Attorney's Fee Awards In Cases With Multiple Defendants

We review an award of attorney fees under a sufficiency of the evidence standard. Stewart Title Co. v. Sterling, 822 S.W.2d 1, 11 (Tex. 1991). As a general rule, the party seeking to recover attorney fees carries the burden of proof. See id. at 10. The trial court may award those fees that are "reasonable and necessary" for the prosecution of the suit. Id. In order to show the reasonableness and necessity of attorney fees, the plaintiff is required to show that the fees were incurred while suing the defendant on a claim which allows recovery of such fees. When a plaintiff seeks to recover attorney fees in cases where there are multiple defendants, and one or more of those defendants have made a settlement, the plaintiff must segregate the fees owed by the remaining defendants from those owed by the settling defendants so that the remaining defendants are not charged fees for which they are not responsible. Id. A recognized exception to this duty to segregate arises when the attorney fees rendered are in connection with claims arising out of the same transaction and are so interrelated that their "prosecution or defense entails proof or denial of essentially the same facts." Flint & Assoc. v. Intercontinental Pipe & Steel, Inc., 739 S.W.2d 622, 624-25 (Tex. App.--Dallas 1987, writ denied). Therefore, when the causes of action involved in the suit are dependent upon the same set of facts or circumstances and thus are "intertwined to the point of being inseparable," the party suing for attorney fees may recover the entire amount covering all claims. See Sterling, 822 S.W.2d at 12; Gill Sav. Ass'n v. Chair King, Inc., 783 S.W.2d 674, 680 (Tex. App.-Houston [14th Dist.] 1989), modified, 797 S.W.2d 31 (Tex. 1990) (remanded to the trial court for reexamination of attorney fee award). The general rule is that a party seeking to recover attorney's fees in a suit involving multiple claims or parties has a duty to segregate the fees owed. See Stewart Title Guar. Co. v. Sterling, 822 S.W.2d 1, 10-11 (Tex. 1991). A recognized exception to this duty to segregate arises when the attorney's fees rendered are in connection with claims arising out of the same transaction and are so interrelated that their prosecution or defense entails proof or denial of essentially the same facts. Id. at 11. Thus, when the causes of action involved in the suit are dependent on the same set of facts or circumstances and are intertwined to the point of being inseparable, the party seeking attorney's fees may recover the entire amount covering all claims and parties. Id. Further, if the claims involved in the suit are dependent upon the same facts and are inseparable, the party seeking to recover the fees may recover even though under one or more of the causes of action such fees are not recoverable. Gill Sav. Ass'n v. Chair King, Inc., 783 S.W.2d 674, 680 (Tex.App.-Houston [14th Dist.] 1989, no writ).