Background

• ENGlobal sued Jefferson Refinery for unpaid fees under a consulting/engineering contract; ENGlobal later added a lien foreclosure claim based on a recorded lien affidavit for the same debt.
• Jefferson Refinery answered and counterclaimed, seeking declaratory relief and to declare ENGlobal’s lien invalid.
• Jefferson Refinery moved for partial summary judgment to declare the lien invalid and recover fees; ENGlobal released the lien shortly before the ruling.
• The trial court granted partial summary judgment declaring the lien invalid and awarding fees; in 2014 the court severed and then entered final judgment on the lien-related claims and fees.
• ENGlobal appealed asserting the lien release mooted the declaratory-judgment claim and that the court lost subject-matter jurisdiction; Jefferson Refinery argued fees remained cognizable under the Uniform Declaratory Judgments Act.
• The appellate court held the trial court retained jurisdiction because a live attorney’s-fees claim remained pending under Tex. Civ. Prac. & Rem. Code § 37.009; the appeal was not moot; affirmed the judgment and declined sanctions.

Issues

Key Cases Cited

• Allstate Ins. Co. v. Hallman, 159 S.W.3d 640 (Tex. 2005) (fees available to prevail in declaratory actions)
• Hansen v. JP Morgan Chase Bank, N.A., 346 S.W.3d 769 (Tex. App.—Dallas 2011) (attorney’s fees maintain live controversy in declaratory actions)
• Camarena v. Tex. Emp’t Comm’n, 754 S.W.2d 149 (Tex. 1988) (fee claim prevents mootness)
• Brooks v. Northglen Ass’n, 141 S.W.3d 158 (Tex. 2004) (issue is one of error, not jurisdiction, when mootness arises)
• MBM Fin. Corp. v. Woodlands Operating Co., L.P., 292 S.W.3d 660 (Tex. 2009) (fees awarded only if authorized by statute)