AUSTIN - The Texas Supreme Court recently reversed an appellate court decision wiping an award of attorney’s fees to a defendant condominium association that prevailed in a breach of contract lawsuit.
Court records show David Atkinson filed suit against Sunchase IV Homeowners Association and its Board for fraud, civil conspiracy, breach of fiduciary duty, breach of contract, negligence, gross negligence, conversion, and trespass.
Sunchase manages a condominium complex in South Padre Island. Atkinson owns a unit in the Sunchase IV complex. In July 2008, Hurricane Dolly caused damage to Sunchase IV, including Atkinson’s unit.
In his suit, Atkinson alleged that Sunchase created a fraudulent scheme to keep insurance monies from, and shift the hurricane repair obligations to, individual unit owners.
At trial, a jury found that Sunchase did not breach a fiduciary or contractual duty to Atkinson, Sunchase did not trespass, and Sunchase was entitled to reasonable attorney’s fees of $135,029.94 for trial and $85,000 for appeal, according to the high court’s April 8 opinion.
An appellate court affirmed the trial court’s take-nothing judgment but held that Sunchase was not entitled to attorney’s fees, the opinion states.
The Supreme Court held that Sunchase is a prevailing party because it obtained a take-nothing judgment on the main issue of the litigation.
“Without hearing oral argument … we grant Sunchase’s petition for review, reverse the court of appeals’ judgment as to attorney’s fees, and reinstate the trial court’s judgment awarding fees to Sunchase,” the opinion states.
Case No. 20-0682