CELANESE CHEMICAL COMPANY, INC., n/k/a Hoechst Celanese Chemical Group, Inc., Appellant, v. Jimmy Lee BURLESON, Individually and as Next Friend of Catherine Nickole Burleson, Roni Jo Burleson, and Jimmy Lee Burleson, Jr., Appellees.
No. 01-90-00896-CV
Court of Appeals of Texas, Houston (1st Dist.).
Oct. 24, 1991
Rehearing Denied Dec. 12, 1991.
821 S.W.2d 257
The summary judgment is reversed, and the cause is remanded.
BIERY, Justice, concurring.
I concur.
At the outset, I note that
In the trial on the merits, the plaintiffs/appellants will have the burden to prove, among other things, that Stephen Smith pretended to act in the performance of his official duties or under color of law. See Polk County v. Dodson, 454 U.S. 312, 102 S.Ct. 445, 70 L.Ed.2d 509 (1981); Screws v. United States, 325 U.S. 91, 65 S.Ct. 1031, 89 L.Ed. 1495 (1945); United States v. Classic, 313 U.S. 299, 61 S.Ct. 1031, 85 L.Ed. 1368 (1941). However, in the present summary judgment procedural posture of the case, the burden is on the City to prove conclusively that Smith was not acting under color of law. The summary judgment proof contains no evidence from either side as to what Smith did or said vis-a-vis his official police authority. Thus, the City failed in its heavy summary judgment burden. Whether there will be any such evidence in the trial on the merits when the burden shifts to the plaintiffs/appellants remains to be seen.1
W. Douglas Mathews, James Patrick Smith, Houston, for appellees.
Before HUGHES, COHEN and PRICE1, JJ.
OPINION
HUGHES, Justice.
Celanese Chemical Company, Inc. (Celanese), appeals from a judgment ordering it to pay a fee of $100,000 to the attorney ad litem of the minor plaintiffs, the Burleson children appellees.
On January 7, 1987, the plaintiff and appellee, Jimmy Lee Burleson, an employee of Mundy Contractors, Inc., was injured while working as a pipefitter at the Celanese Bayport Marine Terminal. Burleson sued Celanese for negligence, seeking damages for his injuries, physical impairment, loss of enjoyment of life, medical expenses, and loss of capacity to work. The Burleson children sought damages for loss of their father‘s consortium. On January 4, 1990, almost three years after the suit was filed, the trial court granted Burleson‘s motion to appoint an attorney ad litem for the Burleson children.
On June 11, 1990, the trial court entered judgment, according to the agreement of the parties, finding the agreement to be reasonable, fair, just, and in the best interest of the appellees. The judgment award
At the bench trial on the issue of the attorney ad litem fee, the ad litem testified as follows:
- (1) He is a licensed attorney, has been practicing for 24 years, and his area of specialty is personal injury and family law.
- (2) Because the settlement was a structured one, and annuities would be purchased for the Burleson children (presently aged two to five years), his office would need to keep open files on the children for periods of 13 to 16 years to receive and review data and answer questions. He also spent time getting quotes on the annuities.
- (3) His work on the case involved reviewing the pleadings, reading the depositions and deposition summaries, and participating in discovery. He reviewed the financial data on the Burleson family to devise a structured settlement to meet its various needs.
- (4) He was involved in the “hotly” contested issues of discovery compliance, concerning whether sanctions should be entered against Celanese.
- (5) For the previous three months, he had attended numerous pretrial hearings on the case.
- (6) He was involved in discussions with the intervenor workers’ compensation carrier, determining how much would be paid to it.
- (7) The hours he spent on the case to date totalled 150.
- (8) It was his opinion, in accordance with the code of professional responsibility and considering the complexity of the case, the experience of the lawyer, the issues involved, and the period of time involved in the future for handling the case, that a fee of $100,000 was just, fair, and reasonable.
Burleson‘s attorney also testified in support of the ad litem, stating that he agreed with the ad litem‘s testimony, that he would have thought the hours were greater than 150, and that the ad litem made a substantial and crucial contribution to the outcome of the case.
The Celanese attorney did not cross-examine either the ad litem or Burleson‘s attorney, nor did he introduce any evidence concerning the ad litem‘s fee request. He did argue that the requested fee was unreasonable given the number of work hours (150) testified to by the ad litem.
The trial court awarded the ad litem his requested $100,000, stating, “All right. Under all the circumstances and the totality of everything, I‘ll go ahead with the $100,000.”
