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Gereb v. Smith-Jaye

To recover attorneys' fees under Texas Civil Practice and Remedies Code '38.001, the party must prevail on a cause of action for which attorneys' fees are recoverable and recover damages; however, the party requesting fees need not obtain a net recovery.

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AFFIRMED

Appellees Brenda N. Smith-Jaye and Guadalupe R. Leal filed suit for breach of contract, seeking to force appellant Timothy M. Gereb to pay back taxes pursuant to a settlement agreement. Over a year after suit was filed, Gereb paid part of the taxes in dispute. The trial court entered judgment awarding appellees no damages, but awarding attorney’s fees. Gereb claims the trial court erred in awarding attorney’s fees in a case where no damages were awarded. We affirm.

The trial court entered findings of fact that Gereb breached two separate settlement agreements by failing to timely pay the back taxes and that Gereb paid a portion of “the subject 941 taxes due” six days before trial. *fn1 The trial court awarded appellees attorney’s fees but no additional damages for breach. *fn2

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