Bedrock Property Solutions, LLC, Aaron D'Orlando, and Alan D'Orlando v. SR Franchising, LLC, Jeffrey Alan Rutten, and Curt Skallerup
CourtTexas Court of Appeals, 2nd District (Fort Worth)
Date FiledJuly 23, 2026
Docket02-25-00374-CV
StatusPublished
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Full Opinion
In the
Court of Appeals
Second Appellate District of Texas
at Fort Worth
___________________________
No. 02-25-00374-CV
___________________________
BEDROCK PROPERTY SOLUTIONS, LLC, AARON D’ORLANDO, AND ALAN
D’ORLANDO, Appellants
V.
SR FRANCHISING, LLC, JEFFREY ALAN RUTTEN, AND CURT SKALLERUP,
Appellees
On Appeal from the 17th District Court
Tarrant County, Texas
Trial Court No. 017-350989-24
Before Birdwell, Womack, and Walker, JJ.
Memorandum Opinion by Justice Walker
MEMORANDUM OPINION
I. INTRODUCTION
Following a contractual dispute between Appellants Bedrock Property
Solutions, LLC; Aaron D’Orlando; and Alan D’Orlando (collectively, Bedrock) and
Appellees SR Franchising, LLC; Jeffrey Alan Rutten; and Curt Skallerup (collectively,
SR Franchising), Bedrock initiated an arbitration proceeding. SR Franchising filed an
original petition in the trial court requesting declaratory judgment that Bedrock’s
claims were not arbitrable. Bedrock filed counterclaims, alleging the same claims
from the arbitration proceeding. SR Franchising moved pursuant to Rule 91a to
dismiss the counterclaims, contending that they were time barred, and requested
attorney’s fees. The trial court granted the Rule 91a motion and dismissed Bedrock’s
counterclaims. The parties then entered into a Rule 11 agreement providing that
SR Franchising’s declaratory-judgment claim was moot and that the trial court would
consider the issue of attorney’s fees by written submission. After the parties filed
their respective motions and evidence, the trial court awarded attorney’s fees to
SR Franchising and signed a final judgment. Bedrock appealed.
In their “Issues Presented for Review”—which comprises over two pages of
unbroken text—Bedrock raises several unenumerated, intersecting, and restated
complaints. In what we construe as seven appellate issues, Bedrock complains that
the trial court erred by (1) failing to provide its reasons for granting the Rule 91a
motion, (2) denying leave to amend, (3) dismissing their counterclaims, (4) refusing to
2
rule on their motion to reform, (5) signing a final judgment that does not comport
with the Rule 11 agreement, (6) awarding attorney’s fees to SR Franchising, and
(7) depriving Bedrock of due process. We will affirm.
II. FACTUAL AND PROCEDURAL BACKGROUND
Bedrock decided to pursue a franchising opportunity and connected with
SR Franchising. SR Franchising provided an initial franchise disclosure to Bedrock on
December 19, 2017, and made various representations to Bedrock regarding the
franchise’s projected revenue and expenses. On September 29, 2018, Bedrock and
SR Franchising entered into a franchise agreement that contained an arbitration
provision, which provided that (1) “[d]isputes concerning the validity or scope of [the
arbitration provision], including whether a dispute is subject to arbitration [or] beyond
the authority of the arbitrator(s)[,] shall be determined by a court of competent
jurisdiction.”1 On October 11, 2018, SR Franchising provided a second disclosure to
Bedrock. The second disclosure allegedly revealed inaccuracies and false statements
in the first disclosure. Despite the second disclosure, Bedrock began operating their
franchise.
On October 6, 2023, Bedrock filed a demand for arbitration against
SR Franchising, describing the dispute as “[f]raud, breach of contract, and other
common law and statutory violations.” That same day, Bedrock also filed a federal
The arbitration provision also mandated that any claims be brought within two
1
years.
3
lawsuit against SR Franchising, asserting claims for (1) fraudulent inducement,
(2) fraud by omission, (3) common law fraud, (4) negligent written misrepresentation,
(5) negligent oral misrepresentation, (6) breach of contract, (7) breach of express
warranties, (8) breach of implied warranties, and (9) violation of the Texas Deceptive
Trade Practices Act (DTPA). On January 3, 2024—while the federal lawsuit was still
pending—Bedrock filed a second demand for arbitration, alleging the same facts and
claims from the 2023 demand for arbitration and the federal lawsuit. Later that
month, SR Franchising moved to dismiss the federal lawsuit on the grounds that
(1) Bedrock had failed to commence arbitration within the arbitration provision’s two-
year period and (2) the claims were barred by the applicable statute of limitations.