In its motion for new trial, Celanese objected to the ad litem‘s fee as manifestly too large, contending there was insufficient evidence to support the award and that the amount of the award was against the great weight and preponderance of the evidence. Celanese introduced no evidence. In his response, the attorney ad litem stated that the Burleson children‘s cause of action for loss of parental consortium, even though their father‘s injuries were nonfatal, was not one judicially recognized in Texas. He argued that he was successful in convincing the trial court to deny Celanese‘s special exceptions to the cause of action until the Texas Supreme Court ruled on a similar issue in Vaughn v. Reagan, 784 S.W.2d 88 (Tex.App.--Houston [14th Dist.] 1989),
Celanese does not contest the appointment of the ad litem or that it is the party required to pay an ad litem fee. However, in two points of error, Celanese contends that the trial court abused its discretion by awarding an excessive fee to the attorney ad litem and that there was no evidence or insufficient evidence to support such an excessive fee.
Although referred to as an “attorney ad litem,” the ad litem was appointed under
The amount of compensation awarded a guardian ad litem lies within the discretion of the trial court and will not be overturned unless a clear abuse of discretion is apparent from the record. Simon v. York Crane & Rigging Co., 739 S.W.2d 793, 794-95 (Tex.1987); Smith v. Smith, 720 S.W.2d 586, 591 (Tex.App.--Houston [1st Dist.] 1986, no writ); Welch, 702 S.W.2d at 674; Poston v. Poston, 572 S.W.2d 800, 802-803 (Tex.Civ.App.--Houston [14th Dist.] 1978, no writ).
Celanese did not request, and the trial court did not make, findings of fact and conclusions of law. Therefore, we presume the trial court made all necessary findings to support the judgment. Lemons v. EMW Mfg. Co., 747 S.W.2d 372, 373 (Tex.1988); Burnett v. Motyka, 610 S.W.2d 735, 736 (Tex.1980). However, the legal and factual sufficiency of the implied findings may be challenged on appeal, and the standard of review will be the same one applied to jury findings and a trial court‘s findings of fact. Roberson v. Robinson, 768 S.W.2d 280, 281 (Tex.1989); Burnett, 610 S.W.2d at 736.
When an appellant challenges the legal sufficiency of an adverse finding to an issue on which he did not have the burden of proof, we consider only the evidence and inferences, when viewed in their most favorable light, that tend to support the finding and disregard all others to the contrary. Davis v. City of San Antonio, 752 S.W.2d 518, 522 (Tex.1988). If there is any evidence of probative force to support the finding, the point must be overruled and the finding upheld. Sherman v. First Nat‘l Bank, 760 S.W.2d 240, 242 (Tex.1988); In re King‘s Estate, 150 Tex. 662, 664, 244 S.W.2d 660, 661 (1951). When an appellant challenges the factual sufficiency of the evidence to support an adverse finding, we consider and weigh all the evidence, both that in support of and contrary to the challenged finding. Lofton v. Texas Brine Corp., 720 S.W.2d 804, 805 (Tex.1986). We must uphold the finding, unless we decide the finding is so against the great weight and preponderance of the evidence as to be manifestly erroneous or unjust. In re King‘s Estate, 150 Tex. at 664-65, 244 S.W.2d at 661; M.J. Sheridan & Son Co. v. Seminole Pipeline Co., 731 S.W.2d 620, 623 (Tex.App.--Houston [1st Dist.] 1987, no writ).
The Texas Supreme Court has stated that the discretion of the trial court in setting an ad litem fee is not unbridled. Simon, 739 S.W.2d at 794. It has also stated that the same factors used to determine the reasonableness of attorney fees are controlling, and that those factors include the difficulty and complexity of the case, the amount of time spent by the attorney, the benefit derived by the client, and the skill and experience reasonably needed to perform. Id.; see also Alford v. Whaley, 794 S.W.2d 920, 925 (Tex.App.--Houston [1st Dist.] 1990, no writ).
The ad litem testified that he was an experienced lawyer, that the case was complex, that he had spent 150 hours to the date of judgment on the case, and that $100,000 was a just, fair, and reasonable fee for his services. Burleson‘s attorney testified that he agreed with this testimony. The testimony of an interested witness may establish a fact as a matter of law only if the testimony could be readily contradicted if untrue and is clear, direct, and positive and there are no circumstances tending to discredit or impeach it. Lofton v. Texas Brine Corp., 777 S.W.2d 384, 386 (Tex.1989). The ad litem‘s testimony that a $100,000 fee was reasonable is contradicted by his testimony that he spent 150 hours working on the case and that his firm‘s internal billing attributed $41,521 in fees to the case. However, even if the testimony of the ad litem does not support the legal sufficiency of the trial court‘s implied finding of reasonableness of the fee, the testimony of Burleson‘s counsel does. We find there is more than a scintilla of evidence to support the reasonableness of the ad litem‘s fee.
