Michael Robinson, Carol Robinson and the 2000 Horizon Company, AKA Lighthouse Energy Service Co. v. William Cason and Black Sigma, LLC

Court of Appeals of Texas·Decided July 2, 2013·No. 01-11-00916-CV·Published

Opinion

Opinion issued July 2, 2013.

In The

Court of Appeals

For The

First District of Texas

Energy Service Company (“Horizon”), appeal from the summary judgment in favor of William Cason and Black Sigma, LLC. We conclude that the trial court properly entered summary judgment enforcing the settlement agreement, and we find no error in the remaining issues on appeal. We therefore affirm.

Background

Michael Robinson founded Horizon and is its majority shareholder. Cason is a minority shareholder in Horizon. Cason and Robinson together serve on Horizon’s board of directors.

In September 2010, Cason sued Robinson, alleging that Robinson had misused corporate funds for personal gain, forged Cason’s signature on promissory notes, and concealed his actions from the board of directors. Cason brought claims individually and on behalf of Horizon, including claims for breach of fiduciary duty, fraud, investor oppression, and theft. The lawsuit (cause number 59473) was assigned to the 23rd District Court.

While the lawsuit was pending, a property dispute arose between Cason and Robinson. Robinson had purchased property on behalf of Horizon in 2004 by borrowing $475,000.00 from a lender named John Benkenstein. In September 2010—around the time Cason sued Robinson—Cason purchased Robinson’s promissory note, vendor’s lien, and deed of trust from Benkenstein. As assignee, Cason obtained Benkenstein’s rights under the note, including any claims

Benkenstein held against Robinson and the right to foreclose on the underlying property in the event of default. Robinson’s promissory note contains the following provision regarding notice of acceleration: “[Robinson] and each surety, endorser and guarantor waive all demand for payment, presentation for payment, notice of intention to accelerate maturity, notice of acceleration of maturity, protest and notice of protest . . . .”

After Cason acquired the note, he notified Robinson that he had purchased it and that Robinson had defaulted on it by failing to maintain proper insurance on the property, repay taxes paid by the lender, and obey restrictive covenants imposed on the land. Cason gave Robinson thirty days to cure the defaults. In reply, Robinson tendered a check in the amount of $9,024.00, maintaining that the payment cured his defaults.

In November 2010, Cason assigned Robinson’s promissory note to Black Sigma—a limited liability company in which Cason is the managing member. Black Sigma accelerated Robinson’s promissory note and demanded payment. Black Sigma contended that Robinson remained in default by failing to timely pay property taxes, repay taxes paid by the previous lender, and obey restrictive covenants. Black Sigma enclosed the appointment of a substitute trustee and notice of the trustee’s sale along with the notice of acceleration.

After Cason transferred the note to Black Sigma, Robinson counterclaimed in the suit for breach of fiduciary duty, tortious interference, defamation, and intentional infliction of emotional distress. He contended that Cason had breached his fiduciary duties to Horizon and interfered with Horizon’s business by purchasing the promissory note and assigning it to Black Sigma. On the same day that Robinson filed his counterclaims, he moved for a temporary restraining order and injunction to prevent Black Sigma from foreclosing on the property. His motion alleged that Cason operated Black Sigma as an alter ego. All of the parties agree that the trial court denied Robinson’s motion, but the record does not include the disposition.

After the 23rd District Court denied Robinson’s motion, he petitioned the 149th District Court (cause number 61122) for a TRO, temporary injunction, and permanent injunction to prevent the substitute trustee’s foreclosure sale. The 149th District Court enjoined the sale and, after discovering the pending action before the 23rd District Court, signed a handwritten order that both cases be presented to the 23rd District Court to determine whether consolidation was proper. The handwritten order permitted the substitute trustee to accept bids at the foreclosure sale but left unchanged the temporary injunction against any transfer of the deed until the 23rd District Court ruled on the matter.

The 23rd District Court consolidated cause number 61122 in the 149th District Court into cause number 59473 in the 23rd District Court; the court’s order consolidating the cases vacated the TRO and handwritten order entered by the 149th District Court. The substitute trustee subsequently conveyed the deed to the property to the highest bidder at the foreclosure sale, Black Sigma.

In March 2011, Robinson filed third-party claims against Black Sigma to quiet title and for wrongful foreclosure and breach of contract. Robinson alleged that he had timely cured all defaults under the promissory note, Black Sigma had failed to provide adequate notice of the trustee’s sale, and the sale violated the 149th District Court’s TRO. Robinson moved for summary judgment; Black Sigma filed a cross-motion for summary judgment, asserting that the TRO did not apply to void the sale, and Black Sigma properly exercised its rights as assignee of the promissory note. The trial court signed an interlocutory order granting summary judgment in favor of Black Sigma in May 2011.

During this time, Cason’s suit for breach of fiduciary duty remained pending before the 23rd District Court, along with Robinson’s counterclaims. In late December 2010, Robinson appeared for his deposition in a separate lawsuit. Cason also appeared at the deposition.

During the course of the deposition, Cason and Robinson reached a settlement. They dictated its terms to the court reporter, who transcribed them in an

independent volume labeled with the 59473 cause number. Generally, the settlement requires Robinson to acknowledge that Black Sigma holds title to the disputed property and convey two tracts of land, their legal descriptions set forth in an attached exhibit, to Cason. In exchange, Cason agreed to convey his outstanding Horizon stock to Robinson and resign from any position he holds with Horizon. Cason also agreed to let Robinson remain on the foreclosed property for a period of six months, conditioned on his maintaining insurance on the property and running his company in a commercially reasonable manner during that occupancy.

The parties mutually agreed to exchange standard releases and to formalize the dictated provisions in a formal settlement agreement. Further, they agreed that the parties would bear their own attorney’s fees and costs in connection with the litigation. They expressly referenced the consolidated cause in agreeing that “[a]ll the claims are dismissed against all entities.”

The dictated settlement also provides that, in the case of any dispute among the parties concerning the interpretation of the agreement—including the meaning of any ambiguous term or the wording of the releases—the 23rd District Court would be the ultimate arbiter, so that the settlement “is not an agreement to make an agreement, but an absolute full, final, complete agreement” resolving all claims between Cason and Robinson.”

In February 2011, Cason moved to enforce the settlement agreement and for judgment on all claims. Cason attached a copy of the December 2010 deposition transcript to his motion along with an unsigned draft of a written settlement memorializing the December 2010 agreement. Cason then moved for summary judgment, asking the trial court to enforce the settlement agreement against Robinson. Cason again tendered a copy of the deposition transcript to the trial court, along with the court reporter’s notarized acknowledgment of the settlement agreement and a copy of a substitute trustee’s deed. Cason included a copy of his lawyer’s affidavit certifying the above documents.

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Michael Robinson, Carol Robinson and the 2000 Horizon Company, AKA Lighthouse Energy Service Co. v. William Cason and Black Sigma, LLC, (Tex. Ct. App. 2013).

Michael Robinson, Carol Robinson and the 2000 Horizon Company, AKA Lighthouse Energy Service Co. v. William Cason and Black Sigma, LLC (Michael Robinson, Carol Robinson and the 2000 Horizon Company, AKA Lighthouse Energy Service Co. v. William Cason and Black Sigma, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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