Spector Gadon & Rosen, P.C. v. Southwest Securities, Inc.
372 S.W.3d 244
Tex. App.2012Background
- Spector Gadon & Rosen, P.C. held a final Philadelphia judgment against SSJ Investments, LLC, Stephen S. Jemal, and Sharon E. Jemal.
- Spector Gadon filed a garnishment action against Southwest Securities, Inc. on October 8, 2009 to collect the judgment.
- Southwest answered the writ, describing debts allegedly owed to the debtors and to SSJ, and claimed costs and attorney’s fees under Tex.R.Civ.P. 677.
- Discovery disputes ensued, including protective orders and deposition notices, with ongoing motions from debtors and Southwest.
- Debtors sought dissolution of the writ and confidentiality, while Spector Gadon contested Southwest’s fee request and the sufficiency of proof.
- Spector Gadon non-suited the garnishment on June 4, 2010, after which Southwest moved for fees and the trial court awarded Southwest $21,000 in attorney’s fees, which Spector Gadon appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 677 authorizes attorney’s fees for a garnishee after non-suit. | Spector Gadon: fees are not recoverable on non-suit; rule 677 does not apply. | Southwest: rule 677 permits fees in all situations unless the garnishee loses a contested issue. | Rule 677 can authorize fees; the award fell under the third provision, and not error. |
| Whether the fee award of $21,000 was proper given the record evidence. | Spector Gadon: proof of reasonableness/necessity was insufficient; no hearing or competent evidence. | Southwest: the affidavit and record support reasonable and necessary fees; court acted within discretion. | Trial court did not abuse discretion; competent evidence supported the award. |
Key Cases Cited
- Buckeye Retirement Co. v. Bank of America, N.A., 239 S.W.3d 394 (Tex.App.-Dallas 2007) (costs including attorney’s fees may be taxed under rule 677 depending on contest)
- Rowley v. Lake Area Nat'l Bank, 976 S.W.2d 715 (Tex.App.-Houston [1st Dist.] 1998) (attorney’s fees considered within costs; standard of review for fee awards)
- J.C. Hadsell & Co. v. Allstate Insurance Co., 516 S.W.2d 211 (Tex.Civ.App.-Texarkana 1974) (non-suit treated as discharge of garnishee with costs taxable against creditor)
- Campbell v. Stucki, 220 S.W.3d 562 (Tex.App.-Tyler 2007) (attorney’s fees in garnishment should be taxed against the unsuccessful party when contest exists)
- Cantu v. Button, 905 S.W.2d 718 (Tex.App.-Corpus Christi 1995) (discretion in allocating garnishee’s expenses when events affect liability)
- Garcia v. Gomez, 319 S.W.3d 638 (Tex. 2010) (reasonableness of attorney’s fees supported by competent evidence in affidavit form)