Samuel GARCIA Jr., M.D., Petitioner, v. Maria GOMEZ, Individually and Representative of the Estate of Ofelia Marroquin, Deceased, Respondent.
No. 09-0159.
Supreme Court of Texas.
Argued Jan. 21, 2010. Decided Aug. 27, 2010.
319 S.W.3d 638
Justice MEDINA delivered the opinion of the Court, joined by Justice HECHT, Justice WAINWRIGHT, Justice GREEN, Justice WILLETT, Justice GUZMAN, and Justice LEHRMANN.
The Texas Medical Liability Act requires that a health care liability claimant serve expert reports on each defendant physician or provider within 120 days after filing suit.
No expert report was served in this case, and the trial court accordingly dismissed it. The court, however, did not award attorney‘s fees. The court of appeals affirmed, concluding the trial court had not abused its discretion in failing to award attorney‘s fees because the record contained no evidence of the reasonable fees incurred by the physician in defense of the claim. 286 S.W.3d 445, 449. We conclude, however, that there is some evidence of reasonable attorney‘s fees and some evidence that the physician incurred attorney‘s fees. We further conclude that
I
Ofelia Marroquin died from a pulmonary embolism following surgery. Her daughter, Maria Gomez, individually and as representative of her mother‘s estate, sued the hospital and the treating physician, Dr. Samuel Garcia. Gomez asserted that her mother had a history of blood clots and that Dr. Garcia had not taken proper precautions to guard against the embolism that caused her death. Specifically, she argues that the standard of care required the doctor to install a blood filter as a preventive measure.
Medical records obtained from Dr. Garcia failed to indicate that he had placed such a filter in her mother‘s chest cavity during surgery. After filing suit, however, Gomez obtained additional medical records from the hospital, which revealed that a filter had in fact been placed in her mother‘s chest cavity apparently during some earlier procedure. This new information apparently caused Gomez not to serve expert reports.
After the deadline for serving these reports, Dr. Garcia moved to dismiss Gomez‘s claim. Gomez did not oppose the dismissal, although she did contest Garcia‘s right to attorney‘s fees, arguing that Garcia had in a sense brought the suit on himself by failing to produce the medical
Dr. Garcia‘s evidence on attorney‘s fees came from his counsel, who testified as follows:
My name is Ronald Hole. I‘m an attorney practicing in Hidalgo County, doing medical-malpractice law/litigation. I have done it since 1984. For a usual and customary case like this these fees for handling it up to the point of dismissal, the reasonable and necessary attorney‘s fees for handling that is 12,200 dollars.
If the case is appealed to the Court of Appeals, the reasonable fee for handling the matter at the Court of Appeals would be 8,000 dollars. If a Petition for Review is filed at the Supreme Court, an additional fee of 5,000 dollars would be reasonable for handling the matter of the Petition for Review and our brief or briefs on the merit. Petition granted by the Supreme Court then adds an additional 6,000 dollars. That would be a reasonable fee for handling the matter at that stage.
In affirming the trial court‘s judgment, the court of appeals concluded that this testimony was conclusory and therefore no evidence of the reasonable attorney‘s fees incurred by Dr. Garcia. 286 S.W.3d at 449. The court further concluded that the attorney‘s testimony was insufficient because it failed to establish that the physician actually incurred attorney‘s fees, which the court described as “an essential statutory element.” Id.
II
An attorney‘s testimony about the reasonableness of his or her own fees is not like other expert witness testimony. Although rooted in the attorney‘s experience and expertise, it also consists of the attorney‘s personal knowledge about the underlying work and its particular value to the client. The testimony is similar to that of a property owner whose personal knowledge qualifies him to give an opinion about his own property‘s value. See, e.g., State v. Cent. Expressway Sign Assocs., 302 S.W.3d 866, 874 (Tex. 2009); Gulf States Utils. Co. v. Low, 79 S.W.3d 561, 566 (Tex. 2002). The attorney‘s testimony is not objectionable as merely conclusory because the opposing party, or that party‘s attorney, likewise has some knowledge of the time and effort involved and if the matter is truly in dispute, may effectively question the attorney regarding the reasonableness of his fee.
