in Re Fox River Real Estate Holdings, Inc., M. Buckner Baccus, Daniel T. Cooper, Ross M. Cummings, Warren Demaio, Bruce F. Dickson, Keith K. Dickson, Eugene A. Frost, Jr., Mark A. Frost, and August J. Pellizzi

Texas Supreme Court·Decided January 31, 2020·No. 18-0913·Published

Opinion

IN THE SUPREME COURT OF TEXAS 444444444444

NO. 18-0913

444444444444

IN RE FOX RIVER REAL ESTATE HOLDINGS, INC., M. BUCKNER BACCUS, DANIEL T. COOPER, ROSS M. CUMMINGS, WARREN DEMAIO, BRUCE F. DICKSON, KEITH K. DICKSON, EUGENE A. FROST, JR., MARK A. FROST, AND AUGUST J. PELLIZZI, RELATORS 4444444444444444444444444444444444444444444444444444 ON PETITION FOR WRIT OF MANDAMUS 4444444444444444444444444444444444444444444444444444

Argued November 16, 2019

JUSTICE GUZMAN, delivered the opinion of the Court.

JUSTICE BUSBY did not participate in the decision.

This mandamus proceeding involves conflicting mandatory venue provisions, a recurrent and perplexing procedural issue. One provision, section 15.020 of the Texas Civil Practice and Remedies Code, permits parties in a “major transaction” to contractually agree to venue for related disputes.1 The other, section 65.023(a), mandates venue in a defendant’s county of domicile for cases purely or primarily seeking injunctive relief.2 The trial court enforced the parties’ venue agreement in accordance with section 15.020, but the relators argue section 65.023 controls. Neither party disputes that section 15.020 applies, but they part company as to section 65.023(a)’s applicability and whether section 15.020 is a “super mandatory” venue provision that controls over

1 TEX. CIV. PRAC. & REM. CODE § 15.020.

2 Id. § 65.023(a); see Ex parte Coffee, 328 S.W.2d 283, 287 (Tex. 1959) (applying section 65.023(a)’s predecessor and holding injunctive relief must be the only or primary relief sought).

all other mandatory venue provisions. We hold that section 15.020 only prevails over venue provisions found in Title 2 of the Civil Practice and Remedies Code and does so here only because section 65.023(a), found in Title 3, is inapplicable. Accordingly, we deny mandamus relief.

I. Background

The venue dispute in this case arises from a lawsuit alleging wrongful disposition of a limited partnership’s assets. The limited partnership, Metropolitan Water Company, L.P. (Met Water), acquires groundwater leases and sells the groundwater to Central Texas municipalities. William Scott Carlson owns and controls Met Water’s general partner, Metropolitan Water Company of Texas, L.L.C. (Met Water GP), and another entity, Met Water Vista Ridge, L.P. (Vista Ridge). A group of Met Water’s limited partners (collectively, Fox River) sued Carlson and his entities as “a single-business enterprise,” claiming Carlson fraudulently misappropriated valuable groundwater leases and other Met Water assets, breached Met Water’s limited partnership agreement, and violated fiduciary duties owed to the partnership. Fox River seeks damages in excess of $1 million in actual damages, exemplary damages, attorney’s fees and expenses, and declaratory, injunctive, and other equitable relief.

Fox River filed the lawsuit in Washington County, where Carlson, Met Water GP, and Vista Ridge (collectively, Carlson) are domiciled. Carlson moved to transfer venue to Harris County, Texas, citing a venue-selection clause in the limited partnership agreement.3 Section 15.020 of the Texas Civil Practice and Remedies Code requires enforcement of contractual venue provisions in

3 Section 12.06 of the parties’ contract provides: “Governing Law and Venue. This Agreement is to be governed and construed according to the laws of the State of Texas without regard to conflicts of law. The proper venue for resolution of any dispute related to this Agreement is only in Harris County, Texas.”

certain circumstances that Fox River concedes are satisfied.4 However, subsection (d) of that statute states, “This section does not apply to an action if . . . venue is established under a statute of this state other than this title.”5 Fox River opposed a venue transfer on the basis that section 65.023(a) of the Civil Practice and Remedies Code establishes Washington County as the proper venue. Section 65.023(a) is in a different title than section 15.020 and requires injunction suits to be heard in the defendant’s county of domicile.6 The trial court granted Carlson’s motion without substantive comment and transferred venue to Harris County. The court of appeals denied Fox River’s petition for mandamus relief.7 Without considering whether section 65.023(a) applies, the court of appeals held section 15.020 governs based on our opinion in In re Fisher, which says “‘the Legislature intended for it to control over other mandatory venue provisions.’”8 The court therefore concluded section 15.020 required the trial court to enforce the venue-selection provision in the partnership agreement.9 On petition for mandamus to this Court, Fox River argues the court of appeals misconstrued and misapplied Fisher because that case involved a conflicting venue provision within the same title as section 15.020 and this one involves a mandatory venue provision in a different title. As to

