Court Opinion

ID: 9632547
Source: CourtListenerOpinion
Date Created: 2023-08-22 11:18:42.944612+00
Date Added: 2024-06-11T13:07:15.915672
License: Public Domain

OPINION ON MOTION FOR REHEARING
Both UPRC and PWW have filed motions for rehearing. PWW argues this Court erred in holding that its suit was barred by the statute of limitations. UPRC argues this Court erred in not considering whether there was sufficient evidence that the repair costs to the well were reasonable and necessary and in awarding interest at a rate of ten percent. In its supplement to its motion for rehearing, UPRC argues that this Court erred in allocating the costs among the parties and argues for the first time on appeal that Russell and Lori Burke lack standing. We overrule the motions for rehearing.

PWW’s Motion for Rehearing

PWW contends we erred in holding that its suit was barred by the statute of limitations. PWW argues that it was not until it was sued for breach of contract that it became aware of the tortious interference with business relations. This argument fails because, even if the discovery rule applies, the test is when PWW became aware of interference with its business relationship rather than when the extent of the damages became known. The discovery rule exception defers accrual of a cause of action until the plaintiff knew or should have known of the facts giving rise to the cause of action. Trinity River Auth. v. URS Consultants, Inc., 889 S.W.2d 259, 262 (Tex.1994); Dickson Constr., Inc. v. Fid. & Deposit Co., 960 S.W.2d 845, 850 (Tex.App.-Texarkana 1997, no pet.). The tortious interference *73with business relations occurred when the well was damaged, not when the Burkes filed suit. There is sufficient evidence to support the jury’s determination that PWW knew or should have known by January 1, 1998, that UPRC had damaged the well and thus interfered with its contract. The fact that the extent of the damages caused by the interference did not become apparent until it was sued by the Burkes does not toll the statute of limitations.
PWW also contends the effect of our ruling violates the open courts provision of the Texas Constitution. See Tex. Const, art. I, § 13; Trinity River Auth., 889 S.W.2d at 261; Sax v. Votteler, 648 S.W.2d 661, 665 (Tex.1983). In Trinity River Authority, the Texas Supreme Court held that the statute of limitations did not violate the open courts provision. Trinity River Auth., 889 S.W.2d at 261. In Sax, the Texas Supreme Court held that a limitations statute limiting a minor’s opportunity to file a malpractice suit violated the open courts provision because it effectively abolished the minor’s right to assert the cause of action. Sax, 648 S.W.2d at 667. Our situation is distinguishable because PWW could have sued when it became aware that the well was damaged even though PWW did not know the full extent of the damages at that time.
PWW suggests that we 1) allow an equitable tolling exception, 2) apply the residual limitations statute, or 3) apply the discovery rule. We analyzed the statute of limitations based on the discovery rule. We also rejected the residual limitations statute based on the most recent Texas Supreme Court analysis. See First Nat’l Bank of Eagle Pass v. Levine, 721 S.W.2d 287, 289 (Tex. 1986). PWW did not assert any equitable tolling exception at the trial court level.
We overrule PWW’s motion for rehearing.

