ANNE GARDNER, Justice.
Relators Texas Collegiate Baseball League, Ltd. (TCBL) and Gerald W. Haddock seek mandamus relief from the trial court's January 11, 2012 order denying their amended motion to abate portions of this case between Relators and Real Parties In Interest Jeffrey J. Wolf and The Wolf Law Firm, P.C. (collectively, Wolf).
Four separate lawsuits are tangentially involved in this mandamus proceeding, and all four remain pending. Wolf, an attorney, represented Haddock in two of the lawsuits (collectively, the Crescent litigation).
This, the fourth, lawsuit began when TCBL filed suit against Wolf to enforce an alleged settlement agreement. According to TCBL and Haddock, the parties entered into a settlement agreement in May 2010 to resolve disputes concerning legal fees Wolf claimed he was owed by TCBL and Haddock relating to Wolf's representation of them in the Crescent and Baseball litigations. Wolf disputes that the parties entered into an enforceable agreement, and he responded to TCBL's original petition by filing a counterclaim against TCBL and a third-party petition against Haddock for recovery of his attorney's fees (collectively, the fee claim). TCBL and Haddock responded to the counterclaim by asking that the trial court abate the lawsuit so that TCBL could investigate possible malpractice claims against Wolf. The trial court denied the motion, and TCBL and Haddock later amended their pleadings to allege malpractice against Wolf relating to his representation of them in the Crescent and Baseball litigations (collectively, the malpractice claims).
In June 2011, TCBL and Haddock filed a motion for summary judgment to enforce the purported settlement agreement, but the trial court, Respondent Judge Wade Birdwell, denied the motion. In July 2011, TCBL and Haddock filed another motion to abate the fee claim and malpractice claims pending final resolution of the Crescent and Baseball litigations. The trial court held an evidentiary hearing and denied the motion by written order dated January 11, 2012. TCBL and Haddock then sought mandamus relief in this court.
Mandamus relief is proper only to correct a clear abuse of discretion when there is no adequate remedy by appeal. In re Columbia Med. Ctr. of Las Colinas, 290 S.W.3d 204, 207 (Tex.2009) (orig. proceeding).
A trial court clearly abuses its discretion when it reaches a decision so arbitrary and unreasonable as to amount to a clear and prejudicial error of law or if it clearly fails to correctly analyze or apply the law. In re Olshan Found. Repair Co., 328 S.W.3d 883, 888 (Tex.2010) (orig. proceeding); Walker v. Packer, 827 S.W.2d 833, 839 (Tex.1992) (orig. proceeding). With respect to the resolution of factual issues or matters committed to the trial courts discretion, we may not substitute our judgment for that of the trial court unless the relator establishes that the trial court could reasonably have reached only one decision and that the trial courts decision is arbitrary and unreasonable. In re
TCBL and Haddock contend in their sole issue that the trial court abused its discretion by denying their motion to abate the fee claim and malpractice claims until the Crescent and Baseball litigations and any related appeals are concluded. Wolf responds that the trial court properly exercised its discretion by denying abatement because severance or separate trials would instead be appropriate.
To support their abatement argument, TCBL and Haddock rely in part on the rule that the statute of limitations for legal malpractice claims involving prior or ongoing litigation "is tolled until all appeals on the underlying claim are exhausted or the litigation is otherwise finally concluded." Apex Towing Co. v. Tolin, 41 S.W.3d 118, 119 (Tex.2001). TCBL and Haddock acknowledge that the statute of limitations is not at issue in this mandamus proceeding, but they argue that the policy considerations justifying the tolling rule apply equally in this case and require abatement. Those policy considerations are two-fold. First, tolling the statute of limitations avoids "forc[ing] a client into the untenable position of having to adopt inherently inconsistent litigation postures in the underlying case and the malpractice case." Id. at 121 (discussing Hughes v. Mahaney & Higgins, 821 S.W.2d 154, 156-57 (Tex.1991)). Second, "the viability of [the malpractice] action depends on the outcome of the underlying litigation." Id. TCBL and Haddock argue that abatement of the fee claim and malpractice claims is required because they will otherwise be forced to take inherently inconsistent litigation postures by defending Wolf's alleged malpractice in the Crescent and Baseball litigations in an effort to prevail in those cases while at the same time affirmatively asserting malpractice claims and defenses against Wolf in this case. TCBL and Haddock also assert that, if the malpractice and fee claims are not abated, they will be required to engage in discovery and pursue claims that have not yet accrued and for which their alleged damages are not yet known.
Wolf does not dispute that the malpractice claims are premature or that the trial court could have chosen to abate the malpractice claims. Wolf does, however, dispute the propriety of abating the fee claim and contends that severance or separate trials of the fee claim and malpractice claims would resolve the potential problems raised by TCBL and Haddock.
