Blue Wave Capital, Llc v. Galeno's Enterprises, LLC and the Brownsville Regional Hospital, Llc

Court of Appeals of Texas·Decided September 5, 2013·No. 13-12-00416-CV·Published

Opinion

NUMBER 13-12-00416-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI - EDINBURG

BLUE WAVE CAPITAL, LLC, Appellant,

v.

BROWNSVILLE REGIONAL HOSPITAL, LLC AND GALENO’S ENTERPRISES, LLC, Appellees.

On appeal from the 445th District Court of Cameron County, Texas.

MEMORANDUM OPINION

Before Justices Rodriguez, Benavides, and Longoria Memorandum Opinion by Justice Rodriguez Appellant Blue Wave Capital, LLC (Blue Wave) appeals from a summary judgment

granted in favor of appellees Brownsville Regional Hospital, LLC (the Hospital) and

Galeno’s Enterprises, LLC (collectively, Galeno’s). By two issues, Blue Wave contends that the trial court erred in (1) granting Galeno’s motion for summary judgment; and (2)

overruling Blue Wave’s motion for reconsideration and request for leave to file an

amended affidavit. We affirm in part and reverse and remand in part.

I. BACKGROUND

On October 12, 2006, M.H. 7 Ranch Properties, LLC and M.H. 7 Properties, LLC

(collectively, M.H. 7) entered into an agreement with Galeno’s to purchase forty-one

acres of real property that Galeno’s owned in Brownsville, Texas. The earnest money

agreement was extended many times during the following seven months. On May 16,

2007, Blue Wave and M.H. 7 entered into a brokerage agreement, providing that Blue

Wave would procure a loan commitment for M.H. 7 to purchase Galeno’s property. The

agreement also provided that M.H. 7 would pay a commission to Blue Wave upon delivery

of the loan commitment. Blue Wave apparently provided that commitment; however,

Galeno’s and M.H.7 were unable to agree on the terms of this financing, which involved

Galeno’s taking a second lien on the property. Instead, on July 20, 2007, Galeno’s and

M.H. 7 amended their agreement to provide for 100% owner financing, and they closed

on the property that month. On December 26, 2007, seeking to secure unpaid

commission against M.H. 7, Blue Wave filed a broker’s lien against the property in the

deed records of Cameron County, Texas.

In January 2008, M.H. 7 became delinquent in its payments, and Galeno’s posted

the property for foreclosure. But because M.H. 7 filed for bankruptcy, the foreclosure

was stayed until M.H. 7 filed an acceptable Chapter 11 plan of reorganization

approximately one year later. The bankruptcy court lifted the stay and allowed Galeno’s

to foreclose on the property and take it back. 2 Two months after the foreclosure of the forty-one acre tract, Blue Wave sued

Galeno’s for breach of contract and for tortious interference with an existing

contract—specifically, the brokerage agreement. Galeno’s filed general denials, specific

denials, and special exceptions. It also asserted the affirmative defense of privilege,

claiming that “the defendants[’] actions were privileged . . . because the [d]efendants[’]

right in the subject matter of the property was superior to that of the Plaintiff or any other

third party.” In addition, Galeno’s filed a counterclaim, seeking statutory damages and

attorney’s fees against Blue Wave for filing a fraudulent lien on the property. See TEX.

CIV. PRAC. & REM. CODE ANN. §§ 12.002 (West Supp. 2011), 37.009 (West 2008).

Blue Wave also sued M.H. 7 for breach of contract, and Galeno’s cross-claimed

against M.H. 7 and Eduardo Huerta, M.H. 7’s managing partner, for breach of contract,

fraud, and misrepresentation. Blue Wave’s claims against M.H. 7 were later resolved by

an agreed judgment, and Galeno’s non-suited its claims against M.H.7 and Huerta.

Those matters are not before us in this appeal.

On February 2, 2012, approximately three years after suit was filed, Galeno’s filed

a no-evidence and traditional motion for summary judgment. In its no-evidence motion,

Galeno’s argued that Blue Wave brought forth no evidence of Galeno’s willful and

intentional tortious interference with any existing contract. 1 Through its traditional

motion, Galeno’s asserted the following: (1) regarding Blue Wave’s tortious interference

claim, the summary judgment evidence conclusively established its affirmative defense of

privilege; and (2) relevant to its counterclaim, the summary judgment evidence

1 Galeno’s did not challenge Blue Wave’s breach of contract claim.

3 conclusively established that Blue Wave filed a fraudulent lien against the property to

cause financial injury. In support of its motion, Galeno’s filed, among other things, the

various agreements discussed above and excerpts of the deposition testimony of Ramon

Gerardo “Jerry” Rios, managing member and authorized agent for Blue Wave.

On February 28, 2012, Blue Wave filed the following response to Galeno’s

tortious-interference-with-a-contract challenge and Galeno’s claimed affirmative defense

of privilege:

While [Galeno’s] assertion that it has a privilege as to its real estate sales contract with MH7/Huerta is generally true, [Blue Wave’s] claim against defendants MH7 and [the Hospital] are [sic] not about interference with the real estate contract. [Blue Wave] has two written, enforceable contracts with defendant MH7 that obligate MH7 to pay [Blue Wave] a commission for obtaining a loan commitment for MH7. The two contracts are substantially similar except for the loan amounts anticipated under the contracts. . . . [Blue Wave’s] assertion is that [Galeno’s] knew or should have known about the contract between [Blue Wave] and MH7 because [Blue Wave’s] representative, Jerry Rios, specifically discussed the financing terms and the existence of a contract for financing between [Blue Wave] as a broker and MH7 as the client to representative for [Galeno’s]. In addition, MH7 and [Galeno’s] amended their existing real estate purchase contract in order to comply with the terms of financing set forth by the lender that provided the loan commitment for [Blue Wave] under the contract between [Blue Wave] and MH7. By simply inducing MH7 to not use the financing provided by [Blue Wave] via its loan commitment, [Galeno’s] was instructing MH7 to breach its contract with [Blue Wave], thus interfering with [Blue Wave’s] contract with MH7. John Paul Mitchell Sys. v. Randalls Food Mkts., Inc., 17 S.W.3d 730. Further [Galeno’s] induced MH7 by intimidation, forcing MH7 to act under duress. In a tortious interference with contract suit, if a plaintiff pleads and proves methods of interference that are tortious in themselves, then the issue of privilege or justification never arises. Prudential Ins. Co. of Am. v. Financial Review Servs., Inc., 29 S.W.3d 74. (Tex. 2000). See Exhibit “A”, Affidavit of Jerry Rios.[2] 2 Rios’s affidavit set out the following in support of Blue Wave’s claim of tortious interference with an existing contract:

2. I personally arranged for financing through Blue Wave Capital, LLC for M.H. 7’s acquisition of the subject property, or “Tract 1” which was owned 4 In response to Galeno’s traditional summary-judgment argument on its

counterclaim for filing a fraudulent lien, Blue Wave agreed that it was not a broker but

claimed that it hired a lawyer to represent it and to file the notice of lien. It also asserted

that Galeno’s did not have standing because M.H. 7 was the property owner of record, not

Galeno’s, when the lien was filed. Blue Wave further claimed that the counterclaim

became moot when the lien was “cut off” by Galeno’s foreclosure on M.H. 7’s interest in

the property.

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