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    <TD class=3DTextSmall><A class=3DTextSmall=20
      href=3D"mailto:?subject=3DAn opinion from the Texas Judiciary =
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      <DIV class=3DSection1>
      <P class=3DMsoNormal><A name=3Da3><B><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN></B></A>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><B><SPAN=20
      style=3D"FONT-SIZE: 13pt">Affirmed</SPAN></B><B><SPAN=20
      style=3D"FONT-SIZE: 13pt"> in Part and Reversed and Remanded in =
Part and=20
      Memorandum Majority and Concurring Opinions filed October 2,=20
      2007.</SPAN></B></P>
      <P class=3DMsoNormal><B><SPAN style=3D"FONT-SIZE: =
13pt"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt">In The</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: 'EngrvrsOldEng Bd =
BT'">Fourteenth=20
      Court of Appeals</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">____________</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">NO. <A=20
      name=3Da4>14-06-00921-CV</A></SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">____________</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><A=20
      name=3Da5><B><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">ANGLO-DUTCH=20
      PETROLEUM INTERNATIONAL, INC. AND</SPAN></B></A></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">&nbsp;ANGLO-DUTCH =
(TENGE)=20
      LLC</SPAN></B><B><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">,=20
      Appellants</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">V.</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><A=20
      name=3Da6><B><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">LITTLEMILL=20
      LIMITED</SPAN></B></A><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">, =
Appellee</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 2.85pt; TEXT-ALIGN: =
center"=20
      align=3Dcenter><SPAN=20
      style=3D"MARGIN-TOP: 0px; Z-INDEX: -2; LEFT: 0px; MARGIN-LEFT: =
90px; WIDTH: 630px; POSITION: absolute; HEIGHT: 4px"><IMG=20
      height=3D4 src=3D"" width=3D630></SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">On Appeal from the =
<A=20
      name=3Da7>152nd District Court</A></SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><A=20
      name=3Da8><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti">Harris</SPAN></B></A><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"> County, =
Texas</SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti">Trial Court Cause =
No. <A=20
      name=3Da9>2004-60996</A></SPAN></B></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 2.85pt; TEXT-ALIGN: =
center"=20
      align=3Dcenter><SPAN=20
      style=3D"MARGIN-TOP: 0px; Z-INDEX: -1; LEFT: 0px; MARGIN-LEFT: =
90px; WIDTH: 630px; POSITION: absolute; HEIGHT: 4px"><IMG=20
      height=3D4 src=3D"" width=3D630></SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Shruti"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 7.35pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">M E M O R=20
      A N D U M&nbsp;&nbsp; M A J O R I T Y&nbsp;&nbsp; O P I N I O=20
      N</SPAN></B></P></DIV><B><SPAN=20
      style=3D"FONT-SIZE: 14pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN></B>
      <DIV class=3DSection2>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Appellee, Littlemill =
Limited,=20
      filed suit against appellants, Anglo-Dutch Petroleum =
International, Inc.=20
      and Anglo-Dutch (Tenge) LLC, for breach of contract and other =
causes of=20
      action.&nbsp; The trial court granted appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s motion for partial =
summary=20
      judgment holding that the contracts were valid and =
enforceable.&nbsp; The=20
      trial court then granted appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s motion for summary =
judgment=20
      on appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s contract damages =
and=20
      attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees.&nbsp; In two =
issues,=20
      appellants contend that: (1) the trial court erred in concluding =
the=20
      contracts at issue were valid and enforceable and that appellants =
had=20
      breached the contracts as a matter of law; and (2) the trial court =
erred=20
      in awarding appellee its attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees.&nbsp; We =
affirm in part=20
      and reverse and remand in part.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">Factual=20
      and Procedural Background</SPAN></B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =

