The State of Texas; The City of El Paso, Texas; The Transit Authority of El Paso CTD, Texas; And the County of El Paso, Texas v. Jonathan Alvidres Ruiz

Court of Appeals of Texas·Decided May 29, 2025·No. 15-25-00042-CV·Published

Opinion

ACCEPTED 15-25-00042-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 5/29/2025 2:28 PM No. 15-25-00042-CV CHRISTOPHER A. PRINE CLERK FILED IN 15th COURT OF APPEALS IN THE COURT OF APPEALS FOR THE FIFTEENTH JUDICIAL D ISTRICT AUSTIN, TEXAS AUSTIN, TEXAS 5/29/2025 2:28:17 PM CHRISTOPHER A. PRINE Clerk

THE STATE OF TEXAS, THE CITY OF EL PASO, TEXAS; THE TRANSIT AUTHORITY OF EL PASO CTD, TEXAS; AND THE COUNTY OF EL PASO, TEXAS Appellants,

vs.

JONATHAN ALVIDRES RUIZ, Appellee.

Appeal from the 459th District Court of Travis County, Texas, No. D-1-GN-24-009288, the Honorable Maya Guerra Gamble presiding

BRIEF OF APPELLANTS

KEN PAXTON AQUINA J. JOHNSON Attorney General of Texas State Bar No. 24126164 aquina.johnson@oag.texas.gov BRENT WEBSTER TAYLOR WHITLOW HOANG First Assistant Attorney General State Bar No. 24102646 taylor.hoang@oag.texas.gov RALPH MOLINA Bankruptcy & Collections Division Deputy First Assistant Attorney General P.O. Box 12548, MC 008 Austin, Texas 78711-2548 AUSTIN KINGHORN Tel: (512) 463-2173 Deputy Attorney General Fax: (512) 936-1409 For Civil Litigation COUNSEL FOR APPELLANTS

RACHEL R. OBALDO Chief, Bankruptcy & Collections Division

ORAL ARGUMENT CONDITIONALLY NOT REQUESTED IDENTITY OF PARTIES AND COUNSEL

The following is a list of all parties to the proceedings in the trial court below, together with the names and addresses of all counsel in accordance with Texas Rule of Appellate Procedure 38.1(a):

Appellants: Appellee:

The State of Texas Jonathan Alvidres Ruiz The City of El Paso, Texas The Transit Authority of El Paso CTD, Texas The County of El Paso, Texas

Appellate Counsel for Appellants:

Aquina J. Johnson Taylor Whitlow Hoang OFFICE OF THE ATTORNEY GENERAL BANKRUPTCY & COLLECTIONS DIVISION P.O. Box 12548 Austin, Texas 78711-2548

ii TABLE OF CONTENTS

Page

IDENTITY OF PARTIES AND COUNSEL ....................................................... ii TABLE OF CONTENTS..................................................................................... iii INDEX OF AUTHORITIES ................................................................................. v ABBREVIATIONS AND RECORD REFERENCES ...................................... viii STATEMENT OF THE CASE.............................................................................ix STATEMENT REGARDING ORAL ARGUMENT ........................................... x ISSUES PRESENTED ..........................................................................................x STATEMENT OF FACTS ....................................................................................1 I. The State sued Ruiz under a trust fund statute to collect delinquent sales and use tax. . ...........................................................1 II. On submission, the trial court granted a default judgment on the State’s claim for delinquent sales and use tax but entered a take nothing judgment on the State’s claim for attorney fees as the prevailing party. ................................................................................1 III. The trial court denied the State’s motion for new trial on the issue of attorney fees. ........................................................................2 SUMMARY OF THE ARGUMENT .................................................................... 3 ARGUMENT AND AUTHORITIES.................................................................... 4 I. The trial court erred when it denied an award of attorney fees to the State because it was a violation of due process and against the statutory mandate of an attorney fees award to the State as the prevailing party. .. ..........................................................4 A. The trial court’s denial of attorney fees to the State, without an opportunity for a hearing or trial, was a violation of due process.....................................................................................4 B. The trial court lacked discretion to deny an award of attorney fees to the State pursuant to Section 2107.006 of the Texas Government Code, which mandates an award of attorney fees to the State as the prevailing party. ...................7

iii II. The trial court erred when it failed to grant the State’s reasonable and necessary attorney fees that were properly pleaded and proved in its Unsworn Declaration of Attorney Fees....................................................................................................9 CONCLUSION AND PRAYER .........................................................................13 CERTIFICATE OF COMPLIANCE WITH RULE 9.4......................................15 CERTIFICATE OF SERVICE ............................................................................16

iv INDEX OF AUTHORITIES

CASES Page(s)

Aaron Rents, Inc. v. Travis Cent. Appraisal Dist., 212 S.W.3d 665 (Tex. App.—Austin 2006, no pet.) ............................................................. 9

Aguilar v. Livingston, 154 S.W.3d 832 (Tex. App.—Houston [14th Dist.] 2005, no pet.) ....................................... 6

Arthur v. Braeburn Plaza Inc. HOA, No. 01-23-00161-CV, 2025 WL 1033752 (Tex. App.—Houston Apr. 8, 2025, no pet. h.) .......................................... 6

Bell v. Texas Workers Comp. Comm’n, 102 S.W.3d 299 (Tex. App.—Austin 2003, no pet.) .............................................................. 4

Beller v. Fry Roofing, Inc., No. 04-05-00159-CV, 2005 WL 3115828 (Tex. App.—San Antonio Nov. 23, 2005, no pet.) .................................4–5

Bocquet v. Herring, 972 S.W.2d 19 (Tex. 1998) .................................................................7, 8, 9

Cale’s Clean Scene Carwash, Inc. v. Hubbard, 76 S.W.3d 784 (Tex. App.—Houston [14th Dist.] 2002, no pet.) .....................................10

Cap Rock Elec. Coop. v. Tex. Utils. Elec. Co., 874 S.W.2d 92 (Tex. App.—El Paso 1994, no writ) ............................................................ 6

Gotch v. Gotch, 416 S.W.3d 633 (Tex. App.—Houston [14th Dist.] 2013, no pet.) ...................................5, 6

v Hartford Cas. Ins. Co. v. State, 159 S.W.3d 212 (Tex. App.—Austin 2005, pet. denied) ...............................................4, 5, 6

Intercontinental Grp. P’ship v. KB Home Lone Star L.P., 295 S.W.3d 650 (Tex. 2009) ....................................................................... 9

McMillin v. State Farm Lloyds, 180 S.W.3d 183 (Tex. App.—Austin 2005, pet. denied) ...................................................7, 9

Midland W. Bldg., L.L.C. v. First Serv. Air Conditioning Contractors, Inc., 300 S.W.3d 738 (Tex. 2009) .....................................................................12

Ragsdale v.

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