In this case, Garcia‘s attorney testified briefly about his experience in medical malpractice litigation. He then estimated $12,200 to be a reasonable and necessary fee for representation through dismissal in a case like this one. Finally, he testified about his fees in the event of an appeal and that such fees were also reasonable. Gomez did not cross-examine the witness or present any additional evidence on the issue of attorney‘s fees. Nor did she question the reasonableness of the amount of any of these fees. While the attorney‘s testimony lacked specifics, it was not, under these circumstances, merely conclusory. It was some evidence of what a reasonable attorney‘s fee might be in this case.
Dr. Garcia argues, however, that the attorney‘s testimony was not only
While we agree that Garcia‘s attorney‘s testimony is some evidence of a reasonable fee, it is not conclusive. The statute here provides that the trial court is to award “reasonable attorney‘s fees and costs of court incurred by the physician or health care provider” when the claimant fails to serve an expert report within 120 days of filing suit.
Both the adjective “reasonable” and the verb “incurred” act to limit the amount of attorney‘s fees the trial court may award. Ideally, they will be the same, such as when the physician has agreed to pay reasonable fees and costs. But a physician may negotiate a fee that is either more or less than a reasonable fee and thus incur, or become liable for, a greater or lesser amount. The statute, however, limits the award to the lesser of the two, that is, the fee to be awarded is the lesser of a reasonable fee or the fee actually incurred. Testimony about reasonable fees then is not necessarily evidence about the fees incurred.
Although there is no evidence of the amount of the fees incurred by Dr. Garcia, the court of appeals goes further to conclude there is no evidence that Dr. Garcia actually incurred attorney‘s fees at all. The record reflects, however, that services were performed on the doctor‘s behalf. The attorney filed an answer, a plea in abatement, a motion to dismiss, and a notice of appeal. The attorney also appeared, argued, and gave testimony regarding the motion to dismiss. While there is no evidence about what Dr. Garcia (or perhaps his insurance carrier) agreed to pay for these services, it blinks reality to assume that the attorney was a volunteer or that Dr. Garcia did not incur attorney‘s fees for this work. As we recently
III
Gomez argues, however, that Dr. Garcia should nevertheless be denied attorney‘s fees because he failed to produce the appropriate medical records in a timely manner. Pertinent to this argument is
Gomez‘s pleadings asserted that Dr. Garcia was negligent in “not prevent[ing] the formation of a pulmonary embolism by appropriate means,” but the pleadings did not expressly mention the critical blood filter. Even assuming the physician understood the filter‘s significance to Gomez‘s case, it is not apparent why he would have concealed this exculpatory information. Instead, Dr. Garcia maintains that he produced all relevant medical records in his possession. Moreover, the hospital ultimately produced the records confirming the filter‘s existence as part of its medical records. Nothing in the record suggests that Dr. Garcia‘s records also contained this information or that he withheld the information. Gomez fails to explain why she did not seek or obtain these records from the hospital during the pre-suit notice period or why it was Dr. Garcia‘s responsibility to obtain them for her. Although we can imagine a case in which discovery sanctions might offset an award of fees and costs under
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Chief Justice JEFFERSON filed a dissenting opinion, joined by Justice JOHNSON.
Justice JOHNSON filed a dissenting opinion.
Chief Justice JEFFERSON, joined by Justice JOHNSON, dissenting.
In a health care liability case, a plaintiff must serve an expert report on a defendant physician within 120 days of filing suit. See
If . . . an expert report has not been served . . . the court, on the motion of the affected physician or health care provider, shall . . . enter an order that:
(1) awards to the affected physician or health care provider reasonable attorney‘s fees and costs of court incurred by the physician or health care provider; and
(2) dismisses the claim with respect to the physician or health care provider, with prejudice to the refiling of the claim.
The Court has previously stated, and emphasizes again today, that if a timely and sufficient expert report is not served, a trial court must dismiss the case and award fees on motion by the affected physician or health care provider. See 319 S.W.3d at 640 (“[S]ection 74.351(b) mandates an award of attorney‘s fees and costs, when expert reports are not served timely . . . .“); see also Hernandez v. Ebrom, 289 S.W.3d 316, 318 (Tex. 2009) (“If a timely and sufficient report is not served, the trial court must award the provider its attorney‘s fees and costs and dismiss the case with prejudice.“); Bocquet v. Herring, 972 S.W.2d 19, 20 (Tex. 1998) (“Statutes providing that a party ‘may recover,’ ‘shall be awarded,’ or ‘is entitled to’ attorney fees are not discretionary.“). But even a mandatory fee award must have evidentiary support. Bocquet, 972 S.W.2d at 21.
