Bedrock Property Solutions, LLC, Aaron D'Orlando, and Alan D'Orlando v. SR Franchising, LLC, Jeffrey Alan Rutten, and Curt Skallerup

Texas Court of Appeals, 2nd District (Fort Worth)·Decided July 23, 2026·No. 02-25-00374-CV·Published

Opinion

In the

Court of Appeals

Second Appellate District of Texas at Fort Worth

No. 02-25-00374-CV

BEDROCK PROPERTY SOLUTIONS, LLC, AARON D’ORLANDO, AND ALAN D’ORLANDO, Appellants

V.

SR FRANCHISING, LLC, JEFFREY ALAN RUTTEN, AND CURT SKALLERUP, Appellees

On Appeal from the 17th District Court Tarrant County, Texas

Trial Court No. 017-350989-24

Before Birdwell, Womack, and Walker, JJ.

Memorandum Opinion by Justice Walker

MEMORANDUM OPINION

I. INTRODUCTION

Following a contractual dispute between Appellants Bedrock Property Solutions, LLC; Aaron D’Orlando; and Alan D’Orlando (collectively, Bedrock) and Appellees SR Franchising, LLC; Jeffrey Alan Rutten; and Curt Skallerup (collectively, SR Franchising), Bedrock initiated an arbitration proceeding. SR Franchising filed an original petition in the trial court requesting declaratory judgment that Bedrock’s claims were not arbitrable. Bedrock filed counterclaims, alleging the same claims from the arbitration proceeding. SR Franchising moved pursuant to Rule 91a to dismiss the counterclaims, contending that they were time barred, and requested attorney’s fees. The trial court granted the Rule 91a motion and dismissed Bedrock’s counterclaims. The parties then entered into a Rule 11 agreement providing that SR Franchising’s declaratory-judgment claim was moot and that the trial court would consider the issue of attorney’s fees by written submission. After the parties filed their respective motions and evidence, the trial court awarded attorney’s fees to SR Franchising and signed a final judgment. Bedrock appealed.

In their “Issues Presented for Review”—which comprises over two pages of unbroken text—Bedrock raises several unenumerated, intersecting, and restated complaints. In what we construe as seven appellate issues, Bedrock complains that the trial court erred by (1) failing to provide its reasons for granting the Rule 91a motion, (2) denying leave to amend, (3) dismissing their counterclaims, (4) refusing to

rule on their motion to reform, (5) signing a final judgment that does not comport with the Rule 11 agreement, (6) awarding attorney’s fees to SR Franchising, and (7) depriving Bedrock of due process. We will affirm.

II. FACTUAL AND PROCEDURAL BACKGROUND Bedrock decided to pursue a franchising opportunity and connected with SR Franchising. SR Franchising provided an initial franchise disclosure to Bedrock on December 19, 2017, and made various representations to Bedrock regarding the franchise’s projected revenue and expenses. On September 29, 2018, Bedrock and SR Franchising entered into a franchise agreement that contained an arbitration provision, which provided that (1) “[d]isputes concerning the validity or scope of [the arbitration provision], including whether a dispute is subject to arbitration [or] beyond the authority of the arbitrator(s)[,] shall be determined by a court of competent jurisdiction.”1 On October 11, 2018, SR Franchising provided a second disclosure to Bedrock. The second disclosure allegedly revealed inaccuracies and false statements in the first disclosure. Despite the second disclosure, Bedrock began operating their franchise.

On October 6, 2023, Bedrock filed a demand for arbitration against SR Franchising, describing the dispute as “[f]raud, breach of contract, and other common law and statutory violations.” That same day, Bedrock also filed a federal

The arbitration provision also mandated that any claims be brought within two 1

years.

lawsuit against SR Franchising, asserting claims for (1) fraudulent inducement, (2) fraud by omission, (3) common law fraud, (4) negligent written misrepresentation, (5) negligent oral misrepresentation, (6) breach of contract, (7) breach of express warranties, (8) breach of implied warranties, and (9) violation of the Texas Deceptive Trade Practices Act (DTPA). On January 3, 2024—while the federal lawsuit was still pending—Bedrock filed a second demand for arbitration, alleging the same facts and claims from the 2023 demand for arbitration and the federal lawsuit. Later that month, SR Franchising moved to dismiss the federal lawsuit on the grounds that (1) Bedrock had failed to commence arbitration within the arbitration provision’s two- year period and (2) the claims were barred by the applicable statute of limitations. Bedrock voluntarily dismissed the 2023 federal lawsuit without prejudice but refused to dismiss the arbitration proceedings.

