Pesca Holding LLC v. Bengt Skoldeberg and Gudrun Skoldeberg
CourtTexas Court of Appeals, 4th District (San Antonio)
Date FiledOctober 7, 2026
Docket04-24-00642-CV
StatusPublished
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Full Opinion
Fourth Court of Appeals
San Antonio, Texas
OPINION
No. 04-24-00642-CV
PESCA HOLDING LLC,
Appellant
v.
Bengt SKOLDEBERG and Gudrun Skoldeberg,
Appellees
From the 57th Judicial District Court, Bexar County, Texas
Trial Court No. 2019CI07873
Honorable Antonia Arteaga, Judge Presiding
Opinion by: Irene Rios, Justice
Sitting: Irene Rios, Justice
Lori Massey Brissette, Justice
Adrian A. Spears II, Justice
Delivered and Filed: October 7, 2026
AFFIRMED IN PART; REVERSED AND RENDERED IN PART
Appellant Pesca Holding, LLC (“Pesca”) appeals the trial court’s final take-nothing
judgment rendered in favor of appellees Bengt Skoldeberg and Gudrun Skoldeberg (collectively,
“the Skoldebergs”). 1 Pesca bought a business and assets of another business from the Skoldebergs
and later sued the Skoldebergs for fraud arising from the purchase. A jury found in favor of the
1
We withdraw our opinion and judgment issued on March 18, 2026, and substitute this opinion in its place.
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Skoldebergs. After the jury was dismissed, the Skoldebergs sought attorney’s fees and litigation
expenses pursuant to a provision in the purchase agreement. Over Pesca’s objection, the trial court
held a second jury trial on attorney’s fees and litigation expenses.
In its first issue, Pesca argues the Skoldebergs waived their right to attorney’s fees and
litigation expenses when they failed to submit jury questions on attorney’s fees and litigation
expenses in the first trial, the trial court erred by holding the second jury trial on attorney’s fees
and litigation expenses absent a formal agreement by the parties, and the subsequent award of
attorney’s fees and litigation expenses should be reversed. In its second issue, Pesca argues that
even if the trial court was permitted to hold a second jury trial on attorney’s fees and litigation
expenses, the trial court nevertheless erred by excluding Pesca’s experts from testifying to rebut
the reasonableness and necessity of the attorney’s fees. In its third issue, Pesca argues it proved
its fraud claim as a matter of law, and the jury’s conclusion that the Skoldebergs did not commit
fraud is against the great weight and preponderance of the evidence.
We hold there was sufficient evidence for the jury to conclude the Skoldebergs did not
commit fraud. We also hold the record does not contain a clear and unambiguous agreement that
the parties agreed to try attorney’s fees and litigation expenses separately from liability. Thus, the
Skoldebergs waived their right to attorneys’ fees and litigation expenses when they failed to submit
questions on attorney’s fees and litigation expenses to the first jury. Because we conclude the trial
court erred when it held a second jury trial on attorney’s fees and litigation expenses, we need not
consider whether it was error to exclude Pesca’s experts’ testimony in the second trial.
Accordingly, we reverse the trial court’s award of attorney’s fees and litigation expenses, and we
affirm all other portions of the trial court’s judgment including the award of court costs and the
trial court’s take-nothing judgment in the Skoldebergs’ favor.
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BACKGROUND
Pesca Holding, LLC (“Pesca”) is a holding company that owns a window coverings
business called BTX Holdings, LLC (“BTX”). Texas Sun & Shade, Inc. (“TSS”) is a retail
business that sells window coverings and Vasa Window Coverings, Inc. (“VASA”) manufactures
window coverings. Pesca entered into an agreement with the Skoldebergs to purchase TSS and
the assets of VASA. According to Pesca, VASA’s financial disclosures had a line item labeled
“customer deposits” that purportedly represented 50% customer deposits on undelivered orders.
Pesca alleged it was under the impression that VASA had approximately $688,000 worth of
undelivered sales, and the $344,000 line item made up the 50% customer deposits on those sales.
