King v. Holland

884 S.W.2d 231, 1994 WL 542037
CourtCourt of Appeals of Texas
DecidedOctober 6, 1994
Docket13-93-309-CV
StatusPublished
Cited by39 cases

This text of 884 S.W.2d 231 (King v. Holland) 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
King v. Holland, 884 S.W.2d 231, 1994 WL 542037 (Tex. Ct. App. 1994).

Opinion

OPINION

KENNEDY, Justice.

We withdraw our opinion of August 18, 1994 and enter this opinion in its place. Deicer and Renda King sued David C. Holland and David C. Holland & Company, P.C., d/b/a Holland & Stephenson for legal malpractice. The court granted Holland’s motion for summary judgment based on statute of limitations against most of the Kings’ claims detailed below. The court then dismissed the ease for want of prosecution. We affirm in part and reverse and remand in part.

The Kings wanted to sell their farm to Wilhelm Degen, but minimize the tax consequences to themselves. The Kings wholly owned El Campo Well Services, Inc. which, in turn, owned the farm, El Campo Equipment Company, Inc., and cash. The Kings hired Holland to construct the transaction to divest ECWS of the equipment company and the cash, then convey the land through a stock transfer to Degen. Holland complied, and the sale closed on April 15, 1981.

The Kings claim they demanded and Holland agreed to provide four things: a secured interest in the property, a provision to prohibit the buyer from encumbering the real estate, a provision that the buyer timely pay existing notes and taxes and furnish the Kings with notice of the payments, and a secured interest in the stock. Before the closing, the Kings examined the documents that were to provide these guarantees. Included among these documents was the security escrow agreement (SEA). The Kings complain that, despite Holland’s assurances, the agreements failed to provide these protections; two exhibits (A and B) to the SEA were missing, apparently contributing to the failure. The Kings also complained of Holland’s failure to file a deed of trust to give notice of the Kings’ security interest in the land.

The transaction did not go as the Kings planned. Degen was thirty to forty-five days late with his first payment to the Kings, due on April 15, 1982. He was also late with payments to one of the original lienholders as well as to taxing authorities. In 1984, they renegotiated with Degen and got a new promissory note. That year, they attempted to use the SEA to foreclose against Degen and discovered the nonexistence of their security interest and the existence of liens established by others after the transaction that were superior to their own nonexistent one. The Kings contend that Holland’s malfeasance thereby damaged them.

They filed suit on April 15,1985. The case was on the court’s docket for eight years. During that period, the court sanctioned the Kings for discovery abuse and other dilatory tactics. The Kings’ counsel sought to withdraw because they refused in 1986 and 1987 to meet with him. The court placed the case on its dismissal docket for want of prosecution in 1987, 1989,1990,1991, and 1992. The case was dismissed for want of prosecution in early 1992, but was reinstated.

On September 17, 1992, the court granted Holland’s motion for summary judgment against the Kings’ claims for legal malpractice, negligence, breach of warranty, breach of fiduciary duty and violations of the Texas Deceptive Trade Practices-Consumer Protection Act. The court announced that the fraud claim would survive and be severed from the others. The severance was never reduced to a written order, however, and was not effective. The court signed an order memorializing the summary judgment the next day.

*234 The parties apparently never received notice of this order. The Kings moved the court to reconsider the summary judgment to allow them to refile their response, this time with proper service to the opposing party, so that the response could be considered on appeal. The Kings also noted that reconsideration would allow Holland to correct defects in the proof attached to his motion for summary judgment. Soon after, Holland filed an amended motion for summary judgment to correct those defects.

In January 1993, the court again placed this case on the dismissal docket. At the hearing on the motion to dismiss, the court granted the motion to reconsider the summary judgment, granted leave to file the amended motion for summary judgment, and granted that amended motion. The court then stated that the case was dismissed for want of prosecution. In April 1993, the court held a hearing on the motion to reinstate the case, and denied the motion.

Before reaching the merits of the point of error attacking the summary judgment, we distinguish a similar case in which we declined to address the merits of such points. See Aguilar v. Maverick Eng’g Co., 752 S.W.2d 727 (Tex.App. — Corpus Christi 1988, no writ). In Aguilar, we held that we could not reach such points when the court had dismissed the entire cause for want of prosecution'. Id. at 727-728. There, the plaintiff appealed the trial court’s grant of summary judgment against his claims. Id. at 727. We dismissed his appeal for want of jurisdiction because a defendant’s counterclaim remained pending, rendering the summary judgment interlocutory. Id. at 728. On remand, the trial court dismissed the entire cause for want of prosecution. Id. On appeal, the plaintiff attacked only the summary judgment. We wrote:

We are aware that appellant was not in a position to prosecute his case since an interlocutory summary judgment had been granted against him. However, absent a point of error complaining of the order of dismissal, or argument concerning the dismissal order, error, if any, in the interlocutory summary judgment would not be reversible.

Id. (emphasis added). We overruled the points of error because we could not reach them. By contrast, the trial court in the final judgment here memorialized the granting of the amended motion for summary judgment, then proceeded to dismiss the case. Unlike Aguilar, the Kings raise points of error against both the dismissal and the summary judgment. These facts critically distinguish the case from Aguilar and free us from its holding.

We must also address Holland’s claims that the wording of the final judgment reveals that the court granted summary judgment against and, alternatively, dismissed for want of prosecution the non-fraud claims. In its final judgment, the court first granted the motion for partial summary judgment and specified the causes of action extinguished thereby. In the next paragraph, the court wrote that “this case is dismissed for want of prosecution;” to so order, the court excised the phrase “all remaining claims of the Plaintiff” and inserted “this case.”

We disagree that this substitution establishes dismissal as an alternate basis for the extinction of the non-fraud causes eliminated by the summary judgment. The sequence of the order shows that the court granted the summary judgment before dismissing the case. The causes eliminated by the summary judgment were no longer part of the ease dismissed.

If the court adopted Holland’s interpretation and intended also to dismiss the non-fraud claims for want of prosecution, the court erred. We reverse dismissals for want of prosecution for clear abuse of discretion. State v. Rotello, 671 S.W.2d 507, 508-09 (Tex.1984).

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Cite This Page — Counsel Stack

Bluebook (online)
884 S.W.2d 231, 1994 WL 542037, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-v-holland-texapp-1994.