ACCEPTED 15-25-00143-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 9/26/2025 1:07 PM No. 15-25-00143-CV CHRISTOPHER A. PRINE CLERK FILED IN IN THE COURT OF APPEALS 15th COURT OF APPEALS AUSTIN, TEXAS FOR THE FIFTEENTH JUDICIAL DISTRICT 9/26/2025 1:07:45 PM AUSTIN, TEXAS CHRISTOPHER A. PRINE Clerk
Kelly Hancock, Acting Texas Comptroller of Public Accounts of the State of Texas, and Ken Paxton, Attorney General of the State of Texas
Appellants,
v.
ChampionX, LLC,
Appellee.
On Appeal from the 53rd Judicial District Court Travis County, Texas Cause No. D-1-GN-23-000226
JOINT MOTION TO ABATE APPEAL TO THE HONORABLE FIFTEENTH COURT OF APPEALS:
Appellants Kelly Hancock 1, Acting Texas Comptroller of Public Accounts
of the State of Texas, and Ken Paxton, Attorney General of the State of Texas, and
Appellee ChampionX, LLC respectfully move the Court to abate this appeal
pending resolution of the earlier-filed and related appeal, Glenn Hegar, et al. v.
ChampionX, LLC, No. 15-24-00111-CV (the “Lead Appeal”). As explained below,
both appeals involve the same parties and address common questions of law and
fact. Abating the instant appeal will conserve judicial and party resources and will
not delay the ultimate resolution of this case because the resolution of the Lead
Appeal will resolve this appeal.
I. Procedural Background
From January 2020 to January 2024, Appellee filed five substantively
identical tax refund lawsuits in the Travis County District Court, seeking to recover
sales and use tax, plus statutory interest, for multiple tax periods spanning March
2011 to October 2022. Appellee’s first three lawsuits (filed in January 2020,
February 2021, and August 2022) were consolidated under Cause No. D-1-GN-20-
000139 (“Cause 139”). The final two lawsuits (filed in January 2023 and January
2024) were consolidated under Cause No. D-1-GN-23-000226 (“Cause 226”)—the
1 Glenn Hager served as Comptroller of Public Accounts of the State of Texas at the time this lawsuit was filed in district court. As of July 1, 2025, Kelly Hancock serves as Acting Texas Comptroller of Public Accounts.
1 suit giving rise to this appeal. Every case advances the same two grounds for
refund: (i) the tangible personal property sold and leased to Appellee for use in the
manufacture and sale of goods are exempt from tax under Texas Tax Code
§ 151.318, and (ii) the related services Appellee purchased in connection with the
aforementioned property are exempt from tax under Texas Tax Code § 151.3111.
On February 1, 2023, the parties filed an Agreed Motion to Abate Cause 226
on the basis that Appellee’s earlier filed matters consolidated under Cause 139
concerned the same legal issues. The trial court entered an Agreed Order Granting
Abatement for Cause 226 on February 9, 2023.
Final judgment was entered in Cause 139 on September 19, 2024, and
Appellants filed a Notice of Appeal in the Lead Appeal (No. 15-24-00111-CV) on
October 10, 2024. Briefing in the Lead Appeal concluded on June 4, 2025, and the
case awaits determination. The Lead Appeal is set for oral argument before this
Court on October 30, 2025.
The trial court entered an Order Lifting Abatement and Granting Summary
Judgment in Cause 226 on December 6, 2024, and Final Judgment was entered on
July 30, 2025. Appellants filed the Notice of Appeal in this case on August 28,
2025.
The parties agree that the cases present common questions of law and fact
and any differences between them are minor (e.g., the cases cover different tax
2 periods). The parties also agree that the outcome of the first set of cases will
resolve the second set. Thus, both the Lead Appeal and this appeal present the
same dispositive legal issues concerning the application of Texas Tax Code
sections 151.318 and 151.3111 to Appellee’s purchases of property and the related
services. The Court’s resolution of the Lead Appeal will control the issues
presented in this appeal.