After Pesca purchased TSS and the VASA assets it discovered that most of the $344,000 deposits
reflected on VASA’s financial disclosures were actually cash advances from TSS for future sales
rather than customer deposits from current sales. According to Pesca’s live pleading, rather than
the hundreds of thousands of dollars’ worth of sales allegedly portrayed by the financial
disclosures, VASA did not have any outstanding orders at the time of the transaction. Pesca then
sued the Skoldebergs for fraud and statutory fraud.
After a five-day jury trial, the jury found there was no fraud in the transaction. However,
the Skoldebergs failed to submit jury questions on the reasonableness and necessity of attorney’s
fees and the reasonableness of the litigation expenses the Skoldebergs sought to recover from
Pesca. Over a month later, after the jury was dismissed but before the trial court rendered final
judgment, the Skoldebergs filed a motion requesting the trial court award them approximately
$756,000 in attorney’s fees and $50,000 in reasonable expenses. In response, Pesca filed a motion
to strike the Skoldebergs request for attorney’s fees and litigation expenses, arguing the
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Skoldebergs waived their right to attorney’s fees and expenses when they failed to submit a
question on attorney’s fees and expenses to the jury that determined liability.
During a post-verdict hearing, and over Pesca’s objection, the trial court stated the parties
agreed to try attorney’s fees separately and held a second jury trial on attorney’s fees and expenses.
Pesca sought to call two of its own attorneys as experts to testify regarding the reasonableness and
necessity of the attorney’s fees sought by the Skoldebergs. The Skoldebergs objected claiming
Pesca failed to timely designate the attorneys as experts under the docket control order (“DCO”)
for the first jury trial on liability. Pesca argued the timeline in the DCO applied only to the first
jury trial and argued it should be given leave to designate experts to contest the Skoldebergs’
motion for attorney’s fees and expenses, which was not filed until after the conclusion of the first
trial. The trial court sustained the Skoldebergs’ objection and excluded the testimony of two of
Pesca’s experts because they were not timely designated under the DCO that was in place for the
first jury trial. The jury in the second trial awarded the Skoldebergs $800,000 in attorney’s fees,
$50,000 in expenses, and $109,500 in contingent appellate attorney’s fees should Pesca fail to win
on appeal. Pesca appeals.
DISCUSSION
In its first issue, Pesca argues the Skoldebergs waived their right to attorney’s fees and
expenses when they failed to submit jury questions on attorney’s fees and expenses in the first
trial, and the trial court erred by holding the second jury trial on attorney’s fees and expenses
absent a formal agreement by the parties. Pesca contends the subsequent award of attorney’s fees
and expenses should be reversed. In its second issue, Pesca argues that even if the trial court was
permitted to hold a second jury trial on attorney’s fees and expenses, the trial court nevertheless
erred by excluding Pesca’s experts from testifying to rebut the reasonableness and necessity of the
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attorney’s fees. In its third issue, Pesca argues it proved its fraud claim as a matter of law, and the
jury’s conclusion that the Skoldebergs did not commit fraud is against the great weight and
preponderance of the evidence. We address Pesca’s third issue first.
SUFFICIENCY OF THE EVIDENCE SUPPORTING THE JURY’S TAKE-NOTHING JUDGMENT
Pesca, as the plaintiff, bore the burden of proof on its fraud claims. On appeal, Pesca
challenges the legal and factual sufficiency of the evidence supporting the jury’s adverse findings
on Pesca’s fraud claims.
When a party attacks the legal sufficiency of an adverse finding that it has the burden to
prove, the party must demonstrate on appeal that the evidence establishes, as a matter of law, all
vital facts in support of the issue. Dow Chemical Co. v. Francis, 46 S.W.3d 237, 241 (Tex. 2001).
“In reviewing a ‘matter of law’ challenge, [we] must first examine the record for evidence that
supports the finding, while ignoring all evidence to the contrary.” Id. “If there is no evidence to
support the finding, [we] will then examine the entire record to determine if the contrary
proposition is established as a matter of law.” Id. We will reverse only if the party who bore the
burden of proof conclusively establishes its claim. Id.
When a party attacks the factual sufficiency of an adverse finding on an issue that it has
the burden to prove, the party must demonstrate on appeal that the adverse finding is against the
great weight and preponderance of the evidence. Id. at 242. We must consider and weigh all the
evidence and can set aside the jury’s verdict only if the evidence is so weak or if the finding is so
against the great weight and preponderance of the evidence that it is clearly wrong and unjust. Id.
