Sustainable Texas Oyster Resource Management, LLC (STORM) v. Hannah Reef, Inc., Shrimps R. US, Inc., Ivo Slabic & Michael Ivic

Texas Court of Appeals, 1st District (Houston)·Decided August 31, 2026·No. 01-23-00842-CV·Published

Opinion

Opinion issued August 31, 2026

In The

Court of Appeals

For The

First District of Texas

Oystermen”). In the previous appeal, this Court affirmed the trial court’s judgment in part, reversed the judgment in part, and remanded the case to the trial court for a new trial limited to the issue of the Oystermen’s reasonable and necessary attorney’s fees under the Uniform Declaratory Judgments Act (“UDJA”).1 See Sustainable Tex. Oyster Res. Mgmt., L.L.C. v. Hannah Reef, Inc., 623 S.W.3d 851 (Tex. App.— Houston [1st Dist.] 2020, pet. denied). On remand, after a jury trial, the trial court entered a final judgment, awarding the Oystermen $340,000 in attorney’s fees and $40,000 in conditional appellate attorney’s fees.

Now, in six issues, STORM challenges the trial court’s award of attorney’s fees to the Oystermen on the grounds that: (1) the trial court erred in failing to include STORM’s requested lodestar instruction and lodestar question in the court’s charge to the jury; (2) the evidence was legally insufficient to support the award of attorney’s fees; (3) the evidence was factually insufficient to support the award of attorney’s fees; (4) the Oystermen failed to segregate their fees; (5) the redacted billing records admitted into evidence were hearsay and untrustworthy, and therefore, inadmissible; and (6) notwithstanding the law-of-the-case doctrine, an award of attorney’s fees was not available to the Oystermen under the UDJA.2

1 TEX. CIV. PRAC. & REM. CODE ANN. § 37.009 (“In any proceeding under this chapter, the court may award costs and reasonable and necessary attorney’s fees as are equitable and just.”).

2 The Oystermen did not file an appellees’ brief.

We affirm.

Background

The underlying dispute in this case concerned the parties’ competing rights to cultivate and harvest oysters in certain areas of Galveston and Trinity Bays. A detailed recitation of the historical facts and trial court proceedings through the first trial is set forth in our prior opinion and therefore we provide only the background necessary to resolution of this appeal.

On July 24, 2015, the Oystermen filed suit against STORM, asserting claims to quiet title, for trespass to try title, and for tortious interference with prospective business relations.3 The Oystermen also sued under the UDJA, seeking declaratory relief, as well as requested injunctive relief, monetary damages, and attorney’s fees.4 STORM counterclaimed, asserting claims for trespass, conversion, money had and received, and accounting.5 The Oystermen filed a partial motion for summary judgment in which they requested that, pursuant to the UDJA, the trial court declare the Coastal Surface Lease issued by Chambers–Liberty Counties Navigation District to STORM, authorizing STORM to cultivate and harvest oysters on 23,000 acres of

3 See Sustainable Tex. Oyster Res. Mgmt., L.L.C. v. Hannah Reef, Inc., 623 S.W.3d 851, 857 (Tex. App.—Houston [1st Dist.] 2020, pet. denied).

4 See id.

5 See id. at 859.

submerged land in Galveston and Trinity Bays, void and unenforceable.6 STORM filed a combined response to the Oystermen’s partial motion and a countermotion for summary judgment.7 On September 28, 2016, the trial court granted partial summary judgment in the Oystermen’s favor, specifically, granting the relief requested under the UDJA and ordering that STORM take nothing on its counterclaims.8 The trial court signed an order denying STORM’s countermotion for summary judgment the same day.9 Relevant here, in its partial summary judgment order, the trial court ruled that the Oystermen “shall recover from . . . STORM their reasonable and necessary attorney fees and costs under the [UDJA] TEX. CIV. PRAC. & REM. CODE ANN. § 37.009.”10 The case was called for a jury trial on November 13, 2017.11 The Oystermen’s live pleading alleged causes of action for quiet title and trespass-to-try-title.12 The previously pleaded tort claims of tortious interference and conspiracy had been

