Epps v. Fowler
The Texas Supreme Court addressed whether a defendant is a 'prevailing party' entitled to attorney's fees when a plaintiff voluntarily nonsuits a claim without prejudice. The case involved the Fowlers, who sued the Eppses over alleged foundation defects, and later nonsuited their claims. The Supreme Court established a new standard, holding that a defendant prevails in such a scenario only if the nonsuit was taken to avoid an unfavorable judgment, or if the nonsuit was with prejudice. The court reversed the appellate court's judgment and remanded the attorney's fees claim and the Eppses' separate claim for sanctions under Chapter 10 of the Civil Practice and Remedies Code to the trial court for further determination.