“To prevail on a fraud claim, a plaintiff must show: (1) the defendant made a material
representation that was false; (2) the defendant knew the representation was false or made it
recklessly as a positive assertion without any knowledge of its truth; (3) the defendant intended to
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induce the plaintiff to act upon the representation; and (4) the plaintiff actually and justifiably
relied upon the representation and suffered injury as a result.” JPMorgan Chase Bank, N.A. v.
Orca Assets, G.P., L.L.C., 546 S.W.3d 648, 653 (Tex. 2018) (internal quotation marks omitted).
To establish statutory fraud in a stock transaction, a plaintiff must show that “the defendant made
a false representation of a past or existing material fact to the plaintiff for the purpose of inducing
the plaintiff to enter into a contract, and that the plaintiff relied on the representation in entering
into that contract.” 2 Garza v. Garza, No. 04-11-00310-CV, 2013 WL 749727, at *5 (Tex. App.—
San Antonio Feb. 27, 2013, no pet.) (mem. op.). “The elements of statutory fraud are essentially
identical to the elements of common law fraud, except that, to recover actual damages, statutory
fraud does not require proof that the defendant made a material, false representation knowing it to
be false or made it recklessly as a positive assertion without any knowledge of its truth.” Id. “Like
common-law fraud, the plaintiff’s reliance in statutory fraud must be justifiable.” Coldwell Banker
Whiteside Assocs. v. Ryan Equity Partners, Ltd., 181 S.W.3d 879, 888 (Tex. App.—Dallas 2006,
no pet.) (citing TCA Bldg. Co. v. Entech, Inc., 86 S.W.3d 667, 674 (Tex. App.—Austin 2002, no
pet.)); Lake v. Cravens, 488 S.W.3d 867, 895 (Tex. App.—Fort Worth 2016, no pet.) (“Indeed,
reliance is a necessary element of a statutory fraud claim, and we assume that the reliance must
have been justifiable.”); Nelson v. McCall Motors, Inc., 630 S.W.3d 141, 147 (Tex. App.—
Eastland 2020, no pet.).
To prevail in a legal sufficiency challenge on the common law fraud claim, Pesca was
required to prove as a matter of law that the $344,000 customer deposit entry was a material
2
Initially, we question whether Pesca had a viable statutory fraud claim regarding the alleged misrepresentation in the
VASA balance sheet. Statutory fraud is limited to “a transaction involving real estate or stock in a corporation or joint
stock company . . . .” TEX. BUS. & COM. CODE ANN. § 27.01(a). Pesca claims the customer deposits were reflected
as accounts receivable rather than intercompany loans on VASA’s financials. However, Pesca did not purchase stock
in VASA; rather, it only purchased VASA’s assets. Nevertheless, we conclude that even if Pesca had a viable statutory
fraud claim regarding the purchase of VASA’s assets, there is sufficient evidence to support the jury’s take-nothing
verdict.
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misrepresentation that the Skoldebergs knew was false or was recklessly made as a positive
assertion without knowledge of its truth with the intent to induce Pesca to enter into the agreement
to purchase TSS and the VASA assets, and Pesca justifiably relied on the entry in entering into the
agreement. To prevail in a legal sufficiency challenge on its statutory fraud claim, Pesca must
show the Skoldebergs made a false representation of a material fact with the intent to induce Pesca
to enter into the agreement to purchase TSS and the VASA assets, and Pesca justifiably relied on
that representation.
To prevail in a factual sufficiency challenge, Pesca must show that the evidence supporting
those elements as applied to these facts is so weak and against the great weight of the evidence
that it is clearly wrong and unjust.
Davide Pesca (“Davide”), an owner of Pesca, testified he could determine from the
financial disclosures provided before he purchased TSS and the VASA assets that VASA was not
a profitable company. Davide testified he believed the financial disclosures showed VASA had a
significant number of customer deposits which indicated there was a large backlog of orders.
Davide believed he could clear VASA’s backlog and make the business profitable within a year.