      </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">For reasons not =
relevant to=20
      this appeal, appellants filed suit against Halliburton Energy =
Services,=20
      Inc. (</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: =
150%">Halliburton</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">) and Ramco Oil and =
Gas, Ltd.=20
      (</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Ramco</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">).&nbsp; Appellants =
sought=20
      damages in the amount of $677 million in their lawsuit against =
Halliburton=20
      and Ramco.&nbsp; Faced with the expense of maintaining the =
lawsuit, as=20
      well as operating their business, and unable to obtain bank loans =
due to a=20
      lack of collateral, appellants sought to raise money by soliciting =

      investors in its litigation with Halliburton and Ramco.&nbsp; =
Appellants=20
      entered into Claims Investment Agreements in which investors =
agreed to=20
      fund the litigation and office expenses of appellants in return =
for a=20
      portion of the cash recovery, if any, from Halliburton and =
Ramco.&nbsp;=20
      The investors were divided into four tiers, with each tier taking =
priority=20
      over the lower tiers in the event appellants were successful in =
their=20
      lawsuit against Halliburton and Ramco.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'Times =
New Roman'"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection3>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Appellee became a =
third-tier=20
      investor when it signed three Claims Investment Agreements (the=20
      </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: =
150%">Agreements</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">) in which it agreed =
to invest=20
      a total of $149,972.&nbsp; Appellants agreed that if they made a =
cash=20
      recovery in their lawsuit against Halliburton and Ramco, they =
would pay=20
      appellee its initial investment, plus ninety percent of the amount =
of the=20
      initial investment, plus an additional ninety percent of the =
initial=20
      investment for every year that passed from the date of the =
agreement to a=20
      final recovery.<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83882#_ftn1"=20
      name=3D_ftnref1><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
13pt">[1]</SPAN></SUP></SPAN></SUP></SPAN></A>&nbsp; In=20
      addition, appellants and appellee agreed that </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">[i]f a final =
disposition or=20
      settlement of the [Halliburton and Ramco] lawsuit fails to result =
in a=20
      cash recovery, as defined herein, for whatever reason, then =
[appellants]=20
      shall have no obligation to make any payment to [appellee] for any =
portion=20
      of the investor</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s total =
return.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: =
150%">Appellants</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> suit against =
Halliburton and=20
      Ramco went to trial and the jury awarded damages against =
Halliburton in=20
      excess of $64 million and against Ramco for $6.4 million.<A =
title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83882#_ftn2"=20
      name=3D_ftnref2><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
13pt">[2]</SPAN></SUP></SPAN></SUP></SPAN></A>&nbsp;=20
      Appellants and Halliburton subsequently entered into a settlement=20
      agreement, the terms of which are undisclosed.<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83882#_ftn3"=20
      name=3D_ftnref3><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
13pt">[3]</SPAN></SUP></SPAN></SUP></SPAN></A>&nbsp;=20
      Following the settlement, appellants contacted their litigation =
investors,=20
      including appellee, and attempted to negotiate a reduced payment =
contrary=20
      to the terms of the Claims Investment Agreements.&nbsp; Appellants =
alleged=20
      for the first time in letters to the investors that the Claims =
Investment=20
      Agreements, which they prepared and provided to the investors, =
were=20
      contrary to public policy and unenforceable under Texas law.&nbsp; =

      Appellee refused appellants</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> offer of reduced =
payments and=20
      filed suit against appellants asserting causes of action for =
breach of=20
      contract, fraud, and conspiracy to breach the Agreements and to =
commit=20
      fraud.&nbsp; Appellee also sought a declaration that the =
Agreements were=20
      valid and enforceable, and that the transactions were not=20
      loans.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'Times =
New Roman'"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection4>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">On May 17, 2006 the =
trial court=20
      signed its Amended Order Granting Partial Summary Judgment in=20
      appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s favor as to=20
      appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s breach of contract =
claims=20
      against appellants.&nbsp; In that order, the trial court found =
that the=20
      Agreements were valid and enforceable, and that appellants had =
breached=20
      them.&nbsp; On June 6, 2006, the trial court granted =
appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s motion for summary =
judgment=20
      as to appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s breach of contract =
damages=20
      and attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees.&nbsp; The =
trial court=20
      awarded appellee $440,315.00 in contractual damages and =
$130,641.75 in=20
      attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees.<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83882#_ftn4"=20
      name=3D_ftnref4><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
13pt">[4]</SPAN></SUP></SPAN></SUP></SPAN></A>&nbsp; On=20
      July 10, 2006, the trial court severed all claims except=20
      appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s breach of contract =
claim=20
      against appellants into a separate lawsuit making the summary =
judgments on=20
      appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s breach of contract =
claim=20
      final and appealable.&nbsp; This appeal followed.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">Discussion</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">This is a=20
      summary judgment case.&nbsp; In their first issue, appellants =
assert the=20
      trial court erred when it concluded that the Agreements were valid =
and=20
      enforceable,&nbsp; and that appellants, by not paying appellee the =

