in Re Port Isabel Logistical Offshore Terminal, Inc.

CourtCourt of Appeals of Texas
DecidedMarch 10, 2022
Docket13-21-00368-CV
StatusPublished

This text of in Re Port Isabel Logistical Offshore Terminal, Inc. (in Re Port Isabel Logistical Offshore Terminal, Inc.) 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 Port Isabel Logistical Offshore Terminal, Inc., (Tex. Ct. App. 2022).

Opinion

NUMBER 13-21-00169-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

PORT ISABEL LOGISTICAL OFFSHORE TERMINAL, INC., Appellant,

v.

SUBSEA 7 PORT ISABEL, LLC, Appellee.

On appeal from the 107th District Court of Cameron County, Texas. NUMBER 13-21-00368-CV

IN RE PORT ISABEL LOGISTICAL OFFSHORE TERMINAL, INC.

On Petition for Writ of Mandamus, Prohibition, and/or Injunction.

MEMORANDUM OPINION

Before Chief Justice Contreras and Justices Hinojosa and Silva Memorandum Opinion by Chief Justice Contreras

In the latest of several proceedings before this Court arising out of this case,

appellant/relator Port Isabel Logistical Offshore Terminal, Inc. (PILOT) argues in an

appeal and a parallel original proceeding that the trial court 1 erred in signing an order on

May 5, 2021, allowing appellee/real party in interest Subsea 7 Port Isabel, LLC (Subsea)

to remove improvements and property from the premises it had subleased from PILOT.

We affirm the trial court’s judgment and deny PILOT’s petition for extraordinary

1 The respondent in the original proceeding is the Hon. Benjamin Euresti Jr., presiding judge of the

107th District Court of Cameron County, Texas.

2 writ. However, we will grant one of PILOT’s two motions to review the supersedeas

amount under Texas Rule of Appellate Procedure 24.4.

I. BACKGROUND

A. 2016 Trial and 2017 Appeal

Beginning in 2007, PILOT leased around fifty-four acres of property at the port of

Port Isabel, Texas, from the Port Isabel-San Benito Navigation District. In 2008, Subsea

entered into an agreement with PILOT to sublease around half of the property, which

Subsea intended to use as a “spoolbase” for undersea pipeline operations. The sublease

agreement stated that it would terminate on May 31, 2012, unless Subsea notified PILOT

in writing before March 31 of that year that it wished to exercise its option to extend the

lease for another four-year term. The sublease agreement also stated:

[Subsea] also agrees that, upon termination of this Sublease, [Subsea] shall have the option to either (i) leave the Sublease Premises in the condition that the Sublease Premises are in at the conclusion of this Sublease, or (ii) remove any or all property and improvements then located on the Sublease Premises, provided that [Subsea] shall be responsible for any costs or expense to repair any physical damage to the Sublease Premises caused by such removal, and further provided [Subsea] shall not be entitled to remove “[Subsea]’s Dock” (hereinafter defined). Notwithstanding the foregoing, [PILOT] acknowledges that [Subsea] intends to add crushed rock to the Sublease Premises that may or may not be removed upon termination of this Sublease, at [Subsea]’s option.

Subsea attempted to renew the sublease in 2012, and it remained in possession

of the property. However, Subsea failed to notify PILOT in writing of its intent to renew

the sublease until after March 31, 2012. Accordingly, PILOT deemed Subsea to be a

holdover tenant in violation of the sublease agreement, and it sent an eviction notice to

Subsea in April of 2014. Subsea declined to vacate the premises, claiming that its renewal

was valid for various reasons. The parties filed lawsuits against each other, which were

consolidated in Cameron County. After trial, the jury found that (1) the parties did not

3 orally agree to modify the renewal provisions of the sublease such that Subsea’s timely

oral notification was sufficient to renew the sublease; (2) PILOT is not estopped from

denying that Subsea renewed the sublease; (3) PILOT did not waive strict compliance

with the renewal provisions of the sublease agreement; (4) Subsea trespassed on

PILOT’s property; (5) PILOT is entitled to $634,710 in damages for the trespass; and (6)

Subsea did not substantially and foreseeably rely to its detriment on PILOT’s promise, if

any, that Subsea did not need to send written notice of renewal before March 31, 2012.

On December 13, 2016, the trial court rendered judgment in accordance with the

jury’s verdict, awarding PILOT $634,710 in trespass damages as well as pre-judgment

interest on that award beginning on June 1, 2014. The judgment also stated:

4. [Subsea] may remove any or all property and improvements located on the [subject property] (including crushed rock), until thirty days from the date of this Judgment or the expiration of any period during which this Final Judgment is superseded by the filing of a bond (or cash in lieu of bond) in accordance with Texas Rule of Appellate Procedure 24, provided that [Subsea] shall be responsible for any costs or expense to repair any physical damage to the property caused by such removal, and further provided that [Subsea] shall not be entitled to remove the dock located on the property; and

5. All property, whether real or personal, including without limitation fixtures and improvements, remaining on the [subject property] after the expiration of thirty days from the date of this Judgment or after the expiration of any period during which this Final Judgment is superseded by the filing of a bond (or cash in lieu of bond) in accordance with Texas Rule of Appellate Procedure 24, is solely and exclusively the property of PILOT.

Both parties perfected appeals from this judgment (the 2017 appeal).

Pursuant to Subsea’s motion, the trial court also rendered an order providing that

Subsea may supersede the judgment under Texas Rule of Appellate Procedure 24 by

posting a bond, or cash in lieu thereof, in the amount of $1,200,829.58 plus post-judgment

4 interest. 2 See TEX. R. APP. P. 24.1. The order setting the bond amount stated in part:

IT IS FURTHER ORDERED that upon posting the bond, [Subsea] shall have the right to remain in immediate possession of the sublease premises during the pendency of the appeal process in this case, and shall have full use and enjoyment of the sublease premises subject to and in accordance with the terms of the Sublease without interference (except as allowed under the Sublease) from [PILOT] during the appeal process and so long as the bond remains in place.

IT IS FURTHER ORDERED that the posting of a bond and remaining on the premises during the pendency of the appeal process in this case shall in no way be construed as a waiver of [Subsea]’s ownership and right to remove the improvements from the premises.

Subsea then deposited $1,237,000 with the Cameron County District Clerk, thereby

suspending enforcement of the judgment. See id. Later, pursuant to motions filed by

PILOT, the trial court rendered orders increasing Subsea’s supersedeas amount by

$960,000 and then by an additional $76,966.47. See TEX. R. APP. P. 24.3(a) (stating that,

even after its plenary power expires, the trial court may modify the amount or type of

security required to suspend the judgment). Subsea timely made the additional deposits.

We subsequently denied Subsea’s motion to reduce the supersedeas amount. See TEX.

R. APP. P. 24.4.

PILOT also moved for the trial court to set a supersedeas amount so that it could

suspend the portion of the judgment allowing Subsea to remove improvements. On

November 2, 2017, the trial court rendered an order setting that amount at $168,000, and

PILOT made a cash deposit in that amount, thereby suspending enforcement of that part

of the judgment.

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