In Re Marty Berry and Axis Midstream Holdings, LLC v. the State of Texas
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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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
not yet concluded the temporary injunction hearing and entered an order. The trial
court carefully considered Relators’ request for a stay and decided to take the request
under advisement and move forward with the temporary injunction hearing. Exhibit
1. The only reason to seek a stay from this Court now on an “emergency” basis is
to try to avoid a ruling on the application for temporary injunction—and that is
exactly what Relators are trying to do.
The real emergency will arise if there is a delay of the temporary injunction
proceedings, as Real Parties in Interest are at risk of losing valuable management
and ownership rights in the Project. The TRO expired on December 6, 2024. There
is nothing in place to prevent Marty and Bonnie from restarting their attempts to
seize control of the Project. The issuance of a stay would thus undoubtedly prejudice
Ted and Allied Ports, as the temporary injunction aims to preserve the status quo and
prevent Relators from interfering with the ownership and control of the Project while
suit is pending.
Accordingly, the Court should deny the Motion so that the trial court may
continue with the temporary injunction hearing, enter an order, and then rule on the
stay at the appropriate time.
II. Dominant jurisdiction does not exist in Nueces County.
Next, the Motion—as well as the Mandamus Petition—rests on the argument
that dominant jurisdiction over this lawsuit exists in Nueces County.6 This argument
is wrong, on both the facts and the law, and thus the trial court did not abuse its
discretion in denying the motions that were based on Marty’s dominant jurisdiction
arguments.
The Investment Agreement contains a forum selection clause7 that provides
for exclusive jurisdiction in Harris County:
6 The case Relators claim mandates dominant jurisdiction is Cause No. 2024DCV-0045-C, Lawrence Berry, et. al v. Marty Berry et. al., in the 94th Judicial District Court, Nueces County, Texas. 7 At the time the Investment Agreement was signed, Ted was a resident of New York, New York and the other parties to the contract were residents of Texas. Hence, Section 5(a) of the Investment Agreement is a forum selection clause. Exhibit 2 at § 5(a).
Exhibit 2 at § 5(a).
Under Texas law, forum selection clauses are “presumptively valid.” See,
e.g., In re Laibe Corp., 307 S.W.3d 314, 316 (Tex. 2010). Notably, the “burden of
proof is heavy for the party challenging enforcement.” Id.
The trial court did not abuse its discretion by enforcing the forum selection
clause. Relators did not provide the trial court with any evidence to meet their
“heavy” burden of proof to “clearly show” that the clause should not be enforced.
See id. Moreover, Marty and Dennis (now Bonnie) agreed to “irrevocably waive[],
to the fullest extent permitted by relevant law, any objection that it may now or
hereafter have to the laying of the venue of any such suit, action, or proceeding in
any such court or that any such suit, action, or proceeding which is brought in any
such court has been brought in an inconvenient forum.” Exhibit 2 at § 5(a). The
Supreme Court of Texas has enforced such waivers. In re Lyon Fin. Servs., Inc.,
257 S.W.3d 228, 230–31 (Tex. 2008).
If for some reason this Court determines that section 5(a) of the Investment
Agreement is not a mandatory forum selection clause, then it is clearly a mandatory
venue provision, which provides that any dispute related to the contract “shall be
brought in the state or federal courts in Harris County, Texas[.]” Exhibit 2 at § 5(a).
Pursuant to Tex. Civ. Prac. & Rem. Code § 15.020, if any party to an agreement is
to receive greater than $1 million, which constitutes a “major transaction,” then
venue is mandatory in the county selected by the parties to the agreement. Id. at
15.020(a). Venue is thus mandatory in Harris County, as the Investment Agreement
qualifies as a “major transaction.”8 Mandatory venue under the major transaction
statute trumps all other mandatory venue provisions (though no other mandatory
venue provisions apply here). See Tex. Civ. Prac. & Rem. Code § 15.020(c)(2); In
re Fisher, 433 S.W.3d 523, 534 (Tex. 2014).
For dominant jurisdiction to exist, venue over the second-filed case must be
proper in the county of the first-filed case. Gonzalez v. Reliant Energy, Inc., 159
S.W.3d 615, 622 (Tex. 2005). That is not the situation here. As set forth above,
pursuant to the forum selection clause (or venue selection clause), mandatory
exclusive venue over this case is in Harris County. Stated differently, the claims in
8 Relators stipulated that the Business Court had subject matter jurisdiction over this case, thereby stipulating that the amount in controversy in this case is at least $5 million. Exhibit 7.
this case cannot be adjudicated in Nueces County. For that reason alone, dominant
jurisdiction does not exist. See Gonzalez, 159 S.W.3d at 622.
Furthermore, no “inherent interrelation” exists between this case and the
Nueces County case, so dominant jurisdiction is not applicable. See, e.g., In re J.B.
Hunt Transp., Inc., 492 S.W.3d 287, 292 (Tex. 2016). This case involves different
parties and different claims—Real Parties in Interest are not parties in the Nueces
County case, and Relators have not attempted to join them as parties, either.
To determine whether an inherent interrelationship exists, courts look to the
compulsory counterclaim rule to determine if the claims in the second action would
be compulsory counterclaims in the first action. See id. at 292 (citing Tex. R. Civ.
P. 97(a)). Three elements of the compulsory counterclaim rule are missing here.
First, the Nueces County court would not have jurisdiction over the claims in
this case, as required by the compulsory counterclaim rule, because the forum
selection clause (or mandatory venue provision) in the Investment Agreement
requires the case be brought in Harris County. See Tex. R. Civ. P. 97(a); Exhibit 2
at § 5(a).
Second, Real Parties in Interest’s claims are not against an “opposing party”
in the Nueces County lawsuit, because Real Parties in Interest are not parties to that
lawsuit, nor should they be. See id.; Tex. R. Civ. P. 97(a). “The compulsory
counterclaim rule contemplates situations where the primary parties…are already
before the court as parties to the action.” 2 McDonald & Carlson Tex. Civ. Prac. §
9:79 (2d. ed.). “It does not contemplate a situation where no cross-defendant is a
party to the action and one can be brought in only with leave of the court and for
such purposes only as the court may permit.” Id. In sum, Rule 97(a) does not require
anyone who is not already a party to a lawsuit to intervene in the lawsuit and bring
forth related claims, particularly, as in this case, when doing so would violate an
enforceable forum selection clause. See Ruebbling v. Foremost Cnty. Mut. Ins. Co.,
No. 08-23-00054-CV, 2024 WL 339114 at *6 (Tex. App.—El Paso Jan. 29, 2024,
no pet.).
Lastly, the two actions do not arise out of the “same transaction or
occurrence.” Tex. R. Civ. P. 97(a). To determine whether a claim “arises out of the
transaction or occurrence that is the subject matter of the opposing party’s claims,”
courts “apply a logical relationship test.” Id.; Encore Enter., Inc. v. Borderplex
Realty Tr., 583 S.W.3d 713, 722 (Tex. App.—El Paso 2019, no pet.). This test is
only met when the same facts, which may or may not be disputed, are significant
and logically related to both claims. Id. Claims are logically related where separate
trials on each claim “would involve a substantial duplication of effort and time by
the parties and courts.” White v. Rupard, 788 S.W.2d 175, 178 (Tex. App.—
Houston [14th Dist.] 1990, writ denied).
The cases here are not logically related. This lawsuit is a breach of contract
case involving two contracts between Ted, Lawrence, Dennis (now Bonnie), and
Marty, related to Real Parties in Interest’s ownership of, compensation for, and
control over the Project. By contrast, the Nueces County lawsuit involves
allegations of breach of fiduciary duty, improper loans, and self-dealing between
members of the Berry family and various owners of various Berry family entities.
Tellingly, the pleadings in the Nueces County lawsuit do not even mention the
contracts at issue in this case.
In an apparent attempt to provide support for their dominant jurisdiction
claim, Relators allege that Real Parties in Interest and Lawrence “teamed up” against
Relators to obtain a TRO. Though irrelevant to the Motion, it is worth noting that
this is not true. Lawrence is a named defendant in this lawsuit and Real Parties in
Interest are seeking relief that would have a substantial adverse financial effect on
him. In reality, Relators’ complaint stems from the fact that Lawrence gave
testimony on a key issue that was helpful to Real Parties in Interest, even though it
was not in Lawrence’s best interest to do so. That does not mean that Lawrence and
Real Parties in Interest have “teamed up” against Relators. It just means Lawrence
testified truthfully.
Despite the distinction between this case and the Nueces County case,
Relators have improperly attempted to manufacture dominant jurisdiction in Nueces
County. Just four days after the trial court denied Relators’ Motion to Abate, Berry
GP, an entity represented by the same counsel as Relators, filed an application for a
TRO and temporary injunction in the Nueces County lawsuit. In that application,
Berry GP actually sought (among other things) to prohibit Lawrence from truthfully
testifying about the ownership of Axis—a direct attempt to try to limit Real Parties
in Interest from obtaining necessary testimony at the temporary injunction hearing
in this case. Appendix 37. The court in Nueces County denied the TRO on January
27, 2025. Appendix 39.
After losing that battle, on January 28, Berry GP filed a Supplemental and
Third-Party Petition in the Nueces County lawsuit adding Lone Star Ports
Enterprises, LLC, another Project entity, as a party in the Nueces County case.
Appendix 41. Additionally, on February 5, after the first two days of the temporary
injunction hearings in this case, Redfish Bay Terminals, Inc. and Canada Project
Holdings Inc. filed a Petition in Intervention in the Nueces County lawsuit to
adjudicate ownership interests in various Berry-related entities, including Lone Star
Ports Enterprises, LLC. Appendix 49.
All of these actions were attempts by Relators to manufacture dominant
jurisdiction in Nueces County out of thin air after the trial court had already ruled
against them on the issue twice. But dominant jurisdiction cannot be acquired by
subsequent pleadings that do not relate back to the original transaction or occurrence.
See Warren v. Weiner, 462 S.W.3d 140, 145 (Tex. App.—Houston [1st Dist.] 2015,
no pet.) (“But a pleading does not relate back if ‘the amendment or supplement is
wholly based on a new, distinct, or different transaction or occurrence.’”). As a
result, Relators’ efforts to create dominant jurisdiction fail. Because dominant
jurisdiction does not exist, the Motion (and Mandamus Petition, for that matter)
should be denied.
CONCLUSION AND PRAYER
For the foregoing reasons, the Court should summarily deny Relators’
Emergency Motion for Temporary Relief and Petition for Writ of Mandamus.
In the alternative, the Court should (1) defer ruling on the Motion until after
the trial court rules on the application for temporary injunction and considers the
request for a stay, and (2) enter a deadline for Real Parties in Interest to respond to
the Mandamus Petition.
Respectfully submitted,
BECK REDDEN LLP
By: /s/ Alistair B. Dawson Alistair B. Dawson State Bar No. 05596100 adawson@beckredden.com Mary Kate Raffetto State Bar No. 24098296 mkraffetto@beckredden.com M. Jake McClellan State Bar No. 24109525 jmcclellan@beckredden.com
Madeline E. Gay State Bar No. 24138681 mgay@beckredden.com 1221 McKinney, Suite 4500 Houston, TX 77010 (713) 951-3700 (713) 951-3720 (Fax)
Attorneys for Real Party In Interest, Albert Theodore Powers
CERTIFICATE OF SERVICE
I hereby certify that on February 13, 2025, a true and correct copy of the foregoing response has been electronically filed and served on all counsel below. See Tex. R. App. P. 9.2(c)(1), 9.5(b)(1).