      contractually agreed amount, breached the Agreements.&nbsp; In =
their=20
      second issue, appellants assert the trial court erred when it =
granted=20
      appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s motion=20
      for summary judgment and awarded appellee<B><SPAN=20
      style=3D"TEXT-TRANSFORM: uppercase"> </SPAN></B>its =
attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
fees=20
      because (1) there were genuine issues of material fact regarding =
the=20
      reasonableness of the fees; and (2) appellee failed to segregate =
its=20
      attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: Shruti"> =
fees.=20
      </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0in 6.8pt 0.5in; TEXT-INDENT: -0.5in; =
LINE-HEIGHT: 150%; TEXT-ALIGN: justify"><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
      The Standard of Review</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">The movant=20
      for summary judgment has the burden to show there is no genuine =
issue of=20
      material fact and is entitled to judgment as a matter of law. =
<I>Nixon v.=20
      Mr. Prop. Mgmt. Co.,</I> 690 S.W.2d 546, 548 (Tex. 1985). In =
determining=20
      whether there is a genuine fact issue precluding summary judgment, =

      evidence favorable to the non-movant is taken as true and the =
reviewing=20
      court makes all reasonable inferences and resolves all doubts in =
the=20
      non-movant</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s favor.=20
      <I>Id.</I> at 548</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">549.&nbsp;=20
      If there is no genuine issue of material fact, summary judgment =
should=20
      issue as a matter of law.&nbsp; <I>Hasse v. Glazner</I>, 62 S.W.3d =
795,=20
      797 (Tex. 2001).&nbsp; We review a trial court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">s summary=20
      judgment de novo. <I>Valence Operating Co. v. Dorsett,</I> 164 =
S.W.3d 656,=20
      661 (Tex. 2005).</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'Times =
New Roman'"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection5>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0in 6.8pt 0.5in; TEXT-INDENT: -0.5in; =
LINE-HEIGHT: 150%; TEXT-ALIGN: justify"><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: =
150%">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
      Breach of Contract</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">In their first issue, =

      appellants contend the trial court erred in finding a breach of =
contract=20
      because (1) the Agreements were usurious loans, (2) if the =
Agreements were=20
      not loans, they were void, unregistered securities, and (3) the =
Agreements=20
      were unenforceable because they violated public policy.&nbsp; In=20
      <I>Anglo-Dutch Petroleum Int</I></SPAN><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN></I><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">l, Inc. v.=20
      Haskell</SPAN></I><SPAN style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: =
150%">, 193=20
      S.W.3d 87 (Tex. App.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Houston [1st Dist.] =
2006, pet.=20
      denied), the First Court of Appeals addressed these precise =
issues.&nbsp;=20
      In <I>Haskell</I>, several other investors signed Claims =
Investment=20
      Agreements with appellants that were virtually identical to the =
Agreements=20
      signed by appellee.&nbsp; The only differences between the Claims=20
      Investment Agreements in <I>Haskell</I> and those at issue here =
are the=20
      rate of return on the investment, the amount invested, and the =
name of the=20
      investor.&nbsp; The First Court of Appeals found the Claims =
Investment=20
      Agreements did not meet the definition of a loan and were not =
usurious=20
      transactions.&nbsp; <I>Id.</I> at 95</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">101.&nbsp; The court =
held that,=20
      for an agreement to be usurious, three essential elements must be =
present:=20
      (1) a loan of money, (2) an absolute obligation to repay the =
principle,=20
      and (3) the extraction of a greater compensation than allowed by =
law for=20
      the use of money by the borrower.&nbsp; <I>Id. </I>at 96.&nbsp; =
The court=20
      determined the Claims Investment Agreements at issue in <I>Haskell =

