Frank Smith's Inc. and Terry Williamson v. Ralph E. Sheffield, Jr.

CourtCourt of Appeals of Texas
DecidedJanuary 30, 2003
Docket03-02-00109-CV
StatusPublished

This text of Frank Smith's Inc. and Terry Williamson v. Ralph E. Sheffield, Jr. (Frank Smith's Inc. and Terry Williamson v. Ralph E. Sheffield, Jr.) 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
Frank Smith's Inc. and Terry Williamson v. Ralph E. Sheffield, Jr., (Tex. Ct. App. 2003).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN



NO. 03-02-00109-CV

Frank Smith's, Inc. and Terry Williamson, Appellants



v.



Ralph E. Sheffield, Jr., Appellee



FROM THE COUNTY COURT AT LAW NO. 1 OF BELL COUNTY,

NO. 22,160, HONORABLE EDWARD S. JOHNSON, JUDGE PRESIDING

M E M O R A N D U M O P I N I O N


The trial court dismissed this cause without prejudice on the basis that it lacked jurisdiction of appellee Ralph E. Sheffield's claims against appellants Frank Smith's, Inc. and Terry Williamson. Appellants ask us to reverse the trial court's dismissal and reinstate the case in the trial court. They allege that the trial court had jurisdiction over Sheffield's claims because: (1) as a county court at law, the trial court had jurisdiction pursuant to its general jurisdictional statute; and (2) in the exercise of its original probate jurisdiction, it had power over claims incident to the estate of Frank Smith. We will affirm the dismissal.



BACKGROUND

Frank Leahy Smith, the principal and chief executive officer of Frank Smith's, Inc. ("the Corporation"), died in Bell County on July 11, 2000. A few weeks later, Rick Leahy Smith, the named independent executor, filed an application in cause number 22,160 in the county court at law to probate the will of the decedent. On August 18, the trial court signed the order probating the will and authorizing issuance of letters testamentary. Meanwhile, on August 10, 2000, Sheffield filed assorted claims against the Corporation in the 169th District Court of Bell County. Sheffield alleged that the Corporation breached its contract to sell him a restaurant owned and operated by the Corporation. He contended that he negotiated the contract with Frank Smith. Sheffield also argued that the Corporation made fraudulent representations to him regarding the sale. The Corporation answered and filed a plea to the jurisdiction on the ground that, because shares of stock in the Corporation constitute a substantial asset in the estate of Frank Smith, the issues in the suit were ancillary or pendent to Smith's probate proceedings. (1) The district court granted the plea and dismissed the suit without prejudice. That decision was not appealed.

Shortly thereafter, Sheffield filed his claims against the Corporation in cause number 44,380 in the constitutional county court. By agreed order, the case was transferred to cause number 22,160 in the county court at law (hereinafter "the trial court"). (2) In his first amended petition, Sheffield joined as a defendant Terry Williamson, the daughter of Frank Smith and an officer of the Corporation. According to Sheffield, Williamson tortiously interfered with the contractual and business relationship existing between him and Frank Smith, which "was the sole cause of the Corporation's failure to close the sale of the Restaurant."

Sheffield never amended his pleadings to allege any action against Smith individually or his estate, never joined Smith's personal representative as a party, and never served Smith's executor. Appellants moved for summary judgment, which the trial court granted, rendering judgment in favor of appellants and ruling that Sheffield take nothing on his claims. Sheffield filed a motion for new trial; at the hearing, he apparently urged an oral motion to dismiss the cause for lack of jurisdiction. The trial court withdrew its judgment and granted the motion to dismiss, determining that the court "lacked subject matter jurisdiction to grant the original summary judgment because the personal representative of the Estate had not been made a party thereto." The trial court then dismissed without prejudice "the separate suit styled Ralph E. Sheffield, Jr. vs. Frank Smith's, Inc. and Terry Williamson, Defendants, as encompassed in the probate proceeding styled In the Estate of Frank Leahy Smith, Deceased." (3) This appeal followed.



STANDARD OF REVIEW

Initially, we note, the position of the parties seems reversed. As Sheffield admits, he "is in the anomalous position of arguing to sustain the dismissal of his own suit," while the appellants urge reinstatement of the action against them. However, the question of jurisdiction is fundamental and may be raised at any time. Tullos v. Eaton Corp., 695 S.W.2d 568, 568 (Tex. 1985). The fact that the parties here agreed to have the suit consolidated with the probate proceeding is irrelevant; subject matter jurisdiction exists by operation of law only, and cannot be conferred upon the court by consent or waiver. See Dubai Petroleum Co. v. Kazi, 12 S.W.3d 71, 76 (Tex. 2000). Thus, subject matter jurisdiction raises a question of law, which we review de novo. Mayhew v. Town of Sunnyvale, 964 S.W.2d 922, 928 (Tex. 1998).

The standard by which we review subject matter jurisdiction requires the pleader to allege facts that affirmatively demonstrate the court's jurisdiction to hear the cause. See Texas Ass'n of Bus. v. Texas Air Control Bd., 852 S.W.2d 440, 446 (Tex. 1993) (citing Richardson v. First Nat'l Life Ins. Co., 419 S.W.2d 836, 839 (Tex. 1967)). Our review is guided by the presumption that the trial court accepts the allegations in the petition as true, unless the defendant pleads and proves that they were fraudulently made to confer jurisdiction. Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554 (Tex. 2000). The party asserting the jurisdictional challenge must show that, even if all the allegations in the pleadings are true, there is an incurable jurisdictional defect apparent from the face of the pleadings rendering it impossible for the petition to confer jurisdiction on the trial court. See City of San Angelo v. Smith, 69 S.W.3d 303, 305 (Tex. App.--Austin 2002, pet. denied) (citing Bybee v. Fireman's Fund Ins. Co., 331 S.W.2d 910, 914 (Tex. 1960)). If the face of the petition does not affirmatively demonstrate a lack of jurisdiction, the trial court must liberally construe the plaintiff's allegations in favor of jurisdiction. Texas Ass'n of Bus., 852 S.W.2d at 446; Peek v. Equipment Serv. Co., 779 S.W.2d 802, 804 (Tex. 1989).

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