New Process Steel Corp. v. Steel Corp. of Texas

638 S.W.2d 522, 1982 Tex. App. LEXIS 4369
CourtCourt of Appeals of Texas
DecidedMay 6, 1982
Docket01-82-0002-CV
StatusPublished
Cited by23 cases

This text of 638 S.W.2d 522 (New Process Steel Corp. v. Steel Corp. of Texas) 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
New Process Steel Corp. v. Steel Corp. of Texas, 638 S.W.2d 522, 1982 Tex. App. LEXIS 4369 (Tex. Ct. App. 1982).

Opinion

PRICE, Justice.

This is an appeal from the denial of a temporary injunction that sought to prevent appellee from prosecuting a suit in Tulsa, Oklahoma involving substantially the same parties and the same issues.

New Process Steel (NPS) and Steel Corp. of Texas (SCOT) are both creditors of S & S Alloys, Inc. (S & S). E. R. Fant, Inc. is a holding company which, in January 1979, acquired all of the stock of S & S. E. R. Fant is the principal shareholder of E. R. Fant, Inc., and has control of NPS.

In January, 1978, S & S executed a $1,000,000.00 note to SCOT secured by all of the assets of S & S due to the previous debts owed to SCOT. Later in 1978, an alleged agreement was reached whereby NPS would purchase the stock of S & S. There were negotiations between the parties concerning the reorganization of S & S’s debt to SCOT. The terms of the agreement that were allegedly finalized included: 1) cancellation of the $1,000,000.00 note; 2) release of mortgage liens upon real estate owned by S & S; 3) and a release of security interests in all inventory and accounts receivable owned by S & S.

Appellants filed suit in Harris County on August 16, 1979, alleging that SCOT had *524 refused to perform on the agreement. Ap-pellee, Scot, maintains that Mr. Keifer, past president of SCOT, who negotiated the contract with NPS and S & S, did not have authority to do so, and filed suit in Tulsa, Oklahoma, on September 26, 1979, seeking recovery on the note and appointment of a receiver to prevent concealment of S & S’s assets. On October 12, 1979, the trial court appointed a receiver. Since that time, appellants have twice sought a plea in abatement in the Oklahoma Court to abate that action. Both times the Oklahoma court denied the plea. Appellants thereafter filed an injunction proceeding in the 133rd District Court of Harris County to enjoin the appellee from proceeding with the Oklahoma suit. This injunction was denied by the trial court.

The appellants raise only one point of error alleging that the trial court erred in denying the request for injunctive relief. In claiming their right to an injunction as a matter of law, the appellants argue:

1) that the doctrine of comity dictates that the case should proceed to judgment in the jurisdiction which attached first;
2) that the denial of the injunction promotes a multiplicity of suits;
3) that they are irreparably harmed by the expense of litigating the case in Oklahoma since some witnesses reside in Texas and corporate records and books would have to be sent to Oklahoma;
4) that the doctrine of forum non conven-iens dictates that the case would be more appropriately tried in Texas;
5) and finally that the existence of a receiver in Oklahoma would not prevent a determination by the Texas Court of the issues to be resolved, since a determination of those issues would in no way affect the receiver’s powers or custody over the res.

Trial courts have broad discretion in granting or denying temporary injunctions. Hartwell’s Office World, Inc. v. Systex Corp., 598 S.W.2d 636 (Tex.Cr.App.—Houston [14th Dist.] 1980, ref’d n. r. e.). The appellate court cannot substitute its discretion for that of the trial court; it has no independent discretion in reviewing an order. Our sole function is to determine whether there has been a clear abuse of discretion by the trial judge. Texas Foundries v. International Moulders and Foundry Worker’s Union, 151 Tex. 239, 248 S.W.2d 460 (1952). Here, as no findings of factor conclusions of law were filed, the trial court’s judgment must be upheld on any legal theory supported by the record. In determining the sufficiency of the evidence as a matter of law to support the ruling of the trial court, we are obligated to disregard all adverse evidence and give credit to all evidence that is favorable to the successful party, indulging every reasonable conclusion that is favorable to him. Farmers Butane Gas Co., Inc. v. Walker, 489 S.W.2d 949 (Tex.Civ.App.—Waco 1973, no writ); Seamen v. Seamen, 425 S.W.2d 339 (Tex.1968).