      </I>were not loans because there was no obligation to repay the =
principle=20
      if there was no recovery in the underlying lawsuit.&nbsp; =
<I>Id.</I> at=20
      101.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">The First Court =
further found=20
      that under the Securities Act of 1933 and the Texas Securities Act =
that=20
      securities agreements are not automatically void when not =
registered, but=20
      rather are voidable by the purchaser.&nbsp; <I>Id.</I> at =
102</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">03.&nbsp; The court =
held that a=20
      seller of an unregistered security lacks standing to bring this=20
      claim.&nbsp; <I>Id.</I> at 103.&nbsp; Therefore, even if the =
investment=20
      agreements could be considered securities, the fact that they are =
not=20
      registered cannot be raised by appellants.&nbsp;=20
      <I>Id.</I></SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'Times =
New Roman'"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection6>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Finally, the court =
found the=20
      Claims Investment Agreements did not violate public policy.&nbsp;=20
      <I>Id.</I> at 103</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">05.&nbsp; The court =
held that=20
      agreements that vest control over litigation in uninterested third =
parties=20
      are against public policy, but that in this case there was no =
evidence of=20
      investor control, such as the ability to select counsel, direct =
trial=20
      strategy, or participate in settlement discussions.&nbsp;=20
      <I>Id.</I></SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">In its response brief =
to this=20
      court, appellee argues appellants are collaterally estopped by the =
First=20
      Court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s <I>Haskell</I> =
opinion from=20
      asserting that the contracts are void as usurious loans, void as=20
      unregistered securities, void as against public policy and/or are=20
      unenforceable.&nbsp; On appeal, appellants contend the =
<I>Haskell</I>=20
      opinion does not collaterally estop them from asserting defenses =
against=20
      appellee because the doctrine of collateral estoppel only =
precludes=20
      re-litigation of facts between identical parties.&nbsp; We agree =
with=20
      appellee.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">The doctrine of =
collateral=20
      estoppel, or issue preclusion, is designed to promote judicial =
efficiency,=20
      protect parties from multiple lawsuits, and prevent inconsistent =
judgments=20
      by precluding re-litigation of issues.&nbsp; <I>Sysco Food =
Services, Inc.=20
      v. Trapnell</I>, 890 S.W.2d 796, 801 (Tex. 1994).&nbsp; A party =
seeking to=20
      assert the bar of collateral estoppel must establish that: (1) the =
facts=20
      sought to be litigated in the second suit were fully and fairly =
litigated=20
      in the first suit; (2) those facts were essential to the judgment =
in the=20
      first action; and (3) the parties were cast as adversaries in the =
first=20
      action.&nbsp; <I>Id.</I>&nbsp; </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">To satisfy=20
      the third prong,</SPAN><SPAN style=3D"FONT-SIZE: 13pt; =
LINE-HEIGHT: 150%">=20
      strict mutuality of parties is no longer required.&nbsp;=20
      <I>Id.</I></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti">&nbsp;=20
      Instead, it is only necessary that the party against whom the =
doctrine is=20
      asserted was a party or in privity with a party in the first =
action.&nbsp;=20
      <I>Id.</I> at 802.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">&nbsp; In the case at =
bar,=20
      appellee seeks to assert the doctrine of collateral estoppel =
against=20
      appellants.&nbsp; Since appellants were parties to the =
<I>Haskell</I>=20
      case, litigated and lost each of the points raised in their first =
issue in=20
      this appeal in <I>Haskell</I>, and those facts were essential to =
the=20
      judgment in <I>Haskell</I>, collateral estoppel precludes them =
from=20
      re-litigating those same issues here.&nbsp; We overrule=20
      appellants</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> first =
issue.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0in 6.8pt 0.5in; TEXT-INDENT: -0.5in; =
LINE-HEIGHT: 150%; TEXT-ALIGN: justify"><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: =
150%">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
      Attorneys</SPAN></B><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN></B><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> =
Fees</SPAN></B></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'Times =
New Roman'"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection7>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Texas law does not =
allow the=20
      recovery of attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees unless they are =

      authorized by statute or contract.&nbsp; <I>Tony Gullo Motors I, =
L. P. v.=20
      Chapa</I>, 212 S.W.3d 299, 310 (Tex. 2006).&nbsp; Section 38.001 =
of the=20
      Texas Civil Practices &amp; Remedies Code provides that a =
successful party=20
      in a breach of contract action may recover reasonable and =
necessary=20
      attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees.&nbsp; =
<I>Mullins v.=20
      Mullins</I>, 889 S.W.2d 550,&nbsp; 554 (Tex. App.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Houston [14th Dist.] =
1994, writ=20
      denied) (citing Tex. Civ. Prac. &amp; Rem. Code Ann. </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">'</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> 38.001 (Vernon =
1997)).&nbsp;=20
      Attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees are not =
recoverable in an=20
      action in tort however.&nbsp; <I>Knebel v. Capital =
Nat</I></SPAN><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN></I><I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">l =
Bank</SPAN></I><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">, 518 S.W.2d 795,=20
      803</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">04 (Tex. =
1974).</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Here, appellee =
asserted tort=20
      causes of action against appellants in addition to its claim for =
breach of=20
      contract.&nbsp; Appellants contend that a portion of the trial=20
      court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s summary judgment =
awarding=20
      attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees to appellee =
must be=20
      reversed because the amount awarded is not reasonable and =
necessary, as=20
      appellee failed to segregate its fees between those fees that were =

