Cox Ventures, Inc. D/B/A Media Ink v. KNG, L.L.C. D/B/A Texas Direct Bindery & Letterpress

CourtCourt of Appeals of Texas
DecidedDecember 30, 2014
Docket01-14-00045-CV
StatusPublished

This text of Cox Ventures, Inc. D/B/A Media Ink v. KNG, L.L.C. D/B/A Texas Direct Bindery & Letterpress (Cox Ventures, Inc. D/B/A Media Ink v. KNG, L.L.C. D/B/A Texas Direct Bindery & Letterpress) 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.

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Cox Ventures, Inc. D/B/A Media Ink v. KNG, L.L.C. D/B/A Texas Direct Bindery & Letterpress, (Tex. Ct. App. 2014).

Opinion

Opinion issued December 30, 2014

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-14-00045-CV ——————————— COX VENTURES, INC. D/B/A MEDIA INK, Appellant V. KNG, L.L.C. D/B/A TEXAS DIRECT BINDERY & LETTERPRESS, Appellee

On Appeal from County Civil Court at Law No. 1 Harris County, Texas Trial Court Case No. 1,002,161

MEMORANDUM OPINION

Cox Ventures, Inc. d/b/a Media Ink (“Cox”) appeals the trial court’s denial

of its motion for instructed verdict and motion for judgment notwithstanding the

verdict in the suit brought against it by KNG, L.L.C. d/b/a Texas Direct Bindery and Letterpress (“KNG”). On appeal, Cox contends that the trial court erred in

denying Cox’s motions because the trial court lacked subject matter jurisdiction

over the case. We affirm.

Background

On October 4, 2011, KNG sued Cox for suit on a sworn account, breach of

contract, and quantum meruit, and later amended its petition to add a conversion

claim. After filing its answer, Cox filed a counterclaim against KNG on December

21, 2011, seeking to recover damages based on a Master Service Agreement

(MSA) signed by the parties.

On March 26, 2012, KNG filed an application to compel arbitration of Cox’s

counterclaim against KNG and a motion to sever the counterclaim. On March 30,

2012, Cox filed its first amended answer, a plea to the jurisdiction, its response to

KNG’s application to compel arbitration and motion for severance, and its counter-

motion to compel arbitration of all of the parties’ claims. On April 9, 2012, the

trial court severed Cox’s counterclaim1 against KNG and ordered the counterclaim

to arbitration. Cox did not appeal this order in either the original case or the newly

pending case. Cox did, however, file a petition for writ of mandamus seeking to

compel the trial court to vacate its April 9, 2012 order. This Court denied Cox’s

petition based on its unjustified delay in filing the petition nearly six months after

1 The trial court severed Cox’s counterclaim into cause number 1002161-101. 2 the challenged order. See In re Cox Ventures, Inc., No. 01-12-00879-CV, 2013

WL 867433, at *1 (Tex. App.—Houston [1st Dist.] Mar. 7, 2013, orig. proceeding)

(citing Rivercenter Assocs. v. Rivera, 858 S.W.2d 366, 367 (Tex. 1993) (orig.

proceeding)).

KNG’s claims against Cox proceeded to trial on August 13, 2013. After

KNG rested, Cox moved for an instructed verdict on the ground that the court

lacked subject matter jurisdiction over the case. The trial court denied the motion.

At the conclusion of trial, the court rendered judgment on the jury’s verdict in

favor of KNG on its sworn account claim and awarded KNG damages in the

amount of $13,152.00, plus pre-and post-judgment interest, and $23,820.00 in

attorney’s fees. Cox then filed a motion for judgment notwithstanding the verdict,

again asserting that the trial court lacked subject matter jurisdiction. The trial court

denied the motion. Cox filed this appeal.

Discussion

A. Applicable Law

Jurisdiction deals with the court’s power to determine an action involving a

particular subject matter between certain parties and to render a judgment

regarding the same. Dubai Petroleum Co. v. Kazi, 12 S.W.3d 71, 75 (Tex. 2000).

Subject matter jurisdiction is essential to a court’s authority to decide a case; it is

never presumed, it cannot be waived, nor can it be conferred by consent, waiver,

3 estoppel, or agreement. See id. at 76; Tex. Ass’n of Bus. v. Tex. Air Control Bd.,

852 S.W.2d 440, 443–44 (Tex. 1993). It is the general rule that “where jurisdiction

is once lawfully and properly acquired, no subsequent fact or event in the

particular case serves to defeat the jurisdiction.” Dallas Indep. Sch. Dist. v. Porter,

709 S.W.2d 642, 643 (Tex. 1986). Whether a trial court has subject matter

jurisdiction is a question of law that we review de novo. See Tex. Natural Res.

