In rе Woody K. LESIKAR, as Trustee of the Woodrow V. Lesikar Family Trust, Trustee of the Woody K. Lesikar Special Trust, and Independent Executor of the Estate of Woodrow V. Lesikar, Relator.
Court of Appeals of Texas, Houston (14th Dist.).
*580 J. Stephen Barrick, Houston, and Joe Alfred Izen, Bellaire, for Appellants.
Brett Wagner, Bobbie G. Bayless, David W. Holman, Houston, and Vaughn O. Stewart, Lake Jackson, for Appellees.
Panel consists of Justices YATES, GUZMAN, and SULLIVAN.
OPINION
EVA M. GUZMAN, Justice.
In this original proceeding, relator Woody K. Lesikar, as trustee of the Woodrow V. Lesikar Family Trust, trustee of the Woody K. Lesikar Special Trust, and independent executor of the Estate of Woodrow V. Lesikar, seeks a writ of mandamus ordering the Honorable Robert May, presiding judge of the 149th District Court of Brazoria County, to vacate his January 5, 2009 order that (1) granted the motion filed by real party in interest, Carolyn Ann Lesikar Moon, individually and as named trustee of the Carolyn Ann Lesikar Moon Special Trust, to strike the case from the jury docket; (2) denied Woody's motion for continuance of the trial; and (3) denied, in part, Woody's motion to compel discovery. We conditionally grant the petition in part, аnd deny it in part.
I. BACKGROUND
Because this case has made more than one journey through the appellate courts, a brief summary of the facts and the case's history is helpful in understanding not only the procedural posture in which it now comes before us, but also in distinguishing matters that have been finally resolved from those that remain at issue.
Carolyn Moon and Woody Lesikar are siblings. Their father, Woodrow V. Lesikar, established the Woodrow V. Lesikar Family Trust (the "Family Trust"), and provided that upon his death, separate special trusts would be created for his widow, his grandchildren, Carolyn, and Woody. See Moon v. Lesikar,
A. First Trial
Woody obtained partial summary judgment on some of Carolyn's claims; those claims were severed from the remaining issues and the judgment was affirmed by this court. Id. at 806. With regard to the remaining claims, the trial court appointed a special master to examine the Family Trust's records, create a plan to distribute the Family Trust's assets, and report to the court. Lesikar v. Moon,
Woody appealed, and asserted that the evidence was legally insufficient to support the trial court's finding that, under the Declaratory Judgments Act and the Texas Property Code, $400,000 was a reasonable and necessary award for Carolyn's attorneys' fees. Id. at 375; TEX. CIV. PRAC. & REM.CODE ANN. § 37.009 (Vernon 2008) (addressing attorneys' fees under the Declaratory Judgments Act); TEX. PROP.CODE ANN. § 114.064 (Vernon 2007) (governing attorneys' fees and costs for proceedings under the Texas Trust Code). We reversed and remanded for a new trial on the issue of attorneys' fees, and the Texas Supreme Court denied Carolyn's petition for review and for rehearing.
B. Proceedings on Remand
The case initially was tried without a jury, but on remand, Woody requested and paid the required fee for a jury trial. Both parties propounded discovery, and a jury trial was set for January 5, 2009. Woody then moved for a continuance to allow more time for discovery. At a hearing on the motion, the trial court stated that it would deny the motion for continuance if Carolyn provided a recreated itemization of her attorneys' fees. Carolyn's attorneys agreed to deliver the reports to opposing counsel on December 22, 2008. Shortly before 5:00 p.m. on December 22, 2008, Carolyn's attorney faxed discovery responses to opposing counsel. The responses did not contain a recreated itemization of Carolyn's attorneys' fees, although they did include some redacted partial time records from two law firms.
On December 30, 2008, Carolyn moved to strike the case from the jury docket. The argument and authorities included as support for her motion consist entirely of the following:
8. This case was remanded to this Court solely for a determination on the issue of segregation of attorney's fees. Lesikar v. Moon,237 S.W.3d 361 , 378 (Tex.App.-Houston [14th Dist.] 2007, pet. denied).
9. Segregation of attorney's fees is purely a lеgal issue and not proper for determination by a jury. Air Routing Int'l. Corp., et. al v. Britannia Airways, Ltd.,150 S.W.3d 682 , 688 (Tex.App.-Houston [14th Dist.] 2004, no pet. h.) *582 [sic]; Stewart Title Guaranty Co. v. Sterling,822 S.W.2d 1 , 12 (Tex.1991) [sic].
Carolyn set her motion for a hearing to be held contemporaneously with the start of trial.
On January 5, 2009, the trial court granted Carolyn's motion to strike the jury demand and denied Woody's motion for continuance. The court also partially granted Woody's motion to compel, inasmuch as it required Carolyn to deliver unredacted copies of the previously-produced time records to Woody's attorney. Trial was then recessed until January 8, 2009.
On January 7, 2009, Woody filed a petition for writ of mandamus and a motion for emergency relief staying the trial. We granted the motion, and now address the issues raised in Woody's petition for writ of mandamus.
