In the course of rejecting the plaintiff’s claim of an attorney-client relationship with the defendant, the Fifth Court noted: ‘[W]e are mindful that three Strasburger billing entries from October 6, 2009, October 14, 2009, and November 2, 2009 referred to TSI as “client” and “clients.” However, the remaining billing entries from October 6, 2009 to December 15, 2009 that TSI submitted in response to Strasburger’s summary judgment refer to “Target Strike,” “Target Strike case,” or the “Target Strike matter.” Such passing references to “client” under the facts of this case do not raise an issue of fact about whether there was an intent to create an attorney-client relationship.’ Target Strike Inc. v. Strasburger & Price LLP, No. 05-18-00434-CV (Nov. 19, 2018).

 


The Fifth Court reviewed one of “the seemingly endless variations of forum-selection clauses” in Target Strike Inc. v. Strasburger & Price LLP:

“This Contract shall be interpreted, construed, and governed by the laws of the State of Texas. The parties hereby submit to the jurisdiction of courts located in, and venue is hereby stipulated in, Bexar County, Texas.”

On the one hand, “[c]lauses in which parties merely ‘consent’ or ‘submit’ to jurisdiction of a particular forum, without further language indicating the parties’ intent to make jurisdiction exclusive, are permissive.” But on the other, while few cases involve “stipulations” as to venue, the general definition “indicate[s] that when a party stipulates to something,it is an express demand of a specified and essential condition of the contract.” As a result, this clause was mandatory. No. 05-18-00434-CV (Nov. 19, 2018) (mem. op.)

Nunez successfully sued Avelar for personal injuries, arising from a fall while installing a new window in a home owned by Avelar. The Fifth Court affirmed except as to damages for disfigurement, which Nunez had not pleaded for, but which the trial court found had been tried by consent. Specifically, the Court found that this examination did not establish trial by consent:

Q. What parts of your body were in pain?

A. In the arm.

Q. Do you also have a scar from the operation to your arm today?

A. Yes, of course.

Q. Can you show the Court the scarring of the arm?

A. It’s right here (indicating).

The Court: On the inside of the elbow? Can you see?

Defense counsel: I can see it, Your Honor, thank you.

Q. How long did it take for the elbow and the hand, the bones anyway, to heal?

A. More than half a year.

Q. Okay. And were you in pain during that time period?

A. Yes, of course.

The court saw this testimony as also relevant to elements of damage which had been pleaded; thus: “. This is, at best, a doubtful case for applying trial by consent, and trial by consent should not be inferred in doubtful cases.” Avelar v. Nunez, No. 05-17-00631-CV (Nov. 20, 2018) (mem. op.)

In Mancilla v. TaxFree Shopping Ltd.,”appellants argue[d] the TUTSA claim was substantially altered by (1) changing the scope of trade secrets allegedly misappropriated from client and customer lists and proprietary information and processes to “specific client contacts” developed while Mancilla was employed by TFS in a fiduciary position and (2) changing the alleged means of appropriation from theft to ‘connecting with contacts on social media through LinkedIn and breach of fiduciary duty.'” The Fifth Court, however, concluded that after “[h]aving reviewed the original and second amended petitions, we cannot agree these are substantive alterations that reformulated the TUTSA claim.” No. 05-18-00136-CV (Nov. 16, 2018) (mem. op.)

Microlaser Therapy Corp. v. White involved a defense summary judgment on limitations, in response to a suit on a guaranty, based upon a payment schedule (right). The Fifth Court found that the first few entries were not only not conclusive evidence of when the claim arose, but no evidence on that point. Accordingly, it reversed and rendered judgment for the plaintiff. No. 05-17-00761-CV (Nov. 16, 2018) (mem. op.)

The plaintiff in a legal malpractice cause sought leave to amend to add a new party, the trial court denied leave, and the Fifth Court affirmed, finding a failure to show good cause: “[A]lthough James stated in that motion that ‘[Eberstein’s] involvement and participation in the fraud has been discovered and confirmed throughout Plaintiff’s utilization of the discovery process during the oral deposition of Ms. Witherite, which only occurred on February 22, 2017,’ James did not cite or describe any evidence to support that assertion, and (2) James did not describe or address how that assertion is consistent with her testimony in her January 25, 2017 deposition that Eberstein met with her and counseled her before mediation in the Lawsuit.” James v. Witherite, No. 05-17-00799-CV (Nov. 9, 2018) (mem. op.)