Conservation Comm’n v. IT Davy, 74 S.W.3d 849, 855 (Tex. 2002).

A county court at law has “jurisdiction over all causes and proceedings, civil

and criminal, original and appellate, prescribed by law for county courts,”

including civil cases in which “the matter in controversy exceeds $500 but does not

exceed $200,000 . . . .” TEX. GOV’T CODE ANN. § 25.0003(a), (c)(1) (West 2011);

see Eris v. Giannakopoulos, 369 S.W.3d 618, 621–22 (Tex. App.—Houston [1st

Dist.] 2012, pet. dism’d). Here, the amount in controversy alleged in appellee’s

petition exceeded $13,000, which is an amount falling within the Government

Code’s mandated jurisdictional amount for a county court at law. See TEX. GOV’T

CODE ANN. § 25.0003(a), (c)(1) (West 2011).

B. Analysis

In its sole issue, Cox contends that the trial court erred when it denied Cox’s

motions for instructed verdict and judgment notwithstanding the verdict because

KNG’s claims were subject to arbitration and, thus, the court lacked subject matter

4 jurisdiction over the claims. KNG argues that its claims were not subject to

arbitration and that, even if they were, Cox waived its right to arbitrate the claims.

KNG also asserts that Cox’s motions as well as its appeal constitute impermissible

collateral attacks on the trial court’s April 9, 2012 order.

A party seeking to compel arbitration must establish that a valid arbitration

agreement exists and that the claims asserted are within the scope of the

agreement. See In re D. Wilson Constr. Co., 196 S.W.3d 774, 781 (Tex. 2006)

(orig. proceeding). Cox effectively contends that the trial court lacked subject

matter jurisdiction because KNG’s claims come within the scope of the arbitration

provision in the MSA.2 Here, however, Cox has failed to present any argument,

analysis, or authority supporting its contention that KNG’s claims were within the

scope of the arbitration provision in the MSA. Rather, Cox simply quotes the

language of the arbitration provision and, citing to the provision, summarily

concludes that it “met its evidentiary burden of proof at trial through the admission

of the Master Service Agreement . . . to show why the trial court lacked subject

2 The provision provides, in relevant part:

Any and all disputes of the Parties which cannot be settled amicably, including any ancillary claims of any Party, arising out of, relating to or in connection with the validity, negotiation, execution, interpretation, performance or non-performance of this Agreement (including the validity, scope and enforceability of this arbitration provision) shall be finally settled by binding arbitration conducted by a single arbitrator in Houston, Texas in accordance with the then-existing Commercial Rules of Arbitration of the American Arbitration Association. 5 matter jurisdiction.” Cox cites to Cont’l Coffee Products. v.

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Related

In Re D. Wilson Const. Co.
196 S.W.3d 774 (Texas Supreme Court, 2006)
Texas Natural Resource Conservation Commission v. IT-Davy
74 S.W.3d 849 (Texas Supreme Court, 2002)
Texas Ass'n of Business v. Texas Air Control Board
852 S.W.2d 440 (Texas Supreme Court, 1993)
Dubai Petroleum Co. v. Kazi
12 S.W.3d 71 (Texas Supreme Court, 2000)
Daniel v. Falcon Interest Realty Corp.
190 S.W.3d 177 (Court of Appeals of Texas, 2005)
Tesoro Petroleum Corp. v. Nabors Drilling USA, Inc.
106 S.W.3d 118 (Court of Appeals of Texas, 2003)
Fredonia State Bank v. General American Life Insurance Co.
881 S.W.2d 279 (Texas Supreme Court, 1994)
Continental Coffee Products Co. v. Cazarez
937 S.W.2d 444 (Texas Supreme Court, 1997)
Rivercenter Associates v. Rivera
858 S.W.2d 366 (Texas Supreme Court, 1993)
Dallas Independent School District v. Porter
709 S.W.2d 642 (Texas Supreme Court, 1986)
Bill Eris v. Ilias Giannakopoulos
369 S.W.3d 618 (Court of Appeals of Texas, 2012)

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Cox Ventures, Inc. D/B/A Media Ink v. KNG, L.L.C. D/B/A Texas Direct Bindery & Letterpress, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cox-ventures-inc-dba-media-ink-v-kng-llc-dba-texas-texapp-2014.