Davide admitted the brokerage firm that the Skoldebergs retained to help sell their
businesses set up a virtual data room where Pesca could review documents relating to the
businesses before he purchased them. The contents of the virtual data room were admitted into
evidence without objection. The table of contents for the virtual data room broke down the details
of TSS’s transactions with VASA and included items labeled in the table of contents as “Cash
Advances to VASA on future orders[,]” “Cash Advances to VASA on orders[,]” “Details of
Receiva[bl]e VASA for 2018 and 2017[,]” and “VASA-Details of advances and orders coded to
AP.” A review of those documents shows that TSS made substantial cash advances to VASA
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throughout 2017 and 2018. One of the Skoldebergs’ experts testified that these documents were
available in the virtual data room before Pesca entered into the agreement to purchase TSS and the
VASA assets. The expert testified that it is clear from these reports that “TSS was making regular
and frequent . . . checks to VASA in large[,] rounded amounts.” The expert essentially testified
that customer deposits in “large[,] rounded amounts” should have put Pesca on notice that these
are not current orders because “the typical average size of an order that VASA would receive
would be significantly smaller than [$20,000, $30,000, and], $40,000.” She further testified that:
“[A] deposit is typically a percentage of your order value. So it would be a very specific number.
You would expect it to not be perfectly rounded and large in the way that these items are
presented.” The expert went on to say that these documents were presented in response to a
specific request by Pesca during due diligence for the details related to the VASA receivables, and
the items expressly state there were “cash advances to VASA for future orders.”
The Skoldebergs both testified that they did not prepare the financial documents Davide
reviewed and that they relied on their CPA, bookkeeper, and other professionals in preparing the
documents. Davide stated that when he asked about the VASA accounts receivable in the TSS
books, he was told by a representative of the brokerage firm that they were customer deposits sent
to VASA from TSS for outstanding customer orders. However, the jury could either have
disbelieved Davide’s testimony, or could have concluded the misrepresentation, if any, was not
made by the Skoldebergs.
Two different CPAs, who provided expert testimony on the Skoldebergs’ behalf, testified
that some of the “customer deposits” on VASA’s books were for future orders from TSS. One of
the experts explained when VASA received a customer order, the cash deposit would be reflected
as an asset in the cash account and then there would be a corresponding liability labeled as a
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customer deposit until the order was fulfilled. When the order was fulfilled, the liability would be
removed. The future customer deposits were reflected as accounts receivable on TSS’s balance
sheet and as liabilities on VASA’s balance sheet. Both experts testified these categorizations were
proper, longstanding accounting practices rather than misrepresentations. One of the experts
testified that Davide had all the information necessary to cross-reference TSS’s and VASA’s books
to identify which customer deposits were for current orders and which were cash advances for
future orders. The jury could have concluded the CPA’s decision to label the payments from TSS
to VASA as customer deposits was an accounting classification rather than intentional
misrepresentations to induce Pesca into buying the businesses. This position becomes even more
reasonable considering there were documents in the virtual data room that expressly stated the TSS
customer deposits were for future orders. See Roxo Energy Co., LLC v. Baxsto, LLC, 713 S.W.3d
404, 408 (Tex. 2025) (“To prove justifiable reliance, [a plaintiff] must show that (1) it actually
relied on the defendant’s representation; and (2) such reliance was justifiable.”).
When asked whether he ever inquired with the Skoldebergs about the customer order
backlog, Davide testified that he only asked “if there was anything we needed to know, [or]
anything they didn’t tell us that we should know about the businesses.” According to Davide, the
Skoldebergs said everything is “good and correct.” Even though Davide testified that he relayed
his intention to move VASA’s backlog to BTX, there is no indication that he communicated to the
Skoldebergs that he believed the backlog consisted of $688,000 worth of orders. The Skoldebergs
could have presumed Davide was talking about current orders rather than the cash advances for
future orders when they told him everything is good and correct.
In addition, the jury could have also disbelieved Davide’s testimony that he never saw or
heard any reference to “future” orders when referring to the $344,000 entry for customer deposits.