      recoverable and those that were not.&nbsp; Appellee responds that =
the=20
      trial court properly awarded attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees only for=20
      appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s breach of contract=20
      claim.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">As evidence in =
support of its=20
      motion for summary judgment seeking attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees, appellee =
submitted the=20
      affidavit of its lead counsel, Fred Hagans.&nbsp; In response, =
appellants=20
      submitted the affidavit of one of its attorneys, Bradley =
Hoover.&nbsp; A=20
      summary judgment may be based on uncontroverted testimonial =
evidence of an=20
      expert witness as to subject matter concerning which the trier of =
fact=20
      must be guided solely by the opinion testimony of experts, if the =
evidence=20
      is clear, positive and direct, otherwise credible and free from=20
      contradictions and inconsistencies, and could have been readily=20
      controverted.&nbsp; Tex. R. Civ. P.<SPAN=20
      style=3D"TEXT-TRANSFORM: uppercase"> </SPAN>166a(c).&nbsp; =
Therefore, we=20
      must first determine if Mr. Hagans</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> affidavit was =
controverted by=20
      that of Mr. Hoover.</SPAN></P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'Times =
New Roman'"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection8>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">In his affidavit, Mr. =
Hoover=20
      stated: </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">I have a preliminary =
opinion=20
      that the amount of attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees being claimed =
by=20
      [appellee] appears to be unreasonable.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">&nbsp; An affidavit =
is=20
      insufficient unless the allegations contained therein are direct =
and=20
      unequivocal and perjury can be assigned upon it.&nbsp; <I>Brownlee =
v.=20
      Brownlee</I>,&nbsp; 665 S.W.2d 111, 112 (Tex. 1984).&nbsp; Because =
he does=20
      not render a direct and unequivocal conclusion that the=20
      attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees sought by =
appellee were=20
      unreasonable, Mr. Hoover</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s affidavit lacks the =
necessary=20
      factual sufficiency to constitute summary judgment evidence =
sufficient to=20
      raise a genuine issue of material fact.&nbsp; =
<I>Id.</I>&nbsp;&nbsp;=20
      Therefore, we hold Mr. Hagans</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> affidavit was=20
      uncontroverted.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">As Mr. =
Hagans</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> affidavit was =
uncontroverted,=20
      we next examine whether it was clear, positive and direct, =
otherwise=20
      credible and free from contradictions and inconsistencies, and =
could have=20
      readily been controverted.&nbsp; Within his affidavit, Mr. Hagans=20
      initially stated: </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">[i]t is my opinion =
that=20
      attorney</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s fees of $116,126.00 =
is a=20
      reasonable fee for the prosecution and handling of =
[appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s] breach of contract =
claims=20
      through the trial court in this matter.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">&nbsp; However, in a =
later=20
      paragraph, Mr. Hagans stated:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt">This <B>case</B> involves claims of =
breach of=20
      contract, claims for declaratory relief and other claims arising =
out of=20
      the same transaction at issue in connection with =
[appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt">s] breach of contract claims such that =
the=20
      prosecution of all of these claims entails proof or denial of =
essentially=20
      the same facts.&nbsp; All of [appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt">s] claims are, in my opinion, =
intertwined to the=20
      point of being inseparable and therefore are </SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt">inextricably intertwined.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt"> (emphasis added)</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">In that same =
paragraph, Mr.=20
      Hagans concluded:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt">In my opinion, the time that has been =
spent and=20
      which will be spent on this <B>case</B> through the trial court =
phase of=20
      this <B>case</B> will total several hundred hours of lawyer time =
and would=20
      result in attorney</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt">s fees in excess of $116,126.00 if =
[appellee] were=20
      billed by the hour and the lawyers working on this <B>case</B> =
charged=20
      their standard and customary rates for such work on this=20
      <B>case</B>.&nbsp; (emphasis added)</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 4.55pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN>&nbsp;</P></DIV><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: 'Times New Roman'"><BR=20
      style=3D"PAGE-BREAK-BEFORE: auto" clear=3Dall></SPAN>
      <DIV class=3DSection9>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Mr. =
Hagans</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> affidavit is =
inconsistent on=20
      the issue of whether appellee was seeking the award of $116,126.00 =
in=20
      attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees exclusively for =
the=20
      prosecution of the breach of contract claim, or for the handling =
of the=20
      entire case, including tort claims, because the claims were =
inextricably=20
      intertwined.<A title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83882#_ftn5"=20
      name=3D_ftnref5><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
13pt">[5]</SPAN></SUP></SPAN></SUP></SPAN></A>&nbsp;=20
      Because of this internal inconsistency, Mr. Hagans</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> affidavit cannot =
support the=20
      trial court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s summary judgment =
awarding=20
      attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees.&nbsp; Tex. R. =
Civ.=20
      P.<SPAN style=3D"TEXT-TRANSFORM: uppercase"> </SPAN>166a(c).&nbsp; =

