HOUSTON – The Court of Appeals for the 1st District of Texas has reversed and remanded part of a trial court’s ruling that denied attorney’s fees to a travel-trailer company in a lawsuit against a customer.
In the ruling on Dec. 4, the Appeals Court reversed the portion of the 234th District Court of Harris County's judgment denying attorney’s fees and remanded for a new trial on the fee issue, but affirmed the remainder of the judgment.
The Appeals Court said KKR RV’s LLC, which does business as American Dream Vacations, appealed the trial court’s ruling on two claims, saying the trial court erred in limiting its pecuniary damages to $2,000 and erred in denying its request for attorney’s fees despite awarding damages.
“American Dream’s evidence as to its fees was uncontradicted,” the opinion stated. “Nevertheless, American Dream recovered substantially less in actual damages than it sought at trial, and on appeal it has prevailed only in part.”
As a result, the Appeals Court remanded the issue to the trial court for a new trial on the amount of American Dream’s reasonable attorney’s fees.
According to the opinion, Kevin Anderson leased a two-wheel travel-trailer from American Dream Vacations.
The Appeals Court said Anderson was on the road when one of the trailer’s tires blew out.
"American Dream then sued Anderson for breach of the parties’ lease agreement, alleging that he was responsible for the blowout and the resulting damage to the trailer," according to the opinion. “American Dream sought to recover its repair costs and the attorney’s fees that it incurred in bringing the suit.”
The Appeals Court said Anderson also sought attorney’s fees and counterclaimed, alleging that American Dream violated the Deceptive Trade Practices Act and breached the implied warranties of fitness and good and workmanlike performance.
“American Dream contends that the trial court erred in awarding $2,000 in damages rather than the $3,037.50 that it contends that the evidence established,” the opinion stated.
According to the court, "American Dream argues that the trial court’s award is based on the limitation-of-liability clause in the lease agreement, but that this provision is inapplicable as a matter of law under the circumstances."
The Appeal Court said the trial court "could have awarded a lesser amount of damages than the amount sought by American Dream based on the contested evidence presented at trial."
“American Dream, however, has expressly disclaimed any challenge to the sufficiency of the evidence in its briefing,” the opinion stated. “Because American Dream has not challenged this alternative ground for the trial court’s judgment, we must affirm the trial court’s judgment as to the amount of damages.”
According to the opinion, American Dream requested attorney’s fees under Chapter 38 and under a fee provision in the lease agreement which provides that in the event of any breach, the lessee “shall be liable” for “reasonable attorney’s fees.”
The Appeals Court said the lease agreement makes an award mandatory if the lessor prevails but leaves the amount to the factfinder’s discretion.
“Whether considered under the lease agreement or the statute, the trial court had no discretion to deny American Dream’s request for attorney’s fees,” the opinion stated.