Kelly Clark, Alan Swindoll, Courtney Swindoll and ALS Associates, Inc. v. Hastings Equity Partners, LLC, Axios Industrial Group, LLP and a & L Ultimate Holdings, LLC

Court of Appeals of Texas·Decided January 20, 2022·No. 01-20-00749-CV·Published

Opinion

Opinion issued January 20, 2022

In The

Court of Appeals

For The

First District of Texas

court’s second order supersedes the first one and that the second order does not satisfy the requirements of Rule 683 of the Texas Rules of Civil Procedure. In the alternative, the majority holds that even if the second order does not supersede the first one, the two orders combined do not satisfy Rule 683’s requirements.

Because the majority’s alternative holding is correct, I concur in the court’s judgment. But the majority errs in its primary holding. The trial court’s second order, which merely modifies the scope of the temporary injunction in part, does not supersede the first order in its entirety. Blackletter law requires that we read the two orders together and harmonize them to give both effect. The majority’s contrary conclusion is neither compatible with the text of the two orders nor compelled by Rule 683 or precedent. Thus, I respectfully do not join the majority’s opinion.

BACKGROUND

In October 2020, the trial court entered an order in which it temporarily enjoined the appellants from doing any of the following pending trial:

(i) engaging in any business involving the furnishing of scaffolding, insulation, sandblasting and painting to industrial or commercial customers in Texas and/or Louisiana, except as provided below;

(ii) soliciting or inducing by any means any customer of Axios Industrial Group, LLC, A&L Ultimate Holdings, LLC, A&L Intermediate Holdings, LLC, A&L Sandblasting & Painting, Inc.

and Streamline Services, LLC to enter into or engage in any business with Respondents or any affiliated entity, except as provided below;

(iii) soliciting or inducing by any means any customer of Axios Industrial Group, LLC, A&L Ultimate Holdings, LLC, A&L Intermediate Holdings, LLC, A&L Sandblasting & Painting, Inc.

and Streamline Services, LLC to cease doing business or cancelling any existing business relationship with any of the Petitioner entities;

(iv) soliciting or inducing by any means any employee or independent contract laborer of Axios Industrial Group, LLC, A&L Ultimate Holdings, LLC, A&L Intermediate Holdings, LLC, A&L Sandblasting & Painting, Inc. and Streamline Services, LLC to resign or terminate their employment with any of the Petitioner entities or offer employment of any nature to any such individual with or for Respondents or any affiliated entity;

(v) destroying, removing, erasing, deleting, altering or disposing by any means or methods any documents, records, electronic mail, data, files, social media, text messages, voice mail, or other information or property relating in any way to the claims or allegations made in the pending suits filed under the above cause number; and

(vi) using, accessing, copying, divulging, disclosing or communicating to any person, firm or entity any “Confidential Information” defined in the Securities Purchase Agreement for any reason or purpose.

“The forgoing notwithstanding,” in its October 2020 order, the trial court

identified three services that the appellants could continue providing:

(i) Civil services of the type currently described on https://alsindustrial.com

(ii) Mechanical, welding or fabrication services; [and]

(iii) Painting, insulation and sandblasting related to new tanks fabricated and supplied for tank builders, provided that such work or services are done in Respondents’ shop facilities in Rosharon, Texas or inside a tank terminal or facility.

In November 2020, at the appellants’ request, the trial court entered a second order that modified the temporary injunction to the following extent:

The injunction expressed in sub-paragraph (iv), at page two, is clarified and amended to allow ALS Associates LLC to hire and/or to solicit for hiring any former employee or contractor of Axios Industrial Group, LLC, A&L Ultimate Holdings, LLC, A&L Intermediate Holdings, LLC, A&L Sandblasting & Painting, Inc. and Streamline Services, LLC (a) after the expiration of 90 days following said person’s permanent termination from employment or contract relationship at the instance of Axios Industrial Group, LLC, A&L Ultimate Holdings, LLC, A&L Intermediate Holdings, LLC, A&L Sandblasting & Painting, Inc. and/or Streamline Services, LLC; or, (b) after 180 days following the resignation or termination of the relationship of such employee or contractor of such relationship at his/her or its initiation.

