In Re Marty Berry and Axis Midstream Holdings, LLC v. the State of Texas

Court of Appeals of Texas·Decided February 13, 2025·No. 15-25-00016-CV·Published

Opinion

ACCEPTED 15-25-00016-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 2/13/2025 11:16 AM No. 15-25-00016-CV CHRISTOPHER A. PRINE CLERK FILED IN 15th COURT OF APPEALS IN THE FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 2/13/2025 11:16:36 AM CHRISTOPHER A. PRINE IN RE MARTY BERRY AND AXIS MIDSTREAM HOLDINGS, LLC, Clerk Relators.

Original Proceeding from the Business Court 11A Cause No. 24-BC11A-0025 Hon. Sofia Adrogué, Presiding

RESPONSE TO RELATORS’ EMERGENCY MOTION FOR TEMPORARY RELIEF

TO THE HONORABLE FIFTEENTH COURT OF APPEALS:

INTRODUCTION

Over the past several months, Relator Marty Berry (“Marty”)1 has engaged in

a coordinated scheme to usurp control of a billion-dollar crude oil terminal project

from Real Party in Interest Albert Theodore Powers (“Ted”). Ted filed an

application for a temporary injunction seeking to halt these efforts and preserve the

status quo during litigation. After two days of hearings in late January, a temporary

injunction hearing is set to conclude on Friday. Appendix 48. Marty’s “emergency”

request for a stay is simply a blatant attempt to avoid any ruling on the application

1 Because several of the parties in this litigation share a last name, this Response refers to all parties using their first name to avoid any confusion.

for temporary injunction so he can continue his unlawful conduct undeterred—and

render Ted powerless to stop it.

The Court should not indulge this gamesmanship. Relators’ Emergency

Motion for Temporary Relief (the “Motion”) should be denied, for two reasons.

First, after a two-hour hearing, the trial court took Relators’ request for a stay

under advisement, deciding to conduct the temporary injunction hearing first before

it ruled on the request for a stay. Exhibit 1.2 This Court should permit the trial court

to move forward as planned and prohibit Relators’ attempt to circumvent the logical

course of proceedings. If a stay were issued before the trial court has an opportunity

to rule on the application for temporary injunction, it would undoubtedly prejudice

Ted and upend the status quo.

Second, the crux of the Motion (and the Petition for Writ of Mandamus, for

that matter) is that dominant jurisdiction over this litigation exists in Nueces County.

Not so. The trial court did not abuse its discretion in denying Relators’ Plea in

Abatement and Motion to Transfer Venue. The “first filed” lawsuit Relators

repeatedly point to involves different claims and different parties. Ted is not a party

to that action. Moreover, the contract at issue in this case—which is not at issue in

2 When possible, this Response cites to the Appendix filed by Relators in support of their Petition for Writ of Mandamus. For documents Relators did not include in that appendix, Ted has attached additional exhibits to this Response.

the Nueces County case—includes a forum selection clause requiring that suit be

brought in Harris County. Exhibit 2 at § 5(a).

For these reasons, Ted respectfully requests that the Court summarily deny

both the Emergency Motion for Temporary Relief, as well as the Petition for Writ

of Mandamus without calling for a response.3 In the alternative, the Court should

defer ruling on the Motion until after the trial court rules on the application for

temporary injunction and rules on the request for a stay.

FACTUAL BACKGROUND

Ted has spent years working on behalf of Marty, Lawrence Berry

(“Lawrence”), and Bonnie Berry (“Bonnie”)4 to develop and obtain funding for a

crude oil delivery system and terminal project known as the Lone Star Ports Project

(the “Project”). The Project will result in the construction of an oil export terminal

on Harbor Island in the Port of Corpus Christi.