Douglas A. Allison Vanessa D. Gilmore LAW OFFICE OF DOUGLAS ALLISON ROBERTS MARKLAND LLP doug@dallisonlaw.com 2555 N. MacGregor Way 403 N. Tancahua Street Houston, TX 77004 Corpus Christi, Texas 78401
Counsel for All Relators
Roland Garcia Barrett H. Reasoner GREENBERG TRAURIG, LLP Michael R. Absmeier 1000 Louisiana Street, Ste. 6700 L. Bruce Baldree Houston, TX 77002 Sydney G. Ballestros Attorneys for Real Party In Interest, GIBBS & BRUNS, LLP Allied Ports, LLC 1100 Louisiana Street, Ste. 5300 Houston, TX 77002 Attorneys for Real Party In Interest, Allen Lawrence Berry
The Honorable Sofia Adrogué 11A Texas Business Court BCDivision11A@txcourts.gov Respondent
/s/ Alistair B. Dawson Alistair B. Dawson
EXHIBIT 1
THE BUSINESS COURT OF TEXAS ELEVENTH DIVISION
Albert Theodore Powers; Allied Ports § LLC, § § Plaintiffs, § § V. § § Cause No. 24-BC11A-0025 Axis Midstream Holdings, LLC; Allen § Lawrence Berry; Marvin Glenn Berry; § and Bonnie Berry as successor in § interest to Dennis Wayne Berry, § § Defendants. §
ORDER
Before the Court is Marvin Glenn Berry, Bonnie Berry, and Axis Midstream Holdings
LLC's Motion to Stay Pending Mandamus ("Motion to Stay"). At this juncture, having
considered the Motion to Stay; Alistair B. Dawson's January 28, 2025 Correspondence;
Barrett H. Reasoner's January 28, 2025 Correspondence; the evidence presented; the
arguments of counsel; and the current status of the law, the Court is taking the Motion to
Stay under advisement.
SO ORDERED. ...."-
VC SIGNED: January 28, 2025 dro e exa Business Court, Eleventh Division
EXHIBIT 2
INVESTMENT AGREEMENT
THIS INVESTMENT AGREEMENT (the "Agreement") is made and entered into as of the 1'1 day of November, 20 18 by and among Marvin Glen Berry, Dennis Wayne Berry, and Allen Lawrence Be1Ty (colJe.ctively, the "Bcrrys"), and Albert Theodore Powers ("Powers") (each of the Berrys and Powers being referred to herein individually as a "Party" and collectively as the "Parties").
RECITALS:
'WHEREAS, the Berrys have devised a plan to develop, construct, own, and operate a system to allow hydrocarbon shippers maximum optionality to deliver hydrocarbons to local refinery markets in the vicinity of Corpus Christi, Texas and to export hydrocarbons via a premier United States Gulf Coast deep-water exporting faci li ty, including without limitation shipping, reception, collection, consolidation, storage, staging, delivery, and exporting faci lities, including a deep-water expo1t terminal on Harbor Island, Texas, related tankage and pipelines, and other associated infrastructure, assets, facilities, and businesses, including without limitation certain real property and improvements currently owned, leased, optioned, or otherwise controlled by the Berrys and others at Redfish Bay, Midway Junction, and Harbor Island, Texas and additional properties and facil ities to be acquired, leased, optioned, developed, or otherwise controlled by the Berrys and others (collectively, the "Project"); and
WHEREAS, simultaneously with this Agreement, the Parties are entering into another Agreement, pursuant to which the Berrys are appointing Powers as their representative and chief negotiator and adviser for the financing of the Project including without limitation negotiations with The Carlyle Group, and to pe1form due diligence, advice, and assistance regarding the sourcing of capital, develop strategy, and provide financial management and structuring advice and services. It is understood that Powers shall investigate various alternatives for financing all or portions of the Project, discuss with the Berrys various financing alternatives, assist the Berrys in formulating and interpreting financial projections for the Project and various potential transactions relating to the Project, assist the Berrys in fo1mulating strategies to arrange the most favorable forms of financing for the Project, make financing recommendations to the Berrys, assist the Berrys in formulating strategies for achieving the most favorable terms for financing the Project, assist the Berrys in formulating business and holding structures for the Project, and negotiate terms and conditions of financing for the Project on behalf of the Berrys with various potential finance providers, including without limitation The Carlyle Group; and
WHEREAS, the Berrys and Powers wish to cooperate to (a) devise an ownership structure for directly and indirectly holding the Project and each of its major components, (b) secure third party financing for the Project, and (c) own and hold a portion of all interests in the Project, upon and subject to the terms and conditions of th is Agreement;
NO\¥, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the Berrys and Powers hereby agree as follows:
BERRY-POWERS INVESTMENT AGREEMENT_l 101 18.00CX
1. Creation of Holding Structure and Contribution of Project and Project Interests. On or before May 31, 2019 (a) the Berrys and all other owners of interests in the Project and its major components or their respective designees will form one or more corporations, limited liability companies, or other tax efficient limited liability entities (each a "Project Company" and, collectively, the "Project Companies) to collectively own and hold one hundred percent ( I00%) of all equity interests in the Project and its major components, (b) the Berrys will transfer to the Project Companies one hundred percent (100%) of their interests in the Project and each of its major components in exchange for one hundred percent (I 00%) of the equity interests in the Project Companies, (c) the Berrys will form a limited liability company or other tax efficient limited liability entity ("Holding Company") to hold all equity interests in the Project Companies, (d) the Berrys will contribute to Holding Company all equity interests in the Project Companies in exchange for one hundred percent ( I 00%) of the equity interests in Holding Company, (e) the Berrys will form a limited liability company or other tax efficient limited liability entity ("Investment Company") to hold all equity interests in Holding Company, and (f) the Berrys will contribute to Investment Company all equity interests in Holding Company in exchange for one hundred percent (100%) of the equity interests in Investment Company.
2. Investment By Manager in Investment Companv. Within fifteen (15)
days after (a) the Berrys an.d all other owners of interests in the Proj ect and its major components or their respective designees have formed the Project Companies and transferred one hundred percent (I 00%) of their interests in the Project and each of its major components to the Project Companies, (b) all equity interests in the Project Companies have been contributed to Holding Company, (c) all equity interests in Holding Company have been contributed to Investment Company, and (d) the Berrys or their designees have received all equity interests in Investment Company (i) Powers wi ll form a limited liability company or other tax efficient limited liability entity that is wholly owned by, or for the benefit of, Powers or his designees ("Manager"), (ii) Powers will contribute Five Thousand United States Dollars (US$5,000.00) to Manager in exchange for one hundred percent (100%) of Manager's operating interests and other ownership rights and interests, and (iii) Manager will contribute Five Thousand United States Dollars ($5,000) to Investment Company in exchange for a twenty percent (20%) overall carried interest and future profits interest in Investment Company after priority distributions to the Berrys or their designees of Two Hundred Fifty Million United States Dollars ($250,000,000) plus a ten percent (10%) cumulative preferred return on the outstanding balance of such amount. Except for the Five Thousand United States Dollar ($5,000) contribution to Manager and Investment Company described above, none of Manager, Powers, or any of their respective designees shall have any other obligation to contribute any other amounts to investment Company, Holding Company, or any Project Company. The governing documents of Investment Company will reflect the respective interests of the Berrys, including their entitlement to priority distributions and preferred returns, and Investment Manager's twenty percent (20%) overall carried interest and future profits interest in Investment Company. Until the Berrys receive a priority return from Investment Company, Holding Company, and/or the Project Companies of Two
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Hundred Fifty Million United States Dollars ($250,000,000) plus a ten percent (10%) cumulative preferred return on the outstanding balance of such amount, all gross amounts received by, or distributions made to, or on behalf of, Investment Company, Holding Company, and the Project Companies, including without limitation all earnings, proceeds, dividends, refinancing proceeds, disposition proceeds, incentive units or payments, or other receipts of any type or nature, shall be distributed to and paid to or on behalf of the Berrys or their designees and none of such amounts shall be paid or payable to or for the benefit of Manager or its designees. After the Berrys or their designees have received their priority distributions of Two Hundred Fifty Million United States Dollars plus a ten percent ( I0%) cumulative preferred return on the outstanding balance of such amount and Manager has received catch-up distributions from the Investment Company, eighty percent (80%) of all gross amounts received by, or distributions made to, or on behalf of Investment Company, Holding Company, and the Project Companies, including without limitation a.II earnings, proceeds, dividends, refinancing proceeds, disposition proceeds, incentive units or payments, or other receipts of any type or nature, shall be distributed to and paid to or on behalf of the Berrys or their designees and twenty percent (20%) of such amounts shall be paid or payable to or for the benefit of Manager or its designees. It is intended that the interests of Manager in Investment Company will qualify (i) as a carried interest within the meaning of Section 1061 of the United States Internal Revenue Code, and (ii) as a future profits interest within the meaning of Revenue Procedure 93-27, and that the governing documents of Investment Company will be drafted to reflect this intent. It is also intended that the capital accounts to be established and maintened by Investment Company will comply with the requirements of Treasury Regulations §1.704-J(b)(2)(iv) or any successor provision, and that such provisions will be interpreted and applied in a manner consistent with such Treasury Regulations or successor provisions and that the targeted allocations to be made to such capital accounts will reflect the Members' interests in the Company and have substantial economic effect. On or before the fifth (5 th) day of each month, the Berrys shall provide to Manager a statement setting forth the total amounts of preferred return and priority distributions, if any, that have been received by them from Investment Company, Holding Company, and the Project Companies. Manager shall review each such statement and either confirm its agreement with the amounts shown on such statement or provide an alternative calculation of such amounts. If the Berrys and Manager do not agree on such calculation, they shall meet and attempt to reconcile their differences in the calculation of such amounts before resorting to any other remedy.
3. Financing of Project. To finance the development of the Pro_ject, it is anticipated that Investment Company will transfer its equity interests in Holding Company and/or one or more Project Companies to one or more other corporations, limited liability companies, or other tax efficient limited liability entities (each, a "Project Entity" and. collectively, the "Project Entities") that will be jointly owned by Investment Company and other investors that will contribute equity capital for the development of the Project. In exchange for contributing its interests in Holding Company and/or one or more of the Project Companies to such Project Entities, it is anticipated that Investment Company will receive (a) shares, operating interests, or other equity interests in the Project Entities, (b) other rights and interests, including incentive
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interests, incentive units, or other benefits in or from the Project Entities, and (c) other amounts directly or indirectly received, or distributions made, in respect of the Project Entities, including without limitation earnings, proceeds, dividends, refinancing proceeds, disposition proceeds, incentive units or payments, and other receipts of any type or nature in respect ofor relating to the Project or any Project Company (collectively, "Project Interests").
4. Distributions From Project Entities. All (a) shares, operating interests, or other equity interests in the Project Entities, (b) other rights and interests, including incentive interests, incentive units, or other benefits in or from the Project Entities, and (c) Project Interests shall be distributed to and held by Investment Company. Distributions shall be made from Investment Company in accordance with the governing documents oflnvestment Company, which shall reflect the interests of the Berrys, including their entitlement to priority distributions and preferred returns, and the twenty percent (20%) carried interest and future profits interest of Manager.
5. Miscellaneous Provisions.
(a) Governing Law, Jurisdiction, and Venue. This Agreement and all issues and questions concerning its application, construction, validity, interpretation, and enforcement shall be governed by and construed in accordance with the laws of the State ofTexas, without giving effect to any choice or conflict of laws provisions or rules (whether of the State of Texas or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Texas. Powers and each of the Berrys hereby agrees that any suit, action, or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby, whether in contract, tort, or otherwise, shall be brought in the state or federal courts in Harris County, Texas, so long as one of such comts shall have subject-matter jurisdiction over such suit, action, or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of Texas. Powers and each of the Berrys hereby irrevocably consents to the exclusive jurisdiction of such courts and of the appropriate appellate courts tl1erefrom in any such suit, action, or proceeding and irrevocably waives, to the fullest extent permitted by relevant law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action, or proceeding in any such court or that any such suit, action, or proceeding which is brought in any such court has been brought in an inconvenient forum.
