Stewart, Cox & Hatcher, P.C. v. Ford Motor Co.

350 S.W.3d 369, 2011 Tex. App. LEXIS 7001, 2011 WL 3925490
CourtCourt of Appeals of Texas
DecidedAugust 25, 2011
Docket09-10-00371-CV
StatusPublished
Cited by3 cases

This text of 350 S.W.3d 369 (Stewart, Cox & Hatcher, P.C. v. Ford Motor Co.) 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
Stewart, Cox & Hatcher, P.C. v. Ford Motor Co., 350 S.W.3d 369, 2011 Tex. App. LEXIS 7001, 2011 WL 3925490 (Tex. Ct. App. 2011).

Opinions

OPINION

HOLLIS HORTON, Justice.

I.F., a minor, was ejected from a minivan during a one-car rollover accident and was injured. I.F.’s father, Oscar Flores, was killed in the rollover, and I.F.’s sister and brother, along with the other occupants of the minivan, were injured. In June 2001, Librado Flores, individually and as the representative of the estate of Oscar Flores, as well as other individuals injured in the accident, filed a suit in Orange County, Texas, seeking to recover damages against Bridgestone/Firestone North American Tire, LLC (Firestone), [372]*372Ford Motor Company, and Arrow Ford, Inc.

In 2003, Firestone settled with the group of plaintiffs. A district judge in Orange County (the regular judge) signed an order approving the settlement, which included I.F.’s claims against Firestone. During the hearing on Firestone’s settlement, the regular judge learned that the proposed settlement awarded I.F.’s attorneys a fee of forty percent of the gross proceeds from the settlement.1 I.F.’s mother, who instituted the suit on I.F.’s behalf as her next friend, and the attorneys for the plaintiffs, advised the regular judge that the terms of Firestone’s settlement proposal were fair. After finding that no conflict existed between I.F.’s next friend and I.F., the regular judge approved Firestone’s proposed settlement, and in its order approving the settlement, found the agreement to be “in the best interests of the minor plaintiffs[.]”2

In 2010, Ford reached an agreement to settle with the group of plaintiffs that had previously settled with Firestone. The parties presented Ford’s settlement for approval to a Montgomery County district judge, the pretrial judge who had been assigned in September 2001 to coordinate the pretrial proceedings in connection with the rollover.3 At the conclusion of the Ford settlement hearing, the pretrial judge advised the parties that he would approve the Firestone settlement, “save and except for the changes that I’m going to be ordering with respect to this case.”4 The pretrial judge, after considering the attorneys’ fees and expenses that had been incurred in connection with both the Ford and Firestone settlements, approved a fee that altered the fee previously approved by the regular judge in Orange County, reducing the fees and expenses that had been approved and paid following the Firestone settlement in 2003. The pretrial judge signed an order approving the Ford settlement which recites that the regular judge, in approving the Firestone settlement, awarded attorneys fees and expenses that the pretrial judge “deems to be an amount of attorneys fees and expenses that should be adjusted in the best interest of the minor.” The pretrial judge then found it “appropriate to adjust the amounts payable under the Ford settlement to effect an adjustment of $227,403.25 of attorneys fees and expenses[,]” even though those fees and expenses had been approved as being rea[373]*373sonable in 2003 by the regular judge. Subsequently, the pretrial judge ordered Ford to interplead $227,403.25 into the registry of the court, pending the resolution of all “further proceedings!.]” Ford and the attorneys representing I.F.’s interests in the settlement hearings then perfected their respective appeals.

One of the questions to be determined in this appeal is whether the pretrial judge who acted to approve Ford’s settlement abused his discretion by revisiting and changing the decision of the regular judge concerning the award of attorneys’ fees and expenses from the proceeds of the Firestone settlement. In addition to the challenge presented to the order approving settlement by Stewart, Cox and Hatcher, P.C., and Turner and Associates, P.A., who served as I.F.’s attorneys in both settlements, Ford challenges the pretrial judge’s decisions to appoint a guardian ad litem in connection with the pretrial court’s consideration of Ford’s settlement proposal, to tax the entire guardian ad litem’s fee against Ford, and to include in the award of a reasonable guardian ad litem fee the guardian ad litem’s time for tasks that Ford contends were not related to forming a recommendation regarding the reasonableness of Ford’s proposed settlement with I.F.

Altering the Regular Judge’s Approval of the Firestone Settlement

First, we note that there are some limited circumstances under which a court is allowed to revisit the propriety of whether the terms of another court-approved settlement involving a minor were reasonable. In Missouri-Kansas-Texas R.R. Co. of Texas, et al. v. Pluto, the Texas Supreme Court allowed a settlement that had received a court’s approval of a minor’s claim to be set aside where “the minor’s case was not properly laid before the court, by collusion, neglect, or mistake!.]” 138 Tex. 1, 156 S.W.2d 265, 267 (1941) (citing Day v. Johnson, 32 Tex.Civ.App. 107, 72 S.W. 426, 428 (Tex.Civ.App.Dallas 1903, writ dism’d w.o.j.)). In Pluto, a district court approved the railroad’s settlement of the claims of several family members that arose from a train’s collision with a car. Id. at 266. Seventeen years later, one of the minors, whose claims had been settled, filed a suit seeking to avoid the effect of the court-approved settlement of his claim. Id. Following a jury trial on the disputed issues, a jury found in part that the minor’s injuries had not been fully disclosed to the court during the hearing conducted to approve the minor’s settlement, that the minor’s next friend had negligently failed to disclose the minor’s injuries to the court during the hearing to approve the settlement, that the railroad’s agent knew or had reasonable cause to know the extent of the minor’s injuries at the time the proposed settlement was approved, and that the judgment entered on the settlement was against the interest of the minor. Id. at 267. Under these circumstances, the Pluto Court allowed the minor to avoid the effect of the court-approved settlement and allowed the minor to recover a judgment compensating him for his personal injuries which had resulted from the collision. Id. at 266, 270.

In this case, however, none of the parties claimed that when this matter was pending before the pretrial judge that I.F.’s injuries or the fees and expenses which were sought by I.F.’s attorneys were not properly laid before the regular judge when that court acted to approve Firestone’s proposed settlement in 2003. Additionally, in the pleadings before the pretrial judge, no party asked that the pretrial judge disregard any of the terms of the Firestone settlement in considering Ford’s proposal to settle. I.F.’s guardian ad litem, appointed by the pretrial judge in [374]*374connection -with Ford’s proposed settlement, never filed pleadings alleging that the Firestone settlement had been procured by collusion, neglect or mistake. We do note that the guardian ad litem’s pleadings suggested that I.F.’s attorneys, by scheduling the Firestone settlement hearing with the regular judge, had violated the administrative order assigning the pretrial judge to handle pretrial matters.

During the hearing on the Ford settlement, the pretrial judge re-approved the Firestone settlement, subject to exceptions referencing the attorney fees and expenses awarded in the Firestone settlement. However, the pretrial judge did not find that the terms of Firestone’s settlement with I.F.

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Bluebook (online)
350 S.W.3d 369, 2011 Tex. App. LEXIS 7001, 2011 WL 3925490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-cox-hatcher-pc-v-ford-motor-co-texapp-2011.