HOUSTON – The First Court of Appeals has stripped an award of attorney’s fees obtained by Cars.com in a breach of contract suit.
Court records show that on Dec. 1, 2016, Z Auto Place entered into an agreement with Cars.com for the purchase of an advertising package.
On June 25, 2018, Cars.com filed suit against Z Auto Place, alleging the company failed to pay the amounts owed under the agreements.
On April 26, 2019, a trial court granted summary judgment to Cars.com, awarding the company $16,326.44 in damages and $5,440 in attorney’s fees.
Z Auto Place appealed, arguing that the trial court erred because it filed a verified denial and supporting affidavit along with presenting evidence that it cancelled its relationship with Cars.com.
Z Auto Place also argued that the trial court erred in granting attorney’s fees as Cars.com’s pre-suit demand was excessive and based on unauthorized charges.
“We reverse the portion of the trial court’s judgment awarding Cars.com $5,440 in attorney’s fees and render judgment that Cars.com take nothing on its claim for attorney’s fees,” states the First Court’s Sept. 24 opinion. “We affirm the remainder of the trial court’s judgment with respect to Cars.com’s breach of contract claim against Z Auto Place.”
Appeals case No. 01-19-00477-CV