(b) Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of (i) actual receipt, (ii) the time of personal delivery to the party to be notified, (iii) when sent, if sent by electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day, (iv) five (5) days after
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having been sent by registered or certified United States Post Office ai r mail, return receipt requested, postage prepaid, or (v) one (I) business day after deposit with a nationally recognized overnight air courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All commw1ications shall be sent to the respective Parties at their addresses as set forth in this section or to such addresses as subsequently modified by written notice given in accordance with this section. Each Party to this Agreement agrees to promptly 11otify the other Parties of any change in its address or electronic mail address, and any failure to do so shall not affect the foregoing.
Mailing and delivery address for Marvin Glen Berry, Dennis Wayne Berry, Allen Lawrence Berry, Bay Ltd, and all Berry entities:
Berry Group 5005 Riverway Suite 440 Houston, Texas 77056
Email address for Allen Lawrence Berry: al b@riverway.us
Email address for Marvin Glen Berry: captberry@aol.com
Email address for Dennis Wayne Berry: herryd(@.bayltd.com
Mailing and delivery address for Albert Theodore Powers and Manager:
Albert Theodore Powers 205 West 57 th Street Apartment 4C New York, New York 10019
Email address for Albert Theodore Powers atpowers@alliecl-pacific-group.com
(c) Delavs or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any Party under this Agreement, upon any breach or default of any other Party under this Agreement, shall impair any such right, power, or remedy of such non-breaching or non-defaulting Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any
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BERRY-POWERS INVESTMENT AGREEMENT_I IOI 13.00CX
waiver, permit, consent, or approval of any kind or character on the part of any Party of any breach or default under this Agreement, or any waiver on the part of any Party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specUically set forth in such writibg. All remedies, either under this Agreement or by law or otherwise afforded to any Party, sha.11 be cumulative and not alternative.
(d) Amendment, Waiver, and Termination. This Agreement may be amended, modified, or terminated and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrnment executed by all Parties. Any amendment, modification, termination, or waiver so effected shall be binding upon the Parties and all of their respective successors and permitted assigns whether or not such Party, successor, assignee, or other individual or entity entered into or approved such amendment, modification, termination, or waiver. No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a fmt her or continuing waiver of any such term, condition, or provision or any other term, condition, or provision.
(e) Assignment of Rights. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer upon any individual or entity other than the Parties hereto or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. Any successor or permitted assignee of any of the Berry Interests, including without limitation any prospective transferee who purchases any direct or indirect interest in the Project and/or any inter vivos or testamentary donee or transferee of any such interest, shall deliver to Powers, as a condition to any transfer or assignment, a counterpart signature page hereto pursuant to which such successor or permitted assignee shall confirm his or its agreement to be subject to and bound by all of the provisions set forth in this Agreement that were applicable to the predecessor or assignor of such successor or permitted assignee.
(f) Severability. The invalidity or unenforceabili ty of any provision of this Agreement shall in no way affect the validity or enforceability of any other provision.
(g) Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
(h) Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which
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BERJ\Y-POWERS INVESTMENT AGREEMENT_ ! 101IS.DOCX
together shall constitute one and the same instrument. Counterpa1ts may be delivered via electronic mail (including pdf or any electronic signature complying with the United States Federal ESION Act of 2000, i.e., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
(i) Specific Performance. In addition to any and all other remedies that may be available at law in the event of any breach of this Agreement, each Party shall be entitled to specific performance of the agreements and obligations of the other Parties hereunder and to such other injunctive or other equitable relief as may be granted by a court of competent jurisdiction.
(j) No Partnersliip. This Agreement does not create or constitute any partnership, joint venture, or other similar relationship among the Parties, no such relationship shall be implied, and no Party shall make any representation to the contrary.
(k) Advice of Counsel. Each Patty hereby acknowledges that he has sought and obtained the advice of legal counsel before entering into this Agreement and has fully read and understands the meaning and import of all terms in this Agreement.
(I) Entire Agreement. This Agreement constitutes and expresses the entire agreement and understanding among the Parties in reference to all matters referred to; all previous discussions, promises, representations, and understandings relative thereto, if any, among the Parties, being herein merged. No modification of this Agreement shall be binding unless in writing and signed by authorized representatives of all Parties.
IN WITNESS WHEREOF, the Parties, intending to be bound, have executed this Agreement as of the date first written above.
ALLEN LAWRENCE B
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CZ> "'k)~ DENNIS WAYNE BERR~ he~ 7f L..___.
ALBERT THEODORE POWERS
8
RERRY-POWERS INVESTMENT AGREEMENT_ I I O118.DOCX
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EXHIBIT 4
E-filed in the Office of the Clerk CAUSE NO. 24-BC11A-0025 for the Business Court of Texas 12/3/2024 11:51 AM ALBERT THEODORE POWERS; § IN THE BUSINESS COURT Accepted by: Beverly Crumley ALLIED PORTS LLC, § Case Number: 24-BC11A-0025 § Plaintiffs, § § v. § ELEVENTH DIVISION § AXIS MIDSTREAM HOLDINGS, § LLC; ALLEN LAWRENCE BERRY; § MARVIN GLENN BERRY; AND § BONNIE BERRY, as successor in § interest to DENNIS WAYNE BERRY § § Defendants. § HARRIS COUNTY, TEXAS
PLAINTIFFS’ RESPONSE TO DEFENDANTS’ MOTION TO TRANSFER VENUE AND MOTION TO REMAND/DISMISS/TRANSFER
INTRODUCTION
Defendants Marvin Berry (“Marty”) and Bonnie Berry (“Bonnie”) have filed a Motion to
Transfer Venue (“MTV”) and Motion to Remand, Dismiss, and/or Transfer Venue (“MTR”) and
a Plea in Abatement (the “Motions”) all of which ignore the fact that Marty and Bonnie (through
her husband Dennis) contractually agreed that exclusive jurisdiction in this case lies only in Harris
County, Texas. Plaintiffs respectfully submit that the most efficient path to resolving the Motions
is to enforce the parties’ agreement and rule that exclusive jurisdiction for disputes under the
Investment Agreement is in Harris County and Harris County only. There are two independent
paths to such a conclusion. First, the contractual clause at issue is an enforceable forum selection
clause which is presumptively enforceable in Texas and can only be ignored if the party
challenging the enforceability of the clause meets an onerous burden of proof which Marty and
Bonnie have not met in this case.
Alternatively, the clause at issue is a venue selection clause which grants mandatory and
exclusive jurisdiction in Harris County for this case, evidence of which Plaintiffs have established
by prima facie proof. See, e.g., Tex. R. Civ. P. 87(3)(a); Sustainable Tex. Oyster Research Mgmt.
L.L.C. v. Hannah Reef, Inc., 491 S.W.3d 96, 106 (Tex. App.—Houston [1st Dist.] 2016, pet. denied
(citing Ruiz v. Conoco, Inc., 868 S.W.2d 752, 757 (Tex. 1993)) (A plaintiff’s “prima facie proof
is not subject to rebuttal, cross-examination, impeachment, or disproof.”). If this Court
determines that claims in this lawsuit are subject to either a forum selection clause or an
enforceable venue selection clause, then both the Plea in Abatement and the Motion to Transfer
Venue must be denied.
Plaintiffs’ claim for an ownership interest in the project that is the subject of this lawsuit is
based on an Investment Agreement signed by all parties (the “Investment Agreement.”). See, e.g.,
Plaintiffs’ Third Amended Petition at p. 1. The Investment Agreement between these sophisticated
parties from separate states includes a provision that requires this lawsuit to be brought and
litigated only in Harris County, Texas and may not be brought in Nueces County or any other
county. Ex. 1 at §5(a). In the Agreement, the Berry Defendants not only consented to “exclusive
jurisdiction” in Harris County for any suit “seeking to enforce any provision of, or based on any
matter arising out of in connection with this Agreement or the transactions contemplated hereby,”
but they also “irrevocably waive[d], to the fullest extent permitted by relevant law, any objection
that may now have or hereafter have to the laying of venue or any of any such suit, action, or
proceeding in any such court.” Ex. 1 at § 5(a) (emphasis added). Simply put, the courts in Harris
County are the only courts where Plaintiffs’ claims can be brought. Nueces County does not have
jurisdiction over this lawsuit, and Marty and Bonnie waived their right to object to venue in Harris
County just as they have attempted to do here.
Aside from that dispositive issue, Marty and Bonnie’s venue arguments are unpersuasive
and irrelevant, and none lead to mandatory venue in Nueces County. The assertion that “real
property” involved with the Lone Star Ports Project at issue in this lawsuit is located in Nueces
County is a red herring and, even absent the Investment Agreement, would still not support transfer
to Nueces County. Plaintiffs are not seeking to adjudicate any issues involving “real property,”
and the entity at the center of this lawsuit, Axis Midstream Holdings, LLC, does not own any real
property in Nueces County. Similarly, Lawrence Berry is not “sham” defendant, as the relief
Plaintiffs seek applies equally to him as it does to the other Berry Defendants.
Regardless, Nueces County is not a county of proper venue that (1) is within another
operating business court division or (2) a county of proper venue that would be considered “at the
option of the party filing the action.” Id. at § 25.006A(c). If this Court determines that it does not
have jurisdiction or that venue is not proper in Harris County, then the Plaintiffs get to pick which
county this case should be transferred to and the Plaintiffs do not select Nueces County.1 Finally,
transfer for convenience is not appropriate when a forum selection clause or mandatory venue
applies, and Marty and Bonnie woefully failed to meet their burden anyway. Defendants’ Motions
should be denied.
1 If the Court determines that this case should be transferred to another court, Plaintiffs suggest that it be transferred to the Business Court in San Antonio. One of the entities involved in the Project that is the subject of this lawsuit owns property in San Patricio County, which is within the jurisdiction of the Fourth Business Court Division in San Antonio. Tex. Gov’t Code § 25A.003(f); id. at § 74.042(e); see also MTR at Ex. 14, Hummell Affidavit at ¶ 3 (“The Midway to Harbor Island Project that is the subject of the TRO in the above-referenced litigation is located entirely in San Patricio and Nueces Counties.”).
ARGUMENT AND AUTHORITIES2
I. The parties agreed to “exclusive jurisdiction” in Harris County in a mandatory forum selection clause.
While Marty and Bonnie have attempted to create several different smokescreens over
jurisdiction and venue over this action, at bottom both are straightforward. In the Investment
Agreement, Powers and the Berry Defendants agreed to “exclusive jurisdiction” “in the state or
federal courts in Harris County, Texas” for suits “seeking to enforce any provision of, or based
on any matter arising out of or in connection with, this Agreement or the transactions contemplated
hereby, whether in contract, tort or otherwise… so long as one of such courts shall have subject-
matter jurisdiction3 over such suit[.]” Ex. 1 at §5(a) (emphasis added). Moreover, the Berry
Defendants agreed to “irrevocably waive[], to the fullest extent permitted by relevant law, any
objection that it may now or hereafter have to the laying of the venue of any such suit, action, or
proceeding or that any such suit, action, or proceeding which is in any such court has been brought
in an inconvenient forum.” Id. (emphasis added). A full copy of the provision is reproduced below
for convenience:
2 Plaintiffs’ Verified Third Amended Petition contains a fulsome recitation of the facts applicable to this action, and Plaintiffs’ Response to Marty’s Plea in Abatement contains a condensed factual background. The facts relevant to venue are referenced through this section and supported by the Declaration of Plaintiff Albert Theodore Powers attached as Exhibit 10. 3 The Court’s subject matter jurisdiction can be plainly derived from Tex. Gov’t Code § 25A.004(d), as this action involves a “qualified transaction”3 with an amount in controversy of more than $10,000,000. See, e.g., Plaintiffs’ Third Am. Pet. at ¶ 8, 13; see also Defendant Lawrence Berry’s Notice of Removal. The Motion to Remand is not based on an assertion that this Court lacks subject matter jurisdiction. Rather, it is based on assertions that there were procedural defects in the removal to this Court. Those defects are being addressed by Lawrence Berry as the removing party.
