In Re General Motors Corp.

296 S.W.3d 813, 2009 Tex. App. LEXIS 7163, 2009 WL 2902715
CourtCourt of Appeals of Texas
DecidedAugust 28, 2009
Docket03-07-00509-CV
StatusPublished
Cited by27 cases

This text of 296 S.W.3d 813 (In Re General Motors Corp.) 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 General Motors Corp., 296 S.W.3d 813, 2009 Tex. App. LEXIS 7163, 2009 WL 2902715 (Tex. Ct. App. 2009).

Opinion

OPINION

G. ALAN WALDROP, Justice.

This original proceeding involves the duration of the district court’s plenary power over a suit that was inadvertently dismissed for want of prosecution while the suit was abated in the district court. The suit had been abated to allow an administrative proceeding to take place to resolve certain issues that were predicates to the district court acquiring jurisdiction over all of the claims and issues in the suit. The suit was inadvertently dismissed in 2003 during the period of abatement and while the administrative proceeding was still pending. Over four years later, in 2007, the trial court vacated the inadvertent order of dismissal and reinstated the suit. Relators General Motors Corporation, Chevrolet Motor Division and Austin Chevrolet, Inc. d/b/a Munday Chevrolet/Geo 1 seek a writ of mandamus compelling the district court to vacate, the 2007 order that vacated the district court’s 2003 *818 order of dismissal for want of prosecution, contending that the 2007 order attempting to vacate the previous dismissal is void because it was issued after the expiration of the district court’s plenary power. We conditionally grant the writ.

Factual and Procedural Background

Respondent Landmark, a Chevrolet vehicle dealership, filed the underlying suit against GM and Munday in 1998, alleging that they defrauded Landmark of its right to protest Munday’s 1993 dealership application, lobbied the legislature in bad faith, and discriminated against Landmark in the allocation of Chevrolet’s “most profitable” vehicles.

The underlying dispute relates back to a 1993 administrative proceeding before the Texas Department of Transportation’s Motor Vehicle Board. 2 See Austin Chevrolet, Inc. v. Motor Vehicle Bd., 212 S.W.3d 425 (Tex.App.-Austin 2006, pet. denied). In that proceeding, Munday filed an application for a new franchised motor vehicle dealer’s license, and Landmark filed a protest to the application. GM intervened on Munday’s behalf, and after a pre-hearing conference and some discovery, the Board scheduled a hearing on the merits. Before the hearing on the merits, Landmark dismissed its protest, ostensibly because it had reached an agreement with GM regarding its concerns about the Chevrolet dealership that Munday proposed to open in Houston. Munday then obtained the license to operate its new Chevrolet dealership.

In 1997, Munday filed an application with the Board seeking to relocate his dealership from FM 1960 to a proposed site on IH-45, a distance of less than a mile. Landmark did not approve of this relocation. However, Landmark was not in a position to protest the relocation of Munday’s dealership because of an amendment to the Texas Motor Vehicle Commission Code (the “Code”), which provided that “the relocation of a dealership is not subject to protest by a franchised dealer ... if the proposed relocation is not farther than one mile from the site from which the dealership is being relocated.” See Act of May 22, 1997, 75th Leg., R.S., ch. 639, § 26, sec. 4.06(e)(1), 1997 Tex. Gen. Laws 2185, 2197, repealed by Act of May 22, 2001, 77th Leg., R.S., ch. 1421, § 13, 2001 Tex. Gen. Laws 4570, 5020 (current version at Tex. Occ.Code Ann. § 2301.652(c)(1) (West 2004)).

Landmark filed this lawsuit seeking damages for breach of a duty of good faith and fair dealing, violation of the Deceptive Trade Practices Act, fraud and conspiracy against GM, and for fraud and conspiracy against Munday. In its suit, Landmark claimed that it had been misled by Defendants into dismissing the protest of Mun-day’s original application, that GM had lobbied the legislature to amend the Code in bad faith to Landmark’s detriment, and that GM unreasonably discriminated against Landmark in the allocation of certain vehicles after Munday opened its Chevrolet dealership in Houston. Landmark’s petition alleged specifically that its claims against GM (under the DTPA and for breach of a duty of good faith and fair dealing) were based on alleged violations of the Code. The fraud claim in the original petition is not based on a violation of the Code.

The district court entered an unopposed order of abatement of the suit in August 2001, referring two issues to the Board that the court and the parties concluded were fundamental to Landmark’s claims and were within the “primary jurisdiction” of the Board:

*819 (1) If Landmark had not withdrawn its protest of the license application at issue in William F. Munday d/b/a Bill Mun-day Chevrolet/Geo, Applicant v. Landmark Chevrolet Corp., Protestant and General Motors Corporation, Interve-nor, before the Texas Department of Transportation, Division of Motor Transportation; Docket No. 93-094, under § 4.06(c) of the Texas Motor Vehicle Commission Code (“Code”) would Landmark have obtained a final order denying the license application?
(2) Did GM violate Code § 5.02 by unreasonably discriminating between or among Landmark and Munday in the allocation of Suburbans and Tahoes, beginning with Munday’s initial allocation in 1994 and extending through January of 1997?

On April 2, 2003, while the administrative proceeding before the Board was ongoing, the district court inadvertently sent notice to the parties of its intent to dismiss the abated district court suit for want of prosecution. The notice that the case was subject to dismissal for want of prosecution (“DWOP”) unless a motion to retain was filed was received by counsel for the Defendants. However, because of a failure of the DWOP system in the district clerk’s office to note a change of address, counsel for Landmark did not receive the notice. 3 Consequently, Landmark did not respond to the DWOP notice or file a motion to retain. Without a motion to retain or any response from the parties, the routine DWOP process continued, and the court dismissed the case for want of prosecution on May 13, 2003. Landmark, being unaware that the case had been dismissed, did not challenge the order of dismissal by filing a motion to reinstate the case, a motion for new trial, any mo *820 tion that would have extended the district court’s plenary power, an appeal, or a bill of review.

Meanwhile, the administrative proceeding before the Board continued. The Board issued a final order in December 2004. GM and Munday sought judicial review of the Board’s final order. This Court affirmed the Board’s order in June 2006. See Austin Chevrolet, 212 S.W.3d at 439. The supreme court declined review, and this Court’s mandate issued on March 27, 2007, bringing the administrative proceeding before the Board to conclusion.

Landmark filed a motion to lift the abatement of the district court suit on May 10, 2007, nearly four years after the district court dismissed the suit for want of prosecution.

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Bluebook (online)
296 S.W.3d 813, 2009 Tex. App. LEXIS 7163, 2009 WL 2902715, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-general-motors-corp-texapp-2009.