In Re Kimco Developers, Inc. KD Houston 1086A, Inc., Kimco Realty Services, Inc., and Kimco Realty Corporation v. the State of Texas

Court of Appeals of Texas·Decided May 5, 2025·No. 15-25-00025-CV·Published

Opinion

ACCEPTED 15-25-00025-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 5/5/2025 10:46 AM CHRISTOPHER A. PRINE No. 15-25-00025-CV CLERK

_______________ FILED IN 15th COURT OF APPEALS AUSTIN, TEXAS IN THE 5/5/2025 10:46:50 AM

FIFTEENTH COURT OF APPEALS CHRISTOPHER A. PRINE Clerk _______________

In re Kimco Developers, Inc., KD Houston 1086A, Inc., Kimco Realty Services, Inc., and Kimco Realty Corporation, Relators. _______________

Original Proceeding from Business Court Division 11A Harris County, Texas Trial Court Cause No. 24-BC11A-0013 _______________

REAL-PARTY’S RESPONSE TO PETITION FOR WRIT OF MANDAMUS _______________

Sharon McCally smccally@andrewsmyers.com Andrew B. Bender abender@andrewsmyers.com Hunter M. Barrow hbarrow@andrewsmyers.com ANDREWS MYERS, P.C. 1885 Saint James Place, 15th Floor Houston, Texas 77056 713.850.4200

Counsel for Real-Party-in-Interest IDENTITY OF PARTIES AND COUNSEL

The following is a complete list of the parties, attorneys, and any

other person who has any interest in the outcome of this suit:

Relators Counsel

Kimco Developers, Inc., Elizabeth G. “Heidi” Bloch KD Houston 1086A, Inc., heidi.bloch@gtlaw.com Kimco Realty Services, Inc., GREENBERG TRAURIG, LLP Kimco Realty Corporation 300 West 6th Street, Suite 2050 Austin, Texas 78701 512.320.7200

Roland Garcia garciar@gtlaw.com GREENBERG TRAURIG, LLP 1000 Louisiana Street, Suite 6700 Houston, Texas 77002 713.374.3500

Real-Party-in-Interest Counsel

Cypress Towne Center, Ltd., Sharon McCally individually and derivatively smccally@andrewsmyers.com on behalf of Kimco 290 Andrew B. Bender Houston II, L.P. abender@andrewsmyers.com Hunter M. Barrow hbarrow@andrewsmyers.com ANDREWS MYERS, P.C. 1885 Saint James Place, 15th Floor Houston, Texas 77056 713.850.4200

ii Respondent

Hon. Sofia Adrogué c/o Foster Baird, Staff Attorney foster.baird@txcourts.gov Kirina McNamara, Court Manager kirina.mcnamara@txcourts.gov Texas Business Court 11th Division 301 Fannin St. Houston, Texas 77002 713.274.1067

iii TABLE OF CONTENTS

Page

IDENTITY OF PARTIES AND COUNSEL ...................................... ii

INDEX OF AUTHORITIES .............................................................. vi

ISSUES PRESENTED ...................................................................... xi

STATEMENT OF FACTS .................................................................. 1

A. Cypress files the underlying suit for breach of contract and breach of fiduciary duty in 2022 ...................................... 2

B. The Texas Legislature creates the business court and limits its application to “actions commenced on or after September 1, 2024.” ................................................................ 3

C. Kimco seeks removal, Cypress seeks remand ........................ 3

D. The business court grants remand ......................................... 5

SUMMARY OF ARGUMENT............................................................ 5

STANDARD OF REVIEW ................................................................. 7

ARGUMENT ...................................................................................... 7

I. Kimco fails to show that the business court abused its discretion in remanding the case ............................................ 7

A. The business court properly concluded, and Kimco does not challenge, that Chapter 25A applies only to actions “commenced” after September 1, 2024 .................. 8

iv B. The business court properly concluded that this action did not commence again when parties were added after September 1, 2024 ........................................... 9