      Accordingly, we sustain appellants</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> second =
issue.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
center"=20
      align=3Dcenter><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; TEXT-TRANSFORM: uppercase; LINE-HEIGHT: =
150%; FONT-FAMILY: Shruti">Conclusion</SPAN></B></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; TEXT-INDENT: 0.5in; LINE-HEIGHT: =
150%; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">We affirm the summary =
judgments=20
      of the trial court to the extent they: (1) found the Agreements =
were valid=20
      and enforceable; and (2) awarded $440,315.00 in damages for=20
      appellee</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s breach of contract=20
      claim.&nbsp; We reverse that portion of the trial =
court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">s second summary =
judgment=20
      awarding attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"> fees to appellee and =
remand=20
      that issue to the trial court for proceedings consistent with this =

      opinion.</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-BOTTOM: 6.8pt; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-INDENT: 3.5in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-INDENT: 3in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: =
13pt">/s/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; John=20
      S. Anderson</SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-INDENT: 3.5in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt">Justice</SPAN></P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Judgment rendered and =

      Memorandum Majority and Concurring Opinions filed October 2,=20
      2007.</SPAN></P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%">Panel consists of =
Justices=20
      Anderson, Fowler, and Senior Justice Hudson.(Fowler, J.,=20
      Concurring).</SPAN></P>
      <P class=3DMsoNormal style=3D"LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><B><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"></SPAN></B>&nbsp;</P>
      <P class=3DMsoNormal=20
      style=3D"TEXT-INDENT: 0.5in; LINE-HEIGHT: 150%; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 13pt; LINE-HEIGHT: 150%; FONT-FAMILY: =
Shruti"></SPAN>&nbsp;</P></DIV>
      <DIV><BR clear=3Dall>
      <HR align=3Dleft width=3D"33%" SIZE=3D1>

      <DIV id=3Dftn1>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-LEFT: 4.5pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: =
justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83882#_ftnref1"=20
      name=3D_ftn1><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[1]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; The initial Claims Investment =
Agreement=20
      between appellants and appellee, contained the following=20
      example:</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 0pt 40.5pt; TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 11pt">For example only, if the Investor makes =
an=20
      investment of $50,000 in one payment of $25,000 and another =
payment of=20
      $25,000, and if Anglo-Dutch receives its Cash Recovery 700 days =
after the=20
      Investor paid its first $25,000 payment and 660 days after =
Investor paid=20
      its second $25,000 payment, then the Investor shall be paid the =
total sum=20
      of $178,836, which is calculated as follows:</SPAN></P>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 4.5pt; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: 11pt"></SPAN>&nbsp;</P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0.5in 0pt 76.5pt; TEXT-INDENT: -0.5in; =
TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: =
11pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
      $50,000 (being its Investment), plus</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-LEFT: 76.5pt; TEXT-INDENT: -0.5in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: =
11pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
      $45,000 (being an amount equal to 90% of its Investment), =
plus</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-LEFT: 76.5pt; TEXT-INDENT: -0.5in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: =
11pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
      $43,151 (being $25,000 x 90% x [700 days/365 days]), =
plus</SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN-LEFT: 76.5pt; TEXT-INDENT: -0.5in; TEXT-ALIGN: =
justify"><SPAN=20
      style=3D"FONT-SIZE: =
11pt">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
      $40,685 (being $25,000 x 90% x [660 days/365 days]). </SPAN></P>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0in 12pt 4.5pt; TEXT-INDENT: 0.5in; =
TEXT-ALIGN: justify"><SPAN=20
      style=3D"FONT-SIZE: 11pt"></SPAN>&nbsp;</P></DIV>
      <DIV id=3Dftn2>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0in 12pt 4.5pt; TEXT-INDENT: 0.5in; =
TEXT-ALIGN: justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83882#_ftnref2"=20
      name=3D_ftn2><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[2]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; Ramco appealed the judgment =
against it to=20
      this court and we reversed the $6.4 million judgment and rendered =
judgment=20
      that appellants take nothing.&nbsp; <I>Ramco Oil &amp; Gas, Ltd. =
v.=20
      Anglo-Dutch (Tenge), L.L.C.</I>, 207 S.W.3d 801 (Tex. =
App.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">C</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">Houston [14th Dist.] 2006, pet. denied). =

