Restoration 1 Franchise Holding, LLC v. Coast 2 Coast Restoration LLC, ET AL.

CourtDistrict Court, N.D. Texas
DecidedFebruary 13, 2026
Docket3:23-cv-00549
StatusUnknown

This text of Restoration 1 Franchise Holding, LLC v. Coast 2 Coast Restoration LLC, ET AL. (Restoration 1 Franchise Holding, LLC v. Coast 2 Coast Restoration LLC, ET AL.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Restoration 1 Franchise Holding, LLC v. Coast 2 Coast Restoration LLC, ET AL., (N.D. Tex. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

RESTORATION 1 FRANCHISE § HOLDING, LLC, § § Plaintiff, § § V. § No. 3:23-cv-549-D § COAST 2 COAST RESTORATION § LLC, ET AL., § § Defendants. §

FINDINGS, CONCLUSIONS, AND RECOMMENDATION OF THE UNITED STATES MAGISTRATE JUDGE Following a bench trial, the Court entered findings of fact and conclusions of law [Dkt. No. 116] and a corresponding final judgment that ordered, adjudged, and decreed that Defendant Coast 2 Coast Restoration LLC, Robert A. Lee, Jr., and Anthony Aceto, jointly and severally, shall pay to Plaintiff Restoration 1 Franchise Holding, LLC $274,751.67 in damages, plus prejudgment interest at Texas’s statutory rate of 7.5% per annum on $274,751.67, from March 13, 2023, to the date of Judgment, plus reasonable attorney’s fees and costs to be determined, plus postjudgment interest at the legal rate on all sums awarded pursuant to 28 U.S.C. § 1961(a), compounded annually, from the date of this Judgment until paid in full, and for all of which execution may issue [and] that Coast 2 Coast Restoration LLC, Robert A. Lee, Jr., and Anthony Aceto shall take nothing on their claims. Dkt. No. 117. Restoration 1 then moved for attorneys’ fees and costs. See Dkt. No. 119. And the Court referred the motion to the undersigned United States magistrate judge for recommendation or determination. See Dkt. No. 120; 28 U.S.C. § 636(b); FED. R. CIV. P 72(b); FED. R. CIV. P. 54(d)(2)(D) (“[T]he court may refer … a motion for attorney’s fees to a magistrate judge under Rule 72(b) as if it were a dispositive pretrial matter.”).

Defendants responded. See Dkt. No. 122. But Restoration 1 did not file a reply brief. And, after Senior United States District Judge Barbara M. G. Lynn retired, this case was reassigned to Senior United States District Judge Sidney A. Fitzwater, but the post-judgment motion remains referred to the undersigned. For the following reasons, the undersigned recommends that the Court grant in part and deny in part the motion for fees and costs.

Legal Standards Restoration 1 moves for fees “both under a Texas statute and, if applicable, the terms of the contract.” Dkt. No. 119, ¶ 18. And, while Defendants do not agree that the amount of fees requested is reasonable nor agree that all fees requested are recoverable, they do not contest the legal basis for Restoration 1’s request. See generally Dkt. No. 122 (concluding that the Court should “limit the award to

$300,000.00, including expenses”). Texas law applies to a request for fees as a prevailing party on a claim made under Texas law. See Ingalls Shipbuilding v. Fed. Ins. Co., 410 F.3d 214, 230 (5th Cir. 2005) (“The award of attorneys’ fees is governed by the law of the state whose substantive law is applied to the underlying claims.” (footnote omitted)); accord Mathis v. Exxon Corp., 302 F.3d 448, 461 (5th Cir. 2002) (“State law controls both the award of and the reasonableness of fees awarded where state law supplies the rule of decision.”). “Texas law permits an award for attorney’s fees only if authorized by statute

or contract.” Bennigan’s Franchising Co., LLC v. Team Irish, No. 3:11-cv-364-D, 2011 WL 3903068, at *2 (N.D. Tex. Sept. 6, 2011) (citing Int’l Grp. P’ship v. KB Home Lone Star L.P., 295 S.W.3d 650, 653 (Tex. 2009); Tony Gullo Motors I, L.P. v. Chapa, 212 S.W.3d 299, 310-11 (Tex. 2006)). And, “[w]hen a prevailing party in a breach of contract suit seeks attorney’s fees, an award of reasonable fees is mandatory under § 38.001 [of the Texas Civil Practice and Remedies Code] if there is proof that the fees are reasonable.” Id. at *3

(citations omitted). “In addition to the statutory right to recover attorney’s fees under the provisions of § 38.001, ‘[p]arties are free to contract for a fee-recovery standard either looser or stricter than Chapter 38.’” Id. (quoting KB Home, 295 S.W.3d at 653; citation omitted). In that case, “the terms of the contract, not statute, control the outcome of the case.” Id. (cleaned up).