My name is Ronald Hole. I‘m an attorney practicing in Hidalgo County, doing medical-malpractice law/litigation. I have done it since 1984. For a usual and customary case like this these fees for handling it up to the point of dismissal, the reasonable and necessary attorneys fees for handling that is 12,200 dollars. If the case is appealed, reasonable fees up to this point is 12,200. If the case is appealed to the Court of Appeals, a reasonable fee for handling the matter at the Court of Appeals would be 8,000 dollars. If a Petion [sic] for Review is filed at the Supreme Court, an additional fee of 5,000 dollars would be reasonable for handling the matter of the Petition for Review and our brief or briefs on the merit. Petition granted by the Supreme Court then adds an additional 6,000 dollars. That would be a reasonable fee for handling the matter at that stage.
Testimony that a fee is reasonable, without saying it was ever charged, is useless. What if Dr. Garcia incurred only $1,000 in fees, even though a “typical” case like this would involve $12,200? Would the trial court have the discretion to award $12,200? See Daughters of Charity Health Servs. of Waco v. Linnstaedter, 226 S.W.3d 409, 412 (Tex. 2007) (indicating that the Court favored a theory of jurisprudence that avoided a “windfall” to the injured party). This is why the statute requires evidence that attorney‘s fees were both reasonable and incurred.
The Court holds that “there is some evidence in this case that attorney‘s fees were both incurred and reasonable.” 319 S.W.3d at 643. The Court gives two reasons for that conclusion. First, the record reflects that Dr. Garcia had an attorney and that he filed pleadings on Dr. Garcia‘s behalf. No one disputes that Dr. Garcia was represented; the question is the amount of fees he incurred. His lawyer did not answer that question. We should not give Dr. Garcia a second chance to satisfy his burden of proof.
Next, the Court relies on our recent decision in Aviles v. Aguirre, 292 S.W.3d 648, 649 (Tex. 2009) (per curiam); however, such reliance is misplaced. In Aviles, we addressed whether a defendant physician “incurred” fees under
Aviles is not relevant here. We are not concerned with whether a party “incurs” fees when he or she becomes liable for those fees—the issue we decided in Aviles. Instead, we must decide whether there is evidence that fees were incurred at all.2
The Court comes close to a dispositive concession by acknowledging “there is no evidence of the amount of fees incurred by Dr. Garcia. . . .” That should be the end of it. A party with the burden of proof who fails to produce evidence of attorney‘s fees, waives his right to those fees. Intercontinental Group P‘ship v. KB Home Lone Star L.P., 295 S.W.3d 650, 657 (Tex. 2009).4 An award of zero fees is therefore appropriate. See Cale‘s Clean Scene Carwash, Inc. v. Hubbard, 76 S.W.3d 784, 787 (Tex. App.-Houston [14th Dist.] 2002, no pet.) (“[A] zero award for attorney‘s fees [is] proper if the evidence . . . failed to prove (a) that any attorney‘s services were provided; or (b) the value of the services provided . . . .“).
As there is no evidence of fees incurred, I would conclude, as the court of appeals did, that the trial court did not abuse its discretion in refusing Dr. Garcia‘s request for attorney‘s fees under
Justice JOHNSON, dissenting.
I disagree with the Court‘s holding for the reasons expressed by Chief Justice Jefferson and join his dissent. However, I write to express particular disagreement with the Court‘s statement that “[a]n attorney‘s testimony about the reasonable-ness of his or her own fees is not like other expert witness testimony. . . . The attorney‘s testimony is not objectionable as merely conclusory because the opposing party, or that party‘s attorney, likewise has some knowledge of the time and effort involved and, if the matter is truly in dispute, may effectively question the attorney regarding the reasonableness of his fee.” 319 S.W.3d at 641.
As to reasonableness of an attorney‘s fee, in Arthur Andersen & Co. v. Perry Equipment Corp., the Court addressed language in the Deceptive Trade Practices Act1 allowing recovery of “reasonable and necessary attorneys’ fees.” 945 S.W.2d 812, 818 (Tex. 1997). In considering whether a contingent fee was a reasonable fee we said:
Factors that a factfinder should consider when determining the reasonableness of a fee include:
(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill required to perform the legal service properly;
(2) the likelihood . . . that the acceptance of the particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and
(8) whether the fee is fixed or contingent on results obtained or uncertainty of collection before the legal services have been rendered.
