Lopez v. Munoz, Hockema & Reed, L.L.P

In Lopez v. Munoz, Hockema & Reed, L.L.P., 22 S.W.3d 857 (Tex. 2000), the parties' fee agreement provided that if the case were "appealed to a higher court," the contingent fee would increase by an additional five percent. The plaintiffs prevailed at trial, and while settlement negotiations were pending, the defendant filed a cash deposit in lieu of a bond to ensure that its appeal would be timely if negotiations were not fruitful. A few days later, the case settled, and the defendant paid the plaintiffs a large sum. The plaintiffs' counsel demanded the additional five percent under the contingency agreement. The Court held that the case had been appealed and that the lawyers did not breach their contract or a fiduciary duty by charging the additional five percent. However, the three justices who decided the case in the court of appeals had concluded that when a case is "appealed to a higher court" was susceptible to more than one reasonable meaning. See Lopez v. Muoz, Hockema & Reed, L.L.P., 980 S.W.2d 738, 741.