In Re Carbo Ceramics Inc.

81 S.W.3d 369, 2002 Tex. App. LEXIS 4099, 2002 WL 1402528
CourtCourt of Appeals of Texas
DecidedMay 20, 2002
Docket14-02-00048-CV
StatusPublished
Cited by31 cases

This text of 81 S.W.3d 369 (In Re Carbo Ceramics 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
In Re Carbo Ceramics Inc., 81 S.W.3d 369, 2002 Tex. App. LEXIS 4099, 2002 WL 1402528 (Tex. Ct. App. 2002).

Opinions

MAJORITY OPINION

EVA M. GUZMAN, Justice.

Relator, Carbo Ceramics Inc., (“Carbo”) seeks a writ of mandamus ordering respondent, the Honorable Sharolyn Woods, to vacate her order requiring that Carbo produce privileged documents. We conditionally grant the writ in part and deny the writ in part.

Factual and Procedural Background

The underlying suit involves claims that Carbo tortiously interfered with existing and prospective contractual relations between real party in interest, Proppant Technology, Ltd. (“Prop Tech”), and Mineracao Curimbaba Ltd. (“Curimbaba”), a Brazilian company. Trial was set for October 2, 2001. On September 17, 2001, Carbo filed an amended discovery response designating Stephen Shalen, one of Carbo’s attorneys, as a potential witness with knowledge about the drafting and revision of proposed agreements between Carbo and Curimbaba. On September 30, 2001, and on October 1, 2001, Carbo produced a copy of a letter from Carbo to Shalen with an attachment. The attachment was a term sheet, a version of which had been previously produced by Carbo to Prop Tech. The Shalen letter and the attachment were jointly labeled as Defendant’s Exhibit 54 and included on Carbo’s exhibit fist.1

On October 1, 2001, after receiving the Shalen letter, Prop Tech’s counsel sent Carbo a letter asserting that Carbo was [372]*372attempting to selectively waive the attorney-client privilege and that the Shalen letter directly contradicted affidavits Carbo had previously filed with the trial court. Within several hours, Carbo responded to Prop Tech’s letter, claiming it had inadvertently produced the Shalen letter and did not intend to call Shalen as a witness. On the same day, Prop Tech filed a “Motion to Conduct Hearing on Claimed Privilege and to Compel Production.” In this motion, Prop Tech requested that Carbo prove its claim that the Shalen letter was privileged and alleged several waiver grounds. Within the “Brief History” portion of the motion, Prop Tech claimed that it was entitled to production of the Shalen letter “as well as all other documents listed on Car-bo’s privilege log....” In the prayer paragraph of the motion, Prop Tech asked that Carbo be ordered to produce the Shalen letter and, in the same sentence, Prop Tech requested “all other exhibits previously withheld on the grounds of attorney-client privilege.... ” Prop Tech also submitted the Shalen letter to the trial court in camera.

On October 4, 2001, the trial court held a hearing on pretrial motions. Carbo announced it was not prepared to respond to Prop Tech’s motion to compel and asked to submit briefing. The court approved a submission date of October 10, 2001. At the October 4th hearing, Prop Tech urged in its motion in limine that Carbo be precluded from presenting testimony about reliance on the advice of counsel as justification for its actions. During this hearing, Carbo advised the judge that it intended to rely on the advice of counsel as a defense, but it did not intend to offer the substance of that advice because that would waive its privilege. The trial judge, however, stated: “Based on the fact that the defendant [Carbo] does intend to rely on the advice of counsel and that’s their defense ... I think that the defendant has to know that by its assertion here that that privilege is waived.”

On October 10, 2001, Carbo filed its response to Prop Tech’s motion to compel. In its response, Carbo stated its understanding that no one disputed the privileged nature of the Shalen letter. Accordingly, Carbo only addressed the waiver grounds asserted in the motion to compel. On October 25, 2001, Prop Tech filed a reply to Carbo’s response and asserted, as an additional ground for compelling production of the privileged document, Car-bo’s statement at the October 4th, hearing that it intended to rely on the advice of counsel defense. Carbo responded on November 14, 2001, that it never intended to waive the attorney-client privilege and unequivocally stated it would not assert the advice of counsel defense at trial and would comply with Prop Tech’s motion in limine.

The record contains no transcript or reference to an oral hearing on the motion to compel. On January 3, 2002, the trial judge signed an order granting Prop Tech’s motion to compel and ordered Car-bo to produce the Shalen letter and “all other documents previously withheld on the ground of attorney-client privilege.”2 On January 4, 2002, the trial court signed a supplemental order, stating it had signed an order on January 3rd “with regard to the October 4, 2001, hearing” and had [373]*373conducted an in camera review of documents. The only document tendered to the trial court for in camera review was the copy of the Shalen letter produced to Prop Tech.

Standard of Review

Mandamus relief is available if the trial court abuses its discretion, either in resolving factual issues or in determining legal principles when there is no other adequate remedy by appeal. See Walker v. Packer, 827 S.W.2d 833, 839-40 (Tex.1992). A trial court abuses its discretion if “it reaches a decision so arbitrary and unreasonable as to amount to a clear and prejudicial error of law.” Johnson v. Fourth Court of Appeals, 700 S.W.2d 916, 917 (Tex.1985). When alleging that a trial court abused its discretion in its resolution of factual issues, the complaining party must show the trial court could reasonably have reached only one decision. Id. at 918. As to determination of legal principles, an abuse of discretion occurs if the trial court clearly fails to analyze or apply the law correctly. See Walker, 827 S.W.2d at 840.

In determining whether the writ should issue, we must further determine whether the party has an adequate remedy by appeal. Id. Mandamus is intended to be an extraordinary remedy, only available in limited circumstances “involving manifest and urgent necessity and not for grievances that may be addressed by other remedies.” Holloway v. Fifth Court of Appeals, 767 S.W.2d 680, 684 (Tex.1989). An appellate remedy is not inadequate merely because the party may incur more expense and delay than in obtaining the writ. Walker, 827 S.W.2d at 842. The appellate remedy may be inadequate in three situations: (1) when the appellate court cannot cure the trial court’s discovery order, such as where the trial court orders disclosure of privileged documents; (2) where the party’s ability to present a viable claim or defense is vitiated or severely compromised; and (3) when the trial court disallows discovery and the missing discovery cannot be made part of the appellate record, thereby precluding appellate review. Id. at 843. Because the trial court has ordered production of privileged documents, we find any appellate remedy is inadequate.

I. Proof of Privilege

Prop Tech’s motion was entitled, in part, “Motion to Conduct Hearing on Claimed Privilege.” On page 5 of this motion, Prop Tech asserted that it requested the court to hear Carbo’s claim that the first page of Exhibit No. 54, the Shalen letter, was privileged. Prop Tech further asserted that “Carbo bears the burden to establish that the document at issue [the Shalen letter] is privileged.... ”

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Bluebook (online)
81 S.W.3d 369, 2002 Tex. App. LEXIS 4099, 2002 WL 1402528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-carbo-ceramics-inc-texapp-2002.