Business Court Exercises Discretion to Deny Attorneys' Fees Under Section 37.009 Despite Clear Victory on Merits
Read the Court's Opinion (PDF)
Judge Bill Whitehill
In Dallas Sports Group v. DSE Hockey Club, the Business Court's 1st Division ordered each side to bear its own attorneys' fees under Civil Practice and Remedies Code § 37.009 despite plaintiffs prevailing on all substantive issues in a declaratory judgment action concerning redemption of partnership interests in the American Airlines Center. The court exercised its equitable discretion under the statute, which permits but does not require fee awards based on what is equitable and just rather than prevailing party status alone.
Court Staff Summary
Ordering that each side pay its own attorney's fees after considering the record, the parties’ stipulation, and their waiver of their opportunity to persuade the court regarding an attorneys’ fees request.
Background and Procedural Posture
Dallas Sports Group, LLC and Radical Arena, Ltd. (collectively, the Mavericks) invoked the Business Court's declaratory judgment jurisdiction to determine whether they had effectively redeemed DSE Hockey Club, L.P.'s interests in a general partnership and its general partner—entities operating Dallas's American Airlines Center where both the Mavericks and Stars play home games. The Mavericks also sought emergency and permanent injunctive relief, later amending to add Hockey Club's parent company, Dallas Sports & Entertainment, L.P., as a defendant.
After the court ruled on ten dispositive motions in April and May 2026, the Mavericks prevailed on all substantive issues, entitling them to their requested declaratory and injunctive relief while the Stars' counterclaims were denied. See Dallas Sports Group, LLC v. DSE Hockey Club, L.P., 2026 Tex. Bus. 15.
The Attorneys' Fees Issue
The day after deciding the final dispositive motions, the court conferred with counsel regarding attorneys' fees. The court invited the parties to "pursue whatever claims and rights and whatever they want" with respect to the fees issue.
The court then addressed Civil Practice and Remedies Code § 37.009, which provides that in a declaratory judgment case "the court may award costs and reasonable and necessary attorney's fees as are equitable and just."
The Legal Framework for Fee Awards
The court emphasized that pursuant to the statute's terms, the award of fees and costs is not mandatory. Citing MBM Financial Corp. v. Woodlands Operating Co., L.P., 292 S.W.3d 660, 669 (Tex. 2009), the court noted that it may award fees and costs "to either party in all cases" based on equitable considerations.
The court also referenced Save Our Springs Alliance, Inc. v. Lazy Nine Municipal District, 198 S.W.3d 300, 320 (Tex. App.—6th Dist. 2006, pet. denied), for the principle that "[a] prevailing party in a declaratory judgment action is not entitled to attorney's fees simply as a matter of law; entitlement depends on what is equitable and just, and the trial court's power is, in that respect, discretionary."
The Court's Ruling
After considering the applicable legal standards under § 37.009, the court ordered that each side shall bear its own attorneys' fees and costs in the case, exercising its equitable discretion despite the Mavericks' success on all substantive claims.