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Hudspeth County v. Guitar Holding Company L.P.

The case originated when Guitar Holdings Company L.P. challenged decisions of the Hudspeth County Underground Water Conservation District No. 1 on certain groundwater rules and permits. This is an appeal from the trial court's determination on attorney's fees, expert witness fees and administrative costs. Guitar made no mention of the attorney's fee award or he appeals' court determination as to the District's prevailing party status in its petition for review to the Supreme Court. Therefore, Guitar waived the issue and the trial court did not have the authority to revoke the District's prevailing party status on remand. The District argues that the trial court "legally erred in allowing Guitar Holdings to abandon its stipulations on remand." The trial court had the authority to abandon the parties' former stipulation in light of the appellate decisions. The District is entitled to the amount of fees the trial court found reasonable and necessary on remand. In light of the relative success of the parties, the trial court had discretion to find that the amounts incurred by the District's attorney were unnecessary or excessive. The trial court's determination is reversed in part, rendered in part, and remanded. El Paso Court of Appeals, No. 08-09-00156-CV, 08-26-2011.

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OPINION

This is an appeal from the trial court’s determination on attorney’s fees, expert witness fees, and administrative costs. The case originated when Guitar Holdings Company, L.P. challenged decisions of the Hudspeth County Underground Water Conservation District No. 1 on certain groundwater rules and permits. After several administrative proceedings, Guitar appealed to the district court and subsequently to this court. Guitar Holding Co., L.P. v. Hudspeth County Underground Water Conservation Dist. No. 1, 209 S.W.3d 146, 152 (Tex.App.–El Paso 2006), aff’d in part, rev’d in part, 263 S.W.3d 910 (Tex. 2008). We affirmed in part, upholding the District’s determination as to the validity of the permits and rules, and reversed and remanded in part, ruling in favor of the District on their cross-appeal for attorney’s fees. Guitar Holding, 209 S.W.3d at 152. Guitar brought a limited appeal to the Texas Supreme Court arguing only the validity of the transfer permit rules. The Texas Supreme Court reversed only as to the transfer issues and remanded the case to the trial court. Guitar Holding Co., L.P. v. Hudspeth County Underground Water Conservation Dist. No. 1, 263 S.W.3d 910, 918 (Tex. 2008). *fn1 On remand, the only remaining dispute was the award of the fees sought by the District under Section 36.066(g) of the Texas Water Code. The trial court found that the District did not prevail and declined to award fees. The District now appeals that determination.

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