In reviewing the factual sufficiency of the evidence on the reasonableness of the ad litem‘s fee, we begin by examining what other Texas courts have said regarding reasonable fees. In Vaughn v. Gunter, 458 S.W.2d 523, 528 (Tex.Civ.App.--Dallas 1970, writ ref‘d n.r.e.), the court found the evidence supported the reasonableness of the ad litem fee where the fee awarded was $10,000, the firm had worked a total of 166 hours, and the litigation involved a trust worth in excess of $2,000,000. In Welch, 702 S.W.2d at 675, the Fourteenth Court of Appeals found the evidence supported an ad litem award of $166,667, where the total settlement was $5,150,000; the minor received $1,000,000 free of costs, expenses, and fees; attorneys for both sides testified that the settlement would not have been accomplished but for the ad litem‘s efforts; and the ad litem‘s statement documented 449 hours of work. In Brown & Root U.S.A., Inc. v. Trevino, 802 S.W.2d 13, 15-16 (Tex.App.--El Paso 1990, no writ), the court found that an ad litem award of $125,000 ($115,000 in fees and $10,000 in expenses) for 500 hours of work, equaling $230 per hour was excessive.
The ad litem and Burleson‘s attorney testified that the $100,000 ad litem fee was reasonable. In opposition to this, we have the ad litem‘s internal firm invoice indicating that the actual fee incurred was $41,521 and his testimony that the actual hours expended were 150 to the day of judgment. The fee awarded by the trial court divided by the actual hours expended equals an hourly rate of $666.
The settlement agreement shows that the Burleson children were awarded $74,659, approximately $25,000 less than the ad litem fee, but that they will enjoy no benefit from this until the years 2003, 2005, and 2006. While it is true that they will enjoy future benefits totalling $112,000, $135,000, and $148,000, which are far in excess of the present dollars awarded, it is the present value that must be considered. Had the children actually received the $74,659 and were it invested in their behalf, we would consider only the benefit from the principal. Moreover, the ad litem fee is paid in the present.
Although the cause of action, loss of parental consortium without parental death, asserted by the ad litem was a novel one only recently recognized by the Texas Supreme Court, the services of the ad litem did not involve complex matters. There was no trial, and the ad litem filed no trial brief. Most of the ad litem‘s activities
We acknowledge the testimony of the ad litem that he would need to keep files open on the Burleson children for periods of 13 to 16 years in order to receive and review data and answer questions. This activity is not part of an ad litem‘s duty. Assuming that such service accounts for the difference between the firm‘s internal invoice and the $100,000 fee awarded, the ad litem would be receiving for future, possibly contingent, and unspecified services a greater sum than for his ad litem services.
When we consider the hours spent by the ad litem, the complexity of the case, and the present benefit to the client reflected in the record before us, we find that the evidence is factually insufficient to support the ad litem‘s fee and that the trial court abused its discretion in awarding the $100,000 fee. We sustain Celanese‘s first point of error. We overrule Celanese‘s second point of error relating to the legal sufficiency of the evidence, and sustain the point of error as it pertains to the factual sufficiency of the evidence. Because of our disposition of the points of error, it is unnecessary for us to address the cross-point of the appellees.
In Alford, this Court held that when a record showed a total of 90 hours for trial work and an hourly rate of $150, the trial court abused its discretion in awarding a $25,000 ad litem fee. 794 S.W.2d at 926. We reformed the judgment to set the ad litem fee at $13,500. Id. at 926. We noted that an appellate court has the authority to draw on the common knowledge of the justices of the court and their experience as lawyers and judges to view the matter in light of the testimony, the record, and the amount in controversy. Id. at 925 (citing Dawson v. Garcia, 666 S.W.2d 254, 264 (Tex.App.--Dallas 1984, no writ) and Golden v. Murphy, 611 S.W.2d 914, 916 (Tex.Civ.App.--Houston [14th Dist.] 1981, no writ)).
Accordingly, we reverse the judgment on the attorney ad litem fee and render judgment that the ad litem recover from Celanese the amount of $41,521 plus $603.30 in expenses.
COHEN, Justice, dissenting.
