Clean-Co Systems v. Enterprise Products Operating

CourtTexas Business Court
DecidedMay 20, 2026
Docket26-BC11B-0003
StatusPublished

This text of Clean-Co Systems v. Enterprise Products Operating (Clean-Co Systems v. Enterprise Products Operating) is published on Counsel Stack Legal Research, covering Texas Business Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clean-Co Systems v. Enterprise Products Operating, (Tex. Super. Ct. 2026).

Opinion

2026 Tex. Bus. 32

THE BUSINESS COURT OF TEXAS ELEVENTH DIVISION

CLEAN-CO SYSTEMS, INC., § § Plaintiff, § § v. § Cause No. 26-BC11B-0003 § ENTERPRISE PRODUCTS § OPERATING, LLC, § § Defendant. §

═══════════════════════════════════════ MEMORANDUM OPINION AND ORDER GRANTING PLAINTIFF’S MOTION TO REMAND ═══════════════════════════════════════ ¶1 Before the Court is an Opposed Motion to Remand (“Motion”) filed by

Plaintiff Clean-Co Systems, Inc. (“Clean-Co” or “Plaintiff”), challenging the Texas

Business Court’s jurisdiction over the removal of this case from the district court by

Defendant Enterprise Products Operating, LLC (“Enterprise” or “Defendant”).

¶2 Plaintiff contends this case does not fall within the Texas Business Court’s

qualified transaction jurisdiction because it concerns a single unpaid invoice, for chemical

cleaning services that Clean-Co performed for Enterprise in July-August 2025 pursuant to

a time and materials purchase order (“the Purchase Order”), in an original amount not to exceed $154,360.1 That is substantially less than the over $5 million threshold needed to

support qualified transaction jurisdiction under TEX. GOV’T CODE §25A.004(d)(1). Clean-

Co also attaches evidence to support its contention that the invoiced work – like all such

work it has performed under the MSA for the Enterprise family of companies – arises out of

unrelated “spot contracts” no one of which ever exceeded $5 million and that have, over

the past five years, totaled less than $400,000. Plaintiff’s Opposed Motion to Remand

(“Plaintiff’s Motion”) at Ex. 1, ¶¶4-6 (Declaration of James Rooney).

¶3 Enterprise counters that the Purchase Order is, in fact, a qualified transaction

because it is either a single, integrated transaction or the latest in a “series of related

transactions . . . under which a party: (A) pays or receives, or is obligated to pay or is entitled

to receive, consideration with an aggregate value of at least $5 million,” citing TEX. GOV’T

CODE §25A.001(14). The Purchase Order was issued under a 2003 Master Service

Agreement (“MSA”) between Clean-Co and a related Enterprise entity, pursuant to which

Enterprise claims to have paid Clean-Co over $7.8 million to date. That, Enterprise says,

satisfies the definition of a qualified transaction. The amount in controversy exceeding $5

million also required by TEX. GOV’T CODE §25A.004(d)(1), it argues, is supplied by its

counterclaim for breach of the MSA – which seeks roughly $8 million in damages for costs

it incurred to repair damage to its boiler allegedly caused by Clean-Co’s unworkmanlike

1 Because the scope of work changed after the Purchase Order’s issuance, the amount Clean-Co now seeks to recover from Enterprise for the unpaid invoice is $688,141.87.

2 performance. See Defendant’s Response in Opposition to Plaintiff’s Motion to Remand

(“Defendant’s Response”) at 5-6.2

¶4 It is not disputed that, at the time the MSA was executed, Enterprise neither

paid nor made any promise to pay Clean-Co; and Clean-Co neither received nor was entitled

to receive any consideration. Clean-Co summarizes it well: “This was nothing more than

an umbrella agreement governing general legal rights and obligations of the parties if they

do business together in the future. The Service Agreement makes no reference to any

specific project or transaction. Nothing in that agreement obligated either party to any

monetary consideration.” Plaintiff’s Motion at 3 (footnotes omitted). The MSA, therefore,

cannot standing alone constitute the qualified transaction that supports business court

jurisdiction.3

¶5 Rather, Enterprise contends that qualified transaction jurisdiction “springs”4

into existence upon the execution, pursuant to the MSA, of the first purchase order or