. . .
A party‘s contingent fee agreement should be considered by the factfinder, see
TEX. DISCIPLINARY R. PROF. CONDUCT 1.04(b)(8) , and is therefore admissible in evidence, but that agreement cannot alone support an award of attorney‘s fees underTexas Business and Commerce Code section 17.50(d) . In other words, the plaintiff cannot simply ask the jury to award a percentage of the recovery as a fee because without evidence of the factors identified in Disciplinary Rule 1.04, the jury has no meaningful way to determine if the fees were in fact reasonable and necessary.
Id. at 818-19 (citation omitted).
Without saying why, the Court departs significantly from the evidence requirements for determining reasonable fees we set out in Arthur Andersen. Here the testimony touched on two of the Arthur Andersen factors: the attorney‘s experience in this type of litigation and a “reasonable and necessary” fee for a “usual and customary case like this.” In Arthur Andersen the fee was contingent. Here the testimony did not even address the basis of the fee; that is, whether it was contingent, a flat rate through some part of the case, an hourly or per diem charge, a blend of fee types, or some other type of fee arrangement. The attorney‘s testimony as to experience involved facts. His testimony as to fees, however, was not factual; it was opinion and conclusory. And even assuming it addressed the attorney‘s own work on this case (the testimony did not specify who worked on the case and pointedly did not address work done on this specific case) it was nothing more than an ipse dixit by a credentialed witness.
The court of appeals addressed the Arthur Andersen issue and properly determined there was no evidence of a reasonable fee because the attorney‘s testimony was conclusory. I agree with the court of appeals. Garcia‘s attorney‘s testimony is not probative evidence because it does not contain the underlying factual basis on which it rests. See, e.g., Burrow v. Arce, 997 S.W.2d 229, 235 (Tex. 1999) (“[A] claim will not stand or fall on the mere ipse dixit of a credentialed witness.“); BLACK‘S LAW DICTIONARY 284 (7th ed. 1999) (defining conclusory as “[e]xpressing a factual inference without stating the underlying facts on which the inference is based“). As Chief Justice Jefferson notes, in no other area of the law would such testimony be entitled to probative weight. See 319 S.W.3d at 645 (Jefferson, C.J., dissenting).
Further, the rule has long been that whether testimony of a witness is conclusory turns on the testimony itself, not on whether the opposing party or its attorney has knowledge of matters underlying the testimony and examines the testifying witness. E.g., Wal-Mart Stores, Inc. v. Merrell, 313 S.W.3d 837, 839 (Tex. 2010) (“No-evidence challenges to allegedly conclusory expert testimony require us to examine the record on its face to determine whether the evidence lacks probative value.“); City of San Antonio v. Pollock, 284 S.W.3d 809, 816 (Tex. 2009); Coastal Transport Co., Inc. v. Crown Cent. Petroleum Corp., 136 S.W.3d 227, 233 (Tex. 2004) (“When the testimony is challenged as conclusory or speculative and therefore non-probative on its face, however, there is no need to go beyond the face of the record to test its reliability.“) (citations omitted); Dallas Ry. & Terminal Co. v. Gossett, 156 Tex. 252, 294 S.W.2d 377, 380-81 (1956) (“It is well settled that the naked and unsupported opinion or conclusion of a witness does not constitute evidence of probative force and will not support a jury finding even when admitted without objection.“). There may be valid reasons for the Court to take the position that an attorney‘s testimony about the reasonableness of his or her fees is different from other expert witness testimony. But it is hard to see valid reasons for holding that conclusory testimony, which according to long-standing precedent has no probative force, is converted to evidence with probative value because an adverse party has information or knowledge about matters underlying the testimony. In an environment where discovery plays a major part in any lawsuit, only a naive or completely unprepared litigant will lack
With the foregoing comments and for the reasons expressed both by Chief Justice Jefferson and the court of appeals, I respectfully dissent. I would affirm the judgment of the court of appeals.
Notes
[T]he court, on the motion of the affected physician or health care provider, shall, subject to [an extension of time for a deficient report], enter an order that:
(1) awards to the affected physician or health care provider reasonable attorney‘s fees and costs of court incurred by the physician or health care provider; and
(2) dismisses the claim with respect to the physician or health care provider, with prejudice to the refiling of the claim.
