In Re Patricia Harvey and Kenneth B. Chaiken v. the State of Texas

CourtCourt of Appeals of Texas
DecidedDecember 14, 2023
Docket02-23-00401-CV
StatusPublished

This text of In Re Patricia Harvey and Kenneth B. Chaiken v. the State of Texas (In Re Patricia Harvey and Kenneth B. Chaiken 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 Patricia Harvey and Kenneth B. Chaiken v. the State of Texas, (Tex. Ct. App. 2023).

Opinion

In the Court of Appeals Second Appellate District of Texas at Fort Worth ___________________________ No. 02-23-00401-CV ___________________________

IN RE PATRICIA HARVEY AND KENNETH B. CHAIKEN, Relators

Original Proceeding 431st District Court of Denton County, Texas Trial Court No. 22-5037-431

Before Kerr, Birdwell, and Womack, JJ. Memorandum Opinion by Justice Kerr MEMORANDUM OPINION

Relators Patricia Harvey and Kenneth B. Chaiken petitioned this court for a

writ of mandamus after the trial court ordered them to pay Real Party in Interest

Corvalla, Ltd. $30,000 in sanctions and refused to defer or stay payment of the

sanctions or sever the sanctions order so that it would become final and appealable.

We deny Relators’ petition in part and conditionally grant it in part.

Background

Because the merits of the underlying litigation are not at issue in this original

proceeding, we will briefly summarize only the pertinent facts. Last December,

Corvalla filed a verified motion for sanctions against Relators, alleging that they had

“engaged in improper tactics designed to abuse the judicial process.” Corvalla

requested that the trial court award “the reasonable attorneys’ fees incurred by

Corvalla as a result of [Relators]’ delay practices.” Relators filed a verified response,

and on May 1, 2023, the trial court granted Corvalla’s motion and ordered Relators to

pay Corvalla “the total sum of $30,000.00 within thirty (30) days . . . as a result of

[their] improper actions, which includes costs and fees related to or arising from

delays during [their] abandoned interlocutory appeal,[1] fees associated with [their]

improper conduct . . . in th[e trial c]ourt, and fees relating to preparing this Motion for

1 During the pendency of the underlying litigation, Relators filed an interlocutory appeal, which we dismissed on their unopposed motion. Chaiken v. Corvalla, Ltd., No. 02-22-00369-CV, 2022 WL 17351585, at *1 (Tex. App.—Fort Worth Dec. 1, 2022, no pet.) (mem. op.).

2 Sanctions.” On June 1, 2023, Relators filed a motion, supported by Relator Chaiken’s

affidavit, asking that the trial court “defer payment of the sanction until after a final

judgment in this case . . . or at least until th[e trial c]ourt c[ould] consider and rule on

[their] motion to reconsider.”2 That same day, Relator Chaiken—who had been

representing himself and his wife, Relator Harvey, in the trial court proceedings3—

also filed his motion to withdraw as counsel. The trial court granted the motion and

ordered Relator Chaiken withdrawn as counsel for Relators on June 2, 2023. 4

Corvalla filed a response opposing Relators’ motion to defer and moved the

trial court to compel payment. Corvalla attached exhibits in support of its argument

that compelling Relators to pay sanctions immediately was “necessary to deter

[Relators] from further improper conduct” and would not have a preclusive effect on

the litigation. Concerning the no-preclusive-effect prong, for example, Corvalla

claimed that Relator Chaiken had “recently offered to pay millions both for the entire

Corvalla Condominium project and for another unit owner’s unit.” [Emphasis in

original.] Corvalla also alleged that on May 16, 2023, Relators had filed a separate

The motion represented that Counsel for Corvalla “ha[d] agreed to suspend 2

the payment deadline until June 2, 2023 to allow for the filing of this motion, which it oppose[d].”

Relators also had other counsel, including Relator Chaiken’s brother. 3

According to the mandamus petition, Relator Chaiken is currently representing 4

himself in his capacity as an attorney; Relator Harvey is represented in this court by Relator Chaiken’s brother and by another attorney.

3 lawsuit—alleging construction issues at the same condominium complex at issue in

the present lawsuit—against Corvalla Condominiums Association, Inc. and others in

Dallas County.

Relators filed a reply, arguing that “the sanction order has had its intended

[e]ffect[,] Kenneth Chaiken has withdrawn as counsel, . . . and [Relators] have not

engaged in any of the same conduct made the basis of” the sanctions order. They

addressed Corvalla’s arguments and evidence regarding their ability to pay the

sanctions:

The financial strain presented by the sanction award has not been offset by the sale of [Relators]’ residence and condominium interests. The sale was not profitable after deductions for commissions, closing costs, and moving costs. [Relators]’ offer to purchase the [other] unit demonstrates nothing about the sanction’s impact upon [them]. As the email about [Relators]’ offer reveals, if [they] were to buy the [other] unit for investment purposes (which was dependent upon due diligence related to its condition), they would have had to borrow money to accomplish such a purchase, just like they had to borrow money to buy a new home to live in after their Corvalla unit became unlivable. And Corvalla ignores the reality that the [Relators]’ offer to [the other unit owner] was nothing more than an attempt to mitigate the injury and harm caused by Corvalla in the first place, at a time when Corvalla was assuring residents like [Relators] that continuing to live at Corvalla was a good idea, because remediation of defects was forthcoming.

As for an October 2022 settlement offer that involved buying Corvalla, Ltd. out of the Project, that offer was made not only well before the May 1, 2023 sanctions order but also well before . . . it became known to [Relators] and others just how serious and overwhelming the scope of the problems [is] at the property. And, even then, that settlement offer would have entailed [Relators’] putting together an investor group to purchase and take on the herculean task of remediating Corvalla’s problems. Corvalla’s counsel’s estimate that such an offer “would total several million dollars” is a bit disingenuous

4 considering that, at the time, Corvalla, Ltd. never responded to the offer or otherwise stated a purchase price it would entertain for the entire project.

Relators also explained that they had filed suit against the condominium association

and management company in Dallas County because they believed that a provision in

the project’s “Declarations” required that venue lie in Dallas County.

On August 24, 2023, the trial court heard Relators’ motion to defer and

Corvalla’s motion to compel. The next day, the trial court signed an order denying the

motion to defer and granting the motion to compel. The trial court found that “the

sanctions award of $30,000.00 against [Relators] does not have a preclusive effect on

[their] access to the courts” and that “immediate payment . . . will not impair

[Relators’] access to the courts nor their ability to continue this litigation.” The trial

court ordered Relators to pay Corvalla “the total sum of $30,000.00, pursuant to the

[sanctions o]rder, within 14 days” of the trial court’s August 25, 2023 order.

On September 7, 2023, Relators filed an “Emergency Motion to Sever

Sanctions Award and Stay Payment Obligation Pending Appeal.” They requested that

the trial court (1) sever the sanctions order into a separate cause so that it could be

appealed independently of the merits of the remaining claims between the parties and

(2) stay the September 8, 2023 deadline to pay to allow for an appeal with

supersedeas. Corvalla filed a response, and the trial court held a hearing on September

21, 2023; denied the motion to sever and stay; and extended the deadline for payment

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In Re Patricia Harvey and Kenneth B. Chaiken v. the State of Texas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-patricia-harvey-and-kenneth-b-chaiken-v-the-state-of-texas-texapp-2023.