II. ISSUES PRESENTED
Woody requests mandamus relief requiring the trial court to place Carolyn's claim for attorneys' fees on the jury trial docket and compel Carolyn to provide additional responses to discovery.[1] Both Woody and Carolyn also ask that if we conclude Woody is entitled to a jury trial on the issue of attorneys' fees, we provide the parties and the trial court with instructions on the scope of the issues to be addressed by the jury.
III. STANDARD OF REVIEW
To be entitled to the extraordinary relief of a writ of mandamus, a relator must show that the trial court clearly abused its discretion and left him no adequate remedy by appeal. In re Team Rocket, L.P.,
IV. ANALYSIS
A. Jury Trial
Carolyn moved to strike the case from the jury-trial docket on the grounds that (1) this court remanded the case solely "to allow the [trial] court to determine segregation," and (2) segregation is a matter of law for the trial court to resolve. The first contention is mistaken; the second is misleading. Because both parties have requested clarification of the scope of remand, which cannot be accomplished without further explaining the law concerning segregation of attorneys' fees, we begin our analysis there.
1. The Fee-Segregation Rule
Under the American Rule, trial courts have no inherent authority to require a losing party to pay the prevailing party's attorneys' fees. Buckhannon Bd. & Care Home, Inc. v. W. Va. Dep't of Health & Human Res.,
Although the general rule has remained constant, the exception to the rule has changed. CA Partners,
the determination focuses on whether the legal work performed pertаins solely to claims for which attorneys' fees are not recoverable. Moreover, in making this determination, factfinders do not examine the work product as a whole, but parse the work into component tasks. See Tony Gullo,212 S.W.3d at 313 ("But when Chapa's attorneys were drafting her pleadings or the jury charge relating to fraud, there is no question [that] those fees were not recoverable.") (emphasis added); id. at 314 ("Chapa's attorneys did not have to keep separate time records when they drafted the fraud, contract, or DTPA paragraphs of her petition; an opinion would have sufficed stating that, for example, 95 percent of their drafting time would have been necessary even if there had been no fraud claim.") (emphasis added). If any of the component tasks relate solely to a cause of action for which legal fees are not recoverable, the claimant must segregate the fees.
7979 Airport Garage, L.L.C. v. Dollar Rent A Car Sys.,
*584 [T]he fees necessary to prove particular claims often turn on such facts-how hard something was tо discover and prove, how strongly it supported particular inferences or conclusions, how much difference it might make to the verdict, and a host of other details that include judgment and credibility questions about who had to do what and what it was worth.
Tony Gullo Motors,
2. Carolyn's Recoverable Attorneys' fees
As we pointed out in Lesikar, Carolyn asserted claims under the Declaratory Judgments Act and the Texas Property Code, and each of which authorizes the recovery of such reasonable and necessary attorneys' fees as are equitable and just. Lesikar,
3. Clarification of the Scope of Remand
As we previously pointed out, Carolyn is not entitled to recover attorneys' fees incurred solely to advance her nonsuited claims of breach of fiduciary duty, negligence, conversion, interference with inheritance, and civil conspiracy; however, she failed to segregate her claims for such nonrecоverable attorneys' fees from her claims for attorneys' fees authorized by the Declaratory Judgments Act or the Property Code. Lesikar,
Contrary to Carolyn's assertions, we did not remand the case solely for identification, as a matter of law, of the causes of action for which attorneys' fees are potentially recoverable. Indeed, because this is question of law, no remand is necessary for such a determination. But when, as hеre, multiple causes of action are asserted, some of which allow fee recovery and some of which do not, then evidence of time or money necessary only to the litigation of claims for which attorneys' fees are not recoverable must be segregated from evidence of the reasonable amount of time or money necessary for the performance of legal services necessary to litigate claims for which attorneys' fees are recoverable. If a particular legal service was necessary to litigate a cause of action for which attorneys' fees are recoverable, such fees are not rendered unrecoverable merely because they also advance a claim for which attorneys' fees would not be otherwise available.
Applying the reasoning of Tony Gullo Motors to this case, the attorneys' fees that may be considered by the jury are those that are both reasonable and necessary to the litigation of Carolyn's claims under the Declaratory Judgment Act or section 114.064 of the Property Code, but do not include fees incurred for services necessary only to present or litigate her remaining claims.
On remand, Carolyn must present evidence to support a fee award, and such evidence may be presented in terms of the reasonable amount of time or money necessary to litigate particular claims. If a legal service necessary to the litigation of a claim for which attorneys' fees are available also advanced a сlaim for which attorneys' fees are not recoverable, then the exception to the general fee-segregation rule applies, and the amount of time or money that was reasonable to expend in performing the service need not be segregated among the claims it advanced.