1. The business court’s opinion aligns with the Act’s plain language, this Court’s ETC decision, and other business court opinions ......................................... 9

2. The business court’s decision properly rejects Kimco’s “trigger” precedent that is inapposite to the Act’s plain language, this Court’s ETC decision, and other business court opinions ................ 13

a. The business court’s rejection of Kimco’s statutorily askew “case precedent” is not an abuse of discretion .................................................... 14

b. The business court’s rejection of federal removal “persuasive authority” is not an abuse of discretion ................................................................... 17

c. The business court’s rejection of “legislative” anecdote is not an abuse of discretion ...................... 18

II. Kimco fails to show it lacks an adequate remedy at law ...... 22

PRAYER ........................................................................................... 28

RULE 52.3(J) CERTIFICATION..................................................... 29

CERTIFICATES OF SERVICE AND COMPLIANCE ................... 29

v INDEX OF AUTHORITIES

Page(s) CASES:

Acker v. Texas Water Comm’n, 790 S.W.2d 299 (Tex. 1990) ..................................................... 16

Bestway Oilfield Inc. v. Cox, 2025 WL 251338, 2025 Tex. Bus. 2 (Tex. Bus. Ct., 11th Div. 2025) .................................................. 8

Bexar Appraisal Dist. v. Johnson, 691 S.W.3d 844 (Tex. 2024) ..................................................... 19

Braud v. Transport Serv. Co., 445 F.3d 801 (5th Cir. 2006) ................................................... 17

Brown v. City of Houston, 660 S.W.3d 749 (Tex. 2023) ..................................................... 11

Cincinnati Life Ins. Co. v. Cates, 927 S.W.2d 623 (Tex. 1996) ..................................................... 26

Cypress Towne Ctr., Ltd. v. Kimco Realty Servs., Inc., 708 S.W.3d 265, 2025 Tex. Bus. 8 (Tex. Bus. Ct., 11th Div. 2025) ........................................ passim

Energy Transfer LP v. Culberson Midstream LLC, 705 S.W.3d 217, 2024 Tex. Bus. 1 (Tex. Bus. Ct., 1st Div. 2024) .................................................... 8

Fire Protection Service, Inc. v. Survitec Survival Products, Inc., 649 S.W.3d 197 (Tex. 2022) ..................................................... 21

vi In re CSX Corp., 124 S.W.3d 149 (Tex. 2003) (orig. proceeding) ......................... 7

In re Essex Ins. Co., 450 S.W.3d 524 (Tex. 2014) (orig. proceeding) ................. 24, 27

In re ETC Field Servs. LLC, 707 S.W.3d 924 (Tex. App.—Austin [15th Dist.] 2025, orig. proceeding) .................................................... passim

In re Int’l Bank of Commerce, No. 13-07-00693-CV, 2008 WL 192260 (Tex. App.—Corpus Christi–Edinburg Jan. 18, 2008, orig. proceeding) ................ 26

In re J.W.B. Trust of 2007, 2025 WL 1145780, 2025 Tex. Bus. 14 (Tex. Bus. Ct., 3d Div. 2025) ................................................... 12

In re Kansas City S. Indus., Inc., 139 S.W.3d 669 (Tex. 2004) (orig. proceeding) ....................... 22

In re Rogers, 690 S.W.3d 296 (Tex. 2024) (orig. proceeding) ......................... 7

In re Sw. Bell Tel. Co., 35 S.W.3d 602 (Tex. 2000) (orig.

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In Re Kimco Developers, Inc. KD Houston 1086A, Inc., Kimco Realty Services, Inc., and Kimco Realty Corporation v. the State of Texas, (Tex. Ct. App. 2025).

In Re Kimco Developers, Inc. KD Houston 1086A, Inc., Kimco Realty Services, Inc., and Kimco Realty Corporation v. the State of Texas (In Re Kimco Developers, Inc. KD Houston 1086A, Inc., Kimco Realty Services, Inc., and Kimco Realty Corporation v. the State of Texas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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