in Re Build by Owner, LLC

CourtCourt of Appeals of Texas
DecidedOctober 6, 2011
Docket01-11-00513-CV
StatusPublished

This text of in Re Build by Owner, LLC (in Re Build by Owner, 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
in Re Build by Owner, LLC, (Tex. Ct. App. 2011).

Opinion

Opinion issued October 6, 2011

In The

Court of Appeals

For The

First District of Texas

————————————

NO. 01-11-00513-CV

———————————

In re BUILD BY OWNER, LLC, Relator

Original Proceeding on Petition for Writ of Mandamus

MEMORANDUM OPINION

          Relator, Build by Owner, LLC (“Build by Owner”), filed a petition for writ of mandamus seeking to compel the trial court to vacate its order granting real parties in interest John-Baptist and Ellen Sekumade’s motion to transfer venue from Galveston County to Harris County.[1]  Build by Owner contends that the trial court abused its discretion in granting the motion because, at a prior hearing before the original trial judge, Build by Owner and Sekumade allegedly entered into a Rule 11 agreement providing that venue would remain in Galveston County because Sekumade sought affirmative relief from the Galveston County trial court on a counterclaim.

          We deny the petition for writ of mandamus.

Background

          In 2008, Sekumade and Build by Owner entered into a contract for the construction of a house.  On June 22, 2009, Build by Owner sued Sekumade for breach of contract, alleging that Sekumade “failed to provide payment for [Build by Owner’s] work and reimbursement of labor and materials provided in the construction of [Sekumade’s] residence.”  In his original answer, Sekumade moved to transfer venue from Galveston County to either Brazoria Countywhere Sekumade residedor Harris Countywhere Sekumade signed the contract at issueand also asserted a counterclaim for breach of contract.

          During the course of the litigation, Sekumade served Build by Owner with discovery requests, including requests for admissions, requests for production of documents, and interrogatories.  Sekumade also moved for summary judgment on his breach of contract counterclaim, contending, among other things, that Build by Owner failed to either fully or substantially perform its contractual obligations.  He did not make this motion subject to his motion to transfer venue.  Sekumade later amended his pleadings to drop his breach of contract claim and to assert a claim for violation of the Deceptive Trade Practices Act (“DTPA”).

          On April 22, 2010, after a lengthy discovery battle, the trial court heard argument on Build by Owner’s motion for discovery sanctions and motion to strike Sekumade’s pleadings.  At the beginning of the hearing, the trial court asked the parties which motion they wanted to address first.  Sekumade stated, without previous reference to his motion to transfer venue:

If I may, we filed a Motion to Transfer Venue.  We would probably pass that motion because we have filed a counter-suit based on a DTPA claim.  So, that probably will be less the Court has to consider.

After the parties and the trial court discussed Build by Owner’s discovery-related motions, the trial court asked if there were any other matters to consider.  Sekumade said, “As I stated earlier, Your Honor, we had a Motion to Transfer Venue.  Because we had filed a DTPA claim, we’re going to pass that motion.”

          Shortly thereafter, the parties and the trial court had the following exchange:

[Build by Owner]:          Second of all, based on Counsel’s statement about the motion to transfer, it appears that we’ve entered into a Rule 11 Agreement in open court on the record that the case is going to be here in Galveston County as the county of mutually agreed venue and jurisdiction before this Honorable Court.  So, then, rather than [d]efense counsel saying we’re passing the hearing, I think what he said, based on his DTPA counterclaim, is that he’s agreed and has purposefully availed himself that we have a Rule 11 agreement and I would like that clarified.

The Court:            Mr. Sekumade, that’s the Court’s interpretation of that also.  Is that incorrect?

Sekumade:            In reference to the

The Court:            To the Motion to Transfer Venue, you’re essentially waiving that.  If you say that “I want the Court to rule on my DTPA case,” you’re availing this Court of this jurisdiction.

Sekumade:            That’s correct, Your Honor.  That’s why I stated

The Court:            So, it is of record, then.

[Build by Owner]:          Then that’s mutually agreeable.

The next day, the trial court issued an order granting Build by Owner’s motion to compel.  The court ordered Sekumade to pay $3,000 in attorney’s fees to Build by Owner’s counsel within thirty days and to fully comply with all outstanding discovery requests within forty-five days or the court would require payment of an additional $10,000 in discovery sanctions and completion of forty hours of community service, and it would strike Sekumade’s pleadings.  This order did not mention Sekumade’s motion to transfer venue.

          Approximately one month later, Sekumade again amended his answer, moved to transfer venue to Brazoria or Harris County, and asserted a counterclaim for breach of contract.  In response to this motion to transfer venue, Build by Owner argued that, at the April 22, 2010 hearing, it and Sekumade entered into a Rule 11 agreement providing that venue would remain in Galveston County. 

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