The jury must then consider the evidence that particular amounts of time or money were reasonable for the performance of legal services necessary to the litigation of a claim fоr which attorneys' fees are available. In doing so, the jury weighs the evidence and considers (1) the time and labor involved, the novelty and difficulty of the questions involved, and the skill required to perform the legal services 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 оr 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. See Arthur Andersen & Co. v. Perry Equip. Corp.,
4. Availability of Attorneys' Fees for Appeal
Carolyn additionally asks that we clarify the scope of the remand to allow her to present evidence of attorneys' fees incurred in the appeal. Woody agrees that the scope of the remand should be clarified, but asks us to state that Carolyn waived her claim for appellate attorneys' fees because she failed to рresent evidence or secure any findings regarding such fees in the first trial. See City of San Antonio v. Int'l Ass'n of Fire Fighters,
In Varner, as here, the court of appeals reversed an award of attorneys' fees that was based on unsegregated еvidence of recoverable and nonrecoverable fees. Id. at 69. The court of appeals affirmed the trial court's denial of appellate fees on remand because the prevailing party offered no evidence regarding a reasonable fee for those services during the initial trial. Id. Our high court expressly refused the Varners' request to "change Texas procedure to allow post-judgment fees to be determined after appeal by remand to the trial court." Carolyn has not attempted to distinguish Varner, and offers no explanation why a change in settled law is justified in this case.
We conclude that Carolyn has waived any claim to appellate attorneys' fees on remand because in the initial trial, she failed to request appellate fees, present any evidence to support an award of appellate fees, or procure a finding or judgment on fees for appellate legal services. Therefore, Carolyn is limited on remand to trying her claim for attоrneys' fees incurred in the first trial.
5. Right to Jury on Remand
The Texas Constitution guarantees the right to a trial by jury. Monroe v. Alternatives in Motion,
In a letter brief without supporting citations to the record or any authority, Carolyn suggested that Woody waived his right to jury trial on remand because he purportedly waived his right to a jury in the first trial. We need not decide whether Woody waived his right to a jury in the first trial, because waiver of a jury in one trial does not affect either party's right to demand a jury in the second trial after remand where the demanding party has complied with Rule 216. In re Marriage of Stein,
We conclude that the trial court abused its discretion by granting Carolyn's motion to strike the case from the jury docket. See In re Prudential Ins. Co.,
B. Request to Compel Discovery Responses
Woody further asks why the that we order the trial court to compel the production of discovery responses on Carolyn's claim for attorneys' fees. On December 12, 2008, the trial court heard Woody's motion to continue the January 5, 2009 trial setting to allow additional time to cоnduct discovery. After Carolyn's counsel promised to provide "a wealth of information" by December 22, 2008, including a detailed report itemizing her claim for attorneys' fees, the trial court denied Woody's first motion for continuance. The trial court also agreed that Woody could request further relief if he did not receive adequate information in the promised report. After Carolyn produced only redacted records rather than a "wealth of information" or a detailed report, Woody filed his second motion for continuance and a motion to compel. At the January 5, 2009 hearing, the trial court ordered Carolyn to produce an unredacted version of the records she had produced to Woody.
Woody now asserts that without additional discovery responses, his ability to cross-examine Carolyn's witnesses or present his own witnesses will be severely compromised, and he will be unable *588 to make such information part of the appellate record.[4] But aside from the unredacted billing records, which the trial court already has ordered Carolyn to produce, Woody has nоt identified the additional discovery responses he claims are necessary, stated why such additional responses are needed, explained why the trial court's discovery rulings are erroneous, or informed us why any such error constitutes a clear abuse of discretion. Although Woody contends that the trial court's error in denying the motion to compel and identification of the wrongfully-withheld discovery is apparent from the record, we cannot agree, particularly in light of the rules requiring exclusion of evidence responsive to discovery requests if the offering party failed to timely amend or supplement incorrect or incomplete discovery responses. See, e.g., TEX.R. CIV. P. 193.4(c), 193.5, 193.6. We therefore conclude that Woody has not shown his entitlement to mandamus relief directing the trial court to compel more complete responses to discovery.
V. CONCLUSION
We conditionally grant Woody's petition for a writ of mandamus with respect to the January 5, 2009 order granting Carolyn's motion to strike the case from the jury docket, and we direсt the trial court to vacate that portion of its order and reinstate the case on its jury docket. We deny Woody's petition with respect to his request that we direct the trial court to vacate its order denying his motion to compel discovery. Woody's request that we compel the trial court to continue the January 8, 2009 bench trial is moot in light of our stay issued on January 7, 2009. In response to the requests of both Woody and Carolyn, we clarify that the scope of the trial on remand is limited to the determination of thе amount of attorneys' fees that (a) were reasonable and necessary to the initial preparation and trial of Carolyn's claims under the Declaratory Judgments Act and the Texas Trust Code, and (b) it is equitable and just to award. Finally, we lift our previously-issued stay. The writ will issue only if the trial court fails to act in accordance with this opinion.
NOTES
Notes
[1] Although Woody also asked for mandamus relief compelling the trial court to continue the January 8, 2009 bench trial, that request is moot in light of our order staying trial.
[2] See also Everest Exploration, Inc. v. URI, Inc.,
[3] Walker,
[4] An appeal from a trial court's discovery order is not adequate if (1) the appellate court would not be able to cure the trial court's error on appeal; (2) the party's ability to present a viable claim or defense is vitiated or severely compromised; or (3) missing discovery cannot be made a part of the appellate record. In re Ford Motor Co.,
