National City Mortgage Co. v. Adams

310 S.W.3d 139, 2010 Tex. App. LEXIS 2141, 2010 WL 1137045
CourtCourt of Appeals of Texas
DecidedMarch 25, 2010
Docket2-08-352-CV
StatusPublished
Cited by20 cases

This text of 310 S.W.3d 139 (National City Mortgage Co. v. Adams) 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
National City Mortgage Co. v. Adams, 310 S.W.3d 139, 2010 Tex. App. LEXIS 2141, 2010 WL 1137045 (Tex. Ct. App. 2010).

Opinion

OPINION ON REHEARING

BOB McCOY, Justice.

I. Introduction

In one issue, Appellant National City Mortgage Company (“NCM”) asserts that the trial court erred by failing to enter a judgment awarding NCM its attorneys’ fees. While we deny NCM’s motion for rehearing, we withdraw our earlier opinion and judgment of February 25, 2010, and substitute the following. We affirm.

II. Factual and Procedural History

In March 2003, Appellee Carolyn A. Adams contracted with Steve Paulsen Properties, Ltd. for the construction of a new home. In April 2003, she obtained financing for the construction through NCM, executing a Construction/Permanent Loan Agreement (the “Loan Agreement”), a Promissory Note (the “Note”) in the amount of $202,800, and a Disbursement Authorization form, which allowed NCM to disburse funds to Paulsen upon NCM’s receipt of either a written or verbal draw request from Paulsen or Carolyn.

On September 12, 2003, Carolyn’s son, Murray Adams, met with Paulsen to discuss the completion date of Carolyn’s house. During the conversation, Paulsen advised Murray that there had been some delays but that he intended to personally *141 supervise the job from that point on. Two days later, during a telephone conversation with Paulsen, Murray claimed that Paulsen quit the job and told Murray to contact a lawyer. Paulsen, on the other hand, claimed that he only told Murray that he was not going to complete the job because Murray had threatened to kill him.

On September 15, 2003, Murray called NCM’s home office in Ohio and spoke with Charles Dixon about Paulsen quitting the job. Dixon allegedly confirmed that there were no draws pending at that time and that NCM would no longer honor Paul-sen’s draw requests. Dixon also instructed Murray to have Carolyn contact NCM’s Southlake office and inform someone there that Paulsen had quit the job. The next morning, Carolyn called the Southlake office and spoke with Bonnie Doran, the district manager. Carolyn informed Do-ran that Paulsen had quit the job and that NCM should no longer honor Paulsen’s draw requests.

On September 17, 2003, Paulsen submitted a request for disbursement to NCM in the amount of $33,320. On September 18, 2003, Larry Bracken, Carolyn’s attorney, faxed a letter to Paulsen and to NCM’s Southlake office instructing NCM that no more payments were to be made to Paul-sen and requesting that Paulsen or another builder complete the construction by October 14, 2003, or that other accommodations be made. On that same day, NCM paid Paulsen the $33,320 he had requested the day before.

Subsequently, Carolyn sued NCM for declaratory relief, breach of contract, deceptive trade practices, conspiracy, common law unreasonable collection efforts, and violation of the Texas Debt Collection Practices Act (“TDCPA”). NCM filed a counter-claim for contractual indemnity. At trial, the only claims against NCM submitted to the jury were breach of contract and purported violations of the TDCPA.

After a trial on the merits, the jury found that: (1) NCM did not breach the Loan Agreement with Carolyn, (2) NCM did not violate the TDCPA, and (3) Carolyn was not entitled to attorney’s fees against NCM. The jury also found that a reasonable and necessary fee for the services of NCM’s attorneys was $174,500.

On March 7, 2008, NCM and Paulsen filed a joint motion for entry of judgment consistent with the jury’s verdict. Thereafter, Carolyn filed a motion for judgment notwithstanding the verdict (“JNOV”) and a response and objection to NCM and Paulsen’s motion for entry of judgment. In her motion, Carolyn asserted ten grounds on which the trial court should disregard the jury’s verdict and enter a take nothing judgment. Of those ten grounds, only four were applicable to NCM: 1) the jury’s answer to jury question number one 1 should be disregarded because the answer “yes” was marked out and “no” was written beside it with scribbled initials; 2) the jury’s answer to jury question number twenty 2 should be disregarded because jury question number one was conflicting, incomplete, and unresponsive; 3) the jury’s answer to jury question number twenty should be disregarded because there was legally and factually insufficient evidence to warrant the submission of question number twenty; and 4) the jury’s answers to jury questions one through twenty should be disregarded because the trial court erroneously instruet- *142 ed the jury concerning the dollar amount of Carolyn’s contractual damage claim; thereby, commenting on the weight of the evidence.

On June 5, 2008, the trial court entered a judgment that all parties take nothing by way of their claims, with court costs to be taxed against Carolyn. One week later, the trial court entered an order denying NCM and Paulsen’s joint motion for entry of judgment. Subsequently, NCM filed a motion to alter, modify, or amend judgment, arguing that, as a matter of law, NCM was entitled to recover all of its attorneys’ fees. NCM’s motion was overruled by operation of law. See Tex.R. Civ. P. 329b(c). This appeal followed.

III., Discussion

In its sole issue, NCM argues that the trial court abused its discretion because the award of attorneys’ fees to NCM was mandatory under the Loan Agreement and Texas law. In response, Carolyn asserts that this court must affirm the trial court’s denial of attorneys’ fees because NCM appeals from a JNOV and NCM failed to challenge all the grounds upon which the trial court could have entered a JNOY. This case, however, is procedurally awkward in that it does not fit within the traditional standard of review for JNOV. 3

Here, NCM does not challenge the trial court’s setting aside of the jury verdict and entering a judgment in conflict with that verdict — a challenge requiring this court to look at the jury’s findings. Instead, NCM complains about the trial court’s failure to determine, as a matter of law, that NCM was entitled to attorneys’ fees — a legal issue, requiring no inquiry into the jury’s findings. See Holland v. Wal-Mart Stores, 1 S.W.3d 91, 94 (Tex.1999) (holding that the determination of whether attorneys’ fees are available in a particular case is a question of law, which is reviewed by this court under the de novo standard). Thus, the JNOV standard is inapplicable.

A trial court’s determination of whether to award attorneys’ fees is reviewed for abuse of discretion. See Armstrong v. Steppes Apartments, Ltd., 57 S.W.3d 37, 50 (Tex.App.-Fort Worth 2001, pet. denied), cert. denied, 536 U.S. 951, 122 S.Ct. 2645, 153 L.Ed.2d 823 (2002). To determine whether a trial court abused its discretion, we must decide whether the trial court acted without reference to any guiding rules or principles; in other words, we must decide whether the act was arbitrary or unreasonable. Low v. Henry, 221 S.W.3d 609, 614 (Tex.2007);

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Bluebook (online)
310 S.W.3d 139, 2010 Tex. App. LEXIS 2141, 2010 WL 1137045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-city-mortgage-co-v-adams-texapp-2010.