In Re Great Value Storage, LLc and World Class Capital Group, LLC v. the State of Texas

• Court: Court of Appeals of Texas
• Decided: June 25, 2024
• Docket: 01-21-00672-CV
• Status: Published

Opinion

Opinion issued June 25, 2024

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-21-00672-CV ——————————— IN RE GREAT VALUE STORAGE, LLC AND WORLD CLASS CAPITAL GROUP, LLC, Relators

Original Proceeding on Petition for Writ of Mandamus

MEMORANDUM OPINION

On November 30, 2021, relators Great Value Storage, LLC and World Class

Capital Group, LLC filed a petition for writ of prohibition and for writ of

injunction. In the trial court, real party in interest Princeton Capital Corporation

had sought appointment of a receiver to enforce collection of the judgment. The

trial court signed an order on September 8, 2021, appointing receiver Seth Kretzer.

In this original proceeding, relators complained about the order appointing Kretzer and sought to prohibit Kretzer and the trial court, “who acts through Kretzer,” from

acting under the order appointing the receiver.

On December 6, 2021, relators filed a motion for emergency relief and on

the same date, this Court granted the motion, staying the trial court’s September 8,

2021 order appointing Kretzer as receiver, and ordering Kretzer to discontinue

acting pursuant to the September 8, 2021 order pending disposition of the

proceeding. On December 23, 2021, Kretzer filed a motion asking this Court to lift

the stay entered on December 6, contending that relators were using the abatement

period to transfer assets that could satisfy the judgment. On December 23, 2021,

the Court issued an order abating the related appeal in case number 01-21-00284-

CV and this original proceeding and remanded to the trial court for further

proceedings concerning the adequacy of the security posted by appellants/relators.1

The Court also granted Kretzer’s motion and withdrew the order staying the

appointment order entered on December 6, 2021.

On October 24, 2023, the Court requested an update concerning the status of

the remanded proceedings in the trial court. On October 26, 2023, Kretzer filed a

letter urging the Court to conclude the original proceeding was moot and to dismiss

it because relators and Princeton Capital had settled all claims, relators had paid

1 The underlying case is Princeton Capital Corporation v. Great Value Storage LLC, World Class Capital Group LLC, and Natin Paul, cause number 2019- 18855, pending in the 165th District Court of Harris County, Texas, the Honorable Ursula Hall, presiding. 2 the full amount of the judgment, and Princeton Capital had distributed the proceeds

to shareholders.

“A case becomes moot if a controversy ceases to exist between the parties at

any stage of the legal proceedings . . . .” In re Kellogg Brown & Root, Inc., 166

S.W.3d 732, 737 (Tex. 2005). Because the parties have resolved the issues

between them, there is no longer a live controversy for resolution by mandamus.

See Elec. Reliability Council of Tex., Inc. v. Panda Power Generation

Infrastructure Fund, LLC, 619 S.W.3d 628, 634–35 (Tex. 2021) (stating that, if

parties no longer have legally cognizable interest in case’s outcome such that case

is moot, court can no longer grant requested relief or any decision would constitute

impermissible advisory opinion).

On December 12, 2023, the Court issued an order advising that the original

proceeding might be dismissed as moot unless any party filed a response

establishing that the proceeding was not moot. No responses were filed.

Accordingly, the Court lifts the abatement and reinstates the case on the

active docket. The petition for writ of prohibition and a writ of injunction is

dismissed as moot. Any pending motions are dismissed as moot.

PER CURIAM Panel consists of Chief Justice Adams and Justices Kelly and Goodman.