Law Offices of Wilson v. Texas Univest-Frisco, Ltd.

291 S.W.3d 110, 2009 Tex. App. LEXIS 4548, 2009 WL 1887325
CourtCourt of Appeals of Texas
DecidedJune 18, 2009
Docket05-08-01121-CV
StatusPublished
Cited by7 cases

This text of 291 S.W.3d 110 (Law Offices of Wilson v. Texas Univest-Frisco, Ltd.) 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
Law Offices of Wilson v. Texas Univest-Frisco, Ltd., 291 S.W.3d 110, 2009 Tex. App. LEXIS 4548, 2009 WL 1887325 (Tex. Ct. App. 2009).

Opinion

OPINION

Opinion By

Justice MOSELEY.

This is an appeal of a sanctions order entered against appellant, “The Law Offices of Robert D. Wilson.” The appeal asserts that the trial court entered the order after it lost jurisdiction to do so, that the order is barred by res judicata, and that “The Law Offices of Robert D. Wilson” is a non-existent entity. For the reasons below, we affirm.

FACTS

Mark Viracola and Chris Statzer (plaintiffs) sued appellee, Univest-Frisco, Ltd., and other parties (including Bellinger & Dewolf, LLP) concerning a real estate transaction. Their petition, filed in cause number 219-00461-06, was signed by “The Law Offices of Robert D. Wilson, P.C.” Univest filed an original answer, counterclaim, and cross-claim, and moved for sanctions against “The Law Offices of Robert D. Wilson” pursuant to Texas Rule of Civil Procedure 13. Later, Bellinger & Dewolf, LLP filed a motion for leave to designate “Robert D. Wilson and the Law Offices of Robert D. Wilson, P.C.” as third-party defendants. The trial court granted this motion, and later granted a motion allowing “Robert D. Wilson and the Law Offices of Robert D. Wilson, P.C.” to withdraw as plaintiffs’ counsel.

Thereafter, the trial court granted summary judgment disposing of all claims against Univest, save one claim for fraud. A few months later, in response to Uni-vest’s motion, the trial court severed into a new cause number (219-02326-07) “any and all claims between [pjlaintiffs ... and Defendant Texas Univest-Frisco, Ltd. .... ” That order was dated July 9, 2007.

Eventually, the parties remaining in the original action resolved their claims, and the trial court signed an agreed judgment disposing of the claims remaining in the original action on October 11, 2007.

Meanwhile, in the severed action, the trial court granted summary judgment in favor of Univest on plaintiffs’ remaining fraud claim on August 10, 2007. That order also granted Univest’s request for sanctions, stating: “Plaintiffs are hereby sanctioned in an amount to be determined for filing of frivolous pleadings.... ” Uni-vest subsequently nonsuited all remaining claims it had asserted against the plaintiffs and a ci’oss-defendant, and requested a hearing on sanctions. A few months later, the trial court entered a final judgment in the severed action that, among other things, imposed $21,000 in sanctions against the “Law Offices of Robert D. Wilson.” A notice of appeal on behalf of that named entity was filed; it was signed “Law Offices of Robert D. Wilson, P.C.,” by Robert D. Wilson.

*113 ANALYSIS

Appellant’s brief presents three issues. All of these issues relate to the trial court’s jurisdiction to enter the sanctions order, though none contests the facts regarding the grounds for sanctions or the amount of the sanctions.

This Court reviews sanctions on an abuse of discretion standard only. Low v. Henry, 221 S.W.3d 609, 614 (Tex.2007). However, appellant’s argument rests on both the personal and subject matter jurisdiction of the trial court. Personal jurisdiction is a question of law, reviewed de novo. BMC Software Belg., N.V. v. Maryland, 83 S.W.3d 789, 794 (Tex.2002). Appellant must nullify all jurisdictional bases of the trial court. See id. at 793. Subject matter jurisdiction is also a question of law, which we review de novo. Metro. Transit Auth. v. Burks, 79 S.W.3d 254, 256 (Tex.App.-Houston [14th Dist.] 2002, no pet.). We look to the plaintiffs claims made in good faith to decide whether the trial court had subject matter jurisdiction. Id.

I.

Appellant’s first issue asserts the trial court did not have plenary power over it in the severed action, cause number 219-02326-07. Appellant argues that the trial court lost plenary power over it thirty days after the trial court signed a final judgment in the initial suit because appellant was not a party to the severed suit.

A severance divides the underlying lawsuit into two or more separate and independent lawsuits. Hall v. City of Austin, 450 S.W.2d 836, 837-38 (Tex.1970). Each suit is distinct, resulting in separate, appealable final judgments. Van Dyke v. Boswell, O’Toole, Davis & Pickering, 697 S.W.2d 381, 383 (Tex.1985). When signed, an order granting severance is immediately effective. McRoberts v. Ryals, 863 S.W.2d 450, 452-53 (Tex.1993).

The purpose of imposing sanctions under rule 13 for filing groundless pleadings is to deter similar conduct in the future and to compensate the aggrieved party for costs incurred in responding to the frivolous claims. Scott & White Mem’l Hosp. v. Schexnider, 940 S.W.2d 594, 596-97 (Tex.1996). The trial court’s power to impose sanctions is limited to when it has plenary power. Id. at 596. The trial court retains plenary power for thirty days after the final judgment is signed. Tex.R. Civ. P. 329b(d). A nonsuit does not affect a motion for sanctions made after or pending at the time of dismissal, so long as the trial court’s plenary power has not expired. Crites v. Collins, 284 S.W.3d 839, 842-43 (Tex.2009). The court’s ability to impose sanctions for the filing of frivolous pleadings is not inhibited simply because the attorney is not representing the party when the sanctions are imposed. Bloom v. Graham, 825 S.W.2d 244, 248 (Tex.App.Fort Worth 1992, writ denied).

Appellant’s argument rests on the claim that appellant was not a party to the severed suit. However, the record indicates that on July 9, 2007, when the claims between plaintiffs and Univest were severed from the initial suit, Univest’s motion for sanctions, which was made in its reply, was transferred to the severed cause 219-02326-07. The severance became effective immediately when the motion was granted and signed. See McRoberts, 863 S.W.2d at 452-53. Because the final judgment for these claims was not entered in the underlying cause before severance, and because the request for sanctions was transferred to the severed cause, the court maintained plenary power over the sanctions request until thirty days after a final judgment was signed for the severed cause. See Scott & White, 940 S.W.2d at 596.

*114 In support of its argument, appellant argues that when it withdrew as plaintiffs’ lead counsel, it became a third-party defendant in the underlying lawsuit.

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291 S.W.3d 110, 2009 Tex. App. LEXIS 4548, 2009 WL 1887325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/law-offices-of-wilson-v-texas-univest-frisco-ltd-texapp-2009.