“Questions of jurisdiction are questions of power,” said Supreme Court Justice Benjamin Curtis. That observation – both simple and profound – provides a useful lens to examine the sweeping changes in the Texas intermediate courts of appeal after the 2018 election. This post considers how three sentences from recent opinions by the Dallas Court of Appeals involve questions of power that may be addressed in new ways by the newly-constituted Texas appellate courts.

THREE SENTENCES

Judge and jury. The 2018 case of AVPM Corp. v. Childers involved a substantial jury verdict against a landlord, arising from a sexual assault on a tenant. The Fifth Court concluded that under the relevant Texas Supreme Court opinion, no evidence supported the verdict as to proximate causation, noting that “appellees presented no evidence at trial of any recent criminal conduct in the area of [the apartment] similar to the incident in question.” The Court agreed with the plaintiffs’ contention that “foreseeability is uniquely a fact issue for the jury and should only be set aside under the most exceptional circumstances,” but reasoned that “the analysis of foreseeability is the same for both duty and proximate cause.” Duty, of course, is generally seen as a question of law for the court rather than a jury issue. The division of power between judge and jury, as reflected in the above sentence, will likely be a topic of discussion in 2019 opinions.

Court and counsel. B.C. v. Steak & Shake, on remand from the Texas Supreme Court in 2017, turned in part on whether the trial court could consider a late-filed summary judgment response in a case about an alleged workplace assault. A 2-1 majority affirmed the trial court’s summary judgment, concluding: “We recognize, as other courts have, the apparent injustice in allowing a no-evidence summary judgment to stand when ‘the record discloses not only that evidence exists to support the challenged element, but that the evidence was before the trial court.’ But both the language of the summary judgment rule, and the impropriety of asking the trial court to take on the nonmovant’s burden of identifying fact issues, dictates the result.”

The dissent would have ruled otherwise, noting that “the movant’s factual summary retold, cited, and provided the nonmovant’s testimony contradicting the motion’s assertion that there was no such evidence and further directly provided the responsive evidence.” This kind of waiver question – close even among three Justices from the same political party – may be seen differently by a new panel. And while on its face such an issue may seem hypertechnical, its resolution goes to the very definition of what issues a court should consider in the exercise of its judicial duties.

Appeals court and trial court. In re: LaFredo arose from a divorce proceeding involving a same-sex couple; one of the parties sought a writ of mandamus on the ground that the marriage had ended before the U.S. Supreme Court’s opinion on the constitutionality of such marriages. The Fifth Court denied the petition in 2018, in part because: “ “The legal question of whether Obergefell is retroactive has not been determined by the Supreme Court of Texas or by the U.S. Supreme Court. The trial court, therefore, did not fail to correctly analyze or apply the law or reach an arbitrary and unreasonable decision when it determined that relator had not established as a matter of law that no legal marriage existed . . . .”

Texas courts have traditionally held that a trial court lacks discretion to apply the law incorrectly. That differs from the federal practice, where the Fifth Circuit has refused to grant a writ of mandamus when a legal issue is either disputed or not settled by controlling authority and is thus not “clear.” This sentence thus suggests a willingness, even by members of an all-Republican court, to narrow this aspect of the test for when mandamus relief is appropriate. It remains to be seen whether the new court of appeals majorities will build on that suggestion – and if they do, whether the Texas Supreme Court will agree. However addressed, this seemingly-technical aspect of mandamus aspect could have a significant effect on the division of power between trial and appellate courts.

CONCLUSION

These three sentences illustrate appellate issues that seem routine and technical. They each implicate, however, basic questions about the nature and extent of judicial power. The approaches to such issues in the years ahead will be fascinating to observe and important to study.

[A version of this article ran in the Texas Lawbook in November 2018.]

 

AMX brought an arbitration against an architect; the architect moved to dismiss because AMX did not obtain a certificate of merit, and when that motion was unsuccessful sought appellate review. The Fifth Court, noting that this was an issue of first impression, concluded that “the right to interlocutory appeal granted by section 150.002 does not apply to an order rendered by an arbitration panel, and the Texas Arbitration Act (TAA) does not provide a means for judicial review of such an order . . . .” Accordingly, it vacated the trial court’s order of dismissal as void and dismissed the appeal for lack of jurisdiction. SM Architects v. AMX Veteran Specialty Services, 05-17-01064-CV (Nov. 9, 2018).