Despite their agreement, Marty and Bonnie are now ignoring that Harris County has
“exclusive jurisdiction” and seeking to object to venue that they “irrevocably waive[d].” As set
forth further below, the Court should hold them to their agreement.
A. The forum selection clause is valid and enforceable.
In Texas, forum selection clauses are “presumptively valid.” See, e.g., In re Laibe Corp.,
307 S.W.3d 314, 316 (Tex. 2010). “A trial court abuses its discretion in refusing to enforce the
clause unless the party opposing enforcement clearly shows (1) enforcement would be
unreasonable or unjust, (2) the clause is invalid for reasons of fraud or overreaching, (3)
enforcement would contravene a strong public policy of the forum where the suit is brought, or (4)
the selected forum would be seriously inconvenient for trial.” Id. Notably, the “burden of proof
is heavy for the party challenging enforcement.” Id. And in this case, Marty and Bonnie can come
nowhere close to meeting their burden of proof.
“The enforcement of valid forum-selection clauses, bargained for by the parties, protects
the parties ‘legitimate expectations’ and furthers ‘the vital interests of the justice system,’ such as
sparing litigants the time and expense of pretrial motions to determine the proper forum for
disputes.” See, e.g., In re Agresti, 2014 WL 3408691, at *3 (Tex. App.—Corpus Christi May 29,
2014, mand. denied) (quoting Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 33 (1988) (Kennedy,
J., concurring)); see also Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585, 594 (1991). Not
surprisingly, Texas courts have routinely enforced and construed contractual provisions as “forum
selection clauses” that, like this one, provide “exclusive jurisdiction” to certain enumerated courts:
• In re Automated Collection Techs., Inc., 156 S.W.3d 557, 558 (Tex. 2004) (“The parties hereto consent to the exclusive jurisdiction of the courts of Montgomery County, Pennsylvania.”) (emphasis added);
• In re Lyon Fin. Servs., Inc., 257 S.W.3d 228, 230-31 (“AGREE TO SUBMIT FOR THEMSELVES, IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND ANY SCHEDULE OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT HEREOF OR THEREOF, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE COMMONWEALTH [sic] OF PENNSYLVANIA, THE COURTS OF THE UNITED STATES OF AMERICA FOR THE COMMONWEALTH OF PENNSYLVANIA, AND APPELLATE COURTS FROM ANY THEREOF, (B) CONSENT THAT ANY ACTION OR PROCEEDING SHALL BE BROUGHT IN SUCH COURTS, AND WAIVE ANY OBJECTION THAT EACH MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT”) (capitals in original) (emphasis added);
• In re Int’l Profit Assocs., Inc., 274 S.W.3d 672, 674 (Tex. 2009) (“It is agreed that exclusive jurisdiction and venue shall vest in the Nineteenth Judicial District of Lake County, Illinois, Illinois law applying.”) (emphasis added).
• Pinto Tech. Ventures, L.P. v. Sheldon, 526 S.W.3d 428, 434 (Tex. 2017) (“[T]he Delaware state courts of Wilmington, Delaware (or, if there is exclusive federal jurisdiction, the United States District Court for the District of Delaware) shall have exclusive jurisdiction and venue over any dispute arising out of this Agreement, and the parties hereby consent to the jurisdiction of such courts.”) (emphasis added).
• Rieder v. Woods, 603 S.W.3d 86, 90 (Tex. 2022) (“ANY CLAIMS OR CONTROVERSIES UNDER OR RELATED TO THIS AGREEMENT SHALL BE EXCLUSIVELY DETERMINED IN THE STATE AND/OR FEDERAL COURTS LOCATED IN TARRANT COUNTY, TEXAS, TO WHOSE JURISDICTION EACH PARTY IRREVOCABLY CONSENTS.”) (capitals in original) (emphasis added).
Texas appellate courts have done the same:
• Deep Water Slender Wells, Ltd. v. Shell Int’l Explor. & Prod., Inc., 234 S.W.3d 679, 683-84 (Tex. App.—Houston [14th Dist.] 2007, pet. denied) (“the parties irrevocably agree that the courts of The Hague, The Netherlands shall have exclusive jurisdiction to resolve any controversy or claim of whatever nature arising out of or relating to the Consulting Agreement or breach thereof”) (emphasis added);
• In re Counsel Fin. Servs., L.L.C., 2013 WL 3895317, at *1 (Tex. App.—Corpus Christi, Jul. 25, 2013, no pet.) (“BORROWER HEREBY CONSENTS AND AGREES THAT ANY FEDERAL OR STATE COURT LOCATED IN ERIE COUNTY, NEW YORK, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS AND DISPUTES BETWEEN BORROWER AND HOLDER PERTAINING TO THIS NOTE OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS NOTE…”) (capitals in original) (emphasis added);
• Loya v. Loya, 507 S.W.3d 871, 874 (Tex. App.—Houston [1st Dist.] 2016, mand.
denied) (“Any dispute arising out of or [i]n connection with this Agreement or the breach, termination or invalidity thereof shall be submitted exclusively to the jurisdiction of the courts of Rotterdam, the Netherlands.”) (emphasis added);
• Xia v. Floyd, 638 S.W.3d 821, 824 (Tex. App.—Fort Worth 2021, no pet.) (“such action shall be filed exclusively in the courts of the State of California or of the United States of America located in the counties of ... Orange or Los Angeles, as selected by the Member that is the plaintiff in the actions, or that initiates the proceeding or arbitration. Each Member agrees not to commence any action, suit or other proceeding arising from, relating to, or in connection with this Agreement except in such a court and each Member irrevocably and unconditionally consents and submits to the personal and exclusive jurisdiction of such courts for the purposes of litigating any such actions, and hereby grants jurisdiction to such courts…”) (emphasis added);
• In re Apex Tool Group, 2024 WL 969735, at *3 (Tex. App.—Houston [1st Dist.] Mar.
7, 2024, no pet.) (“[e]ach party irrevocably submits to the exclusive jurisdiction and venue of the federal and state courts located in the County of Mecklenburg, North Carolina in any legal suit, action or proceeding...”) (emphasis added).
Section 5(a) is no different than the forum selection clauses addressed in the cases cited
above. Under Texas law, Section 5(a) is a forum selection clause that is presumptively valid, and
the Court has not been provided with evidence to invalidate this clause. Accordingly, the Court
should rule that Section 5(a) constitutes a mandatory forum selection clause and deny Marty and
Bonnie’s Motions.
B. Marty and Bonnie (through Dennis) signed the Investment Agreement containing the forum selection clause.
Marty and Bonnie have not provided the Court with any evidence to meet the heavy burden
of invalidating the forum selection clause to which they contractually agreed. The best they could
do to date is claim that neither Marty nor Dennis signed the Investment Agreement. This is easily
rejected, as the Investment Agreement is fully executed by all four parties—Lawrence, Marty,
Dennis and Powers (Ex. 1; see also Ex. 10 at ¶ 5 (“I witnessed Marty Berry and Dennis Berry
execute the Agreements at the Berry GP office in Corpus Christi, Texas; I have an original
Investment Agreement signed in ink by all parties.”):
Having established the existence of a signed written contract with prima facie evidence sufficient
to meet Plaintiffs’ burden of proof in a venue challenge, Marty and Bonnie are not permitted to
challenge, rebut or try and disprove the existence of a signed written Investment Agreement. Tex.
R. Civ. P. 87(3)(a) (“Prima facie proof is made when the venue facts are properly pleaded and an
affidavit, and any duly proved attachments to the affidavit, are filed fully and specifically setting
forth the facts supporting each pleading.”). This proof, at the motion to transfer stage, “is not
subject to rebuttal, cross-examination, impeachment, or disproof.” See, e.g., Hannah Reef, Inc.,
491 at 106 (citing Ruiz, 868 at 757).
Moreover, this is not the first time that parties to a signed contract have attempted to deny
they signed in order to avoid a mandatory forum. In Aerotek v. Boyd, 624 S.W.3d 199, 202 (Tex.
2021), a group of employees filed declarations denying they electronically signed an arbitration
agreement associated with their employment documents. The court noted, relevant here, that for
“a paper document with a handwritten, wet-ink signature, the genuineness of a signature can be
proved by direct evidence—for example, testimony by an eye witness,4 a witness familiar with the
signatory’s handwriting, or an expert who has compared the signature against a genuine
specimen.” Id. at 204-05. But the court went further, finding that the employees did not present
evidence that demonstrated “how their electronic signatures could have wound up on [the
agreement] without their having placed them there themselves.” Id. at 209. The court put it
bluntly—“[m]ere denials do not suffice.” Id. “Evidence cannot be disregarded when it
demonstrates physical facts that cannot be denied, so that reasonable people could differ in their
conclusions.” Id. The court accordingly reversed and compelled the employees’ claims to
arbitration. Id. at 210.
Similarly, in Knox Waste Serv., LLC v. Sherman, 2021 WL 4470876, at *8 (Tex. App.—
Eastland Sept. 30, 2021, no pet.), a party seeking to avoid an arbitration agreement filed an
affidavit claiming that “he did not sign the document.” The court rejected this assertion, stating
that “a mere denial by the [party] that he did not sign the agreement, without more, fails to create
4 As noted above, Plaintiff Powers witnessed both Marty and Dennis sign both the Investment Agreement and Agreement at issue. Ex. 10 at ¶ 5.
a genuine issue of material fact.” Id. The court accordingly reversed the trial court and compelled
the action to arbitration—the required forum for disputes within the agreement’s scope. Id. at 10.
Moreover, the conduct of both Powers and the Berry Defendants is consistent with both
the Investment Agreement and the Agreement being signed by all parties. For example, the Berry
Defendants paid Powers compensation and expenses totaling over $2 million dollars. Ex. 10 at ¶¶
6-7. At the Berry Defendants’ request, the compensation portion of the Agreement was terminated,
which was memorialized in a letter and email discussion. Id. at ¶ 6; see also Ex. 3; Ex. 4. If there
was no signed agreement, why send a letter terminating the compensation portion of the agreement
in 90 days according to that Agreement’s terms? And perhaps more importantly, why agree to
keep paying Mr. Powers’ expenses? Id. Because all parties understood that the Investment
Agreement and Agreement had been signed by all parties and were enforceable contracts.
That same month, Mr. Powers sent Marty and Dennis a proposed structure for the Project
that plainly showed Mr. Powers’ 20% interest (i.e., “ATP”) at the ownership level (Ex. 5) – which
is consistent with the terms of the signed Investment Agreement:
None of the Berry Defendants objected or otherwise claimed that Mr. Powers did not have any
ownership interest. Ex. 10 at ¶ 8. Nor did the Berry Defendants object when Mr. Powers sent
transfer documents and operating agreements for entities involved in the Project to Energy Capital
Partners—a potential investor in the Project. Id.; Ex. 6, 7. Nor did the Berry Defendants object
or claim Mr. Powers did not have an interest when he sent an organizational chart showing “the
structure currently being discussed with ECP” with his company, Plaintiff Allied Ports, LLC listed
at the ownership level. Id. at ¶ 9; Ex. 8.
Again, not only is the evidence that all parties signed the contract overwhelming, the
parties’ conduct is consistent with the terms of the Investment Agreement. When parties contend
that there is a signed contract and the parties’ conduct is consistent with the terms of the alleged
signed contract, the court may infer that the parties agreed to the terms. See, e.g., SK Plymouth,
LLC v. Simmons, 605 S.W.3d 706, 718 (Tex. App.—Houston [1st Dist. 2020], no pet.) (cleaned
up) (“A party’s intent to be bound by a contract may be evidenced by its conduct at the time a
contract is drafted and by its subsequent conduct reflecting that it was acting in accordance with
the terms of the contract.”); see also Firstlight Fed. Credit Union v. Loya, 478 S.W.3d 157, 168
(Tex. App.—El Paso 2015, no pet.) (“In the absence of a signature on a contract, a court may look
to other evidence to establish the parties’ assent to the terms of the contract,” which “includes the
party’s conduct.”).
