Edom Corner, LLC and Earl Berry, Jr. v. It's the Berry's, LLC
12-14-00365-CV
| Tex. App. | May 25, 2015Background
- Parties: Edom Corner, LLC and Earl A. Berry, Jr. (appellants) v. It’s the Berry’s, LLC d/b/a Mary Ellen’s (appellee).
- Dispute arose from a lease/forcible detainer dispute; multiple related suits and appeals comprise the broader litigation history.
- In earlier district-court proceedings and on appeal (Seventh Court), appellee’s counterclaims for declaratory relief and its request for attorney’s fees were denied; the forcible-detainer matter was severed and handled separately.
- Appellee later obtained a ruling in a later proceeding (trial court) that it was the prevailing party, that res judicata/collateral estoppel did not bar its suit, that Berry was individually liable, and that appellee was entitled to attorney’s fees on summary judgment.
- Appellants contend the lease expired by lapse (not by an adverse merits ruling), that prior adjudications preclude appellee’s fee claims, that statutory and common-law principles bar individual liability for Berry, and that appellee never proved actual damages to support fee recovery.
Issues
| Issue | Plaintiff's Argument (It’s the Berry’s) | Defendant's Argument (Edom/Berry) | Held (trial court) |
|---|---|---|---|
| Whether appellee was the prevailing party | It’s the Berry’s says it prevailed because appellants failed to evict it | Appellants say no merits vindication occurred; lease simply expired and the eviction objective was mooted | Trial court found appellee was the prevailing party |
| Whether res judicata / collateral estoppel bar appellee’s fee claim | Appellee contends prior proceedings lacked jurisdiction over its fee claim so res judicata doesn't apply | Appellants say prior district judgment and appellate ruling denied fees and thus bar relitigation | Trial court held res judicata/collateral estoppel did not bar appellee’s suit |
| Whether Berry is individually liable | Appellee treats Berry as a liable party under the lease | Appellants invoke Texas Business Orgs. Code protections and lack of conduct showing individual liability; also argue compulsory-counterclaim/res judicata grounds | Trial court found Berry individually liable |
| Whether appellee was entitled to attorney’s fees on summary judgment | Appellee asserts its fees are reasonable and recoverable | Appellants submitted affidavit (Bennett) challenging reasonableness, necessity, duplicative billing, and argue no actual damages were recovered so fees are improper | Trial court awarded attorney’s fees to appellee on summary judgment |
Key Cases Cited
- Goldman v. Olmstead, 414 S.W.3d 346 (Tex. App. Dallas 2013) (prevailing-party and fee-analysis authority)
- Robbins v. Capozzi, 100 S.W.3d 18 (Tex. App. Tyler 2002) (defining prevailing party as success on the merits)
- Insurance Co. of the State of Pennsylvania v. Oraco, 170 S.W.3d 129 (Tex. App. San Antonio 2005) (prevailing-party and judgment-vindication discussion)
- Igal v. Brightstar Information Technology Group, Inc., 250 S.W.3d 78 (Tex. 2008) (res judicata/claim preclusion principles)
- It’s the Berry’s, LLC v. Edom Corner, LLC, 271 S.W.3d 765 (Tex. App. Amarillo 2008) (prior appellate disposition addressing fee claims and severance)
- MBM Financial Corp. v. Woodlands Operating Co., 292 S.W.3d 660 (Tex. 2009) (attorney’s-fees recovery requires actual damages in certain contexts)
- In re Nalle Plastics Family Ltd. P’ship, 406 S.W.3d 168 (Tex. 2013) (clarifying when attorney’s fees can be considered compensatory damages)
- Laredo Independent Sch. Dist. v. Trevino, 25 S.W.3d 263 (Tex. App. San Antonio 2000) (evidence on usual and customary attorney’s fees)
