3V, INC. v. JTS Enterprises, Inc.

40 S.W.3d 533, 2000 WL 1840310
CourtCourt of Appeals of Texas
DecidedMarch 29, 2001
Docket14-99-01058-CV
StatusPublished
Cited by54 cases

This text of 40 S.W.3d 533 (3V, INC. v. JTS Enterprises, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
3V, INC. v. JTS Enterprises, Inc., 40 S.W.3d 533, 2000 WL 1840310 (Tex. Ct. App. 2001).

Opinion

OPINION

FOWLER, Justice.

Appellant, 3V, Inc., appeals from a dismissal for want of prosecution in its lawsuit against JTS Enterprises, Inc., Fran-cesco Carlin, and Compagnia Italiana di Ricerca e Sviluppo S.R.L., appellees. This case presents four procedural issues: (1) Was 3V’s motion to reinstate, which did not meet the letter of rule 165a requiring verification, still effective to extend the time to file a notice of appeal?; (2) Was the trial court authorized to dismiss this case even though it was abated by a higher court?; (3) Is the failure to file a “final order” a valid reason to dismiss a case?; and (4) Could the trial court in this case dismiss either for the failure to file a final order or for 3Vs failure to prosecute with due diligence? We hold the following: (1) the motion to reinstate did extend the appellate timetable; (2) the trial court was authorized to dismiss the case in spite of the abatement; (3) failure to file a final order is a valid reason to dismiss a case; (4) the trial court could not dismiss this case for the failure to file a final order because the case was not in a posture at which the parties could file a final order; and (5) the trial court also could not dismiss the case for the more general reason of failure to prosecute because 3V was not given notice that the case might be dismissed on this ground. For these reasons, we reverse the order of the trial court dismissing this case and remand to the trial court for further proceedings.

BACKGROUND AND PROCEDURAL HISTORY

In April of 1995, 3V, Inc. (“3V”) filed a lawsuit seeking temporary and permanent injunctive relief against JTS Enterprises, Inc. (“JTS”), Francesco Carlin (“Carlin”), and Compagnia Italiana di Ricerca e Svil-uppo S.R.L. (“CIRS”), alleging tortious interference with existing and prospective contracts, unfair competition and injury to business reputation, breach of contract, fraud, theft of trade secrets, and other related causes of action. The trial court refused to order the parties to arbitration in Italy, JTS appealed that order, and this Court reversed that decision and rendered judgment that the parties arbitrate. We *536 also ordered the case abated, pending the outcome of arbitration. 1 See Carlin v. 3V, Inc., 928 S.W.2d 291 (Tex.App.—Houston [14th Dist.] 1996, no writ).

Nearly three years later — on March 12, 1999 — and without lifting the abatement, the trial court issued a “notice of intent to dismiss” 3V’s lawsuit because court records indicated that, although there had been a “settlement, verdict or decision dis-positive of the case,” no “final order” had been filed. The notice advised that if a final order was not filed by May 3, 1999, the case would be “DISMISSED FOR WANT OF PROSECUTION.” (emphasis in original). 3V failed to file any response to the trial court’s notice or to provide the trial court with any information about the arbitration proceeding’s status. Instead, on May 26, 1999 — three weeks after its due date — 3V filed a one sentence motion with the trial court asking only that the court retain the case on its docket. 3V’s motion neglected to provide any information about the status of the parties’ arbitration proceeding, nor did it give any reason for 3V’s failure to file a timely response to the trial court’s notice of intent to dismiss or for 3V’s failure to file a final order.

In response to 3V’s motion to retain, Carlin and CIRS filed a joint motion to dismiss the case, citing 3V’s failure to diligently pursue arbitration in Italy; JTS also filed a motion to dismiss. Carlin and CIRS alleged that, although 3V’s parent corporation was participating jn arbitration, 3V had declined to get involved. On June 14, 1999, the trial court denied 3V’s motion to retain, and dismissed the case for want of prosecution. The order stated that the dismissal was ordered pursuant to the March 12 notice of intent to dismiss.

On July 14, 1999, under Rule 165 of the Texas Rules of Civil Procedure, 3V filed a motion to reinstate the case on the trial court’s docket and, under Rule 320, filed an alternative motion for a new trial. In the motion, 3V conceded that, without offering any explanation, it had failed to respond to the trial court’s notice before the May 3, 1999 deadline. 3V pointed out, however, that it had filed its motion to retain prior to the entry of a dismissal order and that, technically, it had not failed to appeal’ for a trial or hearing. Further, for the first time, 3V informed the trial court that, contrary to the March 12, 1999 notice, there was no “settlement, verdict, or dispositive decision” in the case and so no final order could be filed. 3V indicated that efforts to arbitrate were being made, and it submitted a declaration— made pursuant to the Hague Convention— by an Italian lawyer, an affidavit of 3V’s New York lawyer, and a supplemental affidavit outlining the parties’ progress in the Italian proceeding. 3V insisted, therefore, that dismissal for want of prosecution was inappropriate. On July 28, 1999, the trial court denied 3V’s motions to reinstate and for a new trial.

On September 8, 1999, 3V filed an “emergency motion to reopen the case”; it requested the court to (1) reconsider the dismissal for want of prosecution and denial of 3V’s prior motions for reinstatement, *537 and (2) grant a new trial. In this emergency motion, 3V reported that, on September 2,1999, the Italian arbitration panel decided it would not arbitrate the merits of the case and instead, the dispute should proceed to litigation. 3V also alleged, for the first time, that it did not learn of the trial court’s March 12,1999 notice of intent to dismiss the case for want of prosecution until June 9, 1999, well after the May 3 deadline had expired. In response, the appellees maintained that 3V had failed to excuse its delay in answering the trial court’s notice of intent to dismiss, or to demonstrate good cause for keeping the case on the trial court’s docket. The ap-pellees also re-urged their arguments that 3V had not diligently pursued arbitration.

On September 13, 1999, the same day that it held an evidentiary hearing, the trial court denied 3V’s emergency motion. On September 13,1999, 3Y filed a notice of its intent to appeal the trial court’s July 14,1999 order denying its motion to retain.

ISSUES PRESENTED

In this appeal, 3V raises the following issues for the court’s consideration: (1) whether the trial court had authority to dismiss the case for want of prosecution during the abatement period; (2) whether the trial court abused its discretion by dismissing the case for failing to file a final order when “nothing ha[d] happened to make a final order necessary or appropriate”; and (3) whether the trial court abused its discretion for dismissing the case for a reason not stated in its notice of intent to dismiss. 2 In response, JTS filed a motion to dismiss the appeal for lack of jurisdiction, arguing that 3V’s notice of appeal was not timely filed. Carlin and CIRS also filed a motion to dismiss the appeal on those same grounds.

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Bluebook (online)
40 S.W.3d 533, 2000 WL 1840310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/3v-inc-v-jts-enterprises-inc-texapp-2001.