Wolf's supporting authority is similarly inapplicable. See Van Dyke v. Boswell, O'Toole, Davis & Pickering, 697 S.W.2d 381, 384 (Tex.1985); Richter v. Mery, No. 04-10-00098-CV, 2010 WL 3782186, at *1 (Tex.App.-San Antonio Sept. 29, 2010, pet. denied) (mem. op.). Wolf cites Van Dyke for the proposition that a malpractice claim is not barred by res judicata when the trial court orders separate trials of a fee claim and a malpractice claim that were originally asserted as counterclaims. See 697 S.W.2d at 384. But whether res judicata would or would not bar a subsequent malpractice suit by TCBL and Haddock does not help resolve whether TCBL and Haddock will potentially be prejudiced by having to defend the fee claim while the Crescent and Baseball litigations remain pending and while their malpractice defenses to the fee claim are not mature. Wolf cites Richter because the appellate opinion reflects that the trial court in the case stated that "it would be `cleaner' if a motion to sever were filed" to separate Mery's claim for attorney's fees from the underlying lawsuit, but there is no analysis or further discussion in the opinion concerning the propriety of severance, separate trials, or abatement. See 2010 WL 3782186, at *1-3.
The parties do not dispute that the malpractice claims are not yet mature and should be abated pending the outcome of the Crescent and Baseball litigations. We must therefore decide whether the fee claims may proceed or whether they must be abated along with the malpractice claims. In that regard, the necessity of abatement is illustrated by explaining why severance or separate trials is not appropriate
Rule 41 of the Texas Rules of Civil Procedure provides that "[a]ny claim against a party may be severed and proceeded with separately." Tex.R. Civ. P. 41. However, a claim is properly severable only if (1) the controversy involves more than one cause of action, (2) the severed claim is one that would be the proper subject of a lawsuit if independently asserted, and (3) the severed claim is not so interwoven with the remaining action that they involve the same facts and issues. Guaranty Fed. Sav. Bank v. Horseshoe Operating Co., 793 S.W.2d 652, 658 (Tex.1990). "[A]voiding prejudice, doing justice, and increasing convenience are the controlling reasons to allow a severance." F.F.P. Operating Partners, L.P. v. Duenez, 237 S.W.3d 680, 693 (Tex.2007) (citing Guar. Fed. Sav. Bank, 793 S.W.2d at 658). Rule of civil procedure 174(b) governs the granting of separate trials, and its purpose is similarly "to further convenience, to avoid prejudice, and to promote the ends of justice." In re Ethyl Corp., 975 S.W.2d 606, 609-10 (Tex.1998) (orig. proceeding); see Tex.R. Civ. P. 174(b).
Wolf's alleged malpractice, whether it be negligence or breach of fiduciary duty, will be central to both TCBL's and Haddock's affirmative malpractice claims and their defenses to Wolf's fee claim. See Barcelo, 923 S.W.2d at 579 ("[A] legal malpractice action sounds in tort and is governed by negligence principles."); NationsBank of Tex., N.A. v. Akin, Gump, Hauer & Feld, L.L.P., 979 S.W.2d 385, 397-98 (Tex.App.-Corpus Christi 1998, pet. denied) (holding that because malpractice claim must be remanded, law firm's claim for recovery of fees must also be remanded because law firm's entitlement to fees was "wholly dependent" on the outcome of malpractice claims); see also Burrow v. Arce, 997 S.W.2d 229, 240 (Tex.1999) (holding client need not prove actual damage before obtaining forfeiture of attorney's fees for breach of attorney's fiduciary duty to client); Judwin Props., Inc., 911 S.W.2d at 507 ("Recovery of fees paid to an attorney may be appropriate when [the attorney's] negligence rendered the services of no value."); Morales v. Cline, 202 S.W. 754, 757 (Tex.Civ.App.-San Antonio 1918, writ dism'd w.o.j.) (noting that attorney's negligence may preclude recovery of compensation for attorney's services). Severance or separate trials are therefore not appropriate because the fee claim and the malpractice claims involve the same facts and issues.
Additionally, severance or separate trials would not avoid prejudice, do justice, or increase convenience. The parties agree that the malpractice claims are not mature. If Wolf is allowed to proceed on the fee claim, TCBL and Haddock would be forced to trial on the fee claim with unripe defenses. Assuming the malpractice claims eventually mature, the parties would then have another trial concerning Wolf's alleged malpractice. Thus, severing or ordering separate trials of the fee claim and the malpractice claims would require the parties to have essentially the same trial twice, except that TCBL and Haddock would have to defend the fee claim at the first trial with unripe defenses. See In re State, 355 S.W.3d 611, 614 (Tex.2011) (orig. proceeding) (holding severance order improper because it would require eight separate trials with duplicative evidence that could be presented in one trial). Severance or separate trials might actually increase the possibility of prejudice and cause a burden to the court system and the parties.