II. Arguments and Authorities
Abatement is appropriate when proceedings involve the same subject matter
and abatement will “conserve the parties’ and judicial resources and provide for
the orderly procedure in the determination of contested issues.” Perry v. Del Rio,
66 S.W.3d 239, 252 (Tex. 2001); Wyatt v. Shaw Plumbing Co., 760 S.W.2d 245,
248 (Tex. 1988). Courts routinely abate appeals while a prior appeal that is
dispositive of shared issues remains pending. See, e.g., City of Austin v. Sahyouni,
No. 03-23-00416-CV, 2023 WL 5597355, at *1 (Tex. App.—Austin Aug. 30,
2023, no pet.) (granting an agreed motion to abate an appeal pending the decision
in a Texas Supreme Court case that would resolve a “substantially similar and
dispositive issue”); AusPro Enters., LP v. Tex. Dep’t of Transp., No. 03-14-00375-
CV, 2015 WL 1967836, at *1 (Tex. App.—Austin Apr. 29, 2015, no pet.) (abating
an appeal because a pending Supreme Court decision “could resolve many, or even
possibly all, of the issues raised in this appeal”).
3 The Lead Appeal and this appeal involve the same substantive questions.
Because the Lead Appeal is fully briefed, abatement will spare the Court and the
parties unnecessary duplicative briefing and record-preparation expenses and
facilitate orderly, efficient resolution of all matters once a mandate is issued in the
Lead Appeal. Further, abatement will not prejudice either party. Both Appellants
and Appellee join in and consent to the requested relief.
PRAYER
For the foregoing reasons, Appellants and Appellee respectfully request the
Court enter an order:
1. abating this appeal and removing it from the Court’s active docket;
2. directing the parties, within forty-five (45) days after the decision and mandate in the Lead Appeal (No. 15-24-00111-CV), to submit a joint or separate letter addressing the impact of the decision in the Lead Appeal on this appeal; and
3. stating that the Court may, on its own motion or on motion of any Party, reinstate the appeal at any time.
4 Dated: September 26, 2025
Respectfully submitted.
KEN PAXTON JONES DAY Attorney General of Texas 1221 Peachtree Street NE, Suite 400 Atlanta, Georgia 30361 BRENT WEBSTER Telephone: (404) 521-3939 First Assistant Attorney General Facsimile: (404) 581-8330
RALPH MOLINA Deputy First Assistant Attorney General /s/ Deborah S. Sloan AUSTIN KINGHORN Deborah S. Sloan Deputy Attorney General for Civil State Bar No. 00786230 Litigation JONES DAY 2727 N. Harwood Street, Suite 500 STEVEN ROBINSON Dallas, Texas 75201-1515 Division Chief, Tax Litigation Division Telephone: (214) 220-3939 Facsimile: (214) 969-5100 /s/Kyle Pierce Counce dsloan@jonesday.com KYLE PIERCE COUNCE Assistant Attorney General John M. Allan State Bar No. 24082862 Antoinette L. Ellison Tax Litigation Division jmallan@jonesday.com P.O. Box 12548 aellison@jonesday.com Austin, Texas 78711-2548 Attorneys for Appellee 512-463-3312 512-478-4013 (fax) kyle.counce@oag.texas.gov Attorneys for Appellants
5 CERTIFICATE OF CONFERENCE
Under Texas Rule of Appellate Procedure 10.1(a)(5), I certify that on
September 3, 2025, Appellants and Appellee, who are the only proper parties to
this appeal, agreed to file this Joint Motion to Abate the Appeal.
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ACCEPTED 15-25-00143-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 9/26/2025 1:07 PM No. 15-25-00143-CV CHRISTOPHER A. PRINE CLERK FILED IN IN THE COURT OF APPEALS 15th COURT OF APPEALS AUSTIN, TEXAS FOR THE FIFTEENTH JUDICIAL DISTRICT 9/26/2025 1:07:45 PM AUSTIN, TEXAS CHRISTOPHER A. PRINE Clerk
Kelly Hancock, Acting Texas Comptroller of Public Accounts of the State of Texas, and Ken Paxton, Attorney General of the State of Texas
Appellants,
v.
ChampionX, LLC,
Appellee.