      </SPAN></P></DIV>
      <DIV id=3Dftn3>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0in 12pt 4.5pt; TEXT-INDENT: 0.5in; =
TEXT-ALIGN: justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83882#_ftnref3"=20
      name=3D_ftn3><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[3]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; While the terms of the settlement =
agreement=20
      are confidential, appellants did not contend in the trial court or =
here=20
      that the settlement amount is insufficient to trigger their duty =
to pay=20
      the third tier investors the full amount owed under the terms of =
the=20
      agreements.&nbsp; Instead, appellants contend only </SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">A</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">. . . that if [appellants] settled with=20
      Halliburton and paid the litigation financiers at the contractual =
rates,=20
      [appellants] believed there would not be enough left for it to =
stay in=20
      business as an oil company.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">@</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"> </SPAN></P></DIV>
      <DIV id=3Dftn4>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0in 12pt 4.5pt; TEXT-INDENT: 0.5in; =
TEXT-ALIGN: justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83882#_ftnref4"=20
      name=3D_ftn4><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[4]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; The trial court</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">s summary judgment awarded $116,126 in=20
      attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"> fees for trial and an additional =
$14,515.75 in=20
      the event of an appeal.</SPAN></P></DIV>
      <DIV id=3Dftn5>
      <P class=3DMsoNormal=20
      style=3D"MARGIN: 0in 0in 12pt 4.5pt; TEXT-INDENT: 0.5in; =
TEXT-ALIGN: justify"><A=20
      title=3D""=20
      =
href=3D"http://www.14thcoa.courts.state.tx.us/opinions/htmlopinion.asp?Op=
inionId=3D83882#_ftnref5"=20
      name=3D_ftn5><SPAN class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: 11pt"><SPAN =
class=3DMsoFootnoteReference><SUP><SPAN=20
      style=3D"FONT-SIZE: =
11pt">[5]</SPAN></SUP></SPAN></SPAN></SUP></SPAN></A><SPAN=20
      style=3D"FONT-SIZE: 11pt">&nbsp; Generally speaking, =
attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"> fees incurred in the prosecution of a =
tort claim=20
      are not recoverable under Texas law.&nbsp; <I>Knebel v. Capital=20
      Nat</I></SPAN><I><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN></I><I><SPAN=20
      style=3D"FONT-SIZE: 11pt">l Bank</SPAN></I><SPAN =
style=3D"FONT-SIZE: 11pt">,=20
      518 S.W.2d 795, 803</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt">04 (Tex. 1974).&nbsp; As a result, =
parties seeking=20
      to recover attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"> fees have always been required to =
segregate fees=20
      between claims where fees are recoverable and claims where they =
are=20
      not.&nbsp; <I>Tony Gullo Motors I, L.P. v. Chapa</I>, 212 S.W.3d =
299, 311=20
      (Tex. 2006).&nbsp; An exception exists to this general duty to =
segregate=20
      if the claims are inextricably intertwined.&nbsp; <I>Id.</I>&nbsp; =
To=20
      establish that attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"> fees are inextricably intertwined, the =
party=20
      seeking the recovery of attorneys</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">=3D</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"> fees must establish that discrete legal =
services=20
      advanced both a recoverable and an unrecoverable claim.&nbsp; =
<I>Id.</I>=20
      at 313</SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: 'WP =
TypographicSymbols'">B</SPAN><SPAN=20
      style=3D"FONT-SIZE: =
11pt">14.</SPAN></P></DIV></DIV></TD></TR></TBODY></TABLE></BODY></HTML>

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