in Re Teresa Corral-Lerma
451 S.W.3d 385
Tex.2014Background
- Relator Teresa Corral-Lerma sought mandamus to prevent increasing appellate security against a judgment in favor of Border Demolition under Tex. Civ. Prac. & Rem. Code § 52.006.
- Border Demolition sought to include attorney’s fees awarded under the Texas Theft Liability Act in the security amount.
- Trial court held attorney’s fees are not compensatory damages and thus should not be included in security.
- Court of Appeals ordered security increased to cover the attorney’s-fees award, prompting review after this Court issued a related ruling.
- This Court held in In re Nalle Plastics that attorney’s fees are neither compensatory damages nor costs for superseding enforcement.
- Court conditionally grants mandamus relief, directing the court of appeals to withdraw its order increasing security pending appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are attorney’s fees compensatory damages for supersedeas security? | Corral-Lerma argues fees are compensatory damages under §52.006. | Border Demolition argues fees function as compensatory under Act and should be included. | No; fees are not compensatory damages for security. |
| Should security include interest on the attorney’s fees award? | Security should cover principal plus related interest per statute. | Interest on fees should be securityed as part of judgment interest. | Interest on attorney’s fees is not required in the security amount. |
| Does Nalle Plastics control whether security must be increased here? | Nalle Plastics allowed exceptions for damages-related security; here it applies. | Nalle Plastics allowed broader treatment of fees under the Theft Act. | Nalle Plastics controls; mandamus relief issued to avoid increasing security. |
Key Cases Cited
- In re Nalle Plastics Family Ltd. P'ship, 406 S.W.3d 168 (Tex. 2013) (attorney’s fees are neither compensatory damages nor costs for superseding enforcement)
- Nalle Plastics, 406 S.W.3d 168, 406 S.W.3d 168 (Tex. 2013) (reiterates that attorney’s fees are not damages for supersession)
- Tex. Standard Oil & Gas, L.P. v. Frankel Offshore Energy, Inc., 344 S.W.3d 628 (Tex. App.—Houston [14th Dist.] 2011) (interest on judgments not generally included in security; dissent discusses rule)
- Shook v. Walden, 304 S.W.3d 910 (Tex. App.—Austin 2010) (appeal security interest treatment for judgments)