In exchange for his work, Ted and Real Party in Interest Allied Ports, LLC

(“Allied Ports”) received management rights and ownership interests in the Project

(and in an entity known as Lone Star Port Holdings, LLC). This arrangement is

3 If the Court requires a response on the merits of the Mandamus Petition, Ted will respond promptly. 4 Although Lawrence and Bonnie are both Defendants in this lawsuit, they have not joined Relators in filing this mandamus action. Additionally, Bonnie Berry obtained her interest in the Project at issue in this case via Dennis Berry, who is now deceased.

memorialized in two contracts: an Investment Agreement and a separate

compensation Agreement. See Exhibit 2 (containing the Investment Agreement).

However, since “Relator”5 Axis Midstream Holdings, LLC (“Axis”) received

a valuable permit to allow construction on the Project to commence, Marty and

Bonnie have engaged in coordinated efforts to circumvent those contracts and

wrestle ownership and management of the Project away from Ted and Allied Ports.

These efforts began last fall, when Marty and Bonnie noticed a meeting, improperly

and without authority, to change the manager and officers of Axis.

To put a stop to this conduct, Ted and Allied Ports filed an Application for

Temporary Restraining Order (“TRO”) and Temporary Injunction. On October 31,

2024, Judge Lauren Reeder, sitting as ancillary judge, entered a TRO prohibiting

Marty and Bonnie from moving forward with the meeting. Appendix 25. A hearing

on the application for temporary injunction was set for November 12, 2024 in the

215th Judicial District Court of Harris County.

On November 8, 2024, Marty and Bonnie filed their Plea in Abatement.

Appendix 26. On November 12, 2024, Real Parties in Interest responded. Appendix

27. That same day, the district court held a hearing. The parties ultimately agreed

5 Counsel for Marty purports to also represent and file this original proceeding on behalf of Axis Midstream Holdings, LLC. Marty does not have authority to engage counsel on behalf of Axis and does not manage that entity. However, that issue is not relevant for purposes of determining the Motion and thus Ted will not address it here.

to extend the TRO until November 28, 2024, and the hearing on the temporary

injunction was re-scheduled for November 18, 2024. The action was subsequently

removed to the 11th Division of the Business Court (the “trial court”) on November

15, 2024.

After removal, Marty and Bonnie filed a Motion to Remand, Dismiss, or

Transfer the Case, asserting the same “dominant jurisdiction” arguments they

asserted in their Plea in Abatement (and assert in this original proceeding). Exhibit

3. A Response and a Reply were filed. Exhibit 4, Appendix 28. The parties

eventually agreed again to extend the TRO until December 6, 2024.

That day, the trial court held a three-hour hearing on the Plea in Abatement

and Motions to Transfer Venue, Remand, and Dismiss. Appendix 31. On December

31, 2024, the Court ordered that all Parties prepare and file supplemental briefs,

which were filed on January 9, 2025. Appendix 32, 33, 34, 35. The temporary

injunction hearing was then re-set for January 29 and 30, 2025.

On January 17, 2025, the trial court denied the Plea in Abatement. Appendix

36. On January 27, 2025 (two days before the injunction hearing), Marty and Bonnie

filed a Motion to Reconsider the Court’s Ruling on the Plea in Abatement and a

Motion to Stay Pending Mandamus. Exhibit 5. The Court held a two-hour hearing

on the Motion to Reconsider and Motion to Stay. After the hearing, the Court denied

the Motion to Reconsider and took the Motion to Stay under advisement, allowing

the temporary injunction hearing to move forward first. Exhibit 1, Exhibit 6.

On January 29 and 30, the Court held the temporary injunction hearing, and

the hearing is set to conclude—by agreement of all parties—on Friday, February

14. Appendix 48. In an attempt to circumvent the conclusion of that hearing and

any subsequent ruling, Relators have filed their “emergency” motion. For the

reasons set forth below, it should be denied.

ARGUMENT

I. Entering a stay before the trial court has an opportunity to rule on the application for temporary injunction would upend the status quo.

First, this Court should decline to enter a stay, given that the trial court has

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In Re Marty Berry and Axis Midstream Holdings, LLC v. the State of Texas, (Tex. Ct. App. 2025).

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