A Randall County jury sided with Mark and Sandra Smith of Lockney, who operate the Alpha Tex Kennel.
The dogs were seized in September. A justice of the peace in Floyd County ruled in the November that the Smiths treated the animals cruelly and must repay nearly $237,000 for the cost of caring for the animals.
Ownership of the dogs was transferred to the Humane Society of West Texas, which placed many of the animals in foster care.
The Smiths appealed, rejecting allegations that the animals were denied clean food, water and shelter. A jury in Canyon on Friday ruled in the couple's favor.