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The jury could have also rejected Davide’s testimony that he believed any reference to “future”
orders pertained to actual, current customer deposits for active jobsites that would not be
completed for the next two or three years. In sum, the jury could have reasonably concluded that
the Skoldebergs answer to Davide’s non-specific question fell short of an intentional
misrepresentation to induce Pesca into buying the businesses, especially considering the jury heard
testimony that the customer deposits entry on VASA’s books included deposits from TSS for
future orders.
When analyzing the justifiable reliance element of fraud, the supreme court has held that
“[i]n an arm’s length transaction, the defrauded party must exercise ordinary care for the protection
of his own interests.” Orca Assets G.P., 546 S.W.3d at 654 (alterations omitted). “A failure to
exercise reasonable diligence is not excused by mere confidence in the honesty and integrity of the
other party.” Id. (alterations omitted). “And when a party fails to exercise such diligence, it is
charged with knowledge of all facts that would have been discovered by a reasonably prudent
person similarly situated.” Id. (internal quotation marks omitted). “To this end, that party cannot
blindly rely on a representation by a defendant where the plaintiff’s knowledge, experience, and
background warrant investigation into any representations before the plaintiff acts in reliance upon
those representations.” Id. (internal quotation marks omitted).
Davide admitted that two of his CPAs, his lawyer, and his lawyer’s paralegal were granted
access to the virtual data room as well, but he chose to handle the due diligence himself without
input from these professionals. Davide further admitted that he did not review all the documents
provided in the virtual data room although he had access to all the documents. Significantly,
Davide admitted that he did not review documents showing the details of VASA’s customer
deposits, the detailed VASA accounts receivable report, or the documents showing cash advances
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from TSS to VASA for future orders, even though they were all available to him in the virtual data
room.
It is not unreasonable for the jury to conclude Davide was provided with everything
necessary to determine there was not a substantial backlog of orders, especially considering
Davide’s extensive corporate and business experience. And Davide was permitted by the
Skoldebergs to contact the Skoldebergs’ accountant with any questions over the financials.
However, Davide chose not to contact the accountant or inquire further into the financials before
he purchased the businesses. Had Pesca done a more thorough job during its due diligence, it may
have discovered that Davide’s own subjective belief that there were $688,000 worth of backlogged
orders was inaccurate or that the “customer deposits” were for “future” orders rather than current,
pending orders.
We cannot conclude as a matter of law that the customer deposit entry—in the context of
all the information available in the virtual data room and the explanations from the CPA experts—
or the Skoldebergs’ statement that everything was “good and correct” was a material
misrepresentation that Pesca justifiably relied upon and was intended to induce Pesca into
purchasing the businesses. We also cannot conclude that the evidence is so weak and against the
great weight and preponderance of the evidence that the jury’s verdict is clearly wrong and unjust.
Because the jury could have reasonably concluded that the Skoldebergs did not materially
misrepresent its customer deposits with the intent to defraud Pesca, or that Pesca could not have
justifiably relied upon the alleged misrepresentations, we conclude the evidence is legally and
factually sufficient to support the jury’s verdict. Accordingly, we must uphold the jury’s verdict
and affirm the trial court’s take-nothing judgment.
Pesca’s third issue is overruled.
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ATTORNEY’S FEES AND EXPENSES
The agreement to purchase TSS and the assets of VASA provided that the non-prevailing
party in any cause of action relating to the agreement shall be liable for the reasonable attorney’s
fees, expenses, and costs of suit incurred by the prevailing party. 3
In its first issue, Pesca argues absent a valid agreement to try attorney’s fees and expenses
separately, the Skoldebergs waived their right to attorney’s fees and expenses when they failed to
submit questions on attorney’s fees and expenses to the jury in the first trial on liability before that
jury was dismissed. Thus, Pesca argues the trial court erred when it empaneled a second jury for
a separate jury trial on attorney’s fees and expenses. Pesca asks this court to reverse the award of
attorney’s fees and expenses.
A. The Skoldebergs Waived their Claim to Attorney’s Fees and Expenses
“When a claimant wishes to obtain attorney’s fees from the opposing party, the claimant
must prove that the requested fees are both reasonable and necessary.” Rohrmoos Venture v.
