Infinity Capital II, LLC, Infinity Capital, LLC, Laurie A. McRay and McRay Money Management, LLC v. Strasburger & Price, LLP

CourtCourt of Appeals of Texas
DecidedAugust 11, 2016
Docket01-15-00691-CV
StatusPublished

This text of Infinity Capital II, LLC, Infinity Capital, LLC, Laurie A. McRay and McRay Money Management, LLC v. Strasburger & Price, LLP (Infinity Capital II, LLC, Infinity Capital, LLC, Laurie A. McRay and McRay Money Management, LLC v. Strasburger & Price, LLP) 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.

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Infinity Capital II, LLC, Infinity Capital, LLC, Laurie A. McRay and McRay Money Management, LLC v. Strasburger & Price, LLP, (Tex. Ct. App. 2016).

Opinion

Opinion issued August 11, 2016

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-15-00691-CV ——————————— INFINITY CAPITAL II, LLC, INFINITY CAPITAL, LLC, LAURIE A. MCRAY, AND MCRAY MONEY MANAGEMENT, LLC, Appellants V. STRASBURGER & PRICE, LLP, Appellee

On Appeal from the 281st District Court Harris County, Texas Trial Court Case No. 2014-32348

MEMORANDUM OPINION

In this interlocutory appeal, appellants, Infinity Capital II, LLC (“Infinity II”),

Infinity Capital, LLC (“Infinity”), Laurie A. McRay (“McRay”), and McRay Money

Management, LLC (“MMM”) (collectively, “Infinity Capital”), challenge the trial

court’s order denying their Motion to Vacate and granting the Motion to Confirm Arbitration Award of appellee, Strasburger & Price, LLP (“Strasburger”).1 In its

sole issue, Infinity Capital contends that the trial court erred in confirming, rather

than vacating, the arbitrator’s Final Award.

We affirm.

Background

In its Motion to Confirm Arbitration Award, Strasburger alleged that it

“initiated an arbitration proceeding” against McRay, MMM, and Infinity “to enforce

a settlement agreement previously entered into” by the parties. Subsequently,

Strasburger “added” Infinity II “as a party to the arbitration” proceeding.2

In its First Amended Statement of Claim, Strasburger alleged that on January

14, 2013, the co-trustees of the Maribel Allport Revocable Trust “entered into” a

Confidential Binding Settlement Agreement (the “Agreement”) with McRay,

MMM, and Infinity.3 The Agreement contained an arbitration provision, providing:

1 See TEX. CIV. PRAC. & REM. CODE ANN. § 171.098 (Vernon 2011) (party may appeal judgment or decree “confirming” arbitration award). 2 After Strasburger sought to add Infinity II as a party to the arbitration proceeding, Infinity Capital filed with the trial court its Original Petition and Emergency Application to Stay Arbitration Proceeding, seeking to prevent the addition of Infinity II as a party. Although not contained in the appellate record, the parties agree that the trial court “entered an Order requiring [Infinity II] to participate in the arbitration.” 3 As alleged by Infinity Capital in its Original Petition and Emergency Application to Stay Arbitration Proceeding, the co-trustees of the Maribel Allport Revocable Trust, in 2011, sued McRay, MMM, and Infinity (the “Allport Lawsuit”). Strasburger served as legal counsel for the co-trustees in that lawsuit. On January 14, 2013, the 2 Any future disputes of any kind or character between or among the parties hereto shall be resolved through binding arbitration before Alan F. Levin. Any agreed party shall provide the opposing party with written notice of the grievance or future dispute and shall provide five (5) days opportunity to cure. In the absence of satisfaction to the agreed party, such party shall notify the Arbitrator of the dispute and seek a near term hearing. The Arbitrator shall convene a hearing within thirty (30) days of such notice. . . . The Arbitrator’s ruling shall be final and binding on all matters whether substantive or procedural. . . .

McRay executed the Agreement on behalf of herself, individually, and as the

“Authorized Signatory” for MMM and Infinity. Infinity II was not a party to the

Agreement. The co-trustees “later assigned” to Strasburger “all their rights and

benefits under the . . . Agreement,” including their “interests” in certain “real

properties.”