The reality is that Marty and Dennis (now Bonnie) do not have evidence that they did not
sign the Investment Agreement and instead the evidence establishes that they did. Indeed, Marty
and Bonnie have significantly less evidence than that present in Aerotek or Knox. They have no
real evidence at all. They did not even file a verified pleading denying execution as required by
the Rules. Tex. R. Civ. P. 93.7. With all the contrary evidence, little wonder why. As in Aerotek
and Knox, the Court should reject Marty and Bonnie’s manufactured attempt to avoid the forum
selection required by the Investment Agreement.
As such, the Court should rule that Section 5(a) of the Investment Agreement is a
mandatory forum selection clause and enforce the parties’ agreement. Doing so moots Marty and
Bonnie’s remaining jurisdictional and venue issues.
II. If Section 5(a) is a “venue clause” the Investment Agreement is “major transaction” requiring mandatory venue in Harris County.
A. Plaintiffs do not believe that Section 5(a) is a “venue clause.”
Plaintiffs do not believe that Section 5(a) can reasonably be construed as a mere venue
selection clause—that would contravene the plain meaning of the parties’ agreement. Burlington
Res. Oil & Gas Co. LP v. Tex. Crude Energy, LLC, 573 S.EW.3d 198, 202-03 (“The Court’s task
is to ascertain the true intentions of the parties as expressed in the writing itself.”). Indeed, venue
“does not refer to any grant or restriction of subject-matter jurisdiction providing for a civil action
to be adjudicated only by the district court for a particular district or districts.” 28 U.S.C.
§ 1390(a); see Velasco v. Tex. Kenworth Co., 144 S.W.3d 632, 635 (Tex. App.—Dallas 2004, pet.
denied) (recognizing that Texas’s venue statute “appears to have been patterned after a federal
venue statute” and looking to “federal cases to guide our interpretation of the [Texas] statute”);
Summers v. WellTech, Inc., 935 S.W.2d 228, 232–33 (Tex. App.—Houston [1st Dist.] 1996, no
writ.) (“The similar wording in the federal and state statutes allows us to look to federal cases as a
guide to interpreting th[e] [state] statute.”). Thus, construing Section 5(a) merely as selecting
venue (rather than as a mandatory forum selection clause) would effectively nullify the parties’
agreement to vest “exclusive jurisdiction” in the state and federal courts in Harris County,
Texas. Otherwise, this language would be rendered meaningless. See Burlington, 573 S.W.3d at
203 (“We examine and consider the entire writing in an effort to harmonize and give effect to all
the provisions of the contract so that none will be rendered meaningless.”) (quotation omitted).
Accordingly, Plaintiffs submit that this Court should rule that Section 5(a) is a forum selection
clause.
B. If Section 5(a) is a venue clause, venue is mandatory in Harris County under Tex. Civ. Prac. And Rem. Code Section 15.020.
If this Court determines that Section 5(a) is a “venue clause,” then venue is mandatory in
Harris County because the Investment Agreement qualifies as a “major transaction” under Tex.
Civ. Prac. & Rem. Code § 15.020. Under that provision, if any party to an agreement is to receive
greater than $1 million, then venue is mandatory in the county selected by the parties to the
agreement. Id. at 15.020(a).
Marty and Bonnie argue that the Investment Agreement—which forms the underlying basis
for a state of the art crude oil terminal project in Nueces and San Patricio counties (the “Project”)—
does not qualify as a “major transaction” and instead only reflects a $5,000 contribution payment.
MTV at pp. 2-3. This is nonsensical and contrary to the plain text of the Investment Agreement.
Even if Section 5(a) of the Investment Agreement was merely a venue selection clause (it is not),
it is plainly a “major transaction,”5 for which venue is mandatory in Harris County. Tex. Civ.
Prac. & Rem. Code 15.020(b) (“An action arising from a major transaction shall be brought in a
county if the party against whom the action is brought has agreed in writing that a suit arising from
the transaction may be brought in that county.”) (emphasis added); see also Tex. Gov. Code §
25A.015 (“A jury trial for a case in which a written contract specifies a county as venue shall be
held in that county.”).
5 "[M]ajor transaction" means a transaction evidenced by a written agreement under which a person pays or receives, or is obligated to pay or entitled to receive, consideration with an aggregate stated value equal to or greater than $1 million. Tex. Civ. Prac. & Rem. Code § 15.020(a).
Indeed, Marty and Bonnie either ignore or fail to consider what they, under the plain text,
are “entitled to receive” under the Investment Agreement. Tex. Civ. Prac. & Rem. Code §
15.020(a). The Agreement entitles Plaintiffs to receive as consideration a 20% interest in the
Project, while the Berry Defendants receive as consideration “priority distributions to the Berrys
or their designees of Two Hundred Fifty Million United States Dollars ($250,000,000) plus a ten
percent (10%) cumulative preferred return on the outstanding balance of such amount.” Ex. 1 at
§ 2. On the face of the Investment Agreement, the Berry Defendants are “entitled to receive” as
consideration for Plaintiffs’ interest far more than the $1,000,000 “major transaction” threshold
under the Agreement. See id.; see also Ex. 10 at ¶ 6.
To be sure, this is consistent with other documents associated with the Investment
Agreement. See SM Energy Co. v. Union Pac. R.R. Co., 652 S.W.3d 830, 840 (Tex. App.—
Eastland 2023, pet. denied) (considering other documents related to the agreement at issue to
determine whether a transaction was a “major transaction”). The Investment Agreement discusses
“another Agreement” as part of this transaction that “appoint[ed] Powers as [the Berry’s]
representative and chief negotiator for the financing for the Project.” Ex. 1 at p. 1; see also Ex. 2
at § 1. The Agreement being referred to is the compensation agreement entitled “Agreement”
which was executed at the same time as the Investment Agreement (referred to herein as the
“Agreement”). Under the Agreement, the Berry Defendants paid Powers more than $1,000,000 in
compensation and reimbursed expenses. Ex. 2 at § 3; see also Ex. 10 at ¶ 7 (“For my performance
of the Agreements and work on the Project, the Berry Defendants have paid to me and I have
received a total $2,051,421.99.”).
Moreover, in February 2019, a well-respected private equity firm, the Carlyle Group,
valued the Berry Defendants’ interest in the Project at “no less than $400,000,000.” Ex. 9 at p. 7;
see also Ex. 4 at p. 2 ($400,000,000 value assigned to Berry Defendants’ interest). And at a
hearing just days ago, Defendants’ counsel admitted6 the transaction described in the Agreement
“is literally a billion dollar project.” Ex. 10 at p. 4. Even at the more conservative $400,000,000
estimate, Plaintiffs’ 20% interest is worth $80,000,000. See, e.g. Plaintiffs’ Third Am. Pet. at ¶
14. Marty and Bonnie cannot deny the transaction’s “billion dollar” value to avoid venue now.
Fleming, 669 S.W.3d at 461 (“As long as the statement stands unretracted, it must be taken as true
by the court and jury; it is binding on the declarant and he cannot introduce evidence to contradict
it.”).
Marty and Bonnie’s cited authorities are inapplicable here. In In re Togs Energy, Inc., for
instance, there was no language stating the value of the consideration each party was entitled to
receive at all. 2009 WL 3260910, at *1 (Tex. App.—Dallas Oct. 13, 2009, no pet.). And similarly,
in Hughes v. Pearcy, the contract did not expressly state that one party or the other was “entitled
to receive” more than $1 million as a condition or consideration in the contract. See 2014 WL
7014353, at *3 (Tex. App.—Austin, Dec. 8, 2014, pet. denied). Quite the opposite—one party to
the contract had control over the amount of payments to the other. Id. Here, by contrast, the
Agreement plainly and expressly states that the Berry Defendants are entitled to receive over
$250,000,000 as a result of Plaintiffs’ work that is covered by and the subject of the Investment
Agreement. And unlike in Pearcy, Plaintiff Powers did actually receive more than $1 million
dollars in consideration for his performance. Ex. 10 at ¶ 7.
6 “A judicial admission is a clear, deliberate, and unequivocal assertion of fact which conclusively disproves a right of recovery or a defense and makes the introduction of other evidence on an issue unnecessary.” See, e.g., Wilson v. Fleming, 669 S.W.3d 450, 461 (Tex. App.—Houston [14th Dist.] 2021, pet. granted on other grounds, 694 S.W.3d 186). To constitute a judicial admission, the statement must be: (1) made in the course of a judicial proceeding; (2) contrary to a fact essential for the party's recovery or defense; (3) deliberate, clear, and unequivocal; (4) in accordance with public policy if given conclusive effect; and (5) consistent with the opposing party's theory of recovery. Id. “A party's pleadings or a counsel's factual statements on behalf of a client may constitute judicial admissions.” Id. (emphasis added).
As set forth in Section 1 above, Plaintiffs’ respectfully submit that the Investment
Agreement contains a forum selection clause that is presumptively enforceable and for which
Marty and Bonnie have not met their heavy burden to show it should not be enforced or why the
Court should not enforce their agreement to “irrevocably waive[]” objections to venue.
Regardless, Plaintiffs’ the signed Investment Agreement, Powers’ declaration, and other
supporting evidence cited herein, at this stage, meets the required prima facie proof standard
applicable to motions to transfer venue.7 Tex. R. Civ. P. 87(3)(a) (“When a venue fact is
specifically denied, the party pleading the venue fact must make prima facie proof of that venue
fact.”); see, e.g., Hannah Reef, Inc., 491 at 106 (citing Ruiz, 868 at 757) (A plaintiff’s “prima facie
proof is not subject to rebuttal, cross-examination, impeachment, or disproof.”).
This action arose to “enforce” the Agreement due to Defendants’ disregard for their
obligations. Marty and Bonnie should not be allowed to flout their agreement to exclusive venue
in Harris County the same way they have treated their other obligations under the Investment
Agreement. The Court should enforce the Agreement, which moots the remaining jurisdictional8
and venue issues.
III. Venue over real property is inapplicable and irrelevant to this action.
If the Court enforces the forum selection clause or finds venue under the “major
transaction” statute as set forth above, it need not go further. Nonetheless, Marty and Bonnie claim
in both Motions that Tex. Civ. Prac. & Rem. Code § 15.011—a venue provision related to disputes
7 “Prima facie proof is made when the venue facts are properly pleaded and an affidavit, and any duly proved attachments to the affidavit, are filed fully and specifically setting forth the facts supporting such pleading.” Tex. R. Civ. P. 87(3)(a). 8 Plaintiffs are simultaneously filing a Response to the Plea in Abatement in which Marty and Bonnie assert that the case filed in Nueces County has dominant jurisdiction over this case. As discussed more fully in the response to the Plea in Abatement, because mandatory and exclusive jurisdiction is only in Harris County – and this case cannot be brought in or transferred to Nueces County—dominant jurisdiction does not apply.
over real property—should be applied to this case. This is wrong for several reasons. First,
“exclusive jurisdiction” lies in Harris County under the mandatory forum selection clause. Second,
as a matter of law, the major transaction statute trumps other mandatory venue provisions in
Chapter 15 (i.e., Title 2). See, e.g., In re Fisher, 433 S.W.3d 523, 534 (Tex. 2014). There, the
Supreme Court held that section 15.020 applies “to an action arising from a major transaction
‘[n]otwithstanding any other provision in this title,’ indicating “that the Legislature intended for it
to control over other mandatory venue provisions.” Id.; see also In re Fox River Real Estate
Holdings, LLC, 596 S.W.3d 759, 768 (Tex. 2020) (“[W]e clarify that section 15.020 means what
it says and indicates that the Legislature intended for it to control over other venue provisions
within Title 2.”). Plaintiffs’ claims cannot be brought in another venue because the Investment
Agreement requires they be brought in Harris County and cannot be brought in Nueces County.