Bedrock voluntarily dismissed the 2023 federal lawsuit without prejudice but refused
to dismiss the arbitration proceedings.
On March 11, 2024, SR Franchising filed an original petition in state court,
requesting a declaration that Bedrock’s claims were not arbitrable and barred by the
statute of limitations and seeking relief under the Texas Arbitration Act to stay and
enjoin arbitration. Bedrock removed the case to federal court, and SR Franchising
moved to remand the case to state court, arguing that there was no basis for federal
subject-matter jurisdiction. Bedrock agreed, and the case was remanded back to state
court.
Following the case’s remand to state court, the parties agreed to stay the
arbitration proceedings to (1) allow the parties to mediate the dispute and (2) permit
4
the trial court to determine the arbitrability issues raised in SR Franchising’s petition.
The parties participated in voluntary mediation in August 2024, which did not result
in resolution.
On September 13, 2024, Bedrock filed an answer and counterclaims.
Bedrock’s answer explained that they agreed with SR Franchising’s objection to
arbitration and that “[t]he filing of [Bedrock’s] counterclaims here demonstrates that
[Bedrock] has chosen to litigate their claims in a court – this court, and not in an
Arbitration.” And their counterclaims alleged the same nine causes of action from
their 2023 arbitration demand and the federal lawsuit. Bedrock’s counterclaims
further alleged, among other things, that “[SR Franchising’s] wrongful and fraudulent
conduct commenced almost immediately, before [Bedrock] entered into the Franchise
Agreement, with [SR Franchising’s] provision of a Franchise Disclosure Document
(“FDD”) in December 2017.” Bedrock did not allege the accrual date of their
counterclaims or otherwise plead when they discovered SR Franchising’s wrongful
conduct; Bedrock merely provided a loose chronology of the events giving rise to the
counterclaims. The first date of conduct ascribed to SR Franchising was
December 19, 2017 (the date of the initial disclosure), and the last date of ascribed
conduct was January 2020.2 The trial court set the case for trial on June 2, 2025.
2
SR Franchising filed an answer to the counterclaims along with affirmative
defenses. They pleaded that Bedrock’s counterclaims were “barred by the applicable
statute(s) of limitations.”
5
SR Franchising moved to dismiss Bedrock’s counterclaims pursuant to
Rule 91a and requested attorney’s fees, contending that the counterclaims had no
basis in law because they were barred by the statute of limitations. SR Franchising
argued that all of Bedrock’s counterclaims “appear to be based on the same wrongful
conduct: misrepresentations allegedly made prior to Bedrock’s signing of the
Franchise Agreement on September 29, 2018,” and thus, Bedrock’s counterclaims
accrued when they entered into the contract on September 29, 2018. SR Franchising
asserted that Bedrock’s counterclaims were subject to a four-year or less statute of
limitations, and therefore, the counterclaims—filed on September 13, 2024—were
time barred. SR Franchising alternatively argued that even if the counterclaims did
not accrue when Bedrock entered into the contract, they accrued by October 11,
2018—the date that Bedrock received the second disclosure and when they should
have discovered the wrongful conduct. SR Franchising maintained that, irrespective
of whether the counterclaims accrued on September 29, 2018, or October 11, 2018,
the applicable statute of limitations had passed. A hearing on SR Franchising’s
motion was set for December 10, 2024.
Bedrock responded and argued that they had “plead[ed] with sufficient
evidence and information to put [SR Franchising] on notice of each and every cause
of action plead[ed] with sufficient clarity to make [SR Franchising’s] Motion to
Dismiss improper, and therefore [it] should be denied in its entirety.” Bedrock also
noted that they would file amended counterclaims and show “that all [counter]claims
6
were tolled and were not discovered until less than two years before the causes of
action were filed.”
On December 6, 2024, Bedrock filed amended counterclaims, alleging that they
“could not reasonably discover the well-executed franchise fraud planned and
executed by [SR Franchising] until mid-2023.” SR Franchising replied and argued that
Bedrock’s amended counterclaims were untimely under Rule 91a.5(b) because they
were not filed at least three days before the date of the scheduled hearing on the
Rule 91a motion. SR Franchising maintained that Bedrock’s allegations established
that they knew or should have known of the facts giving rise to their causes of action
by October 11, 2018, and that their response did nothing to alter this conclusion and
failed to cite to any allegation in the counterclaims that would give rise to a tolling
theory. Bedrock filed a sur-reply, arguing that their amended counterclaims were
timely and, alternatively, requesting leave to amend.
