In Re Texas Genco, LP

169 S.W.3d 764, 2005 Tex. App. LEXIS 6367, 2005 WL 1907209
CourtCourt of Appeals of Texas
DecidedAugust 10, 2005
Docket10-05-00239-CV
StatusPublished
Cited by6 cases

This text of 169 S.W.3d 764 (In Re Texas Genco, LP) 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 Texas Genco, LP, 169 S.W.3d 764, 2005 Tex. App. LEXIS 6367, 2005 WL 1907209 (Tex. Ct. App. 2005).

Opinions

OPINION

FELIPE REYNA, Justice.

Texas Genco seeks a writ of mandamus directing Respondent, the Honorable H.D. Black, Jr., Judge of the 77th District Court of Freestone County, to vacate an order permitting Valence Operating Company to depose Texas Genco’s chief executive officer. We will conditionally grant the requested relief.

Texas Genco operates a power plant located on property in Limestone and Freestone Counties and known as the Limestone Electric Generating Station. Texas Genco also owns the surface estate of a neighboring 392-acre tract of land which is designated as a solid waste facility for the disposal of waste byproducts generated by the plant. Valence owns significant mineral interests in the disposal site property.

Valence obtained a permit from the Railroad Commission to drill a gas well on the property, entered the land, and prepared a site for the well. Texas Genco filed suit seeking a temporary restraining order and seeking to enjoin Valence from drilling the well. Texas Genco’s suit contends that Valence’s drilling activities breach Valence’s duty to accommodate Texas Gen-co’s rights as the owner of the surface estate because drilling at the contemplated location “would permanently and irreversibly damage [Texas Genco’s] long-planned, TCEQ-approved use of the land as a Disposal Site.”

Valence contends that its operations will not interfere with Texas Genco’s current use of the property because Texas Genco is not presently disposing (and has never disposed) of waste byproducts from the Limestone Plant at the property. Thus, Valence argues that discovery regarding profitability, revenues, and costs for the Limestone Plant and regarding Texas Genco’s future plans for the Limestone Plant are “critical” to determine whether the proposed drilling will substantially impair Texas Genco’s use of the land.

When Valence sought to depose Texas Genco CEO Jack Fusco, Texas Genco responded with a motion to quash Fusco’s deposition notice and, in response to Valence’s motion to compel, a motion for protection. Texas Genco supported its motion for protection with Fusco’s affidavit, which states in pertinent part:

• “I am the Chief Executive Officer of Texas Genco LLC.... Prior to [Texas Genco’s] acquisition [of the Limestone Plant] in December 2004, I had no involvement in the operation or management of the Limestone Plant....”
• “I have no specialized or unique knowledge of the operations of the Limestone Plant, or of its landfill. I have no personal knowledge of Texas Genco’s disputes with Valence concerning the landfill at the Limestone Plant, or of this lawsuit, other than what has been reported to me by our Chief Legal Officer, outside counsel, and whatever information about the litigation was included in due diligence materials related to the acquisition of the plants from Texas Genco Holdings, Inc.”
• “The Limestone Plant has its own management, which is responsible for its day to day operations, including [767]*767the landfill. Don Poe is the manager of the Limestone Plant. Mr. Poe does not report directly to me.”

At a hearing on the parties’ competing motions, Valence argued that Fusco should be deposed because: (1) he was “the chief architect” of the transaction by which Texas Genco purchased assets from Center-point Energy, including the Limestone Plant and knows the details of that transaction; (2) he has “relevant information about the transaction, valuation, profitability, [and] how [the Limestone Plant fits within] the grand scheme [of Texas Genco operations]”; and (3) Valence has been unable to obtain this information in the depositions of two other witnesses offered by Texas Genco.

Texas Genco replied that Fusco should not be ordered to submit to a deposition because Valence did not show that he possesses unique or superior personal knowledge of discoverable information.

Respondent granted Valence’s motion to compel and denied Texas Genco’s motion for protection.

Texas Genco contends that the court abused its discretion by permitting Valence to depose Fusco because Valence did not show that: (1) Fusco has “any unique or superior personal knowledge of discoverable information”; or (2) less intrusive means of discovery have proven insufficient.

According to the apex deposition doctrine, when a party seeks to depose a high level corporate official, a corporation may seek to shield the official from the deposition by filing a motion for protection supported by the official’s affidavit denying knowledge of any relevant facts. In re Alcatel USA Inc., 11 S.W.3d 173, 175 (Tex.2000) (orig.proceeding). A trial court determines such a motion by first deciding whether “the party seeking the deposition has ‘arguably shown that the official has any unique or superior personal knowledge of discoverable information.’ ” Id. at 175-76 (quoting Crown Cent. Petroleum Corp. v. Garcia, 904 S.W.2d 125, 128 (Tex.1995) (orig.proceeding)).

“If the party seeking the deposition cannot show that the official has any unique or superior personal knowledge of discoverable information, the trial court should” not allow the deposition to go forward without a showing, after a good faith effort to obtain the discovery through less intrusive means, “(1) that there is a reasonable indication that the official’s deposition is calculated to lead to the discovery of admissible evidence, and (2) that the less intrusive methods of discovery are unsatisfactory, insufficient or inadequate.”

Id. at 176 (quoting Crown Cent. Petroleum, 904 S.W.2d at 128).

Valence cites In re Columbia Rio Grande Healthcare, L.P. for the proposition that Fusco’s affidavit did not adequately deny knowledge of relevant facts to invoke the apex deposition analysis. 977 S.W.2d 433 (TexA.pp.-Corpus Christi 1998, orig. proceeding). Texas Genco relies on a more recent decision of the Fort Worth Court to support its contention that Fusco’s affidavit is sufficient. See In re Burlington N. & Santa Fe Ry., 99 S.W.3d 323 (Tex.App.-Fort Worth 2003, orig. proceeding).

In Columbia Rio Grande Healthcare, a negligent credentialing case, Columbia identified its CEO in discovery as “the person most knowledgeable regarding [physician contracts].” 977 S.W.2d at 434. The plaintiffs sought to depose the CEO, and Columbia filed a motion to quash the deposition notice. The trial court denied this motion. The appellate court denied Columbia’s mandamus petition, concluding that, even though the CEO in his affidavit [768]*768“denied personal knowledge of many aspects of the lawsuit,” he did not deny knowledge of the hospital’s physician contracts or of the hospital’s credentialing practices, and he did not broadly deny “any knowledge of relevant facts.” Id.

Conversely, in the Burlington Northern

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In Re Texas Genco, LP
169 S.W.3d 764 (Court of Appeals of Texas, 2005)

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Bluebook (online)
169 S.W.3d 764, 2005 Tex. App. LEXIS 6367, 2005 WL 1907209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-texas-genco-lp-texapp-2005.