in Re Empire Scaffold, LLC

CourtCourt of Appeals of Texas
DecidedApril 14, 2016
Docket09-16-00052-CV
StatusPublished

This text of in Re Empire Scaffold, LLC (in Re Empire Scaffold, 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 Empire Scaffold, LLC, (Tex. Ct. App. 2016).

Opinion

In The

Court of Appeals Ninth District of Texas at Beaumont _________________ NO. 09-16-00052-CV _________________

IN RE EMPIRE SCAFFOLD, LLC

________________________________________________________________________

Original Proceeding 58th District Court of Jefferson County, Texas Trial Cause No. A-194,298 ________________________________________________________________________

MEMORANDUM OPINION

In this mandamus proceeding, 1 Relator, Empire Scaffold, LLC, contends the

58th District Court of Jefferson County abused its discretion by denying a motion

to strike a petition in intervention, which was filed by eight Empire Scaffold

employees.2 The underlying suit involves the claims of seven former employees 3

1 After the mandamus petition was filed, we stayed the proceedings in the trial court and requested a response. See Tex. R. App. P. 52.10(b). 2 The Real Parties in Interest are Todd Fawvor, Albertico Araujo Ramos, Ronnie Joseph Arline, Kevin Larue Haney, Daniel Hernandez, Hector Olivarez, Joaquin Ramirez Soloana, and Derek Christopher Zenon. 1 of ABClean, Inc. and United States Industrial Services, Inc. against their former

employers for allegedly breaching their employment agreements as related to a job

incentive program that was in effect during the period their employers had

contracts to perform work on the Motiva Crude Oil Expansion Project. In its

petition seeking mandamus relief, Empire Scaffold asserts that the intervening

Empire Scaffold employees lack a justiciable interest in the underlying suit

because it involves a suit filed by employees of companies other than Empire

Scaffold seeking relief against their employers and not Empire Scaffold. The

Empire Scaffold employees contend that they had a right to intervene in the

underlying suit, and claim they have “a legal and equitable interest” in the trial

court’s “determination and rulings” in the underlying suit even though it involves

different employers from those sued by the plaintiffs in the underlying suit.

Empire Scaffold contends that the trial court’s denial of its motion to strike

the interventions of the Empire Scaffold employees constituted an abuse of

discretion. The Texas Rules of Civil Procedure allow a person to intervene in

another’s suit, but the right to intervene is subject to the trial court’s right to later

strike the intervention. See Tex. R. Civ. P. 60. Therefore, when any party to the

3 The original suit was filed by Kenneth Lee Erwin, Calvin Scott Sanders, Glenda King, David Lopez, Harold Ulysses Nellar, Richard Stanley Smith, Roderick Broussard, and Carl James Stewart. 2 pending suit moves to strike the intervention, the intervenors have the burden to

show that they have a justiciable interest in the pending suit. In re Union Carbide

Corp., 273 S.W.3d 152, 154 (Tex. 2008). A justiciable interest exists if in the

underlying suit, had it been originally filed by the intervenors as the sole plaintiffs,

the intervenors would have been entitled to recover, in their own names, at least a

part of the relief being sought in the original suit. Id. at 155. Therefore, under

Union Carbide, and to defeat Empire Scaffold’s motion to strike, the Empire

Scaffold employees were required to demonstrate that they possess a right to

recover a part of the relief being sought by the non-Empire Scaffold employees,

assuming that the non-Empire Scaffold employees had never filed their suit. See id;

see also In re The Woodlands Land Dev. Co., L.P., No. 09-13-00123-CV, 2013

WL 1790878, at *2 (Tex. App.—Beaumont Apr. 25, 2013, orig. proceeding)

(mem. op.).

The Empire Scaffold employees argue that their intervention is proper

because the trial court’s interpretation of Motiva’s job incentive program related to

the contracts involving ABClean and United States Industrial will directly impact

their claims, in which they also seek to recover bonus incentives available through

a Motiva program on this particular project. According to the Empire Scaffold

employees, they have a common right to incentive bonuses because the bonuses

3 arise from the same source, Motiva, which the non-Empire Scaffold employees are

relying on based on the claims they are making in their suit. However, we note that

Motiva is not a party to the suit.

In support of their argument, the Empire Scaffold employees rely on

Houston Lighting & Power Co. v. City of San Antonio, 896 S.W.2d 366, 373 (Tex.

App.—Houston [1st Dist.] 1995, writ dism’d w.o.j.). In Houston Lighting, two

cities, Austin and San Antonio, entered into a participation agreement with HL & P

to construct and operate a nuclear power plant. Id. at 368. Subsequently, the City

of Austin sued HL & P for mishandling the project, a suit into which the City of

San Antonio intervened. Id. at 369. The First Court of Appeals held that the trial

court acted correctly denying HL & P’s motion to strike, concluding that the City

of San Antonio met the criteria under Rule 60 of the Texas Rules of Civil

Procedure to intervene. Id. at 372-73; Tex. R. Civ. P. 60.

However, the claims of the Empire Scaffold employees are derived from

different agreements than those brought by the ABClean and United States

Industrial employees. The source of bonuses for the Empire Scaffold employees, if

they qualify, are derived from their respective employment agreements with

Empire Scaffold, not Motiva. The source of the bonuses of the ABClean and

United States Industrial employees are based on their respective agreements with

4 their employees, not with Motiva. With respect to the intervention filed by the

Empire Scaffold employees, they possess no right to relief under the agreements

that ABClean and United States Industrial may have had with their respective

employees. Unlike the contracts at issue in the case at bar, Houston Lighting

involved cities that were parties to the same agreement; in this case, the contract

rights on which the respective plaintiffs and intervenors rely to recover from the

defendants are not based on the same contracts.

In conclusion, the record does not show that Empire Scaffold employees

possess a right to recover a part of the relief sought by the non-Empire Scaffold

employees. Given that the Empire Scaffold employees were not entitled to sue

ABClean or United States Industrial, the defendants in the underlying suit, the

Empire Scaffold employees failed to show that they possess a “justiciable interest”

in the underlying suit filed by the non-Empire Scaffold employees under the

requirements identified in Union Carbide. See 273 S.W.3d at 155. It follows that

the trial court failed to follow the guiding principles by allowing the intervention to

proceed, and that it abused its discretion by failing to grant Empire Scaffold’s

request to strike the intervention. See id.

We further conclude that Empire Scaffold is entitled to mandamus relief

because it lacks an adequate remedy by appeal. See In re Prudential Ins. Co. of

5 Am., 148 S.W.3d 124, 135-36 (Tex. 2004). “An appellate remedy is ‘adequate’

when any benefits to mandamus review are outweighed by the detriments. When

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Related

In Re Prudential Insurance Co. of America
148 S.W.3d 124 (Texas Supreme Court, 2004)
In Re Union Carbide Corp.
273 S.W.3d 152 (Texas Supreme Court, 2008)
Houston Lighting & Power Co. v. City of San Antonio
896 S.W.2d 366 (Court of Appeals of Texas, 1995)

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