Following a hearing on December 10, 2024, the trial court granted
SR Franchising’s Rule 91a motion and dismissed Bedrock’s original counterclaims.3
Bedrock filed a motion for rehearing, complaining that the trial court should have
considered their amended counterclaims. Despite the trial court’s dismissal of their
counterclaims, Bedrock refused to dismiss the arbitration proceedings.
3
The order noted that the trial court had considered “the motion to dismiss, the
response and reply, and the arguments of counsel.”
7
On May 23, 2025—the week before trial—Bedrock dismissed the arbitration
proceedings with prejudice, mooting SR Franchising’s request for declaratory relief.
On May 29, 2025, the parties entered into a Rule 11 agreement. The agreement
provided, among other things, that all pending motions would be denied as moot, that
SR Franchising’s declaratory judgment was rendered moot, that a trial was
unnecessary, and that the trial court would determine SR Franchising’s entitlement to
attorney’s fees and costs based on written submission.
SR Franchising filed their motion for attorney’s fees and entry of final
judgment, along with supporting exhibits and affidavits. Bedrock filed a response, a
counter-affidavit, and a motion to reform the order dismissing their counterclaims.
The motion to reform sought to vacate the trial court’s order dismissing Bedrock’s
counterclaims based on “newly revealed evidence.”4 The motion to reform was not
scheduled for a hearing.
SR Franchising filed a reply in support of their motion for attorney’s fees and
entry of final judgment, and the trial court heard oral argument on the motion.
Following a hearing on the motion, the trial court signed a final judgment, confirming
its dismissal of Bedrock’s counterclaims with prejudice and awarding SR Franchising
4
Bedrock claimed that SR Franchising had allegedly submitted a falsified email
to the mediator during mediation in August 2024.
8
$302,040.88 in attorney’s fees under the UDJA,5 $4,623.42 in costs, and contingent
appellate attorney’s fees.6 Bedrock filed this appeal.
III. DISCUSSION
A. TRIAL COURT’S REASONING
In their first issue, Bedrock contends that the trial court’s order granting the
Rule 91a motion was erroneous because it “provided no reasoning whatsoever,
identified no defect, and failed to explain why the counterclaims were legally
insufficient.”7 This issue is unpreserved.
5
The final judgment decreed that SR Franchising was “entitled to and shall
recover from [Bedrock] [SR Franchising’s] costs and reasonable and necessary
attorneys’ fees in connection with [SR Franchising’s] defense of the two arbitrations
Bedrock initiated before the American Arbitration Association, [SR Franchising’s]
defense of the same claims in a federal lawsuit, and [SR Franchising’s] prosecution of
this lawsuit and defense of [Bedrock’s] Counterclaims.”
6
No findings of fact or conclusions of law were requested or filed.
7
Bedrock cites no authority in support of their contention that the trial court
was required to specify its reasons for granting the Rule 91a motion. See Tex. R. App.
P. 38.1(i) (requiring appellant’s brief to contain appropriate citations to authorities).
Texas Rule of Civil Procedure 91a.2 requires that a motion to dismiss state that
it is made pursuant to the rule, identify each cause of action addressed, and state
specifically the reasons the cause of action has no basis in law, fact, or both. See Tex.
R. Civ. P. 91a.2. But Rule 91a does not impose a parallel requirement on the trial
court’s order granting such a motion. See id. Indeed, several of our sister courts have
held that a trial court need not specify its reasons for granting a Rule 91a motion. See
e.g., Smart v. Prime Mortg. & Escrow, LLC, 659 S.W.3d 155, 162 (Tex. App.—El Paso
2022, pet. denied) (“Appellant cites no other authority in support of his argument that
a trial court is required to articulate a specific explanation for granting a Rule 91a
motion.”); Emmanuel v. Izoukumor, 611 S.W.3d 453, 458 (Tex. App.—Houston [14th
Dist.] 2020, no pet.) (“When, as here, the trial court does not specify the ground on
9
To preserve a complaint for appellate review, a party must present to the trial
court a timely request, objection, or motion that states the specific grounds for the
desired ruling, if not apparent from the request’s, objection’s, or motion’s context. See
Tex. R. App. P. 33.1(a)(1)(A). If a party fails to do this, error is not preserved. Bushell
v. Dean, 803 S.W.2d 711, 712 (Tex. 1991) (op. on reh’g). Bedrock did not present to
the trial court a timely request, objection, or motion regarding this complaint. See
Tex. R. App. P. 33.1(a)(1)(A). Accordingly, we hold that this complaint was not
preserved.
We overrule Bedrock’s first issue.
