Long v. Castle Texas Production Ltd. Partnership
426 S.W.3d 73
| Tex. | 2014Background
- Castle sued the Long Trusts for breach of a joint operating agreement and related gas conversion claims; Castle prevailed on its counterclaims for joint interest billings.
- An initial 2001 judgment awarded prejudgment interest without a stated calculation; appellate remand directed recalculation under the jo int operating agreement.
- On remand (2005–2009), the trial court required new evidence to determine when the Long Trusts received the relevant billings; Castle waived prejudgment interest instead of supplying evidence.
- The trial court entered a final judgment in 2009 awarding postjudgment interest from the 2001 judgment date; the court of appeals affirmed.
- The Long Trusts challenged whether postjudgment interest should run from the original 2001 judgment date or the final 2009 judgment date after remand for new evidence.
- The Court of Appeals’ remand decision did not overturn the trial court’s finding that new evidence was needed; the supreme court reversed to set accrual from the final judgment date.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Date postjudgment interest accrues when remand requires new evidence | Castle argues interest from 2001 date should apply | Long Trusts argue accrues from final remand judgment | Accrual from final judgment date when remand requires new evidence |
| Effect of Rule 43.3 exception on accrual | Remand allows original judgment date if appellate renders correct judgment | Remand with new evidence necessitates final judgment accrual | Rule 43.3 applies; dual judgments on remand lead to final judgment accrual |
| Whether the trial court erred in reopening the record | Record already supported prejudgment interest; no reopening needed | Remand required new evidence to determine prejudgment interest | Trial court did not abuse discretion in reopening; evidence needed |
| Impact of waiver on accrual date | Waiver of prejudgment interest should not affect accrual rule | Waiver reflects lack of record and affects accrual | Waiver does not alter accrual date; accrual is governed by final judgment date |
| Severance or partial judgments affect accrual | Severance could affect when interest runs on severed claims | Severance is not determinative; accrual follows final judgment rule | Severance does not mandate different accrual; final judgment date governs |
Key Cases Cited
- Bramlett v. Kenneco Energy, Inc., 407 S.W.3d 229 (Tex. 2013) (sets framework: final judgment rule and remand for new evidence affects accrual)
- American Paper Stock Co. v. Howard, 528 S.W.2d 576 (Tex. 1975) (when appellate renders correct judgment, postjudgment interest from trial court date)
- D.C. Hall Transport, Inc. v. Hard, 358 S.W.2d 117 (Tex.Civ.App.-Fort Worth 1962) (remand without new evidence supports interest from original judgment)
- Thornal v. Cargill, Inc., 587 S.W.2d 384 (Tex. 1975) (reformation to award interest from trial court’s erroneous judgment)
- Gamma Group v. Transatlantic Reinsurance Co., 365 S.W.3d 469 (Tex.App.-Dallas 2012) (retrials and remands do not always align with accrual rules)
- State Department of Highways & Pub. Transp. v. City of Timpson, 795 S.W.2d 24 (Tex.App.-Tyler 1990) (early view on original-judgment accrual for remands)
- Danziger v. San Jacinto Savings Ass'n, 732 S.W.2d 300 (Tex. 1987) (severance and remand of part of claim; postjudgment interest from original judgment)
- Vassallo v. Nederl-Amerik Stoomv Maats Holland, 344 S.W.2d 421 (Tex. 1961) (illustrative severance/interest principles in remand context)
