Hudspeth County v. Guitar Holding Company L.P.

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.