B. AMENDED COUNTERCLAIMS
In their second issue, Bedrock argues that the trial court’s order granting the
Rule 91a motion was erroneous because the trial court should have granted leave to
amend and because any defects in their pleadings were curable by the amended
counterclaims. We disagree.
Bedrock filed their original counterclaims on September 13, 2024.
SR Franchising filed their Rule 91a motion to dismiss on November 12, 2024, and a
hearing on the motion was scheduled for Tuesday, December 10, 2024. On Friday,
which it relied, a party appealing the grant of a motion to dismiss under Rule 91a must
challenge every ground on which the trial court could have granted the motion.”);
Smale v. Williams, 590 S.W.3d 633, 637 (Tex. App.—Texarkana 2019, no pet.)
(“Rule 91a does not require such specification in its order.”); Guillory v. Seaton, LLC,
470 S.W.3d 237, 246 (Tex. App.—Houston [1st Dist.] 2015, pet. denied) (“[T]rial
judges need not specify their reasons for granting a Rule 91a motion.”).
10
December 6, 2024, Bedrock filed their amended counterclaims, and SR Franchising
objected that the amended counterclaims were untimely filed.
Texas Rule of Civil Procedure 91a.5(b) provides that the plaintiff—here, the
counter-plaintiff—may amend “the challenged cause of action” but only if done “at
least 3 days before the date of the [motion to dismiss] hearing.” Tex. R. Civ. P.
91a.5(b) (stating that movant may file an amended motion if nonmovant “amends the
challenged cause of action at least 3 days before” the hearing date). The trial court
“must not consider” an untimely filed amendment. Tex. R. Civ. P. 91a.5(c).
Texas Rule of Civil Procedure 4 provides that “Saturdays, Sundays, and legal
holidays shall not be counted for any purpose in any time period of five days or less in
these rules” except for time computations in connection with Rules 21 (filing and
service of pleadings and motions) and 21a (methods of service). Tex. R. Civ. P. 4.
Thus, to be timely under Rule 91a.5, Bedrock had to file their amended
counterclaims by Thursday, December 5, 2024. See Tex. R. Civ. P. 91a.5(b), 4. But
Bedrock did not file their amended counterclaims until Friday, December 6, 2024,
making them untimely. See Tex. R. Civ. P. 91a.5(b), 4.
Accordingly, Rule 91a.5 precluded the trial court from considering the
amended counterclaims when ruling on SR Franchising’s Rule 91a motion.8 See Tex.
8
Rule 91a.5(c)’s language is unambiguous: the trial court “must not consider”
an untimely filed amendment. Tex. R. Civ. P. 91a.5(c). Bedrock has cited no
authority that permits the trial court—even if it were amenable and so inclined—to
grant leave to amend for an untimely amendment under Rule 91a.5. See id.
11
R. Civ. P. 91a.5(c); see also Blevins v. Brown, No. 07-25-00199-CV, 2026 WL 785257,
at *2 (Tex. App.—Amarillo Mar. 19, 2026, no pet.) (affirming trial court’s refusal to
consider plaintiff’s untimely amended petition filed in connection with Rule 91a
motion to dismiss and holding that Rule 91a.5 controls over Rule 65’s general
superseding principle).
We overrule Bedrock’s second issue.
C. DISMISSAL OF COUNTERCLAIMS
In their third issue, Bedrock asserts that the trial court erred by granting the
Rule 91a motion because the trial court “improperly resolved fact disputes,
limitations, and other matters outside Rule 91a’s scope.” We disagree.
1. Standard of Review and Applicable Law
Rule 91a is a procedural vehicle for early dismissal of baseless causes of action.
Sagredo v. Ball, 689 S.W.3d 407, 413 (Tex. App.—Corpus Christi–Edinburg 2024, no
pet.) (op. on reh’g) (citing Tex. R. Civ. P. 91a.1). A trial court properly dismisses a
cause of action pursuant to Rule 91a “if the allegations, taken as true, together with
inferences reasonably drawn from them, do not entitle the claimant to the relief
sought” or “no reasonable person could believe the facts pleaded.” Id. at 413–14.
Rule 91a “permits motions to dismiss based on affirmative defenses.”9 Bethel v.
