Texas Capital Bank N.A. v. Dallas Roadster, Ltd., No. 15-41396 (5th Cir. 2017)
Annotate this CaseDallas Roadster, the borrower, sought damages and TCB, the lender, sought attorneys' fees after receiving full payment on loans through the borrower’s bankruptcy proceedings. The parties argue that the other breached the loan agreements. The district court issued take-nothing judgments on the borrower’s and lender’s claims. The court concluded that the claims of Dallas Roadster CEO, Bahman Hafezamini, of tortious interference with an existing contract and with prospective business relations, abuse of process, malicious prosecution, and malicious criminal prosecution, fail on the merits. The court need not reach the question of whether Hafezamini's release is valid in light of Zachry Construction Corp. v. Port of Houston Authority. In regard to Dallas Roadster's appeal, the court concluded that the district court did not err in entering a take-nothing judgment on Dallas Roadster’s breach of contract claim where the district court did not clearly err in finding that Dallas Roadster committed multiple material breaches. In regard to TCB's appeal, the court concluded that Zachry does not apply, under these circumstances, to the loan provisions in this case, and TCB can recover its attorneys’ fees according to the terms of the loan agreements. The court also concluded that the district court erred by denying TCB any recovery of its attorneys' fees by using its inherent power to sanction TCB because the district court failed to provide TCB with adequate due process. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings.
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