Tex. Civ. Prac. & Rem. Code § 15.020(c)(2) (“Notwithstanding any other provision of this title,
an action arising from a major transaction may not be brought in a county if: the party bringing
the action has agreed in writing that an action arising from the transaction must be brought in
another county of this state or in another jurisdiction, and the action may be brought in that other
county, under this section or otherwise, or in that other jurisdiction.”).
Even so, this case has nothing to do with real property in Nueces County or anywhere else.
The entity at issue in this case—Axis Midstream Holdings, LLC—owns no real property in Nueces
County. In their MTR, Marty and Bonnie ramble through several merits-related questions
regarding the transfer of interest of Axis amongst various non-party companies and Lawrence’s
authority to do so in an attempt to muddy the water. MTR at pp. 4-5. But these facts are not
relevant to the venue standard nor do they change the result (nor are they correct in any event), as
Plaintiffs have (1) sought enforcement of the forum selection clause between the parties and (2)
alternatively provided “prima facie proof” as required to support their venue allegations. Tex. R.
Civ. P. 87(3). Moreover, Marty and Bonnie misconstrue the relief sought by Plaintiffs. The relief
Plaintiffs seek can be summed up simply—follow the Investment Agreement for Plaintiffs’
ownership and do not do anything to steal it. See generally Plaintiff’s Third Am. Pet. This case
is about Plaintiffs’ ownership interest in the Project and Defendants’ attempt to steal it—not title
of or possession of a piece of property owned by other entities in Nueces County.
IV. Marty and Bonnie’s remaining assertions for transfer have no merit.
Marty and Bonnie devote a collective page in their MTV to assert that “none of the acts”
underlying the Plaintiffs’ TRO or claims occurred in Harris County, that Lawrence Berry is a
“sham defendant,” and that the case should be transferred “for convenience.” Each of these
kitchen-sink style arguments (1) do not affect the application of the forum selection clause, (2) do
not affect the application of the major transaction statute, and (3) are easily rebutted by prima facie
proof and can be quickly rejected.
A few examples make the point. First, Marty and Bonnie purport to “specifically deny all
Plaintiffs’ venue allegations,” and that “none of the acts giving rise to the TRO or claims occurred
in Harris County. Motion at p. 3. This misses the point, as many “events and omissions” giving
rise to Plaintiff’s contractual claims and work on the Project occurred in Harris County, Texas.
See, e.g., Ex. 10 at ¶¶ 2, 7. Marty and Bonnie cannot and do not provide any proof to rebut that
the initial framework for the Agreement was negotiated in Houston, Texas. Third Am. Pet. at ¶
11; Ex. 10 at ¶ 2. They provide no proof to rebut the several Houston, Texas meetings where the
underlying agreement at issue was confirmed and significant details about the Project were
discussed. Third Am. Pet. at ¶¶ 12, 14; Ex. 10 at ¶¶ 2, 7. They provide no proof to rebut that
Plaintiff Powers spent most of his time working on the project in Houston, Texas—in an apartment
paid for by the Berry Defendants no less. Third Am. Pet. at ¶ 14; Ex. 10 at ¶ 7.
Second, Marty and Bonnie baldly assert that Lawrence is a “sham defendant.” Though
again irrelevant to venue under the major transaction statute, this is simply not true. The
declarations, breach of contract cause of action, TRO and Temporary Injunction application sought
by Plaintiffs apply equally to all of the defendants. That Lawrence correctly admits that he signed
the fully executed Agreement at issue does not make him a “sham defendant”—it makes him
honest. And if it were necessary to reach additional venue bases (it is not), Lawrence’s residence
in Harris County serves as a basis for proper venue in this dispute. Tex. Civ. Prac. & Rem. Code
§ 15.002(2).
Finally, Marty and Bonnie assert that this action should be transferred “for convenience”
to Nueces County. As a matter of law, “convenience” cannot trump a mandatory forum selection
clause or a venue provision like the major transaction statute. See, e.g., In re Fisher, 433 S.W.3d
523, 534 (Tex. 2014). Even if it could, Marty and Bonnie come nowhere close to meet their burden
to transfer and do not even cite any evidence to support their allegations. See Motion at p. 4.
V. Regardless, Nueces County is not a proper transferee court.
Based on the above, the Court can deny Marty and Bonnie’s Motion without further
analysis. However, Plaintiffs wish to briefly address Marty and Bonnie’s assertions that this Court
can or should “remand” the case or transfer to Nueces County based on the Government Code.
First, Mary and Bonnie’s procedural complaints about the removal have no merit and are
dependent on their misguided and wrong arguments on jurisdiction and venue. But even if this
Court does not have jurisdiction after removal, this Court should transfer this case to the Business
Court in San Antonio. The Code provides:
(c) “If, after an action is assigned to a division of the business court, the court determines that the division’s geographic territory does not include a county of proper venue, the court shall:
(1) if an operating division of the court includes a county of proper venue, transfer the action to that division; or
(2) if there is not an operating division of the court that includes a county of proper venue, at the option of the party filing the action, transfer the action to a district court or county court at law in a county of proper venue.
Tex. Gov. Code §25A.006 (emphasis added).
Under 25A.006(c)(1), the case would not be transferred to Nueces County as Marty and
Bonnie seek. Even if Marty and Bonnie’s argument regarding the import of other parties’ real
property were accepted as relevant and dispositive (it is not), it is undisputed that there is real
property involved with the Lone Star Ports Projects in San Patricio County, which is part of the
Fourth Business Court Division. Tex. Gov’t Code § 25A.003(f); id. at § 74.042(e); see also MTR
at Ex. 14, Hummell Affidavit at ¶ 3 (“The Midway to Harbor Island Project that is the subject of
the TRO in the above-referenced litigation is located entirely in San Patricio and Nueces
Counties.”). Nueces County does not fall within an established Business Court division and
accordingly would not be available as a venue under 25A.006(c)(1).
Nor would the case be properly transferred to Nueces County under 25A.006(c)(2).
Because there is not an operating division in Nueces County, any transfer would be to a county of
proper venue “at the option of the party filing the action.” Tex. Gov’t Code § 25.006(c)(2).
Plaintiffs do not agree that Nueces County is a county of mandatory venue or proper venue.
Plaintiffs would not request this Court transfer this action to Nueces County. Instead, if the Court
determines that transfer is required, Plaintiffs would request a transfer to the Business Court in San
Antonio.
CONCLUSION
For the reasons set forth herein, Plaintiffs respectfully request that the Court deny
Defendant’s Motion to Transfer Venue and grant any further relief to which Plaintiffs are entitled.
DATED: December 3, 2024 Respectfully submitted,
/s/ Alistair B. Dawson Alistair B. Dawson State Bar No. 05596100 M. Jake McClellan State Bar No. 24109525 Madeline E. Gay State Bar No. 24138681 E-mail: adawson@beckredden.com E-mail: jmcclellan@beckredden.com E-mail: mgay@beckredden.com 1221 McKinney Street, Suite 4500 Houston, Texas 77010-2010 Telephone: (713) 951-3700 Telecopier: (713) 951-3720
ATTORNEYS FOR PLAINTIFFS
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of this document was served on counsel of record in this matter in accordance with Rules 21 and 21a of the Texas Rules of Civil Procedure on this 3rd day of December, 2024.
/s/ M. Jake McClellan M. Jake McClellan
CAUSE NO. 24-BC11A-0025
ALBERT THEODORE POWERS; § IN THE BUSINESS COURT ALLIED PORTS LLC, § § Plaintiffs, § § v. § ELEVENTH DIVISION § AXIS MIDSTREAM HOLDINGS, § LLC; ALLEN LAWRENCE BERRY; § MARVIN GLENN BERRY; AND § BONNIE BERRY, as successor in § interest to DENNIS WAYNE BERRY § § Defendants. § HARRIS COUNTY, TEXAS
TABLE OF CONTENTS
Exhibit Number Description Page Number 1 Investment Agreement 23 2 Agreement 33 3 Letter regarding Agreement dated 41 January 30, 2020 4 Email regarding Agreement dated 45 February 3, 2020 5 Email regarding Project Structure 49 dated May 9, 2019 6 Email regarding Interest Transfers 55 dated April 23, 2020 7 Email regarding Operating 68 Agreements dated April 23, 2020 8 Email regarding Project Structure 315 dated May 13, 2020 9 Executed Carlyle Group Term Sheet 318 dated February 7, 2019
10 Transcript of Hearing on Plaintiffs’ 335 Motion for Temporary Injunction dated November 12, 2024 11 Declaration of Albert Theodore 365 Powers
EXHIBIT 5
E-filed in the Office of the Clerk for the Business Court of Texas 1/27/2025 4:48 PM Accepted by: Beverly Crumley Case Number: 24-BC11A-0025 CAUSE NO. 24-BC11A-0025
ALBERT THEODORE POWERS and § IN THE BUSINESS COURT ALLIED PORTS LLC § § v. § § 11A – STATE OF TEXAS AXIS MISTREAM HOLDINGS, LLC, § ALLEN LAWRENCE BERRY, § MARVIN GLENN BERRY, and § BONNIE BERRY, as successor in interest to § DENNIS WAYNE BERRY § HONORABLE SOFIA ADROGUE
MOTION TO RECONSIDER COURT’S RULING ON PLEA IN ABATEMENT
MOTION TO STAY PENDING MANDAMUS
NOW COMES Martin Glynn Berry (“Marty), Bonnie Berry (“Bonnie), and Axis
Midstream Holdings LLC (“Axis”), together “Movants”, and make and file this Motion to
Reconsider Court’s Ruling on Plea in Abatement (“Motion”) and, in the alternative, Motion to Stay
Pending Mandamus, and in support of same would show:
I.
PROCEDURAL HISTORY
On October 31, 2024, Albert Theodore (“Ted”) Powers and Allied Ports LLC (“Allied
Ports”) filed their Original Petition and Application for a Temporary Restraining Order and
Temporary Injunction (“Plaintiffs’ Original Petition”). On November 8, 2024, Marty and Bonnie
filed a Motion to Transfer Venue (“Motion to Transfer”) and Plea in Abatement/Motion to
Abatement (“Motion to Abate”).1 On January 17, 2025, the Court signed a court order (“Order”)
denying the Motions. Marty, Bonnie, and Axis now file this Motion to Reconsider Court’s Ruling
on Plea in Abatement (“Motion”).
II.
RECENT EVENTS
Recent events reveal that this Plaintiffs’ lawsuit (the “Harris County Lawsuit”) and the
“Nueces County Lawsuit” (Lawrence Berry, et al v. Berry GP, et al, pending in the 94th Judicial
District Court, Nueces County, Texas (filed a year before the Harris County Lawsuit)) are
unequivocally intertwined/interrelated. Of course, an abatement only puts the Harris County
Lawsuit on hold (Plaintiffs’ Harris County lawsuit will remain in Harris County abated, only until
such time as the Nueces County Lawsuit exhausts its jurisdiction2), so that Plaintiffs may
adjudicate its contract claims (such contract having the venue provision in favor of Harris County)
at the appropriate time. Please consider the following.