Quilling, Selander, Lownds, Winslett & Moser, P.C., 595 S.W.3d 651, 656 (Tex. 2020). “In
9
Bedrock broadly asserts that a trial court may not consider affirmative
defenses when ruling on a Rule 91a motion. But we have held that “a [trial] court
12
ruling on a Rule 91a motion to dismiss, the trial court may not consider evidence and
must decide the motion based solely on the pleading of the cause of action, together
with any [permitted] pleading exhibits.” Triple P.G. Sand Dev., LLC v. Del Pino,
649 S.W.3d 682, 694 (Tex. App.—Houston [1st Dist.] 2022, no pet.); In re Farmers Tex.
Cnty. Mut. Ins. Co., 621 S.W.3d 261, 266 (Tex. 2021) (citing Tex. R. Civ. P. 91a.6). The
trial court may also “consider the defendant’s pleadings if doing so is necessary to
make the legal determination of whether an affirmative defense is properly before the
court.” Bethel, 595 S.W.3d at 656; see also Dailey v. Thorpe, 445 S.W.3d 785, 789 (Tex.
App.—Houston [1st Dist.] 2014, no pet.) (holding that breach-of-fiduciary-duty claim
had no basis in law because pleaded facts affirmatively demonstrated that alleged
breach occurred after fiduciary relationship ceased).
We perform a de novo review to determine whether the defendant is entitled to
a dismissal under the facts alleged. Triple P.G. Sand Dev., 649 S.W.3d at 693; Farmers,
621 S.W.3d at 266. We must construe the pleadings in favor of the plaintiff, examine
the intent of the pleader, and accept as true the factual allegations made by the
plaintiff. Vasquez v. Legend Nat. Gas III, LP, 492 S.W.3d 448, 450 (Tex. App.—San
Antonio 2016, pet. denied).
may grant a Rule 91a motion to dismiss on limitations grounds.” Quinn v. State Farm
Lloyds, No. 02-22-00191-CV, 2023 WL 3749932, at *10 (Tex. App.—Fort Worth
June 1, 2023, no pet.).
13
Fraud, breach-of-contract, and breach-of-warranties claims are subject to a
four-year statute of limitations. See Tex. Civ. Prac. & Rem. Code §§ 16.004(a)(4)
(fraud-based claims), .051 (breach-of-contract claims); Tex. Bus. & Com. Code
§ 2.725 (breach-of-contract and breach-of-warranties claims). Negligent-
misrepresentation and DTPA claims are subject to a two-year statute of limitations.
See Tex. Civ. Prac. & Rem. Code § 16.003(a) (negligent-misrepresentation claims);
Tex. Bus. & Com. Code § 17.565 (DTPA claims).
“A statute of limitations does not begin to run until the cause of action
accrues.” Hou. Endowment Inc. v. Atl. Richfield Co., 972 S.W.2d 156, 159 (Tex. App.—
Houston [14th Dist.] 1998, no pet.). “Generally, a cause of action accrues when a
wrongful act causes a legal injury.” Etan Indus., Inc. v. Lehmann, 359 S.W.3d 620, 623
(Tex. 2011).
2. Analysis
As noted, Bedrock brought nine counterclaims: (1) fraudulent inducement,
(2) fraud by omission, (3) common law fraud, (4) negligent misrepresentation as to
written statements, (5) negligent misrepresentation as to oral omissions, (6) breach of
contract, (7) breach of express warranties, (8) breach of implied warranties, and
(9) violation of the DTPA. Counterclaims one through three and six through eight
are subject to a four-year statute of limitations, and counterclaims four, five, and nine
are subject to a two-year statute of limitations.
14
The counterclaims allege that SR Franchising’s “wrongful and fraudulent
conduct commenced almost immediately, before [Bedrock] entered into the
[contract]”; that Bedrock had been “induce[d] into entering into the [contract]”; and
that they “would not have moved forward without the false assurances.” The
counterclaims do not, however, allege an accrual date,10 assert that Bedrock was
delayed in discovering SR Franchising’s conduct giving rise to the counterclaims, or
otherwise advance a theory that would delay the accrual of counterclaims.11 The last
date in the counterclaims that ascribes conduct to SR Franchising—or Bedrock for
that matter—is January 2020.12
10
SR Franchising asserts that, because their alleged wrongful conduct—false
assurances and misrepresentation—had occurred before the parties entered into the
contract, the counterclaims accrued on the date that the parties entered into the
contract—that is, September 29, 2018. Thus, SR Franchising contends that the
statute of limitations lapsed on September 29, 2020, and September 29, 2022.
11
And their appellate brief provides no greater elaboration or clarity. Rather,
they assert, in a footnote, that “alleged delayed discovery of the fraud, ongoing
nondisclosure before and after execution of the franchise documents, continuing
misrepresentations regarding feasibility and competition, and reliance that extended
well into the franchise relationship” negate any limitations issue. But their
counterclaims make no mention whatsoever of “delayed discovery” or otherwise
assert that they were delayed in discovering SR Franchising’s alleged
misrepresentations. Indeed, their untimely filed amended counterclaims outline their
delayed discovery of SR Franchising’s misrepresentations, but as we held above, the
trial court could not consider—nor can we—the amended counterclaims. See Tex. R.