4 See TEX. CIV. PRAC. & REM. CODE § 15.020(a)–(c).

5 Id. § 15.020(d) (emphasis added).

6 See id. § 65.023(a).

7 577 S.W.3d 555, 558 (Tex. App.—Houston [14th Dist.] 2018, orig. proceeding).

8 Id. (quoting In re Fisher, 433 S.W.3d 523, 534 (Tex. 2014) (orig. proceeding)).

9 Id.

section 65.023(a)’s applicability, which the court of appeals did not reach, Fox River contends the underlying lawsuit is primarily a suit for injunctive relief because the request for injunctive relief is both genuine and necessary to ensure a complete remedy.

II. Discussion

Venue refers to a “geographic location within the forum where [a] case may be tried.”10 Under Texas’s legislatively enacted venue scheme, venue may be proper in many different locales.11 Plaintiffs have the first choice in determining where to file a lawsuit, but when that choice is properly challenged, the trial court must transfer venue if the plaintiff fails to establish venue is maintainable in the county of suit.12 Permissive and general venue statutes always yield to mandatory venue statutes.13 “Venue is a creature of legislative grace, and because a change of venue was unknown to the common law, the power to make venue changes is purely statutory.”14 Statutes governing venue are “structured in accord with a number of public policy principles” that reflect legislative choices

10

Cantu v. Howard S. Grossman, P.A., 251 S.W.3d 731, 734 (Tex. App.—Houston [14th Dist.] 2008, pet.

denied).

11

Wilson v. Tex. Parks & Wildlife Dep’t, 886 S.W.2d 259, 260 (Tex. 1994).

12

Id.; see TEX. CIV. PRAC. & REM. CODE § 15.001(b) (defining “proper venue” as “(1) the venue required by the mandatory provisions of Subchapter B [Mandatory Venue] or another statute prescribing mandatory venue; or (2) if Subdivision (1) does not apply, the venue provided by this subchapter [General Venue] or Subchapter C [Permissive Venue]”).

13

See TEX. CIV. PRAC. & REM. CODE §§ 15.001(b), .002(a).

14

Polaris Inv. Mgmt. Corp. v. Abascal, 892 S.W.2d 860, 862 (Tex. 1995).

balancing the rights and interests at stake.15 And “‘when the Legislature has spoken on a subject, its determination is binding upon the courts unless the Legislature has exceeded its constitutional authority.’”16 Accordingly, appellate review of venue rulings is generally limited to determining whether the trial court’s ruling was faithful to the venue statute.17 In mandatory venue cases, mandamus relief is available without proof of an inadequate appellate remedy if the trial court clearly abused its discretion.18 Trial courts have no discretion in determining what the law is or in the application of the law to the facts.19 In this case, Fox River is entitled to mandamus relief only if (1) section 65.023(a) supersedes a valid and enforceable section 15.020 venue agreement and (2) section 65.023(a) actually applies because the relief Fox River seeks in the underlying suit is primarily injunctive.20 These are questions of law we consider de novo.21 The starting point is the proper construction of the venue statutes, which we ascertain using

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in Re Fox River Real Estate Holdings, Inc., M. Buckner Baccus, Daniel T. Cooper, Ross M. Cummings, Warren Demaio, Bruce F. Dickson, Keith K. Dickson, Eugene A. Frost, Jr., Mark A. Frost, and August J. Pellizzi, (Tex. 2020).

in Re Fox River Real Estate Holdings, Inc., M. Buckner Baccus, Daniel T. Cooper, Ross M. Cummings, Warren Demaio, Bruce F. Dickson, Keith K. Dickson, Eugene A. Frost, Jr., Mark A. Frost, and August J. Pellizzi (in Re Fox River Real Estate Holdings, Inc., M. Buckner Baccus, Daniel T. Cooper, Ross M. Cummings, Warren Demaio, Bruce F. Dickson, Keith K. Dickson, Eugene A. Frost, Jr., Mark A. Frost, and August J. Pellizzi) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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