It makes little sense for the parties to conduct discovery and prepare for trial concerning the fee claim and the malpractice claims in this litigation while the Crescent and Baseball litigations remain pending. Indeed, TCBL's and Haddock's malpractice claims may have no merit upon final resolution of the Crescent and Baseball litigations, leading to a much simpler resolution of the fee claim. Although Wolf might be prejudiced by having to wait until the resolution of the Crescent and Baseball litigations to try to recover his fees (and more so if TCBL's and Haddock's malpractice claims later have no merit), the risk of prejudice to Wolf is far less than the risk of prejudice and burden to the parties and the judicial system if TCBL and Haddock are required to try the fee claim before their defenses mature. See In re Van Waters & Rogers, Inc., 145 S.W.3d 203, 211 (Tex. 2004) (orig. proceeding) (holding that whatever advantage might be gained by improper consolidation was "overwhelmed by the greater danger an unfair trial would pose to the integrity of the judicial process").
The trial court's order denying TCBL and Haddock's amended motion to abate does not specify the basis of its decision to deny the motion. However, considering the sealed appellate record, the parties' arguments, and the options arguably available to the trial court short of abating the fee claim and malpractice claims pending the outcome of the Crescent and Baseball litigations, the trial court had no viable option other than to grant the motion. We therefore hold that the trial court abused its discretion by denying TCBL and Haddock's motion to abate the portions of this case relating to the fee claim and malpractice claims pending the outcome of the Crescent and Baseball litigations. See Liberty Nat'l Fire Ins. Co. v. Akin, 927 S.W.2d 627, 630 (Tex.1996) ("To satisfy the
Having determined that the trial court abused its discretion, we must also determine whether TCBL and Haddock have an adequate remedy by appeal that would preclude mandamus relief.
Absent extraordinary circumstances, mandamus will not issue unless TCBL and Haddock lack an adequate remedy by appeal. Van Waters & Rogers, Inc., 145 S.W.3d at 210-11 (citing Walker, 827 S.W.2d at 839). This requirement "has no comprehensive definition." In re Ford Motor Co., 165 S.W.3d 315, 317 (Tex. 2005) (orig. proceeding). Whether a clear abuse of discretion can be adequately remedied by appeal depends on a careful analysis of costs and benefits of interlocutory review. In re McAllen Med. Ctr., Inc., 275 S.W.3d 458, 464 (Tex.2008) (orig. proceeding). As this balance depends heavily on circumstances, it must be guided by analysis of principles rather than simple rules that treat cases as categories. Id. An appellate remedy is adequate when any benefits to mandamus review are outweighed by the detriments. In re Prudential Ins. Co. of Am., 148 S.W.3d 124, 136 (Tex.2004) (orig. proceeding). When the benefits outweigh the detriments, we must conduct further analysis. Id. An appeal is inadequate for mandamus purposes when parties are in danger of permanently losing substantial rights, such as when the appellate court would not be able to cure the error, the party's ability to present a viable claim or defense is vitiated, or the error cannot be made part of the appellate record. Van Waters & Rogers, Inc., 145 S.W.3d at 210-11; Walker, 827 S.W.2d at 843-44. An appellate court should also consider whether mandamus will allow the court "to give needed and helpful direction to the law that would otherwise prove elusive in appeals from final judgments" and "whether mandamus will spare litigants and the public `the time and money utterly wasted enduring eventual reversal of improperly conducted proceedings.'" In re Team Rocket, L.P., 256 S.W.3d 257, 262 (Tex.2008) (orig. proceeding) (quoting Prudential, 148 S.W.3d at 136).
Continuing with the fee claim while the Crescent and Baseball litigations remain pending will likely require TCBL and Haddock to simultaneously prosecute and defend suits with inconsistent and evolving legal theories. See generally Apex Towing Co., 41 S.W.3d at 121. Moreover, TCBL and Haddock will assert malpractice against Wolf both as a defense to the fee claim and as an affirmative cause of action. Thus, the parties will essentially have the same trial twice if the fee claim is not abated, except that TCBL and Haddock will defend the fee claim at the first trial with unripe defenses. See State, 355 S.W.3d at 614-15 (holding appellate remedy inadequate due to "enormous waste of judicial and public resources that compliance with the trial court's [severance] order would entail"); Waters & Rogers, Inc., 145 S.W.3d at 210-11 (stating that parties are in danger of losing substantial rights when, among other things, their ability to present a viable claim or defense is vitiated). Because TCBL and Haddock will likely be prejudiced by having to defend the fee claim before their malpractice claims mature, because TCBL's and Haddock's malpractice claims will not mature until the Crescent and Baseball litigations are finally concluded, and because a trial on the fee claim alone would be an unreasonable waste of resources for both the judicial system and the parties, we hold
Having sustained TCBL and Haddock's sole issue, we conditionally grant a writ of mandamus directing the trial court to vacate its order denying TCBL and Haddock's amended motion to abate and directing the trial court to grant TCBL and Haddock's amended motion to abate so that the fee claim and malpractice claims (as defined in this opinion) are abated until the Crescent and Baseball litigations and any resulting appeals are finally concluded. We are confident that the trial court will comply within the next thirty days. A writ will issue only if the trial court fails to do so.