Recent Events Absolutely Reveal the Two (2) Cases are Intertwined/Interrelated –
We now know with certainty that the Harris County Lawsuit and Nueces County Lawsuit
are inherently intertwined/interrelated. Berry GP’s filing of an application requesting injunctive
1 The Motion to Transfer and Motion to Abate may be collectively referred to as the “Motions.” By this Motion, Axis joins in the Motions (and fully incorporates the Motions by this reference) and joins in this request for the Court to reconsider the Order (that is, joins in this Motion). 2 “[The first-filed case] [h]aving the possession of jurisdiction of the case, that jurisdiction embraced everything in the case, and ever question arising which could be determined in it until it reached its termination, and the jurisdiction was exhausted. While the jurisdiction lasted it was exclusive and could not be trenched upon by any other tribunal.” Cleveland v. Ward, 285 S.W. 1063, 1068 (Texas 1926); citing French v. Hay, 22 Wall. (U.S.), 250, 253. NOTE: Of course, Berry GP is free to file any and all meritorious pleadings, including an application seeking injunctive relief. Historically, litigants have responded to competing lawsuits by filing pleas to the jurisdiction, pleas in abatements, applications for injunctive relief (including anti-suit injunctions to enjoin litigants), and more.
relief in Nueces County (“Berry GP’s Nueces Application”)3 elucidates how the two (2) lawsuits
involve the same core dispute. Lawrence Berry’s (“Lawrence”) Response in Opposition to
Application for Temporary Restraining Order and Temporary Injunction (“Lawrence’s Nueces
Response”)4 crystalized that both cases are inherently intertwined/interrelated.
• In Lawrence’s Nueces Response, Lawrence argues that “Movants Berry GP and RBT
[Redfish Bay Terminals Inc.] now seek to have this Court [in the Nueces County Lawsuit]
interfere with the Business Court’s jurisdiction . . . [by filing of Berry GP’s Nueces
Application].”5 This is an overt confession that the two (2) cases seek judicial relief
relating to the same dispute (i.e., a judicial determination of ownership and control of Axis
Midstream Holdings LLC (“Axis”)).
• In Lawrence’s Nueces Response, Lawrence argues that Berry GP’s Nueces Application is
“related to the ownership of Axis that is the very centerpiece of the Injunction Hearing
proceeding in Judge Adrogue’s Court next week.”6 (emphasis added). Movants and
Lawrence clearly agree that the Harris County Lawsuit and Nueces County Lawsuit are
seeking judicial relief relating to the same dispute (i.e., ownership and control of Axis).7
No party has filed any plea to the jurisdiction (or other similar plea or motion) asserting
that Nueces County’s Judge Robert Galvan lacks jurisdiction.
• At time of hearing on Berry GP’s Nueces Application (January 24, 2025), Lawrence – via
legal counsel – argued:
“Nobody contends that directly or indirectly, Marty, Bonnie
3 See Exhibit 1: (Berry GP’s Verified Application for Temporary Restraining Order and Temporary Injunction, sometimes referred to as “Berry GP’s Nueces Application”). 4 See Exhibit 2 (Lawrence’s Nueces Response). 5 See Exhibit 2 (Lawrence’s Nueces Response), at p. 2. 6 See Exhibit 1 (Lawrence’s Nueces Response), at p. 2. 7 See Exhibit 3 (proposed court order granting TI in Harris County Lawsuit); compare Exhibit 4 (proposed court order granting TRO in Nueces County Lawsuit).
and Lawrence all have ownership in this project. What’s at issue in that [Harris County Lawsuit] case is that Mr. Powers says that he did and he has documents to that effect and is asking for the [Harris County] Court there to take action as to – as to that Axis ownership. That’s what [is] central to that [Harris County] case.”8
Agreed. Movants and Lawrence agree that the “central” issue in the Harris County
Lawsuit is “Axis ownership” (same claim being made by Berry GP in the Nueces County
Lawsuit). These parties also apparently agree that neither Marty, Bonnie, nor Lawrence
“have ownership [of Axis] . . . .” In fact, Berry GP is the owner of Axis, and to the extent
there is disagreement about ownership of Axis, the threshold documents being
scrutinized involve Berry GP, Redfish Bay Terminals Inc., and Lawrence Berry.9 Restated:
The “central” issue in the two (2) cases is “ownership” of Axis, and the only lawsuit on
file with party claiming ownership of Axis is the Nueces County Lawsuit (i.e., Berry GP).
None of the parties in the Harris County Lawsuit claim ownership of Axis.10
• At time of hearing on Movants’ Plea in Abatement (in the Harris County Lawsuit,
December 6, 2024), Ted – via counsel – argued:
“And you can look at the relief that is sought in the [Movant’s Nueces County] petition and in the [Movants’] counterclaim and the court down there [in Nueces] can
8 See Exhibit 8: January 24, 2025 Nueces County Hearing Transcript, at p. 43 9 See Exhibit 5 (document Lawrence/Ted Powers claims transferred Axis from Berry GP to Redfish Bay Terminals Inc.) and Exhibit 6 (document Lawrence/Ted Powers claims transferred Axis from Redfish Bay Terminals Inc. to Lone Star Ports Holdings LLC) – all parties agreeing that neither document signed with any Board of Directors’ majority approval (as required by each corporation’s bylaws). NOTE: Apparently, Ted Powers and Allied Ports LLC seek an adjudication of ownership/control without even joining the real parties in interest. 10 The defect in parties in the Harris County Lawsuit will be addressed in a separate filing.
give all that relief and it won’t have one – it won’t have any bearing at all on this case.11 And so I think that – I think that there is no dominant jurisdiction.”12
Based upon the exact same “petition” to which Mr. Dawson referred, Berry GP moved for
injunctive relief. In response to Berry GP’s request for injunctive relief, Mr. Reasoner –
for Lawrence – argued Berry GP’s request for injunctive relief in Nueces County seeks
relief that is the “very centerpiece”13 of the Harris County Lawsuit (i.e., ownership and
control of Axis);14 and that “Movants Berry GP and [Redfish Bay Terminal] RBT now seek
to have this Court [in the Nueces County Lawsuit] interfere with the Business Court’s
jurisdiction . . . [by Movants’ Nueces Application].”15 Which is it? Can Judge Robert
Galvan (in the Nueces County, first-filed lawsuit) grant all relief requested by Berry GP (as
Mr. Dawson promised), or does the second-filed lawsuit somehow take from Judge Robert
Galvan his jurisdiction (power to be a judge of the dispute pending before him)? This
moment begs for relief. Indeed, the two (2) cases (the Harris County Lawsuit and Nueces
County Lawsuit) are inherently interrelated/intertwined.
• Stated differently: On December 6, 2024, Ted’s attorney stated to this Business Court, as
follows:
. . . I will draft our proposed injunction in a way that it will not interfere at all with whatever the injunction that exists down in Nueces County. . . . [W]e can certainly craft an injunction that does not in any way impinge or infringe upon what the
11 NOTE: The Nueces County Lawsuit expressly prays that certain alleged transfers of Axis Midstream Holdings LLC be declared “void” – thereby confirming that Berry GP owns Axis, not Lone Star Ports Enterprises LLC (as claimed by Ted Powers). 12 See Exhibit 7 (transcript of December 6, 2024 hearing), at p. 55. 13 See Lawrence’s Nueces Response, at p. 2. 14 Berry GP is claiming ownership and control of Axis in the Nueces County Lawsuit, and Plaintiffs are claiming ownership and control of Axis in the Harris County lawsuit. 15 Lawrence’s Nueces Response.
Judge Galvan, I think is his name, down in Corpus Christi, what he’s doing. I just want to let the Court know that.”
The reality is the two (2) cases are – at this very moment – screaming for that relief
which is Texas law.
Movants’ Have Followed Proper Protocol, and First-Filed Acquires Dominant Jurisdiction –
Allen Lawrence Berry (“Lawrence”) seems intent upon attacking Movants’ counsel to
persuade resolution of the dominant jurisdiction issue.16 Towards this end, Lawrence’s counsel
argued to Nueces County’s Judge Galvan “[t]hat Movants fail to disclose either the existence of
the Business Court Lawsuit to this Court . . . .” – but this is FALSE. Movants’ Nueces Application
states: “As of October 31, 2024, Ted Powers and Lawrence (as friendly defendant) filed a new
lawsuit in Harris County, Texas, to take control of Axis Midstream Holdings LLC.”17 Movants’
Nueces Application did not fail to disclose the existence of the Business Court Lawsuit, but rather
expressly disclosed the existence of the Business Court Lawsuit (the Harris County Lawsuit).18
Enough said: let us not cast aspersions, but rather embrace the present issue.
16 In a recent Nueces County Lawsuit document, Lawrence characterizes Movants’ counsel’s Verified Application for Temporary Restraining Order and for Temporary Injunction (“Nueces Application”) filed on behalf of Berry GP, Inc. (“Berry GP”) as “an improper attempt to circumvent . . . Order issued by Judge Adrogue . . . .” (Lawrence’s Response in Nueces, at p. 9) and “procedural impropriety.” (Lawrence’s Response in Nueces, at p. 11). To the contrary, Berry GP is owner of Axis, and thus has an absolute right to protect its (Berry GP’s) multi-million dollar investment by filing whatever pleadings and documents are indicated in the only pending legal action wherein Berry GP (owner of Axis) is a party to the legal proceeding. 17 See Exhibit 1: Movant’s Nueces Application, at p. 10, footnote 27. 18 See Exhibit 1: Movants’ Nueces Application, at p. 10, footnote 27. On January 24, 2025, Lawrence’s attorney tried to float the lie again – and argued to Judge Robert Galvan: “It was remarkable, in their [Movants’] TRO and motion for temporary injunction, there was simply no mention of the case filed by Ted Powers and an entity he owns called Allied Ports . . . .” Transcript, at p. 36 (again, this statement by Lawrence’s attorney proven false by review of Exhibit 1: Movants’ Nueces Application, p. 10 footnote 27); and Lawrence’s attorney again argued to Judge Galvan: “ . . . when you file something like this and don’t disclose that this other case exists . . . ” See Transcript at p. 40; and – again – the statement is false.
Step 1: “Where, as here, two courts have concurrent jurisdiction to determine inherently
intertwined issues, filing a dilatory plea in abatement is the proper method for drawing a court’s
attention to another court’s possible dominant jurisdiction.”19 This has occurred, and it is the
proper method for seeking relief in the second-filed action (Harris County Lawsuit).
Step 2: Plaintiffs and Lawrence argue against application of black letter law, and so let it
be said that the scope of a dominant jurisdiction inquiry includes not only the breath of the pleading
on file – but also amended petitions and added parties.
“It is not required that the precise issues and all of the parties be included in the first filed suit before the second suit is filed, provided that the claims in the first suit can be amended to bring in all of the necessary and proper parties and claims.”20
Berry GP is owner of Axis, and a party to the Nueces County Lawsuit since inception (and not a
party to the Harris County Lawsuit). Redfish Bay Terminals Inc. (a corporation that may, in the
alternative, claim ownership) and Lone Star Ports Enterprises LLC (a limited liability company
that Ted claims owns Axis) may both be added as parties to the Nueces County Lawsuit (and are
not parties in the Harris County lawsuit). All of these parties and claims are within the scope of
the Nueces County Lawsuit (per In re Coronado Energy EP Company).
Step 3: Are the two (2) lawsuits inherently intertwined/interrelated? Yes, and let us not
argue this any further. Both lawsuits have requests pending for injunctive relief that is nearly
19 In re Puig, 351 S.W.3d 201 (Texas 2011); citing Mower v. Boyer, 811 S.W.2d 560, 563 n. 2 (Texas 1991); Wyatt v. Shaw Plumbing Company, 760 S.W.2d 245, 247-248 (explaining that it is proper to file a plea in abatement when two inherently interrelated cases are filed in different counties). 20 In re Coronado Energy EP Company, 341 S.W.3d 479, 481-482 (Tex.Civ.App. – San Antonio, 2011); Wyatt v. Shaw Plumbing Company, 760 S.W.2d 245, 247 (Texas 1988).
identical. All seemingly now agree the “very centerpiece” of Plaintiffs’ Harris County Lawsuit
has been pleaded, briefed, argued, and submitted for Judge Galvan’s consideration.
Step 4: What are the public policy considerations?
• “Abatement of a lawsuit due to the pendency of a prior suit is based on the principles of
comity, convenience, and the necessity for an orderly procedure in the trial of contested
issues.”21 Comity asks that the judge in the second-filed action honor the judge in the first-
filed action. Convenience asks that the pending case with at least one of the parties
claiming ownership (Berry GP) be preferred. And the “orderly procedure” (most
importantly) asks of us that two (2) courts not engage of battle for jurisdiction (power over)
the dispute – but rather the second-filed action be abated.
