In Re MBC Energy Services, Inc and Robert Douglas Woods,Jr. v. the State of Texas

CourtCourt of Appeals of Texas
DecidedAugust 21, 2025
Docket11-25-00052-CV
StatusPublished

This text of In Re MBC Energy Services, Inc and Robert Douglas Woods,Jr. v. the State of Texas (In Re MBC Energy Services, Inc and Robert Douglas Woods,Jr. v. the State of Texas) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re MBC Energy Services, Inc and Robert Douglas Woods,Jr. v. the State of Texas, (Tex. Ct. App. 2025).

Opinion

Opinion filed August 21, 2025

In The

Eleventh Court of Appeals __________

No. 11-25-00052-CV __________

IN RE MBC ENERGY SERVICES, INC. AND ROBERT DOUGLAS WOODS, JR.

Original Mandamus Proceeding

MEMORANDUM OPINION This mandamus proceeding concerns the efforts by Relators, the defendants in the proceeding below, to obtain funding information from the plaintiff and his medical providers for the plaintiff’s medical care. Relators MBC Energy Services, Inc. and Robert Douglas Woods, Jr. state their first issue1 as follows: Did the trial court clearly abuse its discretion in denying discovery concerning the amounts the Treaters were paid by the Funders for the medical services they provided to [Daniel] Sunde and the relationship between the Treaters, the Funders, and Sunde’s

1 Relators assert in their second issue that they lack an adequate appellate remedy. lawyers, which is relevant to the reasonableness of medical expenses and the Treaters’ bias? Relators complain that the trial court abused its discretion in two respects: 1) when it refused to grant their motion to compel the depositions of several witnesses that Relators describe as “Funders and Treaters,” and 2) when it denied Relators’ motion to compel with respect to various interrogatories and requests for production of documents to which the real party in interest, Daniel Sunde, objected. In a global order, the trial court denied Relators motion to compel without addressing the specific complaints raised in the motion. Because we conclude that the trial court abused its discretion by denying Relators’ motion to compel, we conditionally grant mandamus relief. Factual and Procedural Background Sunde brought suit against Relators alleging that, on April 6, 2023, he was injured in a motor vehicle accident that was caused by their negligence. Specifically, Sunde alleged that he was a passenger in a motor vehicle that was struck by Woods, who was acting in the course and scope of his employment with MBC. After Sunde filed suit, Diuber Reyes Perez and Raymond Smith intervened in the lawsuit, alleging that they were likewise injured in the same accident. The discovery that is sought by Relators concerns the relationship between Sunde’s attorneys, several of Sunde’s medical providers, and three companies: Access Healthcare Management, Elite Medical Care, and CareCapital, LLC. Relators allege that the parties have established a series of funding “arrangements” that operate to artificially inflate Sunde’s claimed medical expenses. The first alleged funding arrangement involves Dr. Gassan Chaiban and Allied Health, a clinic that is affiliated with Dr. Chaiban. Allied Health is located in Lake Charles, Louisiana. There is evidence that Sunde was referred to Allied Health and Dr. Chaiban through Sunde’s attorneys. Chaiban’s records list Access as 2 Sunde’s “insurance company.” However, on its website, Access purports to be a company that provides “medical lien funding to help medical providers increase cash flow and eliminate financial risks while treating personal injury patients.” Access claims to do this by “purchas[ing] accounts receivables from physicians” and assisting the medical provider by providing “patient management[] and law firm communications.” There is also evidence from an expert retained by counsel for Relators demonstrating that Allied’s billing is substantially higher “compared to what providers typically receive . . . for similar services.” The second alleged funding arrangement involves Dr. Mohammed (M.K.) Hazma, who is a neuropsychologist at The Neurobehavioral Clinic in Port Neches. Relators allege that a company known as Elite Medical Care “funded” Sunde’s visit to Dr. Hazma, and then billed Sunde for his services, pointing to a medical billing affidavit executed by Mayra Zuniga. However, the affidavit in question merely indicates that Elite was billing for Dr. Hazma’s services. It does not show that Elite “funded” the visit to Dr. Hazma. The third alleged arrangement involves Dr. Gina Armstrong of the Texas Brain Center and Dr. Ramiro Hernandez of River Oaks Hospital & Clinics (formerly AD Hospital East LLC). Both of these entities are based in Houston. CareCapital claims that it serves as a “administrative billings-and-collections agent” for each of these providers. However, Relators maintain that this contention does not fully disclose the entirety of the relationship between CareCapital, the providers in question, and Sunde’s attorneys. The record contains evidence that supports a referral relationship between Access, Sunde’s attorneys, and the providers that operate within the Access network and/or the networks of Access subsidiaries. In November 2023, for example, Dr. Patrick Hayes, a psychiatrist, gave testimony about the relationships among

