in Re Sunset Nursing Home, Inc.

Court of Appeals of Texas·Decided June 29, 2015·No. 01-15-00530-CV·Published

Opinion

ACCEPTED

01-15-00530-CV

FIRST COURT OF APPEALS

HOUSTON, TEXAS

6/29/2015 2:09:45 PM

CHRISTOPHER PRINE

CLERK

NO. 01-15-00530-CV

IN RE: SUNSET NURSING HOME, INC. FILED IN 1st COURT OF APPEALS

HOUSTON, TEXAS

Relator, 6/29/2015 2:09:45 PM CHRISTOPHER A. PRINE

Clerk

Original Proceeding from the 239th District Court Brazoria County, Texas

Honorable Pat Sebesta, Presiding

REPLY MANDAMUS

Brandy R. Manning State Bar No. 24029703 BURLESON LLP 223 W. Wall Street, Suite 400 Midland, Texas 79701 bmanning@burlesonllp.com Telephone: 432.253.8603 Facsimile: 432.253.8601

Felicia L. Harris State Bar No. 24002438 fharris@burlesonllp.com BURLESON LLP 700 Milam Street, Suite 1100 Houston, Texas 77002 Telephone: 713.358.1700 Facsimile: 713.358.1717

TO THE HONORABLE COURT OF APPEALS:

The Grethers’1 chief complaint is that trial is currently set for August 2015.

The Responses’ theme is expediency—“a trial court has a duty to schedule its cases in such a manner as to expeditiously dispose of them.” 2 Response at 26. They ask this Court to reward their unrelenting obstruction of Sunset’s diligent search for the truth by forcing Sunset to trial against only half of the responsible parties and without the evidence to which it is entitled under the Rules. Justice and fairness must not yield to expediency. Without mandamus relief, trial is not “expedient”—it is a waste of time.

I. The Grethers’ procedural protests are without merit.

Rather than meet Sunset’s substantive arguments, the Grethers assail the form of Sunset’s Petition, particularly counsel’s affidavit proving up record documents and a handful of facts not evident from the written record. Critically, the Grethers do not question the authenticity of any record document, nor do they point this Court to any unsupported factual allegation. Counsel’s signature alone substantiates her good faith belief that every statement has factual and legal support. TEX. R. CIV. P. 13 (Attorney’s signature certifies that she has read the

1 Sunset replies to both Responses filed and will refer to Coleman and the Grethers collectively as “the Grethers” unless otherwise noted.

2 Response at 26. The case cited holds that a trial court had discretion to dismiss a will contest when a party with ample notice failed to timely post a cost bond. Clanton v. Clark, 639 S.W.2d 929, 931 (Tex. 1982).

pleading, motion, or other paper and that she believes, after reasonable inquiry, that the motion is not groundless or brought in bad faith (i.e., has factual and legal support)). The matter is easily resolved by counsel’s amended supporting affidavit. See In re Cahill, 267 S.W.3d 104, 106 (Tex. App.—Corpus Christi 2008, orig. proceeding) (even a defect in verification is subject to correction, and does not preclude the Court’s consideration of a mandamus petition).

Similarly, the Grethers assail the record, and ask this Court to disregard any document not filed with the Court. Sunset filed an exhaustive record, containing sworn copies of key documents either filed with the court and/or providing the basis for its Petition. It also filed a short appendix, containing copies of the most critical record documents as well as the text of Rule 63, for the court’s convenience. The purpose of the rules regarding the appendix and record are to provide the court with both evidentiary support for every factual allegation made and an expedient method to review these documents. See, generally, TEX. R. APP. P. 52. Sunset has accomplished both goals and asks the Court to consider the sworn documents provided as it deems appropriate in reviewing Sunset’s petition.

I. This Court should issue mandamus compelling the trial court to vacate its order striking Sunset’s amended pleadings.

a. The trial court clearly abused its discretion in striking Sunset’s amended pleadings.

The Grethers agree: “A trial court has no discretion in determining what the law is or applying law to the facts.” Response at 10. Thus, “a trial court clearly abuses its discretion when it reaches a decision so arbitrary and unreasonable as to constitute a clear and prejudicial error of law, or if it clearly fails to correctly analyze or apply the law.” Id.

Despite their dissatisfaction with Sunset’s recitation of the facts, the Grethers do not deny key facts.

• The only docket control order entered was based on an October 2014 trial date. R59.

• The trial court, in mid-2014, continued the first trial setting (October 2014). R1A.

• Sunset proposed a DCO based on an April 13, 2015 trial date (the second trial setting)—it included a January 30, 2015 deadline to amend pleadings. R64.

• In response, the Grethers confirmed their approval of the proposed pleadings deadline:

“The DCO dates looked ok to me. I’ll get you a signature on an agreed order to submit the dates to the court.”

Id.; See also R75 at Exhibit P. This October 2014 email exchange was months before the exchange cited in the Response. Compare R64 to R73.

• The December email exchange cited in the Response occurred after Coleman’s deposition and just before Richards’, when the Grethers realized that Sunset either knew or would soon confirm facts to support pleadings against all of the Grether parties, including Coleman. Until then, the Grethers acted consistently with the parties’

and court’s understanding that DCO deadlines had been lifted. 3 See, e.g., R75 and Exhibits at P, Q, R (attached thereto).

• The Grethers contend that a deadline to amend pleadings “necessarily included amended pleadings adding parties.” Response at FN52.

Thus, an extended deadline to amend pleadings was also an extended deadling to add parties.

• Sunset amended pleadings in response to Coleman’s and Richards’

depositions, which were sought as early as Spring 2014, but delayed by the Grethers 4, and not obtained until near the end of the year.

• Sunset’s 2014 filings (R105 and R35), deposition questions (R75 at Exhibit J), information the Grethers were gathering regarding the nursing home market in Southern Brazoria County in early 2011 (R111, 112, 113), and the Grethers’ own actions during the change of control reveal the Grethers not only could have anticipated an antitrust claim – but should have anticipated it. See Stephenson v. LeBoeuf, 16 S.W.3d 829, 839 (Tex. App.—Houston [14th Dist.] 2000, pet. denied)

(amendment not prejudicial on its face if could have anticipated it). The anticompetitive activity is at the heart of Sunset’s case against all of the Defendants since there would have been no reason for RAI or Plantation (both non-operational) to sabotage the operations of the Sunset’s facilities, except to benefit CVC, GHCF (and ultimately Richards and Stewart) which were each controlled by Ms. Richards and Ms. Stewart -- the sole owners of CVC, which now owns 99% of GHCF.

3 Critically, the Grethers do not deny the trial court’s statement lifting all deadlines in the DCO. Their objection is simply to the lack of a transcript from that hearing. A transcript—had one been created, Sunset would have included it in the Record—is not the only evidence of the Court’s decision, however. The motion Sunset filed (R62) asking for a continuance and the lifting of all deadlines (which was granted, even though the Court did not sign an order), followed by the parties and the court’s actions after that hearing, and the affidavit of Sunset’s counsel (which the Grethers do not refute) are ample evidence of that decision.

4 A summary of the discovery hurdles Sunset faced in 2014 are summarized in Sunset’s Motion for Sanctions and the First and Second Supplement to that motion. See R35.

• Moreover, neither the Grethers nor Coleman presented evidence in the trial court below, nor argue here, that they were surprised or prejudiced by Sunset’s April Amended Pleading. Further, because there is no docket control order in place, the deadline to amend pleadings still has not expired. TEX. R. CIV. P. 63.

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