On March 11, 2024, SR Franchising filed an original petition in state court, requesting a declaration that Bedrock’s claims were not arbitrable and barred by the statute of limitations and seeking relief under the Texas Arbitration Act to stay and enjoin arbitration. Bedrock removed the case to federal court, and SR Franchising moved to remand the case to state court, arguing that there was no basis for federal subject-matter jurisdiction. Bedrock agreed, and the case was remanded back to state court.

Following the case’s remand to state court, the parties agreed to stay the arbitration proceedings to (1) allow the parties to mediate the dispute and (2) permit

the trial court to determine the arbitrability issues raised in SR Franchising’s petition. The parties participated in voluntary mediation in August 2024, which did not result in resolution.

On September 13, 2024, Bedrock filed an answer and counterclaims.

Bedrock’s answer explained that they agreed with SR Franchising’s objection to arbitration and that “[t]he filing of [Bedrock’s] counterclaims here demonstrates that [Bedrock] has chosen to litigate their claims in a court – this court, and not in an Arbitration.” And their counterclaims alleged the same nine causes of action from their 2023 arbitration demand and the federal lawsuit. Bedrock’s counterclaims further alleged, among other things, that “[SR Franchising’s] wrongful and fraudulent conduct commenced almost immediately, before [Bedrock] entered into the Franchise Agreement, with [SR Franchising’s] provision of a Franchise Disclosure Document (“FDD”) in December 2017.” Bedrock did not allege the accrual date of their counterclaims or otherwise plead when they discovered SR Franchising’s wrongful conduct; Bedrock merely provided a loose chronology of the events giving rise to the counterclaims. The first date of conduct ascribed to SR Franchising was December 19, 2017 (the date of the initial disclosure), and the last date of ascribed conduct was January 2020.2 The trial court set the case for trial on June 2, 2025.

2 SR Franchising filed an answer to the counterclaims along with affirmative defenses. They pleaded that Bedrock’s counterclaims were “barred by the applicable statute(s) of limitations.”

SR Franchising moved to dismiss Bedrock’s counterclaims pursuant to Rule 91a and requested attorney’s fees, contending that the counterclaims had no basis in law because they were barred by the statute of limitations. SR Franchising argued that all of Bedrock’s counterclaims “appear to be based on the same wrongful conduct: misrepresentations allegedly made prior to Bedrock’s signing of the Franchise Agreement on September 29, 2018,” and thus, Bedrock’s counterclaims accrued when they entered into the contract on September 29, 2018. SR Franchising asserted that Bedrock’s counterclaims were subject to a four-year or less statute of limitations, and therefore, the counterclaims—filed on September 13, 2024—were time barred. SR Franchising alternatively argued that even if the counterclaims did not accrue when Bedrock entered into the contract, they accrued by October 11, 2018—the date that Bedrock received the second disclosure and when they should have discovered the wrongful conduct. SR Franchising maintained that, irrespective of whether the counterclaims accrued on September 29, 2018, or October 11, 2018, the applicable statute of limitations had passed. A hearing on SR Franchising’s motion was set for December 10, 2024.

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Bedrock Property Solutions, LLC, Aaron D'Orlando, and Alan D'Orlando v. SR Franchising, LLC, Jeffrey Alan Rutten, and Curt Skallerup, (Tex. Ct. App. 2026).

Bedrock Property Solutions, LLC, Aaron D'Orlando, and Alan D'Orlando v. SR Franchising, LLC, Jeffrey Alan Rutten, and Curt Skallerup (Bedrock Property Solutions, LLC, Aaron D'Orlando, and Alan D'Orlando v. SR Franchising, LLC, Jeffrey Alan Rutten, and Curt Skallerup) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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