3 these entities in a multiparty lawsuit arising out of Hurricane Zeta. Dr. Hayes testified that he does not have a relationship with the attorneys that represent Sunde in this lawsuit. However, he does have a relationship with Access, which serves as a “clinical case manager.” Furthermore, it is Dr. Hayes’s understanding that, when a case arises that falls into Dr. Hayes’s areas of practice, Access in turn refers the patients to Dr. Hayes. Dr. Hayes’s office then bills Access for its services in accordance with an established fee schedule, and Access pays for the services, but also receives a “contracted rate” for its management services. Similarly, in March of 2024, Stephanie Garcia, appearing as a corporate representative of CareCapital, appeared for a deposition in an unrelated personal injury lawsuit then pending in Harris County. In her deposition, Garcia testified that, as a part of its business practices, CareCapital enters into arrangements with medical providers to purchase their accounts receivable at a discounted rate, anticipating that it will recover the full amounts of the receivables once the case is resolved through settlement or an award at trial. Relators assert that the amounts the providers are “willing to accept for their medical services through the sale of their accounts receivable is—at a minimum— relevant to determining the reasonable cost of the medical services Sunde received.” Additionally, Relators argue that evidence of the relationship between these parties demonstrates bias because the arrangement “ultimately incentivizes the [providers] to render the most severe diagnoses, recommend more expensive treatment, and inflate medical bills,” which in turn motivates the funding companies to “continue to feed them more patients.” On September 8, 2023, the trial court signed an Agreed Discovery Control Plan and Scheduling Order that set a deadline of April 22, 2024 for Sunde and the intervenors to disclose expert witnesses. The scheduling order also established a

4 discovery deadline of July 8, 2024. Thereafter, on March 26, 2024, the trial court signed an Agreed Amended Docket Control Order, which among other things, extended the deadline for the disclosure of Sunde’s and intervenors’ expert witnesses until June 28, 2024 and a deadline for discovery until August 23, 2024. On June 28, 2024, Sunde responded to a set of interrogatories and requests for production that were served on him by Woods. The interrogatories and requests for production included several inquiries into the arrangements between Sunde and his medical providers regarding the payment of Sunde’s medical bills. For example, in Interrogatory No.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Prudential Insurance Co. of America
148 S.W.3d 124 (Texas Supreme Court, 2004)
In Re Cerberus Capital Management, L.P.
164 S.W.3d 379 (Texas Supreme Court, 2005)
In Re SCI Texas Funeral Services, Inc.
236 S.W.3d 759 (Texas Supreme Court, 2007)
In Re Laibe Corp.
307 S.W.3d 314 (Texas Supreme Court, 2010)
In Re Allstate Insurance Co.
232 S.W.3d 340 (Court of Appeals of Texas, 2007)
Stelly v. Papania
927 S.W.2d 620 (Texas Supreme Court, 1996)
Rivercenter Associates v. Rivera
858 S.W.2d 366 (Texas Supreme Court, 1993)
International Awards, Inc. v. Medina
900 S.W.2d 934 (Court of Appeals of Texas, 1995)
Bailey v. Baker
696 S.W.2d 255 (Court of Appeals of Texas, 1985)
In Re American Optical Corp.
988 S.W.2d 711 (Texas Supreme Court, 1998)
Walker v. Packer
827 S.W.2d 833 (Texas Supreme Court, 1992)
In Re Bristol-Myers Squibb Co.
975 S.W.2d 601 (Texas Supreme Court, 1998)
In Re Mabray
355 S.W.3d 16 (Court of Appeals of Texas, 2010)
In Re CYPRESS TEXAS LLOYDS
437 S.W.3d 1 (Court of Appeals of Texas, 2011)
Callahan v. Giles
155 S.W.2d 793 (Texas Supreme Court, 1941)
In re J.B. Hunt Transport, Inc.
492 S.W.3d 287 (Texas Supreme Court, 2016)
In re Episcopal Sch. of Dall., Inc.
556 S.W.3d 347 (Court of Appeals of Texas, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
In Re MBC Energy Services, Inc and Robert Douglas Woods,Jr. v. the State of Texas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mbc-energy-services-inc-and-robert-douglas-woodsjr-v-the-state-of-texapp-2025.