The eight new Justices bring a wide range of legal experience to the Fifth Court, from the trial bench, criminal law on the prosecution and defense sides, and a variety of civil practices:

  1. Chief Justice, Hon. Robert Burns, presently judge of Criminal District Court 1 in Dallas County;
  2. Place 2, Dallas attorney Robbie Partida-Kipness, a principal in the Kipness Law Firm;
  3. Place 5, Dallas attorney Erin Nowell, a law partner of my former classmate Jeff Simon at Simon Greenstone & Panatier;
  4. Place 9, Dallas attorney Bill Pedersen, a solo with a criminal and civil law practice;
  5. Place 10, Dallas attorney Amanda Reichek, board-certified in labor and employment law;
  6. Place 11, Dallas/Rockwall attorney Cory Carlyle, who has particular expertise in criminal appeals;
  7. Place 12, Hon. Ken Molberg, presently judge of the 95th Civil District Court in Dallas County, whose campaign website aptly describes the Fifth Court as “the most important court you’ve never heard of“; and
  8. Place 13, Dallas attorney Leslie Lester Osborne, whose background is in civil litigation.

The Fifth Court has not changed gradually; its history since its 1893 founding turns on  a handful of significant changes in jurisdiction and size, most notably its expansion from six to twelve judges in 1981. One of those history-changing moments came yesterday, when voters elected eight new Justices, including a new Chief Justice. All of those new Justices are Democrats, elected to a court that has been all-Republican for many years, and creating a new Democratic majority on that Court. Every best wish to each of these new Justices as they now play their part in the history of the Fifth Court. (The Dallas Morning News provides an excellent, updated reference about these and other election returns that are not widely covered by other media.)

A feature of Texas procedure is a litgant’s right to nonsuit: “The right to nonsuit is absolute, and a plaintiff’s right to a nonsuit exists from the moment a written motion is filed or an oral motion is made in open court, unless the defendant has, prior to that time, sought affirmative relief.” Central Refining LLC v. Calderon, No. 05-17-01372-CV (Nov. 5, 2018) (mem. op.) That case offers a classical illustration of what that principle can mean in practice:

  • Appellees filed a no-evidence motion for summary judgment. The motion was set for hearing on August 18, 2017.
  • On August 17, 2017, appellant filed a motion to nonsuit its claims without prejudice.
  • The trial court did not rule on the motion prior to the hearing. Instead, the trial court granted appellees’ no-evidence motion for summary judgment on August 17, 2017 without a hearing.

The summary judgment order was an error: “Because the case was moot at that time, the trial court could not subsequently render a summary judgment.”

This sequence of events led to a timely appeal, if barely:

  • Trial court entered judgment on July 19, 2017;
  • Appellant timely filed a motion for new trial on August 18, 2017, making the notice of appeal due by October 17;
  • Appellant filed a notice of appeal on November 1, 15 days late but within the TRAP 26.3 “grace period”;
  • Appellant filed a TRAP 26.3(b) motion to extend the deadline on November 3.

The Fifth Court reasoned that the filing of the notice fell within a line of cases treating various filings as “implied . . . motion[s] for an extension of time,” and granted leave to file the notice. Jeanes v. Dallas County, No. 05-17-01269-CV (Oct. 31, 2018) (mem. op.)

The plaintiff in Hernandez v. Sun Crane & Hoist noted that the defendant’s Health and Safety Manual identified it as a “controlling employer” for OSHA purposes. That manual has to be read along with the relevant contract, however, which “repeatedly made clear that Capform was responsible for providing all equipment for performing the work; Capform was ‘solely responsible for the acts and omissions of its employees, agents and suppliers and for the acts and omissions of its sub-subcontractors and their employees, agents and suppliers’; and Capform accepted sole responsibility for providing a safe place to work for its employees and for the employees of its sub-subcontractors and suppliers, and for the adequacy and required use of all safety equipment,” leading to affirmance of summary judgment for the defendant. No.   05-17-00719-CV (Nov. 2, 2018) (mem. op.)