I agree that an award of $100,000 in attorney ad litem fees was excessive, but I disagree with the majority concerning the amount of the excess and the standard of review. I believe the record shows there is no evidence to support an award of more than $90,000; thus, I would sustain appellant‘s no evidence contention in point of error number two to that extent. Next, I would determine whether there was factually sufficient evidence to support an award of $90,000. Because the evidence is not so weak as to make a $90,000 award manifestly unjust, I would overrule the remainder of points of error one and two and hold that the trial court did not abuse its discretion in awarding a fee of $90,000.
The Standard of Review
I would apply the standard of review set out in Larson v. Cactus Utility Co., 730 S.W.2d 640, 642 (Tex.1987):
If a court of appeals holds that there is no evidence to support a damages verdict, it should render a take-nothing judgment as to that amount.
Legal Sufficiency---No Evidence Contentions
The attorney ad litem, James Patrick Smith, sought to justify his fee in part by claiming that he would have to maintain files, and to communicate with and on behalf of the minors, for the next 13 to 16 years, until they reached their majorities. In response to the trial court‘s question concerning his responsibilities during this time, Mr. Smith testified he would “make sure that the (annuity) contract is performed.” When the trial court asked how much less the fee would be without such future services, Mr. Smith replied, “proba
Factual Sufficiency
The remaining issue is whether the evidence supporting a fee of $90,000 is so weak that the award is manifestly unjust.
There were two hearings on fees. At the settlement hearing on June 11, 1990, Mr. Smith and the attorney for the adult plaintiffs, Mr. Matthews, testified in support of a $100,000 award. Appellants asked no questions and presented no evidence. At the hearing on appellants’ motion for new trial on August 13, Smith and Matthews presented affidavits in support of the $100,000 fee. Again, appellants presented no evidence. Appellants did not request findings of fact or conclusions of law. Consequently, we must uphold the trial court‘s award (or any part of it) on any basis that is supported by evidence. Lemons v. EMW Mfg. Co., 747 S.W.2d 372, 373 (Tex.1988).
The record would support the following findings of fact: 1) Without the risk or the trauma of a trial, Mr. Smith convinced appellants to pay his clients almost $75,000 for a cause of action that did not exist under Texas law;1 2) during the 34 months of litigation before Smith entered the case, appellants offered nothing; five months later, they paid $1.4 million; 3) Smith attained or could have attained more than $75,000 for the minors, but wisely bargained to attribute the excess to their parents, the adult plaintiffs Jimmy and Michelle Burleson, if he could influence them to forego cash and take a structured settlement. This was in the minors’ best interest because the family had no current wage earner and Mrs. Burleson had to provide permanent, full-time home care to the youngest child, who suffered from a disabling congenital heart defect; 4) but for Mr. Smith, the case would not have settled and the minors would have undergone the delay, risk, and agitation of a trial and possibly an appeal; 5) but for Mr. Smith, the minors would have received nothing, which was their due under existing case law; 6) but for Mr. Smith‘s efforts pertaining to sanctions, the adult plaintiffs may have received nothing or much less from a trial or a settlement; 7) but for Mr. Smith, the adult plaintiffs would have taken their proceeds from trial or settlement not in a structured settlement, but in cash, even though they lacked the ability to preserve the money for the 13 to 16 years needed to support the minor children.
In short, the trial court could have concluded that Mr. Smith was entitled to an approximately 117% bonus over the amount on his internal invoice ($41,521) because he got $75,000 for clients who were legally entitled to nothing, and then forced the parents, over whom he had no direct control, to invest their money in a way that would avoid it being wasted and instead preserve it for many years into the future to provide for the minors’ support.1
The evidence related in the footnote supports the trial court‘s award. We need not consider the contrary evidence because there is none.
There is no question that a fee of $90,000 is high. It amounts to $600 per hour, more than I would have awarded and more than double the highest figure the majority of this panel (comprised of two former trial judges) would have awarded. Moreover, the same trial judge was recently found to have abused his discretion by awarding excessive attorney ad litem fees in another case. Brown and Root U.S.A., Inc. v. Trevino, 802 S.W.2d 13, 15-16 (Tex.App.--El Paso 1990, no writ). Plainly, this system, like all others, can be abused.
I would reform the judgment by reducing it to $90,000 and affirm.
TRANSMISSION EXCHANGE INC. & Don Schmidt, Appellants, v. George W. LONG, Appellee.
No. 01-90-00966-CV
Court of Appeals of Texas, Houston (1st Dist.).
Oct. 31, 1991
Rehearing Granted in Part to Correct Judgment; Rehearing Overruled in Part Dec. 5, 1991. Rehearing Denied Jan. 9, 1992.
