STATE AND CTY. MUT. FIRE INS. CO. v. Walker

228 S.W.3d 404
CourtCourt of Appeals of Texas
DecidedMay 31, 2007
Docket2-06-270-CV
StatusPublished
Cited by1 cases

This text of 228 S.W.3d 404 (STATE AND CTY. MUT. FIRE INS. CO. v. Walker) 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
STATE AND CTY. MUT. FIRE INS. CO. v. Walker, 228 S.W.3d 404 (Tex. Ct. App. 2007).

Opinion

228 S.W.3d 404 (2007)

STATE AND COUNTY MUTUAL FIRE INSURANCE COMPANY through SOUTHERN UNITED GENERAL AGENCY OF TEXAS, Appellant,
v.
Mary Virginia WALKER, Independent Executrix of the Estates of William Louie Oltorf, Deceased and Virginia Oltorf, Deceased, Appellee.

No. 2-06-270-CV.

Court of Appeals of Texas, Fort Worth.

May 31, 2007.

*406 Chamblee & Ryan, P.C., David M. Walsh IV, M. Todd Allen and Jennifer M. Hamlett, Dallas, for Appellant.

Hill Gilstrap, P.C., Arlington, for Appellee.

Panel B: DAUPHINOT, HOLMAN, and McCOY, JJ.

OPINION

LEE ANN DAUPHINOT, Justice.

Appellant State and County Mutual Fire Insurance Company ("State and County") appeals from an award of attorney's fees and mediation costs awarded to Appellee Mary Virginia Walker. In two issues, State and County argues that the evidence is legally and factually insufficient to prove (1) that the awarded attorney's fees were reasonable and necessary and (2) that the award was equitable and just. Because we hold that the evidence is legally and factually sufficient to support the award and that the award is not inequitable or unjust, we affirm.

FACTS AND PROCEDURAL HISTORY

Walker, Independent Executrix of her parents' estates, brought a wrongful death action against Keith Williams for the death of her parents. Initially, State and County defended Williams, their insured, under the terms of the policy, subject to a reservation of rights. While that suit was pending, State and County brought a declaratory judgment action against Williams, seeking a declaration that the insurance policy issued to Williams was null and void and that it had no duty to defend or to indemnify Williams. State and County also joined Walker as a defendant in the suit, naming her as a person potentially having an interest or claiming an interest in the insurance policy. State and County then filed a motion for summary *407 judgment, and Walker filed objections and a response.

Walker subsequently added Williams's wife Tracy as a defendant in the underlying tort action. State and County amended its pleadings in the declaratory judgment action and supplemented its summary judgment motion to seek a declaration that the insurance policy was also null and void against Tracy. Keith Williams's attorney subsequently withdrew as Williams's attorney of record. Walker then filed a response to the supplemental summary judgment motion. Although the Williamses filed an answer to the original declaratory judgment action, they did not file a response to the summary judgment motion.

The trial court ordered the parties to attend mediation. The mediation was unsuccessful, and the trial court later signed an order denying the motion for summary judgment. State and County subsequently nonsuited Walker, and the trial court withdrew its previous order and granted summary judgment to State and County against the Williamses.

Walker then filed an application for an award of attorney's fees, as well as mediation costs of $900, plus appellate attorney's fees. The trial court held a hearing on the application, at which Walker's attorney testified, and the court awarded the requested attorney's fees for services performed in the trial court. The court also awarded the requested contingent appellate fees, but it awarded only half of the requested mediation costs — because the mediation had also included the tort action — and half of the requested mediation fees.

STANDARD OF REVIEW

In a declaratory judgment action, the trial "court may award costs and reasonable and necessary attorney's fees as are equitable and just."[1] Whether the fees are reasonable and necessary are questions of fact; whether awarding the fees and costs is equitable and just is a question of law.[2] We review the trial court's decision of whether costs and attorney's fees are equitable for an abuse of discretion.[3] 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.[4] A court of appeals will determine that the trial court abused its discretion in granting attorney's fees in a declaratory judgment action if "the award was inequitable or unjust as a matter of law."[5] We review reasonableness and necessity of attorney's fees for sufficiency of the evidence.[6]

Analysis

In its first issue, State and County argues that the evidence of attorney's fees is legally insufficient to support the award because the testimony regarding the reasonableness *408 and necessity of attorney's fees, including the appellate attorney's fees, was conclusory and cannot be considered as competent evidence. It also argues that there was no evidence that the award of fees was equitable and just. In its second issue, State and County argues that the evidence is factually insufficient to support the award. It contends that the fees were not reasonable and necessary because Walker improperly responded to State and County's motions for summary judgment and because the mediation costs and subsequent fees would not have been incurred if State and County's motion for summary judgment had been granted. State and County also argues that as there is no evidence of reasonable and necessary attorney's fees, the trial court's award was not equitable and just.

Reasonable and Necessary

We first turn to the reasonableness and necessity of the awarded attorney's fees. Texas courts consider eight factors when determining the reasonableness of attorney's fees, including awards made under the Uniform Declaratory Judgment Act:

(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill required to perform the legal service properly;
(2) the likelihood . . . that the acceptance of the particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and
(8) whether the fee is fixed or contingent on results obtained or uncertainty of collection before the legal services have been rendered.[7]

A court is not required to receive evidence on each of these factors.[8]

In the hearing on Walker's application for an award of attorney's fees, Walker's attorney testified that he has been a licensed attorney for thirty years, that during that time he has practiced law continuously in Tarrant County, and that he is familiar with the reasonable charges for attorney's fees in that county. He further testified that he had reviewed his time records and that since May of 2005 when he began representing Walker, he had expended 51.2 hours in his representation of Walker in the declaratory judgment action, plus another two hours for his time on the day of the hearing. A partner at his firm spent 5.3 hours representing Walker in mediation, and another lawyer working with them on the case spent four-tenths of an hour.

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228 S.W.3d 404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-and-cty-mut-fire-ins-co-v-walker-texapp-2007.