On Appeal from the 53rd Judicial District Court Travis County, Texas Cause No. D-1-GN-23-000226
JOINT MOTION TO ABATE APPEAL TO THE HONORABLE FIFTEENTH COURT OF APPEALS:
Appellants Kelly Hancock 1, Acting Texas Comptroller of Public Accounts
of the State of Texas, and Ken Paxton, Attorney General of the State of Texas, and
Appellee ChampionX, LLC respectfully move the Court to abate this appeal
pending resolution of the earlier-filed and related appeal, Glenn Hegar, et al. v.
ChampionX, LLC, No. 15-24-00111-CV (the “Lead Appeal”). As explained below,
both appeals involve the same parties and address common questions of law and
fact. Abating the instant appeal will conserve judicial and party resources and will
not delay the ultimate resolution of this case because the resolution of the Lead
Appeal will resolve this appeal.
I. Procedural Background
From January 2020 to January 2024, Appellee filed five substantively
identical tax refund lawsuits in the Travis County District Court, seeking to recover
sales and use tax, plus statutory interest, for multiple tax periods spanning March
2011 to October 2022. Appellee’s first three lawsuits (filed in January 2020,
February 2021, and August 2022) were consolidated under Cause No. D-1-GN-20-
000139 (“Cause 139”). The final two lawsuits (filed in January 2023 and January
2024) were consolidated under Cause No. D-1-GN-23-000226 (“Cause 226”)—the
1 Glenn Hager served as Comptroller of Public Accounts of the State of Texas at the time this lawsuit was filed in district court. As of July 1, 2025, Kelly Hancock serves as Acting Texas Comptroller of Public Accounts.
1 suit giving rise to this appeal. Every case advances the same two grounds for
refund: (i) the tangible personal property sold and leased to Appellee for use in the
manufacture and sale of goods are exempt from tax under Texas Tax Code
§ 151.318, and (ii) the related services Appellee purchased in connection with the
aforementioned property are exempt from tax under Texas Tax Code § 151.3111.
On February 1, 2023, the parties filed an Agreed Motion to Abate Cause 226
on the basis that Appellee’s earlier filed matters consolidated under Cause 139
concerned the same legal issues. The trial court entered an Agreed Order Granting
Abatement for Cause 226 on February 9, 2023.
Final judgment was entered in Cause 139 on September 19, 2024, and
Appellants filed a Notice of Appeal in the Lead Appeal (No. 15-24-00111-CV) on
October 10, 2024. Briefing in the Lead Appeal concluded on June 4, 2025, and the
case awaits determination. The Lead Appeal is set for oral argument before this
Court on October 30, 2025.
The trial court entered an Order Lifting Abatement and Granting Summary
Judgment in Cause 226 on December 6, 2024, and Final Judgment was entered on
July 30, 2025. Appellants filed the Notice of Appeal in this case on August 28,
2025.
The parties agree that the cases present common questions of law and fact
and any differences between them are minor (e.g., the cases cover different tax
2 periods). The parties also agree that the outcome of the first set of cases will
resolve the second set. Thus, both the Lead Appeal and this appeal present the
same dispositive legal issues concerning the application of Texas Tax Code
sections 151.318 and 151.3111 to Appellee’s purchases of property and the related
services. The Court’s resolution of the Lead Appeal will control the issues
presented in this appeal.
II. Arguments and Authorities
Abatement is appropriate when proceedings involve the same subject matter
and abatement will “conserve the parties’ and judicial resources and provide for
the orderly procedure in the determination of contested issues.” Perry v. Del Rio,
66 S.W.3d 239, 252 (Tex. 2001); Wyatt v. Shaw Plumbing Co., 760 S.W.2d 245,
248 (Tex. 1988). Courts routinely abate appeals while a prior appeal that is
dispositive of shared issues remains pending. See, e.g., City of Austin v. Sahyouni,
No. 03-23-00416-CV, 2023 WL 5597355, at *1 (Tex. App.—Austin Aug. 30,
2023, no pet.) (granting an agreed motion to abate an appeal pending the decision
in a Texas Supreme Court case that would resolve a “substantially similar and
dispositive issue”); AusPro Enters., LP v. Tex. Dep’t of Transp., No. 03-14-00375-
CV, 2015 WL 1967836, at *1 (Tex. App.—Austin Apr. 29, 2015, no pet.) (abating
an appeal because a pending Supreme Court decision “could resolve many, or even
possibly all, of the issues raised in this appeal”).
