D.R. Horton - Texas, Ltd. v. William Bernhard and Nadia Bernhard
423 S.W.3d 532
| Tex. App. | 2014Background
- Arbitration awarded Bernhards $114,477.45, including $31,027.93 for attorney’s fees as economic damages under the RCLA.
- Sales contract allowed each party to bear its own fees; arbitrator concluded attorney’s fees were economic damages under the RCLA and recoverable.
- Trial court confirmed the arbitration award and awarded appellate attorney’s fees to Bernhards ($18,500 for trial-judgment appeal; $25,000 for appeal to this court).
- D.R. Horton challenged (1) enforcement of the attorney’s-fees portion of the arbitration award and (2) appellate attorney’s fees; the court-sided with Bernhards on the first issue but sustained Horton on the second.
- The court modified the judgment by striking appellate attorney’s fees and affirmed the award as modified.
- This opinion resolves whether the arbitrator exceeded authority and whether appellate fees may be awarded after arbitration confirming damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitrator exceeded his powers by awarding attorney’s fees. | Horton contends the arbitrator exceeded powers under the TAA. | Bernhards argue waiver and mutual-mistake defenses apply, and the arbitrator acted within authority. | Arbitrator did not exceed authority; enforceable. |
| Whether the trial court could award additional appellate attorney’s fees after arbitration. | N/A (Horton argues against appellate fees). | Bernhards rely on court modification; no statutory basis found. | Sustained Horton; appellate fees struck; no modification. |
Key Cases Cited
- Ancor Holdings, LLC v. Peterson, Goldman & Villani, Inc., 294 S.W.3d 830 (Tex. App.—Dallas 2009) (review of arbitrator's authority and contractual interpretation, authority to decide issue)
- Townes Telecommunications, Inc. v. Travis, Wolff & Co., 291 S.W.3d 490 (Tex. App.—Dallas 2009) (arbitrators exceed powers when acting contrary to arbitration agreement)
- LeFoumba v. Legend Classic Homes, Ltd., 2009 WL 3109875 (Tex. App.—Houston [14th Dist.] 2009) (no opinion; authority inquiry focuses on whether arbitrator had authority to decide issue)
- Saipem American, Inc. v. Wellington Underwriting Agencies Ltd., 335 F. App’x 377 (5th Cir. 2009) (arbitrators did not exceed powers when issue of attorney’s fees was submitted)
- Baker Hughes Oilfield Operations, Inc. v. Henning Production Co., 164 S.W.3d 438 (Tex. App.—Houston [14th Dist.] 2005) (modification limited to form/partial accrual issues, not adding new relief)