And, under Texas law, a prevailing party authorized “to obtain attorney’s fees from the opposing party” still “must prove that the requested fees are both reasonable and necessary.” Aircraft Holding Sols., LLC v. Learjet, Inc., No. 3:18-cv-823-D, 2023 WL 5311486, at *3 (N.D. Tex. Aug. 17, 2023) (quoting Rohrmoos Venture v. UTSW DVA Healthcare, LLP, 578 S.W.3d 469, 489 (Tex. 2019) (citing In re Nat’l Lloyds Ins. Co., 532 S.W.3d 794, 809 (Tex. 2017))). The preferred method of federal courts calculating reasonable attorneys’ fees under Texas law is the lodestar method. See Fairmont Specialty Ins. Co. v. Apodaca, 234 F. Supp. 3d 843, 852 (S.D. Tex. 2017) (citing Rappaport v. State Farm Lloyds, 275 F.3d 1079 (5th Cir. 2001) (per curiam)). The lodestar method is a two-step process. Combs v. City of Huntington, 829 F.3d 388, 391 (5th Cir. 2016). First, courts calculate the lodestar by multiplying the “number of hours reasonably expended ... by the prevailing hourly rate in the community for similar work.” Id. at 392 (internal quotation marks omitted). Wease v. Ocwen Loan Servicing, No. 3:13-cv-4107-B, 2021 WL 4991079, at *2 (N.D. Tex. Oct. 27, 2021). There is a strong presumption of the reasonableness of the lodestar amount. See Perdue v. Kenny A., 559 U.S. 542, 552 (2010); Saizan v. Delta Concrete Prods., Inc., 448 F.3d 795, 800 (5th Cir. 2006). And, so, “[i]f a party does not object to particular billing entries as inadequately documented, the court is not obligated sua sponte to sift through fee records searching for vague entries or block billing,” so “[i]t is a common practice for courts to address only those potentially inadequate entries brought to the court’s attention.” Hoffman v. L & M Arts, No. 3:10-cv-953-D, 2015 WL 3999171, at *5 (N.D. Tex. July 1, 2015). And the Court should not “eliminate wholesale the services of attorneys without identifying the particular services which are regarded as duplicative.” Tasby v. Estes, 651 F.2d 287, 289-90 (5th Cir. Unit A July 1981) (cleaned up). Instead, “[p]ercentage reductions are appropriate when attorneys impermissibly engage in block billing or fail to exercise billing judgment” – including by failing to write off time spent on work that was redundant and in hindsight may have been unnecessary – or “when a court reduces excessive time spent on particular legal services” or for particular services that are “duplicative.” Fralick v. Plumbers & Pipefitters Nat’l Pension Fund, No. 3:09-cv-752-D, 2011 WL 487754, at *13 (N.D. Tex. Feb. 11, 2011); Shepherd v. Dallas Cnty., Tex., No. 3:05-cv-1442-D, 2009 WL 977294, at *2 n.3 (N.D. Tex. Apr. 10, 2009); accord Saizan, 448 F.3d at 799 (“The proper

remedy for omitting evidence of billing judgment does not include a denial of fees but, rather, a reduction of the award by a percentage intended to substitute for the exercise of billing judgment.” (cleaned up)); Cookston v. Freeman, Inc., No. 3:98-cv- 2106-D, 1999 WL 714760, at *5 (N.D. Tex. Sept. 14, 1999).

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Restoration 1 Franchise Holding, LLC v. Coast 2 Coast Restoration LLC, ET AL., Counsel Stack Legal Research, https://law.counselstack.com/opinion/restoration-1-franchise-holding-llc-v-coast-2-coast-restoration-llc-et-txnd-2026.