3 The Lead Appeal and this appeal involve the same substantive questions.
Because the Lead Appeal is fully briefed, abatement will spare the Court and the
parties unnecessary duplicative briefing and record-preparation expenses and
facilitate orderly, efficient resolution of all matters once a mandate is issued in the
Lead Appeal. Further, abatement will not prejudice either party. Both Appellants
and Appellee join in and consent to the requested relief.
PRAYER
For the foregoing reasons, Appellants and Appellee respectfully request the
Court enter an order:
1. abating this appeal and removing it from the Court’s active docket;
2. directing the parties, within forty-five (45) days after the decision and mandate in the Lead Appeal (No. 15-24-00111-CV), to submit a joint or separate letter addressing the impact of the decision in the Lead Appeal on this appeal; and
3. stating that the Court may, on its own motion or on motion of any Party, reinstate the appeal at any time.
4 Dated: September 26, 2025
Respectfully submitted.
KEN PAXTON JONES DAY Attorney General of Texas 1221 Peachtree Street NE, Suite 400 Atlanta, Georgia 30361 BRENT WEBSTER Telephone: (404) 521-3939 First Assistant Attorney General Facsimile: (404) 581-8330
RALPH MOLINA Deputy First Assistant Attorney General /s/ Deborah S. Sloan AUSTIN KINGHORN Deborah S. Sloan Deputy Attorney General for Civil State Bar No. 00786230 Litigation JONES DAY 2727 N. Harwood Street, Suite 500 STEVEN ROBINSON Dallas, Texas 75201-1515 Division Chief, Tax Litigation Division Telephone: (214) 220-3939 Facsimile: (214) 969-5100 /s/Kyle Pierce Counce dsloan@jonesday.com KYLE PIERCE COUNCE Assistant Attorney General John M. Allan State Bar No. 24082862 Antoinette L. Ellison Tax Litigation Division jmallan@jonesday.com P.O. Box 12548 aellison@jonesday.com Austin, Texas 78711-2548 Attorneys for Appellee 512-463-3312 512-478-4013 (fax) kyle.counce@oag.texas.gov Attorneys for Appellants
5 CERTIFICATE OF CONFERENCE
Under Texas Rule of Appellate Procedure 10.1(a)(5), I certify that on
September 3, 2025, Appellants and Appellee, who are the only proper parties to
this appeal, agreed to file this Joint Motion to Abate the Appeal.
/s/Kyle Pierce Counce Kyle Pierce Counce Assistant Attorney General
CERTIFICATE OF COMPLIANCE Microsoft Word reports that this document contains 826 words, excluding
preempted text.
/s/Kyle Pierce Counce Kyle Pierce Counce Assistant Attorney General
6 CERTIFICATE OF SERVICE
I hereby certify that on September 26, 2025, a copy of the foregoing
document has been sent to the other parties and counsel, as follows:
Deborah S. Sloan dsloan@jonesday.com JONES DAY 2727 N. Harwood Street, Ste. 500 Dallas, Texas 75201-1515
John M. Allan jmallan@jonesday.com Antoinette L. Ellison aellison@jonesday.com JONES DAY 1221 Peachtree Street NE, Ste. 400 Atlanta, Georgia 30361 Attorneys for Appellee
/s/Kyle Pierce Counce Kyle Pierce Counce Assistant Attorney General
7 Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules.
Lynee Pearson on behalf of Kyle Counce Bar No. 24082862 lynee.pearson@oag.texas.gov Envelope ID: 106133659 Filing Code Description: Motion Filing Description: 20250926 Joint Motion to Abate Status as of 9/26/2025 2:35 PM CST
Associated Case Party: Kelly Hancock Comptroller of Texas
Name BarNumber Email TimestampSubmitted Status
Kyle PierceCounce kyle.counce@oag.texas.gov 9/26/2025 1:07:45 PM SENT
Associated Case Party: ChampionX, LLC
Deborah S.Sloan dsloan@jonesday.com 9/26/2025 1:07:45 PM SENT