UPRC’s Motion for Rehearing

In its original motion for rehearing, UPRC argues that our opinion failed to address whether the water well repair cost was reasonable and necessary. UPRC also contends the judgment interest rate should be five percent rather than ten percent.
UPRC’s first contention is that the Burkes failed to show that the cost of $7,800.00 to repair the well was reasonable and necessary. A party seeking recovery for the costs of repairs must prove they are reasonable. Fort Worth Hotel Ltd. P’ship v. Enserch Corp., 977 S.W.2d 746, 762 (Tex.App.-Fort Worth 1998, no pet.). A party does not have to use the magic words “reasonable and necessary,” but need only present sufficient evidence to justify a jury’s finding. Id. The Burkes presented evidence that the well was pumping excessive amounts of sand, which made the water unsuitable for the use intended. Evidence at trial indicated this problem was caused by a hole or similar disruption in the screen. Jere Pritchett testified he made several attempts to repair the well, but was unsuccessful. Although he did not charge the Burkes, Pritchett incurred costs of $10,000.00 in attempting to repair the well. Travis Russell was able to patch the well and charged the Burkes $7,800.00 for the patch. The patch cost less than Pritchett’s unsuccessful repairs and much less than the original cost of the well. Based on this evidence, a rational juror could have concluded that the repairs were reasonable and necessary, and such a conclusion is not against the great weight and preponderance of the evidence.
UPRC’s second contention is that the judgment interest rate should be five percent rather than ten percent. UPRC *74argues that the new version of Tex. Fin. Code Ann. § 304.003(c) applies because this Court’s opinion constitutes a judgment and the new provision applies to a judgment which will be “signed or subject to appeal.” See Act of June 2, 2003, 78th Leg., R.S., ch. 676, § 2, 2003 Tex. Gen. Laws 2097.
During the last regular session, the Texas Legislature amended the postjudgment interest rate. See Act of June 2, 2003, 78th Leg., R.S., ch. 676, § 1, 2003 Tex. Gen. Laws 2096-97 (codified at Tex. Fin. Code Ann. § 304.003(c) (Vernon Supp. 2004)). Section 304.003(c) of the Texas Finance Code now provides:
(c) The postjudgment interest rate is:
(1) the prime rate as published by the Federal Reserve Bank of New York on the date of computation;
(2) five percent a year if the prime rate as published by the Federal Reserve Bank of New York described by Subdivision (1) is less than five percent; or
(3) 15 percent a year if the prime rate as published by the Federal Reserve Bank of New York described by Subdivision (1) is more than 15 percent.
Tex. Fin.Code Ann. § 304.003(c).
The interpretation of a statute is a question of law. In re Canales, 52 S.W.3d 698, 701 (Tex.2001) (orig.proceeding). The Fort Worth Court of Appeals has held that the amendments apply only “where a judgment is signed on [or] after the effective date of the Act and to cases where a judgment becomes subject to appeal, i.e., capable of being appealed, on or after the effective date of the Act.” Columbia Med. Ctr. v. Bush, 122 S.W.3d 835, 865 (Tex.App.-Fort Worth 2003, pet. denied); see Warrantech Corp. v. Computer Adapters Servs., No. 02-03-002-CV, 2004 Tex.App. LEXIS 3212, 2004 WL 742742 (Tex.App.Fort Worth Apr. 8, 2004, no pet. h.); see also Utts v. Short, No. 03-03-00512-CV, 2004 WL 635342 (Tex.App.-Austin Apr. 1, 2004, no pet. h.) (not designated for publication).
We note that all of our sister courts’ opinions affirmed the judgments of the trial courts and that we reversed and rendered concerning PWW and suggested a remittitur concerning UPRC’s appeal. However, our sister courts’ opinions indicate that “judgment” in the act refers to the trial court judgment rather than a judgment by a court of appeals. In Columbia Medical Center, the Fort Worth Court of Appeals held that “[t]he plain meaning of the phrase ‘subject to an appeal’ when used to describe a judgment traditionally means that the judgment fully and finally disposes of all parties and all issues before the trial court and therefore is capable of being appealed.” Columbia Med. Ctr., 122 S.W.3d at 865. We hold that the new version of Section 304.003(c) applies to a case in which a final judgment is signed in the trial court or subject to appeal from the trial court on or after June 20, 2003. Since the judgment was signed by the trial court and appeal was taken well before the effective date of the new version of Section 304.003(c), it does not apply.
The trial court signed the final judgment in this case January 10, 2003. This judgment contained a prejudgment and post-judgment interest rate of ten percent. At the time the judgment was signed in the trial court, Section 304.003(c) provided:
(c) The postjudgment interest rate is:
(1) the auction rate quoted on a discount basis for 52-week treasury bills issued by the United States government as most recently published by the Federal Reserve Board before the date of computation;
*75(2) 10 percent a year if the auction rate described by Subdivision (1) is less than 10 percent; or
(3) 20 percent a year if the auction rate described by Subdivision (1) is more than 20 percent.
Act of April 23, 1999, 76th Leg., R.S., ch. 62, § 7.18, 1999 Tex. Gen. Laws 222, 232 (amended 2003) (current version at Tex. Fin.Code Ann. § 304.003(c)). Thus, the applicable interest rate was ten percent. We overrule UPRC’s motion for rehearing.
UPRC’s Supplement to Motion for Rehearing
In its supplement to its motion for rehearing, UPRC alleges two more errors in this Court’s opinion. UPRC contends that we erred in allocating the costs among the parties and that the Burkes lack standing to pursue the appeal.
The first alleged error argued by UPRC is that this Court erred in allocating the costs of the appeal among the parties. This Court ordered UPRC to pay one half of the costs, the Burkes to pay one third of the costs; and for PWW to pay one sixth of the costs. UPRC argues that we should have applied Rule 139 of the Texas Rules of Civil Procedure and ordered that the Burkes and PWW pay the costs. UPRC argues that, since Rule 139 is more specific than Rule 43.4 of the Rules of Appellate Procedure, it should govern the award of the costs. See Tex.R. Civ. P. 139; Tex.R.App. P. 43.4.
