In Re Southwestern Public Service Company, Xcel Energy Inc., Xcel Energy Services, Inc. v. the State of Texas

CourtCourt of Appeals of Texas
DecidedOctober 16, 2023
Docket13-22-00389-CV
StatusPublished

This text of In Re Southwestern Public Service Company, Xcel Energy Inc., Xcel Energy Services, Inc. v. the State of Texas (In Re Southwestern Public Service Company, Xcel Energy Inc., Xcel Energy Services, Inc. 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 Southwestern Public Service Company, Xcel Energy Inc., Xcel Energy Services, Inc. v. the State of Texas, (Tex. Ct. App. 2023).

Opinion

NUMBER 13-22-00389-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

IN RE SOUTHWESTERN PUBLIC SERVICE COMPANY, XCEL ENERGY, INC., AND XCEL ENERGY SERVICES, INC.

On Petition for Writ of Mandamus.

MEMORANDUM OPINION Before Justices Benavides, Silva, and Peña Memorandum Opinion by Justice Benavides1

By petition for writ of mandamus, relators Southwestern Public Service Company,

Xcel Energy Inc., and Xcel Energy Service Inc., contend that the trial court abused its

discretion by issuing death penalty sanctions against them for a second time.2 The trial

court first issued an order granting death penalty sanctions against the relators on

1 See TEX. R. APP. P. 52.8(d) (“When denying relief, the court may hand down an opinion but is not

required to do so. When granting relief, the court must hand down an opinion as in any other case.”); see also id. R. 47.4 (distinguishing opinions and memorandum opinions). 2 This original proceeding arises from trial court cause number C-4964-16-I in the 398th District

Court of Hidalgo County, Texas, and the respondent is the Honorable Keno Vasquez. See id. R. 52.2. February 19, 2019, and this Court conditionally granted the relators’ petition for writ of

mandamus and directed the trial court to set aside that order. In re Sw. Pub. Serv. Co.,

No. 13-19-00111-CV, 2020 WL 1887762, at *30 (Tex. App.—Corpus Christi–Edinburg

Apr. 16, 2020, orig. proceeding) (mem. op.).

On June 16, 2022, the trial court signed the second death penalty sanction order

at issue in this case, the “Order Striking Pleadings of [Relators] and Entry of Default

Judgment on Ordinary Liability.” The relators contend that the trial court abused its

discretion in doing so. We agree, and accordingly, we conditionally grant the petition for

writ of mandamus.

I. BACKGROUND

The genesis for this lawsuit and the events surrounding the first death penalty

sanction can be found in our previous memorandum opinion, and we will not reiterate

those events here except as necessary for the disposition of this original proceeding. See

id. at *1–30. In short, Eduardo Munoz Jr. suffered severe personal injuries from an

electrical arc arising from a high voltage power line that was owned and operated by the

relators. At the time of the incident, Munoz was on top of a trailer attempting to manually

roll a tarp over a load of peanuts when the metal crank arm which rolled the tarp either

came in contact with or came into extreme proximity to the power line, thereby creating

the electrical arc that caused Munoz’s injuries. Wilco Peanut Co., Ltd. (Wilco) had hired

Munoz to pick up peanuts and deliver them to its peanut processing facility. Marco

Sustayta, a Wilco employee or independent contractor, had dispatched Munoz to retrieve

peanuts from a peanut farm owned or operated by Dustin Nelson. The real parties in

2 interest, Munoz and his family,3 filed suit against Wilco, Sustayta, Nelson, and the

relators. The real parties settled their claims against Wilco and Nelson and dismissed

their claims against Sustayta. The relators have filed a motion to designate Sustayta as

a responsible third party; however, the trial court has not yet ruled on that motion.

As stated previously, during the litigation, the trial court issued death penalty

sanctions against the relators, and we concluded that the first death penalty sanction

failed to comply with the governing law. See id. We thus conditionally granted the relators’

petition for writ of mandamus. Id. In accordance with our directions, the trial court vacated

the first death penalty sanction on May 13, 2020. The case was thereafter quiescent for

a substantial period. On April 8, 2021, the real parties filed a motion for additional findings

and a renewed request for death penalty sanctions against the relators. The real parties

argued that this Court’s memorandum opinion had approved the trial court’s

“methodology and procedure” for conducting the hearing on death penalty sanctions and

that we had upheld “relevant” findings that the trial court had made in imposing the first

death penalty sanction. According to the real parties, our opinion was “replete with

numerous and specific references in full and unequivocal support” of the trial court’s death

penalty sanction. The real parties thus urged the trial court to review the record and

reissue death penalty sanctions without allowing the relators to introduce any additional

evidence regarding sanctions.

On April 27, 2021, the relators filed a response to the real parties’ motion for

additional findings and their renewed request for death penalty sanctions. In their

3 The real parties include Eduardo Munoz Jr. and Kasandra Girela Munoz, individually and as next

friend to their minor child.

3 response, the relators argued that our memorandum opinion indicated that death penalty

sanctions were improper and requested the trial court to refuse to reissue death penalty

sanctions and instead to allow the case to proceed to trial. Alternatively, if the trial court

was considering assessing sanctions, the relators requested the trial court allow them to

present additional evidence and witnesses.

On April 28, 2021, the trial court held a status conference at which the parties

discussed their divergent interpretations of our memorandum opinion and how to proceed

with the real parties’ renewed motion for death penalty sanctions. The trial court instructed

the parties to discuss various pending issues, such as whether the real parties would

seek sanctions against the relators’ counsel and requested the parties work together to

“set parameters” regarding any proposed testimony and witnesses.

On May 5, 2021, the trial court held another status conference. The trial court and

parties again discussed their interpretations of our opinion. The real parties asserted that

the trial court need not hold any additional evidentiary hearings in order to assess death

penalty sanctions for a second time. The trial court reiterated his displeasure with the

relators’ discovery responses and expressed his disagreement with certain portions of

our memorandum opinion.

On May 12, 2021, the relators advised the trial court that they intended to show

that the real parties’ “sag” theory was impossible and that they planned to present Corby

White and David Wheeler to testify, and the scope of their testimony was identified in the

offers of proof and the affidavits that the relators previously provided in an offer of proof.

The hearing on the real parties’ request for new death penalty sanctions was set

for July 22, 2021. However, on May 21, 2021, the relators filed an emergency application

4 for a continuance of the hearing on grounds that their counsel was unavailable.

Subsequently, the parties agreed to reset the hearing until August 5, 2021.

On July 30, 2021, the real parties filed an emergency motion for continuance of

the hearing. According to their motion, on July 20, 2021, the relators filed supplemental

discovery responses “and produced several thousand pages of documents, photographs

and videos, all of which were not previously produced,” and the relators “also amended

the disclosures regarding the scope of expert testimony for David Wheeler, Corby White,

and Kenneth Munsell.” The real parties sought a continuance of the hearing, then

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In Re Southwestern Public Service Company, Xcel Energy Inc., Xcel Energy Services, Inc. v. the State of Texas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-southwestern-public-service-company-xcel-energy-inc-xcel-energy-texapp-2023.