sent it to Cox on February 6, 2004. Cox insisted at trial that he signed the agreement and faxed it back to Wilkins's attorney that day. Wilkins maintained that neither he nor Cody ever received the signed agreement. Diana Anderson, Cody's paralegal, testified that in early February 2004, Cox telephoned to complain that the settlement agreement was not in proper form and had to be renegotiated. On February 11, Anderson e-mailed Cody that Cox had called to say that the agreement incorrectly named the parties, the time period for settlement had passed, and the settlement agreement had to be renegotiated. Anderson's e-mail was admitted into evidence at trial. In response, Wilkins filed suit.

Initially, Cox did not obtain counsel. Between January 2004 and August 2004, Cox made several phone calls to Cody's office and sent a series of letters in which he accused Wilkins of overcharging him for the tax preparation services. He also threatened to file a complaint with the Attorney General's office and a counter-suit alleging violations of the deceptive trade practices act. Wilkins sought a temporary restraining order to enjoin Cox from publicly disparaging his reputation.

On August 4, 2004, Cox was notified that the case had been set for trial on August 12. Cox filed a motion for continuance alleging inadequate notice. On August 12, the trial court held a hearing only on Wilkins's application for a temporary restraining order. At that hearing, Cox claimed that he could not proceed because his counsel, John Mead, was unavailable. However, the trial judge telephoned Mead and discovered that he had not been hired to represent Cox. At the trial judge's urging, Mead agreed to represent Cox from that date forward.

A bench trial was held in October 2004. After closing arguments, the trial judge asked the parties if they had agreed to submit evidence of attorney's fees by affidavit, as had been suggested earlier in the trial. Cox's attorney denied any such agreement. Wilkins asked to reopen on the issue of attorney's fees. Despite objection, the trial court allowed Wilkins to reopen for the "limited purposes of offering the attorney's fees." Cody testified that he had spent a total of 54 hours on the case incurring fees of $11,235. He then produced a detailed invoice which described each task performed, the amount of time spent, who performed the task (Cody or one of his paralegals), and the rate charged. Cox objected that Cody had not established that the document fell under the business record exception to the hearsay rule. The trial judge overruled the objection and admitted the invoice. Cody then testified:



This has been a more difficult case than normally, I would expected. I've done a lot of work with collection cases. I've never had to go through I can't even say how may letters--I can, if you want me to count them--that I've had to write back and forth corresponding with the defense prior to obtaining an attorney. Once you did appoint an attorney, things did run smoothly, and we have, I think, cooperated with each other to that extent. I think, normally, I would not be asking for as high an attorney award, except for the conduct here of the Defendant.



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James E. Cox James E. Cox D/B/A European Import Car Repair And European Import Car Repair, Inc. v. Doug Wilkins, CPA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-e-cox-james-e-cox-dba-european-import-car-re-texapp-2006.