2 Clean-Co does not challenge Enterprise’s claimed amount in controversy, but asserts that the counterclaim arises under the Court’s supplemental jurisdiction, to which it does not consent. See TEX. GOV’T CODE §25A.004(f) (“A claim within the business court’s supplemental jurisdiction may proceed in the business court only on the agreement of all parties to the claim and a judge of the division of the court before which the action is pending.”). Clean-Co accordingly urges in the alternative that, even if the Court has and retains jurisdiction over Enterprise’s counterclaim, it should remand the breach of contract cause of action seeking recovery for its unpaid invoice on that basis. See Plaintiff’s Motion at 11-12. Because of the Court’s disposition herein, it does not reach this issue.

3 See Reed v. Rook TX, LP, 2025 Tex. Bus. 34, ¶17, 721 S.W.3d 25, 33-34 (3d Div.) (“The aggregate value of the consideration used to support a qualified transaction is determined at the time of contracting. Later events that increase or decrease the transaction’s ultimate value do not retroactively change the relevant consideration value.”) (quoting Slant Operating, LLC v. Octane Energy Operating, LLC, 2025 Tex. Bus. 22, ¶31, 717 S.W.3d 409, 420 (8th Div.) (footnote and internal quotation marks omitted). 4 The analogy here is to a “springing interest” (or “springing executory interest”) in property. See, e.g., https://www.law.cornell.edu/wex/springing_interest (“Springing interest is an interest in property where the person owns the property after something occurs or at a specified time.”) (last visited May 11, 2026).

3 invoice resulting in the payment of over $5 million to Clean-Co, cumulatively. Under this

view, any action or litigation that arises out of that or any subsequent, related invoice may

proceed in the Business Court (assuming that the amount in controversy exceeds $5

million).

¶6 In support, Enterprise cites its removal notice, which alleges “a series of

related transactions in which Enterprise paid Clean-Co in excess of $5 million.” Notice of

Removal to Business Court at 4 (quoting Defendant’s Original Answer and Counterclaims at

¶12). Enterprise also offers the affidavit of Renee Gold, in which she identifies an internal

Oracle payment platform that purportedly evidences over $7.88 million “paid by Enterprise

for the related transactions to Clean-Co” since 2003. Defendant’s Response at Ex. 2, ¶2.

¶7 Clean-Co objects to the Gold affidavit on the ground that it fails to establish

that the Oracle platform (and the underlying invoices identified in paragraph 4 thereof) are

non-hearsay business records. The Court agrees, and hereby sustains Clean-Co’s hearsay

objections.5 That removes from this record the only evidence purporting to show (1) that

the parties transacted over $5 million worth of services under the MSA, and (2) that those

services were “related” (save and except for Enterprise’s undisputed assertions that the

invoices are all related because they involve more or less the same parties6 and the same

general “type of specialized industrial-cleaning work.” Defendant’s Response at 5).

5 This includes Ms. Gold’s conclusory assertion that the multiple invoices are “related.”

6 The Enterprise entity that signed the 2003 MSA is a different entity than the Defendant – which purportedly issued the Purchase Order. And it appears from some of the invoices attached to Enterprise’s Response that a third Enterprise entity may have tasked Clean-Co to perform work pursuant to the MSA. See Defendant’s Response at R. Gold Affidavit Ex. D.

4 ¶8 That ruling does not decide the matter, however. Evidentiary considerations

are inconclusive here, given the preliminary procedural posture and the accompanying

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Clean-Co Systems v. Enterprise Products Operating, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clean-co-systems-v-enterprise-products-operating-texbizct-2026.