6 See id. at 859–60.

7 See id. at 860.

8 See id.

9 See id.

10 Id.

11 See id. at 861.

12 See id.

abandoned.13 Damages were no longer pleaded, but the petition continued to request declaratory and injunctive relief along with attorney’s fees pursuant to the UDJA.14 At the beginning of trial, the Oystermen informed the trial court that they were not pursuing their claims for quiet title and trespass-to-try-title, indicating to the trial court that the declaratory relief granted in the earlier partial summary judgment order had provided them adequate relief.15 And the only issue remaining for trial was the amount of reasonable and necessary attorney’s fees the Oystermen were entitled to recover under the UDJA.16 The issue of reasonable and necessary attorney’s fees was tried to a jury.17 In support of the Oystermen’s attorney’s fees request, George W. Vie III (“Vie”), one of the Oystermen’s attorneys, testified as their attorney’s fees expert.18 He opined that the reasonable and necessary attorney’s fees incurred by the Oystermen since the suit was filed was $417,000.19 The Oystermen offered billing records to support

13 See id.

14 See id.

15 See id.

16 See id.

17 See id. at 855.

18 See id. at 861.

19 See id.

the requested fees.20 Vie also provided testimony to support an award of conditional appellate attorney’s fees.21 On cross-examination, STORM asked Vie whether he had segregated the attorney’s fees between claims on which attorney’s fees may be recovered and those for which they may not.22 Vie responded that he had not segregated the fees because segregation was not necessary in this case.23 On redirect examination, Vie testified that he believed segregation was not necessary because the attorney’s fees incurred for claims for which attorney’s fees are not recoverable also “advanced the merits of the [UDJA] claim” for which the Oystermen were entitled to recover attorney’s fees.24 STORM moved for directed verdict on the Oystermen’s attorney’s fees claim.25 Among its arguments, STORM objected that the Oystermen were required

20 See id.

21 See id.

22 See id.

23 See id.

24 Id. at 861–62.

25 See id. at 862.

to segregate their attorney’s fees and had failed to do so.26 The trial court overruled STORM’s motion.27 STORM presented the testimony of J. Studer, an attorney’s fees expert.28 Studer testified that he had reviewed the billing records of the Oystermen’s attorneys and had concluded that the attorney’s fees requested by the Oystermen were not reasonable and necessary.29 Studer testified that the reasons for his opinion included that the Oystermen were requesting attorney’s fees “not necessary and not related to the claim for which they’re making claim on fees.”30 He stated that it was his opinion that the Oystermen were “making [a] claim for fees for efforts that are related to issues or parties that [they] abandoned and that did not advance the claim for [which] they’re seeking fees today.”31 The jury found that the Oystermen’s reasonable and necessary attorney’s fees for the trial court proceedings was $417,000 and that the Oystermen were entitled to conditional appellate attorney’s fees for different stages of appeal, totaling

26 See id.

27 See id.

28 See id.

29 See id.

30 Id.

31 Id.

$75,000.32 The trial court’s final judgment incorporated the jury’s findings and awarded the Oystermen $417,000 in attorney’s fees for proceedings through trial and a total of $75,000 in conditional appellate attorney’s fees “pursuant to the [UDJA].”33 B. First Appeal STORM presented five issues in its first appeal. Among its challenges, STORM argued that the trial court erred in awarding attorney’s fees to the Oystermen under the UDJA because they failed to segregate the fees between recoverable and unrecoverable fees.34 We agreed with STORM that evidence of fee segregation was required.35 We noted:

If any attorney’s fees relate solely to a claim for which such fees are unrecoverable, a claimant must segregate recoverable from unrecoverable fees. Intertwined facts do not make tort fees recoverable;

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Sustainable Texas Oyster Resource Management, LLC (STORM) v. Hannah Reef, Inc., Shrimps R. US, Inc., Ivo Slabic & Michael Ivic (Sustainable Texas Oyster Resource Management, LLC (STORM) v. Hannah Reef, Inc., Shrimps R. US, Inc., Ivo Slabic & Michael Ivic) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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