Civ. P. 91a.5(c).
12
Bedrock pleaded that “[SR Franchising] employees, in January 2020, assured
Bedrock that the revenue numbers were not indicative of the park’s commercial
potential and suggested implementing various strategies to increase revenue, including
15
Construing the pleadings liberally in Bedrock’s favor, their counterclaims
accrued—at the latest—in January 2020. See Vasquez, 492 S.W.3d at 450. Thus, the
statute of limitations lapsed on all Bedrock’s counterclaims by January 2024, but
Bedrock did not file their counterclaims until September 2024. Because Bedrock’s
pleadings demonstrate that their counterclaims had accrued no later than January 2020
and because the statute of limitations for these counterclaims were subject to a two-
year or four-year statute of limitations, the statute of limitations had lapsed by the
time they filed their counterclaims in September 2024. We thus conclude that the
facts in Bedrock’s counterclaims conclusively established that their claims against
SR Franchising were time-barred, and accordingly, limitations constituted appropriate
grounds for dismissal under Rule 91a. See Bethel, 595 S.W.3d at 656; Tex. R. Civ. P.
91a.1. Accordingly, we hold that the trial court did not err by granting
SR Franchising’s Rule 91a motion to dismiss.
We overrule Bedrock’s third issue.
D. MOTION TO REFORM
In their fourth issue, Bedrock complains that the trial court erred by refusing to
rule on their motion to reform.13 But Bedrock did not present to the trial court a
modifying pricing structures and implementing targeted marketing campaigns.” The
counterclaims do not contain the specific date of this encounter.
Bedrock’s motion to reform was filed on June 20, 2025, and the trial court’s
13
final judgment was signed on June 30, 2025. The motion to reform alleged that
16
timely request, objection, or motion regarding this complaint.14 See Tex. R. App. P.
33.1(a)(1)(A). Accordingly, we hold that this complaint was not preserved.15 See
SR Franchising had materially altered an email during mediation by including language
that did not appear in the original document.
14
Although this issue is unpreserved, there are noteworthy gaps in Bedrock’s
complaint. First, the record reflects that Bedrock did not request a hearing or pursue
a ruling on their motion to reform from the trial court. A movant bears an
affirmative duty to request a hearing on its pending motion and to actively pursue a
ruling from the trial court. See Grozier v. L-B Sprinkler & Plumbing Repair, 744 S.W.2d
306, 312 (Tex. App.—Fort Worth 1988, writ denied) (op. on reh’g) (“The court is not
required to wait upon the dallying of the movant.”). When, as here, a party files a
motion to reform before entry of final judgment but never sets the motion for a
hearing, never obtains a ruling, or never orally presents the motion to the trial court,
the party cannot establish reversible error on appeal based on the trial court’s failure
to rule. See id. Second, Bedrock asserts that “a judgment entered without ruling on a
pending motion is not final and constitutes reversible error.” Bedrock cites no
authority in support of this assertion. See Tex. R. App. P. 38.1(i) (requiring appellant’s
brief to contain appropriate citations to authorities); cf. NexGen Broadband, LLC v.
Quanta Telecomm. Servs., LLC, No. 01-23-00520-CV, 2024 WL 3973439, at *14 (Tex.
App.—Houston [1st Dist.] Aug. 29, 2024, no pet.) (rejecting argument that pending
pre-judgment motion for reconsideration rendered subsequent final judgment non-
final and holding that “a pending motion for new trial does not render a final
judgment not final” and that there was “no reason to treat a motion for
reconsideration differently”). A final judgment is one that (1) “actually disposes of
every pending claim and party” or (2) “clearly and unequivocally states that it finally
disposes of all claims and all parties.” Lehmann v. Har-Con Corp., 39 S.W.3d 191,
205 (Tex. 2001). Here, the trial court’s final judgment clearly and unequivocally states
that it is final: “This judgment finally disposes of all parties and claims and is
appealable as a final judgment.” And in any event, the final judgment provides that
“[a]ll relief not expressly granted herein is denied.”