Rule 43.4 provides that a court of appeals should award costs to the prevailing party. Tex.R.App. P. 43.4. We followed the prevailing party rule in allocating costs. However, no party prevailed on all of the principal issues. Given that there were multiple appeals and multiple parties prevailing, we allocated the costs accordingly.
The general rule is that the specific rule will control over the general rule. See Tex. Gov’t Code Ann. § 311.026 (Vernon 1998). However, we cannot say that Rule 139 is more specific than Rule 43.4. Both rules are comprehensive on their face. See Tex.R. Civ. P. 139; Tex.R.App. P. 43.4 If the rules were irreconcilable, Rule 43.4 would govern as the more recent rule. See Tex. Gov’t Code Ann. § 311.025 (Vernon 1998). However, we believe the rules can be harmonized. When presented with a potential conflict among different rules, the rules should be construed, if possible, to give effect to both.
The rules can be harmonized because the court may award costs to the prevailing party, otherwise as required by law, or otherwise for good cause. Rule 43.4 provides that the court “may tax costs otherwise as required by law or for good cause.” Tex.R.App. P. 43.4. The word “may” indicates that such an action is at the discretion of the court. See Tex. Gov’t Code Ann. § 311.016 (Vernon 1998). We conclude Rule 139 falls within the meaning of “otherwise required by law” and could be followed at the court’s discretion. However, the court may award costs other than to the prevailing party based on “good cause.” See Burns v. Bishop, 48 S.W.3d 459, 468 (Tex.App.-Houston [14th Dist.] 2001, no pet.); Keene Corp. v. Gardner, 837 S.W.2d 224, 232 (Tex.App.-Dallas 1992, writ denied); see also Lesikar v. Rappeport, 809 S.W.2d 246, 253 (Tex.App.-Texarkana 1991, no writ) (op. on reh’g). Courts of appeals have considerable discretion in taxing costs on appeal. Save Our Springs Legal Def. Fund v. City of Austin, 874 S.W.2d 109, 110 11 (Tex.App.-Austin 1994, no writ). When both parties prevail on some issues but not others, courts have apportioned the costs of appeal between the parties. See, e.g., City of Austin v. Capitol Livestock Auction Co., 453 S.W.2d 461, 465 (Tex.1970).
Our distribution of the costs was based on which party prevailed on each portion *76of the appeal and the magnitude of that portion of the appeal. Because this case involved multiple appeals of different magnitudes, we assessed the costs accordingly. The most substantial appeal was brought by UPRC against the Burkes. UPRC did not prevail on the principal issues and thus we assessed one half the costs of the appeal against UPRC. While monetarily significant, the Burkes’ appeal against UPRC involved a less substantial substantive portion of the appeal. Since the Burkes did not prevail on their appeal, we assessed one third of the costs against them. Although UPRC prevailed on the portion of their appeal against PWW, this part of the appeal was intertwined with the appeal concerning the Burkes. As the least substantial portion of the appeal, we ordered PWW to pay one sixth of the costs of appeal.
The second contention of UPRC is that the Burkes lack standing due to their filing a bankruptcy action. UPRC argues the trial court erred in failing to dismiss the Burkes’ suit. Standing is a component of subject matter jurisdiction; it cannot be waived and may be raised at any point. Anderson v. New Prop. Owners’ Ass’n, 122 S.W.3d 378, 384 (Tex.App.-Texarkana 2003, pet. denied).
Once a bankruptcy petition is filed, the estate takes ownership of all the debtor’s property, including his or her causes of action. 11 U.S.C.A. § 541(a) (West 1993); Douglas v. Delp, 987 S.W.2d 879, 883 (Tex.1999); Texas Ohio Gas, Inc. v. Mecom, 28 S.W.3d 129, 143 (TexApp.-Texarkana 2000, no pet.); Carter v. Carter, 21 S.W.3d 441, 443 (Tex.App.-San Antonio 2000, no pet.). However, “where an action is pending prior to the commencement of a bankruptcy proceeding a trustee has three options: (1) to assume prosecution of the pending action; (2) to consent to the debt- or’s continued prosecution of the action for the trustee’s benefit; or (3) to decline to prosecute the pending actions if it appears the prosecution would be fruitless.” Carter, 21 S.W.3d at 443.
This suit was pending at the time the Burkes declared bankruptcy. On January 12, 2000, the Burkes joined UPRC to the pending suit against PWW. On December 14, 2000, the Burkes filed for bankruptcy. Thereafter, the bankruptcy trustee joined this suit with the Burkes. In taking this action, it appears the bankruptcy trustee chose two of the possible options. He both assumed prosecution and consented to the debtor’s continued prosecution for the trustee’s benefit. The Fourteenth District Court of Appeals has suggested that, if a bankruptcy trustee has notice of a pending suit and does not intervene, he is deemed to have consented to the prosecution. Sommers v. Concepcion, 20 S.W.3d 27, 38-39 (Tex.App.-Houston [14th Dist.] 2000, pet. denied) (suit by a trustee is barred due to res judicata when he had notice of the debtor’s prior prosecution). As a party, the trustee clearly had notice that the Burkes were continuing to prosecute the case. Therefore, we find the trustee consented to the prosecution and the Burkes have standing. Any recovery will inure to the trustee’s benefit for the bankruptcy estate. We overrule UPRC’s supplement to their motion for rehearing.
For the reasons stated, we overrule the motions for rehearing by PWW and UPRC. In accordance with the suggestion of a remittitur, the Burkes have filed a remittitur of $653,700.00. We modify the judgment of the trial court and, as modified, we affirm the Burkes’ recovery of $842,300.00, plus prejudgment interest of $358,552.84 and postjudgment interest at the rate of ten percent per annum.