the Willard Law Firm, L.P. v. John Sewell
464 S.W.3d 747
Tex. App.2015Background
- Sewell hired The Williard Law Firm in February 2007 to pursue recovery of his foreclosed Surratt Property; the contingency agreement provided Williard a 50% contingent fee in property or proceeds.
- Settlement with defendant Panola (July 2007) returned the property to Sewell and paid cash; September 6, 2007 transactions included split cash, warranty deeds transferring a 50% interest, a deed of trust, and a $28,951.60 promissory note from Sewell to Williard.
- Sewell made a first payment of $300 on the promissory note on October 11, 2007 and continued payments through March 2011; Williard foreclosed in December 2010.
- Sewell sued Williard on April 2, 2012 alleging breach of fiduciary duty and other claims; Williard pleaded the four-year statute of limitations and relied on the discovery rule.
- The jury found Williard breached fiduciary duties, Sewell was injured before April 2, 2008, Sewell was damaged $28,951.60, Sewell and Williard were 50/50 responsible for damages, and that Sewell should have discovered the breach by October 11, 2007.
- Trial court granted Sewell’s JNOV, disregarded the jury’s discovery-date finding, and rendered judgment for Sewell; the court of appeals reversed and rendered a take-nothing judgment for Williard.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court properly granted JNOV disregarding the jury's finding on when Sewell should have discovered the breach (discovery-rule accrual) | Sewell: evidence conclusively established he did not and could not discover the breach until he consulted new counsel on April 1, 2011, so JNOV was proper | Williard: jury’s finding that Sewell should have discovered the breach by Oct. 11, 2007 is supported by evidence (payment receipt, testimony) and defeats Sewell’s timeliness claim | Court: Reversed trial court; evidence legally sufficient to support jury’s Oct. 11, 2007 discovery finding, so Sewell’s suit was time-barred; render take-nothing judgment for Williard |
Key Cases Cited
- Computer Assocs. Int'l, Inc. v. Altai, Inc., 918 S.W.2d 453 (Tex. 1996) (articulates the discovery rule for accrual of actions)
- City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (standard for reviewing legal sufficiency of evidence)
- Tanner v. Nationwide Mut. Fire Ins. Co., 289 S.W.3d 828 (Tex. 2009) (legal-sufficiency review for JNOV)
- Brown v. Bank of Galveston, 963 S.W.2d 511 (Tex. 1998) (trial court may disregard jury finding only when no evidence supports it)
- Childs v. Haussecker, 974 S.W.2d 31 (Tex. 1998) (discovery-date usually a jury question)
- Murphy v. Campbell, 964 S.W.2d 265 (Tex. 1997) (claim accrues when plaintiff knows or should know of wrongful act and injury)
- Trousdale v. Henry, 261 S.W.3d 221 (Tex. App.—Houston [14th Dist.] 2008) (four-year limitations for breach of fiduciary duty)