15
We note that Bedrock misquotes and misrepresents the record, claiming that
“[t]he Final Judgment itself acknowledges that the [trial] court ‘did not consider’ the
Motion to Reform” and that “[t]his express refusal to rule confirms that the judgment
was entered while dispositive matters remained pending.” First, Bedrock’s purported
“did not consider” quote is not contained in the final judgment, and the final
judgment does not acknowledge that the trial court refused to consider Bedrock’s
17
Starnes v. Holloway, 779 S.W.2d 86, 98 (Tex. App.—Dallas 1989, writ denied) (holding
that where no ruling was entered on appellants’ motion to reform and no objection
was made to trial court’s failure to rule, error was not preserved for appellate review);
see also Harris Cent. Appraisal Dist. v. Hou. Pipe Line Co, 706 S.W.3d 568, 577 (Tex.
App.—Houston [1st Dist.] 2024, no pet.) (clarifying that “a mere failure to rule is not
one and the same thing as a refusal to rule” and that “[a] trial court must neglect or
decline to rule in the face of an objection to its failure to rule in order for a party to
preserve error based on the court’s refusal to rule”).
We overrule Bedrock’s fourth issue.
E. RULE 11 AGREEMENT
In their fifth issue, Bedrock maintains that the trial court’s final judgment does
not comport with the Rule 11 agreement.16 But Bedrock did not present to the trial
court a timely request, objection, or motion regarding this complaint. See Tex. R.
App. P. 33.1(a)(1)(A). Accordingly, we hold that this complaint was not preserved.
See Stubbs v. Ortega, 977 S.W.2d 718, 723 (Tex. App.—Fort Worth 1998, pet. denied)
(holding that error preservation rules apply to Rule 11 agreements and that failure to
motion to reform. Second, Bedrock does not provide citation to the record where the
trial court expressly refused to rule on the motion. See Tex. R. App. P. 38.1(i)
(requiring appellant’s brief to contain appropriate citations to the record).
16
Bedrock asserts that the trial court “entered a Final Judgment inconsistent
with the Stipulation’s express terms,” but they do not explain how the final judgment
is inconsistent. See Tex. R. App. P. 38.1(i) (requiring appellant’s brief to contain a
clear and concise argument for the contentions made).
18
timely object to trial court’s modification of such an agreement waives the right to
complain on appeal); see also Tex. Tax Sols., LLC v. City of El Paso, 593 S.W.3d 903, 912
(Tex. App.—El Paso 2019, no pet.) (holding that party waived its Rule 11 complaint
on appeal by failing to properly preserve issue in trial court).
We overrule Bedrock’s fifth issue.
F. ATTORNEY’S FEES
In their sixth issue, Bedrock maintains that the trial court’s attorney’s fee
awards were erroneous. The trial court awarded $302,040.88 in trial attorney’s fees
and $180,00017 in contingent appellate attorney’s fees. Bedrock, in several subparts,
challenges the trial court’s awards of trial attorney’s fees and contingent appellate
attorney’s fees. We will discuss each in turn.
1. Bedrock’s Evidence
Bedrock first complains that the trial court erred by refusing to consider or
admit Bedrock’s attorney’s fee-expert affidavit.18 But Bedrock did not present to the
The $180,000 is an aggregated awarded. The trial court specifically awarded
17
$60,000 to respond to an appeal to a Texas intermediate court of appeals; $15,000 to
prepare for and present oral argument, if oral argument is requested; $35,000 to
respond to or file a petition for review, if filed, with the Texas Supreme Court;
$50,000 to provide full briefing on the merits, if full briefing is requested; and $20,000
to prepare for and present oral argument to the Texas Supreme Court, if oral
argument is requested.
Bedrock’s attorney submitted a
18
counter-affidavit in response to
SR Franchising’s motion for attorney’s fees.
19
trial court a timely request, objection, or motion regarding this complaint. See Tex. R.
App. P. 33.1(a)(1)(A). Accordingly, we hold that this complaint was not preserved.19
2. Prevailing Party
Bedrock next argues that the trial court’s attorney’s fee awards were erroneous
because SR Franchising were not the prevailing parties under the UDJA since they
“obtained no substantive judicial relief whatsoever.” We disagree.
The UDJA provides: “In any proceeding under this chapter, the [trial] court
may award costs and reasonable and necessary attorney’s fees as are equitable and
just.” Tex. Civ. Prac. & Rem. Code § 37.009. “The plain language of the UDJA
authorizes courts to award equitable and just fees in any proceeding under the Act; it
does not require the trial court to consider or render judgment on the merits of that
claim.” Yowell v. Granite Operating Co., 620 S.W.3d 335, 355 (Tex. 2020). “Indeed,
under [S]ection 37.009, a trial court has discretion to even award attorney’s fees to a
nonprevailing party.” Severs v. Mira Vista Homeowners Ass’n, 559 S.W.3d 684, 712 (Tex.