UTSW DVA Healthcare, LLP, 578 S.W.3d 469, 489 (Tex. 2019). The reasonableness and
necessity of attorney’s fees are normally fact issues for the jury, though the parties can agree
otherwise if they wish. Intercontinental Grp. P’ship v. KB Home Lone Star L.P., 295 S.W.3d 650,
658 n.38 (Tex. 2009); Rohrmoos, 578 S.W.3d at 489 (“Both elements are questions of fact to be
determined by the fact finder and act as limits on the amount of fees that a prevailing party can
shift to the non-prevailing party.”). Likewise, the question of reasonable expenses was also
submitted to the second jury. See Davenport v. Hall, No. 04-14-00581-CV, 2019 WL 1547617,
3
The prevailing party provision in the purchase agreement provided for the recovery of expenses by the prevailing
party. Our opinion should not be read to extend normal provisions shifting attorney’s fees as also authorizing the
recovery of litigation expenses. See Stanley Stores, Inc. v. Chavana, 909 S.W.2d 554, 563 (Tex. App.—Corpus
Christi–Edinburg 1995, writ denied) (providing recover of expert witness fees were not recoverable in litigation absent
a statute or contractual agreement authorizing such recovery); see also AVCO Corp. v. Interstate SW, Ltd., 251 S.W.3d
632, 657–62 (Tex. App.—Houston [14th Dist.] 2007, pet. denied).
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at *3 (Tex. App.—San Antonio Apr. 10, 2019, no pet.) (mem. op.) (providing that the party seeking
to recover expenses in either a tort or contract case must present specific evidence of the
reasonableness and necessity of those expenses); see also U.S. Fidelity & Guaranty Co. v.
Holcomb, 269 S.W. 487, 488 (Tex. App.—Amarillo 1925, no writ) (“What would constitute a
reasonable attorney’s fee, and reasonable expenses, under the circumstances, were controverted
issues of fact, to be determined by the jury.”).
Rule 270 of the Texas Rules of Civil Procedure provides, in relevant part, “that in a jury
case no evidence on a controversial matter shall be received after the verdict of the jury.” TEX. R.
CIV. P. 270. Rule 279 provides, in relevant part, that “[u]pon appeal, all independent grounds of
recovery . . . not conclusively established under the evidence and no element of which is submitted
or requested are waived.” TEX. R. CIV. P. 279; see also State Farm Mut. Auto. Ins. Co. v. Nicastro,
No. 05-23-00362-CV, 2025 WL 399674, at *10 (Tex. App.—Dallas Feb. 5, 2025, pet. denied)
(mem. op.). “[I]t is the responsibility of the party with the burden of proof on a ground of recovery
to request that the issue be submitted to the jury.” Unique Staff Leasing, Ltd. v. Cates, 500 S.W.3d
587, 599 (Tex. App.—Eastland 2016, pet. denied). “In this regard, a party waives its right to
recover attorney’s fees when it fails to put on evidence of attorney’s fees and fails to request the
trial court to submit a question on attorney’s fees to the jury.” In re State Farm Mut. Auto. Ins.
Co., No. 13-24-00162-CV, 2025 WL 3114462, at *8 (Tex. App.—Corpus Christi–Edinburg
Nov. 6, 2025, orig. proceeding).
Here, the Skoldebergs’ requests for attorney’s fees and expenses were contested issues.
They failed to present evidence on attorney’s fees and expenses or submit jury questions on those
issues to the first jury before that jury was dismissed. Consequently, under Rules 270 and 279 of
the Texas Rules of Civil Procedure, the Skoldebergs waived their claim to attorney’s fees and
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expenses when they failed to present evidence or submit jury questions on their claim for attorney’s
fees and expenses to the first jury that determined liability. See Cates, 500 S.W.3d at 599–600
(holding a party waived its claim to attorney’s fees when it did not submit the issue to the first jury
that determined liability even though a second jury heard the issue); Allstate Fire and Cas. Ins.
Co. v. Harper, 706 S.W.3d 460, 466 (Tex. App.—Austin 2024, no pet.) (holding a party waived
its right to attorney’s fees when it failed to submit the question to the jury before the jury was
dismissed).
