Chris Massenburg and Jonathan Lawton v. Lake Point Advisory Group, LLC

CourtCourt of Appeals of Texas
DecidedMarch 26, 2020
Docket05-19-00808-CV
StatusPublished

This text of Chris Massenburg and Jonathan Lawton v. Lake Point Advisory Group, LLC (Chris Massenburg and Jonathan Lawton v. Lake Point Advisory Group, LLC) 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
Chris Massenburg and Jonathan Lawton v. Lake Point Advisory Group, LLC, (Tex. Ct. App. 2020).

Opinion

Reversed and Remanded; Opinion Filed March 26, 2020

In The Court of Appeals Fifth District of Texas at Dallas No. 05-19-00808-CV

CHRIS MASSENBURG AND JONATHAN LAWTON, Appellants V. LAKE POINT ADVISORY GROUP, LLC AND LAKE POINT WEALTH MANAGEMENT, LLC, Appellees

On Appeal from the 439th Judicial District Court Rockwall County, Texas Trial Court Cause No. 1-19-0935

MEMORANDUM OPINION Before Justices Myers, Osborne, and Nowell Opinion by Justice Nowell This is an interlocutory appeal from a temporary injunction. Appellants

contend the injunction fails to comply with the mandatory requirements of Rule 683

and is void. See TEX. R. CIV. P. 683. Appellees argue this complaint was waived

because appellants failed to present it to the trial court. We agree with appellants that

the injunction is void. Accordingly, we reverse the trial court’s order, dissolve the

temporary injunction and remand to the trial court for further proceedings. Background

Appellees Lake Point Advisory Group, LLC and Lake Point Wealth

Management, LLC (Lake Point) sued appellants, two former employees, alleging

they breached several covenants in their employment and confidentiality agreements

after leaving employment. Lake Point requested a temporary injunction to enjoin

appellants from engaging in a competing business within the area defined in the

employment agreements, disclosing confidential information, and soliciting clients

and other employees to leave Lake Point. After a hearing, the trial court signed a

temporary injunction granting that relief. The injunction recites that the parties and

their attorneys appeared for the hearing and enjoins appellants from taking several

specified actions. The injunction sets a bond requirement and sets the case for trial

on March 31, 2020. Appellants filed notices of accelerated appeal within twenty days

of the temporary injunction. TEX. CIV. PRAC. & REM. CODE ANN. § 51.014(a)(4)

(permitting interlocutory appeal of order granting or denying temporary injunction).

Discussion

In relevant part, Rule 683 provides every order granting a temporary

injunction shall set forth the reasons for its issuance in specific terms. TEX. R. CIV.

P. 683. The procedural requirements of Rule 683 are mandatory and must be strictly

followed. InterFirst Bank San Felipe, N.A. v. Paz Constr. Co., 715 S.W.2d 640, 641

(Tex. 1986) (per curiam). A temporary injunction that fails to comply with those

requirements “is subject to being declared void and dissolved.” Id.; Reiss v. Hanson,

–2– No. 05-18-00923-CV, 2019 WL 1760360, at *2 (Tex. App.—Dallas Apr. 22, 2019,

no pet.) (mem. op.); Indep. Capital Mgmt., L.L.C. v. Collins, 261 S.W.3d 792, 795

(Tex. App.—Dallas 2008, no pet.). A trial court abuses its discretion by not

dissolving a temporary injunction order that does not comply with the requirements

of Rule 683. IPSecure, Inc. v. Carrales, No. 04-16-00005-CV, 2016 WL 3342108,

at *2 (Tex. App.—San Antonio 2016, no pet.) (mem. op.).

The temporary injunction before us does not state the reasons for its issuance

in specific terms as required by Rule 683. See TEX. R. CIV. P. 683. Therefore, the

temporary injunction is void and must be dissolved. See InterFirst Bank, 715 S.W.2d

at 641; Indep. Capital Mgmt., 261 S.W.3d at 795.