App.—Fort Worth 2018, pet. denied).
Here, SR Franchising’s petition requested that the trial court grant a declaratory
judgment and award them reasonable and necessary attorney’s fees. See Tex. Civ.
Prac. & Rem. Code § 37.002. Thus, because this was a proceeding under the UDJA,
19
Bedrock does not provide citation to the record where the trial court allegedly
refused to consider or to admit the counter-affidavit. See Tex. R. App. P. 38.1(i)
(requiring appellant’s brief to contain appropriate citations to the record).
20
the trial court had discretion to award attorney’s fees—irrespective of whether
SR Franchising was a nonprevailing party. See Severs, 559 S.W.3d at 712. Accordingly,
we hold that this complaint lacks merit.20
3. Trial Attorney’s Fees
Bedrock asserts that the trial court’s attorney’s fee awards must be reversed
because “the trial court ignored controlling supreme court lodestar requirements and
accepted evidentiarily [sic] insufficient, unsegregated, and unreliable billing records.”
More specifically, Bedrock contends that SR Franchising (1) failed to satisfy the
framework for the lodestar requirements, (2) did not segregate their fees, (3) failed to
show that they had actually incurred the fees, and (4) presented evidence that was
either vague or conclusory or insufficient.
a. Lodestar Requirements
Bedrock contends that the trial court abused its discretion by awarding
attorney’s fees because it did not require SR Franchising to satisfy the lodestar
framework.21 We disagree.
20
In any event, SR Franchising also requested attorney’s fees in their Rule 91a
motion to dismiss. Rule 91a.7 provides that the trial court “may award the prevailing
party on the motion all costs and reasonable and necessary attorney fees incurred with
respect to the challenged cause of action.” Tex. R. Civ. P. 91a.7. Here, the trial court
granted SR Franchising’s Rule 91a motion to dismiss.
21
A trial court abuses its discretion if it acts without reference to any guiding
rules or principles—that is, if its act is arbitrary or unreasonable. Walker v. Baptist St.
Anthony’s Hosp., 703 S.W.3d 339, 343 (Tex. 2024); Cire v. Cummings, 134 S.W.3d 835,
838–39 (Tex. 2004). An appellate court cannot conclude that a trial court abused its
21
A party seeking recovery of attorney’s fees must meet the framework for the
lodestar method for determining the reasonableness and necessity of attorney’s fees:
Under the lodestar method, the determination of what constitutes a
reasonable attorney’s fee involves two steps. First, the [factfinder] must
determine the reasonable hours spent by counsel in the case and a
reasonable hourly rate for such work. The [factfinder] then multiplies
the number of such hours by the applicable rate, the product of which is
the base fee or lodestar. The [factfinder] may then adjust the base
lodestar up or down (apply a multiplier), if relevant factors indicate an
adjustment is necessary to reach a reasonable fee in the case.
El Apple I, Ltd. v. Olivas, 370 S.W.3d 757, 760 (Tex. 2012).
Here, SR Franchising was represented by an attorney who was admitted pro
hac vice and another attorney who served as local counsel. Both attorneys provided
detailed fee affidavits. The attorney who was admitted pro hac vice attested to 476.6
hours worked, a $480.25 hourly rate, and a $228,888.74 total fee. She further attested
that the hours worked and the hourly rate constitute the reasonable and necessary
hours and rates required to perform the services.
discretion merely because the appellate court would have ruled differently in the same
circumstances. E.I. du Pont de Nemours & Co. v. Robinson, 923 S.W.2d 549, 558 (Tex.
1995); see also Low v. Henry, 221 S.W.3d 609, 620 (Tex. 2007). A trial court also abuses
its discretion by ruling without supporting evidence. In re AutoZoners, LLC,
694 S.W.3d 219, 223 (Tex. 2024) (orig. proceeding); Transcor Astra Grp. S.A. v.
Petrobras Am. Inc., 650 S.W.3d 462, 482 (Tex. 2022). But no abuse of discretion occurs
when the trial court decides based on conflicting evidence, so long as some
substantive and probative evidence supports its decision. Nath v. Tex. Children’s Hosp.,
446 S.W.3d 355, 361 (Tex. 2014); Unifund CCR Partners v. Villa, 299 S.W.3d 92, 97
(Tex. 2009).
22
The attorney who served as local counsel attested to 151.8 hours worked, a
$481.89 hourly rate, and a $73,152.14 total fee. He further attested that the hours
worked and the hourly rate constituted the reasonable and necessary hours and rates
required to perform the services. In addition to their affidavits, the attorneys
provided contemporaneous billing records that supported their affidavits and fee
opinio