Sub-paragraph (ii) under the paragraph beginning “The foregoing notwithstanding” on page 2 of the Temporary Injunction is amended to clarify that the permitted performance of “mechanical, welding or fabrication services” includes such additional functions as routinely and necessarily accompany the provision of such services in common practice in the industry. Such additional functions include the provision and use of necessary tools, equipment and materials, so long as same are provided and used directly in association with “mechanical, welding or fabrication services.”

The trial court’s November 2020 order did not otherwise modify the terms of the temporary injunction set forth in its October 2020 order. But the November order did not copy or restate the terms of the October order within its four corners.

DISCUSSION

The appellants appeal from the trial court’s temporary injunction. See TEX.

CIV. PRAC. & REM. CODE § 51.014(a)(4) (party may appeal from interlocutory order that grants or refuses temporary injunction). They argue that any order that modifies

a temporary injunction order replaces the original order and therefore must itself satisfy all the requisites of Rule 683 of the Texas Rules of Civil Procedure. In other words, the appellants maintain that the trial court’s “modified temporary injunction order cannot be read in conjunction with the original temporary injunction order to supply the information and statements required by Rule 683.” Because the trial court’s order modifying the temporary injunction does not satisfy all the requisites of Rule 683, the appellants argue, the trial court’s temporary injunction is void.

Standard of Review

We review a trial court’s order granting a temporary injunction for abuse of discretion. Abbott v. Anti-Defamation League Austin, Sw., and Texoma Regions, 610 S.W.3d 911, 916 (Tex. 2020) (per curiam). In resolving evidentiary issues, the trial court does not abuse its discretion if some evidence supports its ruling. Id. But the trial court abuses its discretion if it incorrectly analyzes or applies the law. See id.

Applicable Law

We interpret court orders and judgments in the same way that we ascertain the meaning of other written instruments. Lone Star Cement Corp. v. Fair, 467 S.W.2d 402, 404–05 (Tex. 1971); Garcia v. Kubosh, 377 S.W.3d 89, 98 (Tex. App.— Houston [1st Dist.] 2012, no pet.). We must interpret them “as a whole toward the end of harmonizing and giving effect to all the court has written.” Point Lookout W. v. Whorton, 742 S.W.2d 277, 278 (Tex. 1987) (per curiam). In interpreting an order

or judgment, we consider their “entire content.” Id. If taken as a whole, the order or judgment is unambiguous, then we “must declare the effect of the order in light of the literal meaning of the language used.” Quanto Int’l Co. v. Lloyd, 897 S.W.2d 482, 486 (Tex. App.—Houston [1st Dist.] 1995, no writ).

Rule 683 of the Texas Rules of Civil Procedure governs injunctions. It states:

Every order granting an injunction and every restraining order shall set forth the reasons for its issuance; shall be specific in terms; shall describe in reasonable detail and not by reference to the complaint or other document, the act or acts sought to be restrained; and is binding only upon the parties to the action, their officers, agents, servants, employees, and attorneys, and upon those persons in active concert or participation with them who receive actual notice of the order by personal service or otherwise.

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Kelly Clark, Alan Swindoll, Courtney Swindoll and ALS Associates, Inc. v. Hastings Equity Partners, LLC, Axios Industrial Group, LLP and a & L Ultimate Holdings, LLC, (Tex. Ct. App. 2022).

Kelly Clark, Alan Swindoll, Courtney Swindoll and ALS Associates, Inc. v. Hastings Equity Partners, LLC, Axios Industrial Group, LLP and a & L Ultimate Holdings, LLC (Kelly Clark, Alan Swindoll, Courtney Swindoll and ALS Associates, Inc. v. Hastings Equity Partners, LLC, Axios Industrial Group, LLP and a & L Ultimate Holdings, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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