The Skoldebergs argue they did not waive their claims for attorney’s fees and expenses
because the issues were submitted to a second jury rather than to the bench and Pesca’s right to
have the issues determined by a jury was not violated. However, the cases cited by the Skoldebergs
are either not persuasive or they are distinguishable.
In Great National Corp. v. Campbell, 687 S.W.2d 450 (Tex. App.—Dallas 1985, writ ref’d
n.r.e.), it is not clear whether the trial court made the decision to have two separate trials before
commencing the first trial. If so, this may have been permissible under Rule 174(b) of the Texas
Rules of Civil Procedure. See In re State Farm Mut. Auto. Ins. Co., 712 S.W.3d 53, 62–63
(Tex. 2025) (orig. proceeding). Based on the scarce facts presented in the opinion, we are unable
to determine whether that appeal is distinguishable from the case at bar. Moreover, Campbell is
not binding authority on this court.
In Mintz v. Carew, No. 05-16-00997-CV, 2018 WL 833371, at *3 (Tex. App.—Dallas
Feb. 13, 2018, pet. denied) (mem. op.), “the trial court clearly informed the parties—both before
and during the trial—that attorney’s fees would not be presented to the jury.” In a post-trial
hearing, the trial court stated it would not entertain the argument that the appellees waived their
right to attorney’s fees because it had not allowed the appellees to present evidence of attorney’s
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fees. Id. The Dallas Court of Appeals concluded that under these facts the appellees did not waive
their right to present evidence on attorney’s fees after the first jury was dismissed. Id. Here, in
contrast, the trial court did not make any ruling on the record regarding a separate trial on attorney’s
fees until after the first jury was dismissed. By that time, the trial court was not permitted to admit
any further evidence on a contested issue that should have been tried to the first jury. See TEX. R.
CIV. P. 270. To be clear, our holding here does not deprive a trial court of its pre-trial discretion
to “order a separate trial of any claim, cross-claim, counterclaim, or third-party claim, or of any
separate issue” under Rule 174(b) of the Texas Rules of Civil Procedure. See TEX. R. CIV. P.
174(b). 4 But the trial court in this case did not make a pre-trial ruling that attorney’s fees would
be tried separately; rather, it ordered a second jury trial on attorney’s fees after the first trial had
concluded even though the issue had already been waived under Rules 270 and 279.
In Commerce & Industry Insurance Co. v. Ferguson-Stewart, 339 S.W.3d 744, 748–49
(Tex. App.—Houston [1st Dist.] 2011, no pet.), during the trial, the law was unclear on whether
the trial court or a jury should determine attorney’s fees under section 408.221 of the Texas Labor
Code. See Transcon. Ins. Co. v. Crump, 330 S.W.3d 211, 229 (Tex. 2010) (“The statute is silent
on the critical judge-or-jury question [and] [b]oth parties offer legitimate, reasonable
interpretations of § 408.221 . . . .”). Ferguson-Stewart submitted her attorney’s fees’ request in a
post-trial motion for the trial court to decide the issue of attorney’s fees. Ferguson-Stewart,
339 S.W.3d at 748. The insurance carrier argued Ferguson-Stewart waived her right to attorney’s
fees when she failed to submit the issue to the jury. Id. While the case was on appeal, the supreme
court clarified the law and held it was permissible for a jury to determine attorney’s fees. Id.; see
4
We note Rule 174 is listed under the heading “Pre-Trial Procedure” in the rules of civil procedure. See Ad Villarai,
LLC v. Chan Il Pak, 519 S.W.3d 132, 138 (Tex. 2017) (relying on the title of a rule of civil procedure to ascertain the
drafter’s intent); ANTONIN SCALIA & BRYAN A. GARNER, READING LAW: THE INTERPRETATION OF LEGAL TEXTS 221
(2012) (“The title and headings are permissible indicators of meaning.”).
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also Crump, 330 S.W.3d at 232 (“[W]e hold that an insurance carrier is entitled to have a jury
determine the disputed amount of reasonable and necessary attorney’s fees for which it is liable
under § 408.221(c).”). Given the uncertainty in the law when the case was tried, the Houston
Court of Appeals decided to remand the cause so that a jury could determine attorney’s fees.
