J.V. & Sons Trucking, Inc. v. Asset Vision Logistics, LLC

Background

J.V. & Sons Trucking, Inc. (JVS) hauled crude oil for third-party oil companies through Asset Vision Logistics, LLC (AVL), a logistics broker. The parties executed a QuickPay Agreement in July 2019. Under that agreement, AVL would advance 90% of an invoice before receiving payment from its client, deduct a 3% fee, and later divide the remaining 10% between the parties.

The relationship deteriorated after JVS hauled loads through another logistics broker, and AVL stopped paying JVS for loads JVS had hauled for AVL. In an earlier order, the court held that the QuickPay Agreement’s non-solicitation and non-disclosure provisions were unenforceable restraints of trade under Texas law. The court also granted JVS summary judgment on its breach-of-contract claims because AVL had agreed to pay for JVS’s completed hauls but failed to pay the invoices. Judgment was entered for JVS in the amount of $334,940.08.

JVS then moved for attorney’s fees, prejudgment interest, and post-judgment interest. The motion was filed three days after the 14-day deadline for fee motions. The court found that the delay was excusable because it was brief, did not materially prejudice AVL, and did not appear to result from bad faith.

Attorney’s Fees

JVS sought fees under section 15.51(c) of the Texas Covenants Not to Compete Act. That provision permits a court to award fees to a promisor defending against enforcement of an unreasonable covenant when the agreement’s primary purpose was to require the promisor to provide “personal services,” among other requirements.

The court denied the fee request. It held that the QuickPay Agreement’s primary purpose was to establish an advance-payment arrangement for JVS’s receivables, not to require JVS to perform personal services. Even considering the QuickPay Agreement together with the hauling agreements, the court concluded that JVS’s corporate load-hauling work did not qualify as “personal services” under the statute. Because that requirement was absent, the court did not address the parties’ other arguments about statutory fee eligibility.

Prejudgment Interest

The court held that JVS was entitled to prejudgment interest under Texas law. It used July 1, 2020—the date JVS filed suit—as the starting date, April 11, 2023—the date judgment was entered—as the ending date, the $334,940.08 judgment amount, and the agreed 7.75% interest rate. The resulting award was $72,162.84.

The court declined AVL’s request to reduce the award for the time the case was pending in Texas or to deduct more than $20,000 in transfer-related fees and costs. Although JVS initially filed the case in Texas, AVL chose to seek enforcement of the forum-selection clause and incur the associated expenses. The court therefore awarded the full calculated amount of prejudgment interest.

Post-Judgment Interest

The court explained that post-judgment interest is calculated under federal law and generally accrues from the date judgment is entered until the judgment is paid. The parties agreed that the applicable rate as of April 7, 2023, was 4.53%, but the court found it premature to calculate or award the total post-judgment amount because interest would continue accruing until satisfaction of the judgment.

The court held the post-judgment-interest issue in abeyance and directed the parties to meet and confer and report to the court within 30 days about when the judgment might be satisfied and how the interest issue could be resolved.

Disposition

The court ordered that JVS’s motion for attorney’s fees and prejudgment interest was granted in part and denied in part. JVS’s request for attorney’s fees was denied, and JVS was awarded $72,162.84 in prejudgment interest. The post-judgment-interest issue remained held in abeyance.