Strasburger further alleged that Infinity Capital “wholly failed to comply with

the terms of the . . . Agreement,” “breached the terms of the . . . Agreement,”

“violated the fiduciary obligations imposed by th[e] Agreement,” and “entered into

a fraudulent scheme of conveying” the real properties in which Strasburger has

“interests.” According to Strasburger, these properties, which were “originally

owned by Infinity,” were “fraudulently conveyed” to Infinity II, “an entity wholly

owned and controlled by McRay.”

Following a hearing, the arbitrator issued the Final Award, stating:

parties to the Allport Lawsuit mediated their dispute and executed the Agreement, which is now the subject of the instant case.

3 The Parties appeared in person and through counsel before the Arbitrator for a final hearing on November 25, 2014. Upon careful consideration of the evidence adduced at trial, argument of counsel and all post-trial submissions through the date of this AWARD, the Arbitrator FINDS and RULES as follows:

1. The several requests by [Infinity Capital] for additional time to “prepare sound, grounded and reasonable legal briefs, in light of all [t]he circumstances[,]”[] is DENIED. It has been seven (7) months since the trial of this dispute.

2. The transfers of the following nine (9) properties from Infinity . . . to Infinity [II], as filed on May 8, 2013 and recorded in document number 20130221179, and as filed on January 7, 2015 and recorded in document number 20150007609 of the Official Public Records of Harris County, Texas were fraudulent and are therefore deemed null, void and of no legal force or effect:

1) 6007 Memorial Drive, #301, Houston, Texas 77007* 2) 3333 Allen Parkway, #1206, Houston, Texas 77019* 3) 6327 Borg Breakpoint, Houston, Texas 77379* 4) 3311 Yupon Street, #307, Houston, Texas 77006* 5) 3311 Yupon Street, #602, Houston, Texas 77006* 6) 3311 Yupon Street, #410, Houston, Texas 77006* 7) 5026 Charriton Drive, Houston, Texas 77039* 8) 8302 Burwood Park Drive, Spring, Texas 77379** 9) 9311 Enmore Court, Houston, Texas 77095**

3. Strasburger is GRANTED an equitable interest in and a lien on all of the above properties.

4. Infinity [II] is deemed the alter ego of . . . McRay and, therefore, is jointly and severally liable for the actual damages, and attorneys’ fees and expenses of Arbitration awarded to Strasburger in this Final Order.

5. . . . McRay, individually, [MMM], Infinity . . . and Infinity [II] . . . shall, jointly and severally, pay to Strasburger the sum of $1,413,164.00 as Strasburger’s actual damages in this matter. 4 6. . . . McRay, [MMM] and Infinity . . . shall pay to Strasburger the sum of $4,830.00 for sanctions as previously awarded to Strasburger in Arbitrator’s Order No. 7.

7. . . . McRay, [MMM], Infinity . . . and Infinity [II] shall pay to Strasburger the sum of $307.406.00 for its reasonable and necessary attorneys’ fees and expenses incurred in the prosecution of this Arbitration.

8. . . . McRay, [MMM], Infinity . . . and Infinity [II] shall pay to Strasburger the sum of up to $40,000.00 as reasonable and necessary attorneys’ fees and expenses in the event that this matter is unsuccessfully appealed to the Texas Court of Appeals by [Infinity Capital].

9. . . . McRay, [MMM], Infinity . . . and Infinity [II] shall pay to Strasburger the further and additional sum of $25,000.00 as reasonable and necessary attorneys’ fees and expenses in the event that this matter is unsuccessfully appealed to the Texas Supreme Court by [Infinity Capital].

10. Any original documents/deeds entrusted to the Arbitrator in the course of either this Arbitration or in the preceding mediation are subject to distribution by the Arbitrator pursuant to a written agreement by the parties. In the absence of such written agreement provided to the Arbitrator, any disputed documents being sought by any party from the Arbitrator will be deposited with the Court for disposition.

THIS IS A FINAL ORDER AND DISPOSES OF ALL CLAIMS FOR RELIEF SOUGHT BY ANY PARTY IN THIS ARBITRATION. ANY RELIEF NOT SPECIFICALLY GRANTED IS DENIED.

Strasburger then filed with the trial court its Motion to Confirm Arbitration

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Infinity Capital II, LLC, Infinity Capital, LLC, Laurie A. McRay and McRay Money Management, LLC v. Strasburger & Price, LLP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/infinity-capital-ii-llc-infinity-capital-llc-laurie-a-mcray-and-mcray-texapp-2016.