The appellants first argue that the doctrine of comity dictates that the court in which jurisdiction attached first is the court which should be entitled to proceed to judgment.

Comity is not a rule of law but a principle of mutual convenience whereby one state or jurisdiction will give effect to the laws and judicial decisions of another. It operates not as a matter of obligation but only out of deference and respect. Thus, appellant is not entitled to the application of comity as a matter of right but only as a courtesy if the trial court in its discretion chooses. The failure to do so in the present case is neither error nor an abuse of discretion.

The appellants next argue that the denial of the injunction promotes a multiplicity of suits. They cite, as authority, several cases where Texas Courts have enjoined intrastate proceedings where there is a showing of vexatious litigation to prohibit the use of the judicial process for purposes of harassment. While this theory can be a ground for seeking such an injunction, we feel it is inapplicable here because the Okla *525 homa court has possession and control over the property that is the subject matter of the suit by virtue of the appointment of a receiver. Also, as indicated by the statement of facts, there is a prior judgment pending appeal in the Supreme Court of Oklahoma involving the same parties and issues.

The appellants next assert that they are irreparably harmed by the expense of litigating the case in Oklahoma since some of the parties and witnesses reside in Texas and because corporate records necessary to the suit are located in Texas. The record indicates that there are witnesses in Oklahoma and Delaware as well as in Texas, and the property that is the subject of this suit is located in Oklahoma under the control of a receiver. Thus, the record does not reflect such a degree of expense and hardship on the appellants as to warrant a finding of an abuse of discretion by the trial judge in refusing to grant the injunction. Further, when a case involves forums which are adjoining across state lines, the questions of cost and expense are not paramount. Barr v. Thompson, 350 S.W.2d 36 (Tex.Civ.App.—Dallas 1961, no writ).

Appellants next ask this court to consider the doctrine of forum non conven-iens to determine if the case should more appropriately be tried in Oklahoma even though that suit was filed after the Texas suit. They argue that the factors that make up forum non conveniens indicate that the case should be tried in Texas and the failure of the trial court to grant the injunction is an abuse of discretion.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

in the Interest of E.H., A.H., and E.H., Children
450 S.W.3d 166 (Court of Appeals of Texas, 2014)
Rouse v. Texas Capital Bank, N.A.
394 S.W.3d 1 (Court of Appeals of Texas, 2011)
Intercontinental Terminals Co. v. Vopak North America, Inc.
354 S.W.3d 887 (Court of Appeals of Texas, 2011)
Avco Corp. v. Interstate Southwest, Ltd.
145 S.W.3d 257 (Court of Appeals of Texas, 2004)
Boots v. Lopez
6 S.W.3d 292 (Court of Appeals of Texas, 1999)
Hawsey v. Louisiana Department of Social Services
934 S.W.2d 723 (Court of Appeals of Texas, 1996)
K.D.F. v. Rex
878 S.W.2d 589 (Texas Supreme Court, 1994)
St. Paul Surplus Lines Insurance Co. v. Mentor Corp.
503 N.W.2d 511 (Court of Appeals of Minnesota, 1993)
Board of County Commissioners v. Amarillo Hospital District
835 S.W.2d 115 (Court of Appeals of Texas, 1992)
Manufacturers Hanover Trust Co. v. Kingston Investors Corp.
819 S.W.2d 607 (Court of Appeals of Texas, 1991)
Bard v. Charles R. Myers Insurance Agency, Inc.
811 S.W.2d 251 (Court of Appeals of Texas, 1991)
Moreno v. Baker Tools, Inc.
808 S.W.2d 208 (Court of Appeals of Texas, 1991)
American Alliance Insurance Co. v. Frito-Lay, Inc.
788 S.W.2d 152 (Court of Appeals of Texas, 1990)
Christensen v. Integrity Insurance Co.
719 S.W.2d 161 (Texas Supreme Court, 1986)
Gannon v. Payne
706 S.W.2d 304 (Texas Supreme Court, 1986)
Gannon v. Payne
695 S.W.2d 741 (Court of Appeals of Texas, 1985)
Gurvich v. Tyree
694 S.W.2d 39 (Court of Appeals of Texas, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
638 S.W.2d 522, 1982 Tex. App. LEXIS 4369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-process-steel-corp-v-steel-corp-of-texas-texapp-1982.