Ferguson-Stewart, 339 S.W.3d at 748 (“Remand for a jury trial is appropriate when a trial court
improperly fails to heed the request for a jury”). In Discover Prop. & Cas. Ins. Co. v. Tate,
298 S.W.3d 249, 257 (Tex. App.—San Antonio 2009, pet. denied), this court grappled with the
same statute and determined that due to the uncertainty of the law, and in the interest of justice,
the cause should be remanded for a jury trial on attorney’s fees. Both of those cases dealt with the
uncertainty of which factfinder—a judge or the jury—determines attorney’s fees under that
particular statutory scheme. But that is not the situation here.
Finally, in SEECO, Inc. v. K.T. Rock, LLC, 416 S.W.3d 664, 673–74 (Tex. App.—Houston
[14th Dist.] 2013, pet. denied), the appellate court’s decision changed who the prevailing party
was and remanded the cause for the factfinder to determine the amount of attorney’s fees the
newly-minted prevailing party was entitled to receive. SEECO is clearly distinguishable from this
case.
B. There was not a Valid and Enforceable Rule 11 Agreement to Try Attorney’s Fees and
Expenses Separately
To the extent the Skoldebergs argue there was a valid Rule 11 agreement to try the
attorney’s fees and expenses separately, we disagree.
Rule 11 of the Texas Rules of Civil Procedure states that “[u]nless otherwise provided in
these rules, no agreement between attorneys or parties touching upon any suit pending will be
enforced unless it be in writing, signed and filed with the papers as part of the record, or unless it
be made in open court and entered of record.” TEX. R. CIV. P. 11. “To be effective, a Rule 11
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agreement must consist of a written memorandum which is complete within itself in every material
detail, and which contains all of the essential elements of the agreement.” Shamrock Psychiatric
Clinic, P.A. v. Tex. Dep’t of Health & Hum. Servs., 540 S.W.3d 553, 561 (Tex. 2018) (internal
quotation marks omitted). “The purpose of Rule 11 is to ensure that agreements of counsel
affecting the interests of their clients are not left to the fallibility of human recollection, or
interpretation, and that the agreements themselves do not become the sources of controversy.” In
re State Farm, 2025 WL 3114462, at *6 (internal quotation marks omitted).
The Skoldebergs do not point us to a valid written Rule 11 agreement regarding attorney’s
fees and expenses in the record, and we have not found one upon our own independent review of
the record. Thus, although the trial court insisted that the parties agreed to try attorney’s fees and
expenses separately, a valid Rule 11 agreement must have been made in open court and read into
the record. We must determine whether the trial court’s conclusion that the parties agreed to try
the issues separately is supported by the record.
Here, the jury trial on liability concluded on March 1, 2024, and the jurors were dismissed.
The Skoldebergs never presented evidence on the reasonableness or necessity of attorney’s fees or
supporting their claim for expenses, nor did they submit questions to the jury regarding attorney’s
fees and expenses. More than a month after the jury that determined liability was dismissed, the
Skoldebergs filed a post-verdict motion requesting the trial court declare them as the prevailing
parties and requesting an award of attorney’s fees, expenses, and court costs. On May 13, 2024,
Pesca filed a motion to strike the Skoldebergs’ request for attorney’s fees and expenses arguing
the Skoldebergs have waived their right to attorney’s fees and expenses by failing to present
evidence and failing to submit jury questions on their claims for attorney’s fees and expenses.
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That same day, the trial court held a hearing on the Skoldebergs motion to declare them as
the prevailing party and to consider their request for attorney’s fees and expenses. In the hearing,
Pesca raised the topic of whether the Skoldebergs waived their right to attorney’s fees and expenses
by failing to submit this issue to the first jury. The transcript of the hearing clearly shows Pesca
wanted to urge its motion to strike the request for attorney’s fees while the Skoldebergs wanted a
declaration that they were the prevailing party from the jury trial on liability. The Skoldebergs
also sought to set a second trial for a jury to determine the attorney’s fees and expenses. However,
the trial court expressed its desire to hear the motion to strike the request for attorney’s fees at a
later date and proceed with simply determining who the prevailing party was at trial. Counsel for
the Skoldebergs replied: “We’re fine de