Courtney Construction, Inc. v. Blue Racer Midstream, LLC

CourtCourt of Appeals of Texas
DecidedJuly 12, 2022
Docket05-21-00351-CV
StatusPublished

This text of Courtney Construction, Inc. v. Blue Racer Midstream, LLC (Courtney Construction, Inc. v. Blue Racer Midstream, 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
Courtney Construction, Inc. v. Blue Racer Midstream, LLC, (Tex. Ct. App. 2022).

Opinion

AFFIRMED and Opinion Filed July 12, 2022

S In The Court of Appeals Fifth District of Texas at Dallas No. 05-21-00351-CV

COURTNEY CONSTRUCTION, INC., Appellant V. BLUE RACER MIDSTREAM, LLC, Appellee

On Appeal from the 14th Judicial District Court Dallas County, Texas Trial Court Cause No. DC-19-18201

MEMORANDUM OPINION Before Justices Partida-Kipness, Reichek, and Goldstein Opinion by Justice Partida-Kipness Appellant Courtney Construction, Inc. appeals a summary judgment in favor

of appellee Blue Racer Midstream, LLC. In its first issue, Courtney argues that the

trial court erred by refusing to grant leave to file a summary judgment response that

exceeded the trial court’s page limits and by refusing to consider Courtney’s attached

evidence. In its second issue, Courtney maintains that its evidence created a fact

issue sufficient to defeat Blue Racer’s motion for summary judgment. We affirm the

trial court’s judgment. BACKGROUND

In 2018, Blue Racer hired Courtney to build just under a mile of pipeline in

West Virginia. Their contract defined the scope of Courtney’s construction work on

the project in detail, and it included a clause requiring Courtney to obtain approval

in the form of a written “change order” before performing any additional work.

Courtney began construction in August 2018 and completed the project by

November. Blue Racer paid Courtney $2.5 million for its services—a sum that

included $137,693.73 for additional work that was performed according to approved

change orders.

In July 2019, though, Courtney invoiced Blue Racer for an additional

$1,599,746.23. Courtney asserted that, at Blue Racer’s request, it had performed

additional work beyond the approved scope of the project and it was entitled to

compensation. It is undisputed that Courtney did not obtain change orders for this

additional work. Blue Racer did not pay these invoices.

Instead, Blue Racer sued Courtney in Texas for breach of contract and for a

declaratory judgment that it owed Courtney nothing more under the contract.

Courtney countersued for breach of contract, quantum meruit, and fraud.

In November 2020, Blue Racer moved for traditional summary judgment on

all claims in the case. The motion was eventually set for hearing on January 28,

2021. On January 21, 2021, Courtney filed a response to the motion for summary

judgment and attached 375 pages of evidence in an effort to demonstrate a fact issue.

–2– On January 26, 2021, with the summary judgment hearing just two days away,

Courtney filed an “emergency motion for leave.” According to the motion, the trial

court’s coordinator had advised Courtney on the morning of the 26th that its

summary judgment response exceeded a page limit for filings under the court’s local

rules and “the Court would, therefore, not consider” Courtney’s response or attached

evidence. The local rule provided no motion could exceed 25 pages in length, and

the appendix of any motion must also be limited to 25 pages, with exceptions made

only if the trial court granted leave to exceed the limit “upon a showing of

compelling reasons.”

Courtney attempted to make such a showing in its emergency motion for

leave. It contended the evidence in this case consisted of large contracts, some of

which ran over 400 pages, and thus the case could not be defended without exceeding

the page limit. Courtney argued its violation of the local rules was an inadvertent

oversight and noted Blue Racer’s 300-page summary judgment motion also

exceeded the court’s page limit.

At the hearing on January 28, 2021, the trial court questioned Courtney about

the nature of its “emergency.” According to Courtney, the emergency was it had

recently learned of its inadvertent violation of local rules and the danger that its

evidence would not be considered in this dispositive proceeding. The trial court

explained this did not constitute an emergency:

–3– THE COURT: Counsel, I’m sorry. In this court, as the court rules make clear, when you file something that says “emergency,” the first thing that happens is the Bailiff is notified so that he can do a risk assessment. Okay. Not comply—Realizing that you haven’t complied with the rules does not constitute an emergency in this court. It’s an abuse of the process.

[Counsel for Courtney]: My apologies, Your Honor.

We felt that the emergent nature lay in the fact that this is an entirely dispositive motion that was—

THE COURT: Counsel, that’s not—Counsel, you’re not listening to me. That’s not an emergency.

[Counsel for Courtney]: Yes, Your Honor.

THE COURT: An emergency is the Judge got hit by a bus. An emergency is a bolt of lightning struck your key witness’s house just as he was leaving to come and testify. Okay. Those are emergencies.

Not following the rules does not constitute an emergency in this court.

Blue Racer then conceded in good faith that it was not prejudiced by Courtney’s

failure to follow local rules, and the trial court appeared to accept this concession as

the end of the matter:

[Counsel for Blue Racer]: I will say this in full candor to the Court, I don’t believe that we are prejudiced by Courtney’s lack of seeking leave prior to filing.

Now, we certainly don’t—don’t agree with their position on the merits and the evidence they submitted, but I can’t purport to inform the Court that we have been prejudiced by their failure to—to seek leave by itself.

THE COURT: You want to—You want this matter continued?

[Counsel for Blue Racer]: No, Your Honor, we don’t need a continuance.

THE COURT: Okay. All right. Let’s go ahead and proceed. –4– [Counsel for Blue Racer]: Thank you, Your Honor.

From there, the parties took up the merits of the summary judgment. Blue Racer

argued the merits in part by refuting Courtney’s evidence.

However, both sides made remarks suggesting it remained an open question

whether the trial court would allow Courtney’s evidence in, and the trial court did

not correct this impression. Counsel for Blue Racer stated, “Now, what Courtney

does in its response, if the Court ends up accepting the response into the record, is

there’s an affidavit by a man named Jason Dean.” The trial court responded, “Uh-

huh.” Similarly, counsel for Courtney stated,

And, you know, again, Your Honor, there’s more evidence to that effect in the affidavit of Mr. Dean attached to our response if the Court allows that to be considered.

If the Court does not consider it, we’d submit that there’s still evidence enough to at least raise a genuine issue of material fact as to the validity of our breach of contract claim.

The trial court again responded, “Uh-huh.”

At the conclusion of the hearing, the trial court granted summary judgment.

The resulting final judgment disposed of Courtney’s counterclaims and declared

Blue Racer owed nothing more under the contract. Courtney appeals.

ANALYSIS

In its first issue, Courtney asserts the trial court erred in denying its emergency

motion for leave. Courtney acknowledges there was no formal ruling on the motion.

–5– Nonetheless, Courtney asserts the trial court implicitly denied the motion through its

comments at the summary judgment hearing. We disagree.

While the trial court took a negative view of Courtney’s emergency motion

for leave, nothing about the trial court’s comments suggests that it impliedly struck

Courtney’s response or anything attached to it. Cf. G.T. Mgmt., Inc. v.

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Courtney Construction, Inc. v. Blue Racer Midstream, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/courtney-construction-inc-v-blue-racer-midstream-llc-texapp-2022.