Harry C. Crawford, III, Darrell Garrett and Theophilus Operating Company, L.L.C. v. Nguyen & Chen, LLP
01-16-00274-CV
Tex. App.May 4, 2017Background
- Nguyen & Chen LLP (N&C) sued former clients Harry C. Crawford III, Darrell Garrett, and Theophilus Operating Co. LLC for unpaid legal fees arising from prior representation; N&C sought recovery of those fees and fees incurred in the collection suit.
- Crawford, the LLC’s managing member, filed a pro se answer on behalf of all defendants; N&C moved to strike because a non‑attorney cannot represent an LLC.
- The trial court granted the motion to strike and in its order directed the defendants be taxed with N&C’s attorney’s fees and costs; the defendants later alleged they lacked notice of the strike hearing.
- At the jury trial on N&C’s breach‑of‑contract claim, N&C’s attorneys (Nguyen and Ghafoor) testified about attorney‑fee amounts; defendants objected under TRCP 194.2(f)(3) for insufficient expert disclosures (ruling obtained only on Ghafoor’s testimony).
- The court entered judgment awarding N&C $15,498.21 for fees from the underlying suit and $13,200 for fees in the collection suit; the court separately entered a $1,200 sanction judgment against Crawford and Theophilus for the pro se filing.
- On appeal, the defendants challenged (1) admission of attorney‑fee testimony for lack of expert disclosure, and (2) the trial court’s authority to impose the $1,200 sanction/fee award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admissibility of attorney‑fee testimony under TRCP 194.2(f)(3) | N&C: attorneys may testify as experts about fees; disclosure (listing attorneys and pleading fees) was adequate and there was no unfair surprise | Theophilus: N&C failed to disclose general substance of experts’ opinions and bases, so testimony was inadmissible | Court: preserved objection only as to Ghafoor; trial court did not abuse discretion — disclosure and lack of unfair surprise justified admission; fee awards affirmed |
| Authority to award $1,200 as sanction/attorney’s fees for pro se LLC filing | N&C: award is a sanction recoverable under Rule 13 or the court’s inherent power | Theophilus: no notice/hearing, no rule/statute authorizing fees, and no findings that conduct interfered with court’s core functions | Court: trial court erred—no Rule 13 invocation, no notice or factual findings required for inherent‑power sanction; $1,200 sanction judgment reversed and vacated |
Key Cases Cited
- Sw. Energy Prod. Co. v. Berry‑Helfand, 491 S.W.3d 699 (Tex. 2016) (standard for reviewing trial court rulings on expert evidence)
- Kunstoplast of Am., Inc. v. Formosa Plastics Corp., USA, 937 S.W.2d 455 (Tex. 1996) (corporations/LLCs must appear through licensed counsel)
- Tucker v. Thomas, 419 S.W.3d 292 (Tex. 2013) (Texas follows the American Rule on attorney’s fees absent statute or contract)
- Kings Park Apartments, Ltd. v. Nat’l Union Fire Ins. Co. of Pittsburgh, 101 S.W.3d 525 (Tex. App.—Houston [1st Dist.] 2003) (court should rely on established rules/statutes for sanctions; inherent power has limits)
- Greene v. Young, 174 S.W.3d 291 (Tex. App.—Houston [1st Dist.] 2005) (due process requires notice and hearing before imposing sanctions under inherent power)
- Koslow’s v. Mackie, 796 S.W.2d 700 (Tex. 1990) (abuse‑of‑discretion standard for reviewing sanctions)