• “The first-filed rule flows from “principles of comity, convenience, and the necessity for
an orderly procedure in the trial of contested issues.”22 “The default rule thus tilts the
playing field in favor of according dominant jurisdiction to the court in which suit is first
filed.”23
• Finally, and again, “[The first-filed case] [h]aving the possession of jurisdiction of the case,
that jurisdiction embraced everything in the case, and ever question arising which could be
determined in it until it reached its termination and the jurisdiction was exhausted. While
the jurisdiction lasted it was exclusive, and could not be trenched upon by any other
tribunal.”24
21 Wyatt v. Shaw Plumbing Company, 760 S.W.2d 245, 248 (Texas 1988). 22 In re J.B. Hunt Transportation Inc., 492 S.W.3d 287 (Texas 2016), citing Wyatt at 248. 23 In re J.B. Hunt Transportation Inc., 492 S.W.3d 287 (Texas 2016). 24 Cleveland v. Ward, 285 S.W. 1063, 1068 (Texas 1926); citing French v. Hay, 22 Wall. (U.S.), 250, 253.
Extensive briefing has already been filed by all parties. The magma-shift is the real world shift
in positions forced by Berry GP’s filing of Berry GP’s Nueces Application, Lawrence’s Nueces
Response, and transcript of hearings.
III.
REQUEST FOR STAY OF HARRIS COUNTY PROCEEDINGS
With absolute respect for this Court, Movants request reconsideration of the Order denying
Movants’ Motions (and a stay pending this court’s further consideration of recent events). If Your
Honor is not so inclined, then Movants’ do intend to file a Petition for Writ of Mandamus and
request a stay pending resolution of such mandamus. Candidly, a final resolution of which court
(Nueces v. Harris) has acquired jurisdiction of the competing requests for injunctive relief
promotes an orderly judicial process. In the meantime, please allow these contents to confirm that
in the absence of a TRO (the court may recall it expired on its own terms on December 6, 2024),
no party to the Harris County Lawsuit has engaged in any action relating to Axis
management/control – thus there is no need (and certainly no hurry) for the court’s consideration
of injunctive relief against Movants.
WHEREFORE, PREMISES CONSIDERED, Movants pray for all relief requested herein;
and specifically pray that this Court grant its request for reconsideration of the Order denying
Movants’ Motions, and pray for a stay of proceeding to allow reconsideration and/or mandamus,
and pray that Movants’ Motions (upon reconsideration) be granted, and for such other and further
relief – both at law and in equity – to which Movants may show themselves justly entitled.
Respectfully submitted,
LAW OFFICES OF DOUGLAS ALLISON 403 N. Tancahua Street Corpus Christi, Texas 78401 T: 361-888-6002 F: 361-888-6651 E: doug@dallisonlaw.com
BY: /s/ Douglas A. Allison DOUGLAS A. ALLISON State Bar No. 01083500
ROBERTS MARKLAND LLP 2555 N MacGregor Way Houston, Texas 77004 E: vg@robertsmarkland.com
BY: /s/ Vanessa D. Gilmore VANESSA D. GILMORE State Bar No. 07960010
ATTORNEYS FOR DEFENDANTS MARTY BERRY, BONNIE BERRY, & AXIS MIDSTREAM HOLDINGS, LLC
CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing document was served upon all counsel of record in accord with the Texas Rules of Civil Procedure on January 27, 2025.
/s/ Douglas A. Allison DOUGLAS A. ALLISON
Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules.
Susan Gonzales on behalf of Douglas Allison Bar No. 1083500 susan@dallisonlaw.com Envelope ID: 96655627 Filing Code Description: Motions - All Other Filing Description: Movants' Motion to Reconsider Court's Ruling on Plea in Abatement Mtn to Stay Pending Mandamus Status as of 1/27/2025 4:57 PM CST
Associated Case Party: AllenLawrenceBerry
Name BarNumber Email TimestampSubmitted Status
Barrett H.Reasoner breasoner@gibbsbruns.com 1/27/2025 4:48:15 PM SENT
Michael R.Absmeier mabsmeier@gibbsbruns.com 1/27/2025 4:48:15 PM SENT
Bruce Baldree bbaldree@gibbsbruns.com 1/27/2025 4:48:15 PM SENT
Sydney Ballesteros sballesteros@gibbsbruns.com 1/27/2025 4:48:15 PM SENT
Cameron Roth CRoth@gibbsbruns.com 1/27/2025 4:48:15 PM SENT
Case Contacts
Name BarNumber Email TimestampSubmitted Status
Stephanie Sanchez sanchezst@gtlaw.com 1/27/2025 4:48:15 PM SENT
Rosa Brennan rbrennan@gibbsbruns.com 1/27/2025 4:48:15 PM SENT
Roxanne Graham rgraham@gibbsbruns.com 1/27/2025 4:48:15 PM SENT
Christina Pena cpena@gibbsbruns.com 1/27/2025 4:48:15 PM SENT
Becky Young Becky.Young@gtlaw.com 1/27/2025 4:48:15 PM SENT
Business Court 11A BCDivision11A@txcourts.gov 1/27/2025 4:48:15 PM SENT
Liz Poirrier epoirrier@beckredden.com 1/27/2025 4:48:15 PM SENT
Vanessa Gilmore vg@robertsmarkland.com 1/27/2025 4:48:15 PM SENT
Liz Poirrier epoirrier@beckredden.com 1/27/2025 4:48:15 PM SENT
Associated Case Party: MarvinGlennBerry
Name BarNumber Email TimestampSubmitted Status
Douglas Allison 1083500 doug@dallisonlaw.com 1/27/2025 4:48:15 PM SENT
Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules.
Susan Gonzales on behalf of Douglas Allison Bar No. 1083500 susan@dallisonlaw.com Envelope ID: 96655627 Filing Code Description: Motions - All Other Filing Description: Movants' Motion to Reconsider Court's Ruling on Plea in Abatement Mtn to Stay Pending Mandamus Status as of 1/27/2025 4:57 PM CST
Associated Case Party: MarvinGlennBerry
Douglas Allison 1083500 doug@dallisonlaw.com 1/27/2025 4:48:15 PM SENT
Kim Brunkenhoefer kim@dallisonlaw.com 1/27/2025 4:48:15 PM SENT
Susan Gonzales susan@dallisonlaw.com 1/27/2025 4:48:15 PM SENT
Associated Case Party: AlbertTheodorePowers
Name BarNumber Email TimestampSubmitted Status
Alistair Dawson 5596100 adawson@beckredden.com 1/27/2025 4:48:15 PM SENT
Mary Raffetto mkraffetto@beckredden.com 1/27/2025 4:48:15 PM SENT
Michael McClellan 24109525 jmcclellan@beckredden.com 1/27/2025 4:48:15 PM SENT
Madeline Gay mgay@beckredden.com 1/27/2025 4:48:15 PM SENT
Associated Case Party: Allied Ports LLC
Name BarNumber Email TimestampSubmitted Status
Roland Garcia 7645250 garciar@gtlaw.com 1/27/2025 4:48:15 PM SENT
Steven Higginbotham higginbothams@gtlaw.com 1/27/2025 4:48:15 PM SENT
Associated Case Party: Axis Midstream Holdings
Name BarNumber Email TimestampSubmitted Status
Michael Hummell 10271100 hummellm@bayltd.com 1/27/2025 4:48:15 PM SENT
EXHIBIT 6
THE BUSINESS COURT OF TEXAS ELEVENTH DMSION
Albert Theodore Powers; Allied Ports § LLC, § § Plaintiffs., § § V. § § Cause No. 24-BCllA-0025 Axis Midstream Holdings, LLC; Allen § Lawrence Berry; Marvin Glenn Berry; § and Bonnie Berry as successor in § interest to Dennis Wayne Berry, § § Defendants. §
ORDER
Before the Court is Marvin Glenn Berry, Bonnie Berry, and Axis Midstream Holdings
LLC's Motion to Reconsider Court's Ruling on Plea in Abatement ("Motion to
Reconsider"). At this juncture, having considered the Motion to Reconsider; Alistair B.
Dawson's January 28, 2025 Correspondence; Barrett H. Reasoner's January 28, 2025
Correspondence; the evidence presented; the arguments of counsel; and the current status
of the law, the Court ORDERS that the Motion to Reconsider is
SO ORDERED.
SIGNED: January 28, 2025
EXHIBIT 7 ÿ
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Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules.
Anna Erickson on behalf of Alistair Dawson Bar No. 5596100 aerickson@beckredden.com Envelope ID: 97338804 Filing Code Description: Response Filing Description: Response to Relators' Emergency Motion for Temporary Relief Status as of 2/13/2025 11:28 AM CST
Associated Case Party: Marty Berry
Name BarNumber Email TimestampSubmitted Status
Douglas AAllison doug@dallisonlaw.com 2/13/2025 11:16:36 AM SENT
Susan Gonzales susan@dallisonlaw.com 2/13/2025 11:16:36 AM SENT
Kim Brunkenhoefer kim@dallisonlaw.com 2/13/2025 11:16:36 AM SENT
Vanessa AGilmore vg@robertsmarkland.com 2/13/2025 11:16:36 AM SENT
Associated Case Party: AlbertTheodorePowers
Name BarNumber Email TimestampSubmitted Status
Alistair Dawson 5596100 adawson@beckredden.com 2/13/2025 11:16:36 AM SENT
Mary Raffetto mkraffetto@beckredden.com 2/13/2025 11:16:36 AM SENT
Michael JakeMcClellan jmcclellan@beckredden.com 2/13/2025 11:16:36 AM SENT
Liz Poirrier epoirrier@beckredden.com 2/13/2025 11:16:36 AM SENT
Madeline Gay mgay@beckredden.com 2/13/2025 11:16:36 AM SENT
Case Contacts
Name BarNumber Email TimestampSubmitted Status
Rosa Brennan rbrennan@gibbsbruns.com 2/13/2025 11:16:36 AM SENT
Michelle Bultman MBultman@gibbsbruns.com 2/13/2025 11:16:36 AM SENT
Roxanne Graham rgraham@gibbsbruns.com 2/13/2025 11:16:36 AM SENT
Christina Pena cpena@gibbsbruns.com 2/13/2025 11:16:36 AM SENT
Associated Case Party: Allied Ports, LLC
Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules.
Anna Erickson on behalf of Alistair Dawson Bar No. 5596100 aerickson@beckredden.com Envelope ID: 97338804 Filing Code Description: Response Filing Description: Response to Relators' Emergency Motion for Temporary Relief Status as of 2/13/2025 11:28 AM CST
Associated Case Party: Allied Ports, LLC
Name BarNumber Email TimestampSubmitted Status
Roland Garcia 7645250 garciar@gtlaw.com 2/13/2025 11:16:36 AM SENT
Associated Case Party: AllenLawrenceBerry
Name BarNumber Email TimestampSubmitted Status
Michael Absmeier 24050195 mabsmeier@gibbsbruns.com 2/13/2025 11:16:36 AM SENT
Barrett Reasoner 16641980 breasoner@gibbsbruns.com 2/13/2025 11:16:36 AM SENT
Sydney Ballesteros sballesteros@gibbsbruns.com 2/13/2025 11:16:36 AM SENT
Bruce Baldree bbaldree@gibbsbruns.com 2/13/2025 11:16:36 AM SENT
Associated Case Party: Honorable Sofia Adrogue
Name BarNumber Email TimestampSubmitted Status
Hon. Sofia Adrogue BCDivision11A@txcourts.gov 2/13/2025 11:16:36 AM SENT
In Re Marty Berry and Axis Midstream Holdings, LLC v. the State of Texas (In Re Marty Berry and Axis Midstream Holdings, LLC v. the State of Texas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.