In reaching this conclusion, we necessarily reject Lake Point’s argument that

appellants waived their complaint by failing to raise it in the trial court.1 Long-

standing precedent of this Court and the supreme court establishes that the

requirements of Rule 683 are mandatory and a temporary injunction that fails to

comply with those requirements is void and must be dissolved. See InterFirst, 715

S.W.2d at 641; Reiss, 2019 WL 1760360, at *2; Indep. Capital Mgmt., 261 S.W.3d

at 795. Specifically, this and other Courts have held that a temporary injunction order

1 Lake Point relies on Texas Tech University Health Sciences Center v. Rao, 105 S.W.3d 763, 767–68 (Tex. App.—Amarillo 2003, pet. dism’d) and Emerson v. Fires Out, Inc., 735 S.W.2d 492 (Tex. App.— Austin 1987, no writ) for this minority position. See also Hoist Liftruck Mfg., Inc. v. Carruth-Doggett, Inc., 485 S.W.3d 120, 124–25 (Tex. App.—Houston [14th Dist.] 2016, no pet.) (Frost, J., concurring) (discussing split of authority among courts of appeal and arguing for a preservation requirement). –3– that fails to comply with Rule 683 is void and for this reason a party cannot waive

the error by agreeing to the form or substance of the order. See Indep. Capital Mgmt.,

261 S.W.3d at 795 n.1; Conlin v. Haun, 419 S.W.3d 682, 686–87 (Tex. App.—

Houston [1st Dist.] 2013, no pet.) (citing In re Garza, 126 S.W.3d 268, 271 (Tex.

App.—San Antonio 2003, no pet.)); Big D Properties, Inc. v. Foster, 2 S.W.3d 21,

23 (Tex. App.—Fort Worth 1999, no pet.) (holding Rule 683’s requirements may

not be waived). Further, this Court can declare a temporary judgment void even if

the parties have not raised the issue. See City of Sherman v. Eiras, 157 S.W.3d 931,

931 (Tex. App.—Dallas 2005, no pet.); Univ. Interscholastic League v. Torres, 616

S.W.2d 355, 358 (Tex. Civ. App.—San Antonio 1981, no writ).

Despite the clear declaration in InterFirst that the temporary injunction before

the court was void, Lake Point argues Qwest Communications Corp. v. AT&T Corp.,

24 S.W.3d 334, 337 (Tex. 2000) (per curiam) holds the requirements of Rule 683

are procedural and such procedural defects are subject to waiver, citing Roccaforte

v. Jefferson Cty., 341 S.W.3d 919, 923 (Tex. 2011).2

We disagree that Qwest mandates a preservation requirement in this case. The

issue in Qwest was not whether a temporary injunction was void, but whether the

order was a temporary injunction subject to interlocutory appeal. Qwest, 24 S.W.3d

2 Lake Point also cites our decision in Bayoud v. Bayoud, 797 S.W.2d 304, 312 (Tex. App.—Dallas 1990, writ denied). Bayoud is distinguishable for the reasons explained in Reiss v. Hanson, No. 05-18- 00923-CV, 2019 WL 1760360, at *3 (Tex. App.—Dallas Apr. 22, 2019, no pet.). –4– at 334. But, contrary to Lake Point’s assertions, the court reaffirmed that a temporary

injunction that fails to comply with Rule 683 is void, not that it is merely voidable.

Id. at 337. The court stated that while the procedural defects may render the order

“void,” they did not change the character of the order as a temporary injunction

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Related

In Re Office of the Attorney General
257 S.W.3d 695 (Texas Supreme Court, 2008)
City of Sherman v. Eiras
157 S.W.3d 931 (Court of Appeals of Texas, 2005)
Big D Properties, Inc. v. Foster
2 S.W.3d 21 (Court of Appeals of Texas, 1999)
Interfirst Bank San Felipe, N.A. v. Paz Construction Co.
715 S.W.2d 640 (Texas Supreme Court, 1986)
University Interscholastic League v. Torres
616 S.W.2d 355 (Court of Appeals of Texas, 1981)
In Re Garza
126 S.W.3d 268 (Court of Appeals of Texas, 2003)
Independent Capital Management, L.L.C. v. Collins
261 S.W.3d 792 (Court of Appeals of Texas, 2008)
Qwest Communications Corp. v. AT & T CORP.
24 S.W.3d 334 (Texas Supreme Court, 2000)
Texas Tech University Health Sciences Center v. Rao
105 S.W.3d 763 (Court of Appeals of Texas, 2003)
Bayoud v. Bayoud
797 S.W.2d 304 (Court of Appeals of Texas, 1990)
Emerson v. Fires Out, Inc.
735 S.W.2d 492 (Court of Appeals of Texas, 1987)
Roccaforte v. Jefferson County
341 S.W.3d 919 (Texas Supreme Court, 2011)
Kevin Conlin and Kathryn Conlin v. Darrell Haun and Solarcraft, Inc.
419 S.W.3d 682 (Court of Appeals of Texas, 2013)
Hoist Liftruck Mfg, Inc. v. Carruth-Doggett, Inc.
485 S.W.3d 120 (Court of Appeals of Texas, 2016)

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