Holden v. Capri Lighting, Inc.

960 S.W.2d 831, 1997 Tex. App. LEXIS 5190, 1997 WL 604103
CourtCourt of Appeals of Texas
DecidedOctober 1, 1997
Docket07-96-0351-CV
StatusPublished
Cited by19 cases

This text of 960 S.W.2d 831 (Holden v. Capri Lighting, Inc.) 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
Holden v. Capri Lighting, Inc., 960 S.W.2d 831, 1997 Tex. App. LEXIS 5190, 1997 WL 604103 (Tex. Ct. App. 1997).

Opinion

*832 REAVIS, Justice.

By three points of error, appellants Chubb Group of Insurance Co., Donald Holden, and Mary Holden (Chubb/Holden) appeal from a summary judgment rendered upon the motion of Capri Lighting, Inc. and Thomas Industries, Inc. (Capri and Thomas), alleging that Capri and Thomas have no liability for damages resulting from a fire caused by an allegedly defective light fixture manufactured by Capri Manufacturing Company, an operating division of BAS, a California corporation. Based on the rationale expressed, we will overrule the points of error and affirm the summary judgment.

On June 18, 1988, the residence of the Holdens was destroyed by a fire caused by an allegedly defective light fixture. The light fixture was manufactured in 1982 by BAS, a California corporation doing business as Capri Manufacturing Company, an operating division of BAS. 1 In 1984 BAS sold assets of Capri Manufacturing Company to Capri Lighting, Inc., a wholly owned subsidiary of BAS. The sale of assets expressly excluded product liability claims. Later, BAS also sold all of the common stock of Capri Lighting, Inc. to Thomas Industries, Inc., a Delaware corporation. BAS was voluntarily dissolved shortly thereafter.

Procedural History

Chubb Group of Insurance Co. commenced this action under the Holdens’ names by virtue of its subrogation rights, joined by the Holdens, seeking compensation for losses caused to the Holdens’ home and personal belongings. Capri and Thomas filed a joint motion for summary judgment on the ground that the evidence conclusively established that they had no liability to the Holdens because they did not manufacture the light fixture and the transfer of assets from BAS to Capri Lighting, Inc. specifically excluded products liability claims. Capri and Thomas asserted that under Texas law, a successor corporation is not liable for claims against its predecessor which are not expressly assumed. Tex. Bus. Corp. Act Ann. art. 5.10 B(2) (Vernon Supp.1997). Chubb/Holden filed a response to the summary judgment motion and a motion to take judicial notice of California law requesting that the trial court apply California law.

The motion for summary judgment and the motion to take judicial notice of California law were heard on April 21,1995. On May 2, 1995, the trial court signed a summary judgment order that Chubb/Holden take nothing against Capri and Thomas. On May 26, 1995, the trial court signed an order denying the Chubb/Holden motion to take judicial notice of California law. The order did not specify any grounds or reasons for the denial, other than stating that the motion to take judicial notice of and apply California law, was without merit.

By three points of error, Chubb/Holden contend that the trial court erred in (1) applying Texas law rather than California law, (2) holding that Capri and Thomas were not liable as successors for a product liability claim, and (3) granting summary judgment because material fact issues existed. We disagree.

Standard of Review

In a summary judgment proceeding the movant has the burden to show that no genuine issue of material fact exists and that he is entitled to judgment as a matter of law. Swilley v. Hughes, 488 S.W.2d 64, 67 (Tex.1972). Once the movant has established a right to summary judgment, the non-movant has the burden to expressly present to the trial court, in a written answer or response to the motion, any issues that would defeat the movant’s right to summary judgment. Tex.R. Civ. P. 166a(c); City of Houston v. Clear Creek Basin Authority, 589 S.W.2d 671, 679 (Tex.1979). If the non-movant fails to present a written answer or response to the trial court of issues that would defeat the summary judgment motion, he may not raise them for the first time on appeal as grounds for reversal. Id.

Analysis

By their first and second points of error, Chubb/Holden contend that California law *833 applies because it has the “most significant relationship” to the matter. Gutierrez v. Collins, 583 S.W.2d 312 (Tex.1979); Crisman v. Cooper Industries, 748 S.W.2d 273 (Tex.App.—Dallas 1988, writ denied). They also assert, citing Ray v. Alad, 19 Cal.3d 22, 136 Cal.Rptr. 574, 560 P.2d 3 (1977), that the “product line” exception to the general rule that a successor corporation is not liable for obligations not expressly assumed applies. However, because we dispose of these points of error on the basis of the motion to take judicial notice of California law, we do not address the conflict of laws issue.

Under Rule 202 of the Texas Rules of Civil Evidence, the trial court shall take judicial notice of the laws of other states if the moving party furnishes the court with “sufficient information” to enable it to comply with the request. 2 If the court is not furnished with “sufficient information” to establish the law of another state, the trial court may, in its discretion, choose not to judicially notice the sister-state law. See Ogletree v. Crates, 363 S.W.2d 431, 435 (Tex.1963). The standard of review of this evidentiary point is whether the trial court abused its discretion in declining to take judicial notice of California law. Shenandoah Assoc. v. J & K Properties, 741 S.W.2d 470, 490 (Tex.App.—Dallas 1987, writ denied). Chubb/Holden do not address this standard. Moreover, in the absence of pleading and proof of the law of a sister state, Texas courts will presume that the law of a sister state is identical to Texas law. Humphrey v. Bullock, 666 S.W.2d 586, 589 (Tex.App.—Austin 1984, writ ref'd n.r.e.).

According to the record, the only information presented to the trial court by Chubb/Holden was an incomplete copy of Ray v. Alad, 19 Cal.3d 22, 136 Cal.Rptr. 574, 560 P.2d 3 (1977), which they contend established the “product line” exception to the general rule on successor liability, which was attached to their response to the motion for summary judgment. Chubb/Holden did not provide the trial court with any other information on California law, such as a deposition or affidavit of a California attorney, or otherwise, to indicate if Ray, which is twenty years old, is still in effect, or to show that California law does not have a statute similar to article 5.10 B(2) of the Texas Business Corporation Act Annotated (Vernon Supp. 1997).

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Bluebook (online)
960 S.W.2d 831, 1997 Tex. App. LEXIS 5190, 1997 WL 604103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holden-v-capri-lighting-inc-texapp-1997.