HOUSTON - The First Court of Appeals today deleted an award of $90,000 in attorney’s fees in a lawsuit brought against a law firm.
Court records show The Document Group sued Ramey & Schwaller for breach of contract, alleging that the law firm failed to pay eight invoices, resulting in $8,980.27 in unpaid services.
According to the First Court’s opinion, Ramey & Schwaller denied owing the money, arguing that it acted as an agent for its client. TDG amended its pleadings to add a cause of action under the Declaratory Judgments Act, seeking a declaration of its rights under the contracts as represented in the invoices and particularly seeking a declaration that Ramey & Schwaller did not disclose that it was acting as an agent for its client. TDG also sought attorney’s fees pursuant to the DJA.
A jury found in TDG’s favor, and the trial court rendered judgment on the verdict, awarding TDG $8,980.27 in actual damages, plus pre- and post-judgment interest and $90,000 in trial-level attorney’s fees under the DJA, according to the opinion.
On appeal, Ramey & Schwaller argued in its first issue that the trial court erred in awarding TDG $90,000 in attorney’s fees because those fees were not recoverable, or alternatively, were unreasonable, not supported by the evidence, and not properly segregated.
The First Court agreed with Ramey & Schwaller that attorney’s fees were not recoverable for TDG’s claim under the DJA, modifying the judgment to delete the award of attorney’s fees and affirm the judgment as modified.
“We sustain Ramey & Schwaller’s first issue asserting that the trial court erred in awarding attorney’s fees to TDG,” the opinion states. “We modify the trial court’s judgment to delete the award of attorney’s fees. Because we have sustained Ramey & Schwaller’s complaint regarding the award of attorney’s fees on this basis, we need not address its remaining issues challenging the attorney’s fees award.”
Case No. 01-20-00368-CV