Nidal T. Baem v. Western Frontier Trading, LLC.

Texas Court of Appeals, 8th District (El Paso)·Decided April 16, 2026·No. 08-25-00105-CV·Published

Opinion

COURT OF APPEALS

EIGHTH DISTRICT OF TEXAS

EL PASO, TEXAS

collecting payment for merchandise[.]”

Western sued Baem for theft, conversion, and breach of fiduciary duty, alleging that he “ha[d] customers write checks directly to him and deposit[ed] said checks into his own account.” Western also sought a temporary injunction enjoining Baem from “liquidating all the funds contained in the accounts held at FIRST NATIONAL BANK TEXAS . . . in [Baem]’s name,” and requiring the bank “to freeze all funds on account in [Baem]’s name.”

The trial court held a temporary injunction hearing at which two witnesses testified—

Carlos Moreno, whose company, Audio Fanatics, was a customer of Western, and Erik Broberg, Western’s owner.1 Moreno testified that he paid for purchases from Western by writing checks to Baem personally. According to Moreno, he did so at Baem’s request because Baem said he was Broberg’s partner.2 Moreno further testified that Baem sometimes asked him to pay cash, offering a discount for this form of payment. Moreno also paid a total of $44,993.90 in a series of 43 Cash App transfers directly to Baem.

Broberg testified that he became suspicious of Baem when he “started seeing financial irregularities” and “money would be missing,” and “as [he] found more and more and more evidence, it became overwhelmingly obvious [Western] had enough proof [Baem] was embezzling money.” According to Broberg, Western identified a specific bank account into which Audio Fanatics’ checks had been deposited. In addition, Broberg testified that Baem had bought a plane ticket to fly home to Kuwait, departing on the day before the temporary injunction hearing,3 and

1 Western’s owner is referred to as “Grover” in the reporter’s record. We refer to him as Broberg, the name used in Western’s pleadings and supporting affidavit. 2 Baem concedes he was Western’s employee and not Broberg’s business partner.

3 Baem did not appear at the hearing.

was “sending money overseas” (ongoing emails received on Baem’s former work computer indicated that “several hundreds of dollars a day each day [were] being sent to an individual [overseas, possibly in the Middle East]).”

After the hearing, the trial court signed a temporary injunction order enjoining Baem from “liquidating any of the funds contained in the accounts held at FIRST NATIONAL BANK TEXAS” and directing the bank to “freeze all funds in its accounts in [Baem]’s name.” The order included a specific finding that “said bank accounts are directly related to the matter at issue in this lawsuit,” as “deposits of money belonging to [Western] were deposited in said account.” In addition, the trial court entered separate findings of fact and conclusions of law. This interlocutory appeal followed, as permitted under Texas Civil Practice and Remedies Code § 51.014(a)(4).

II. ISSUES ON APPEAL

On appeal, Baem argues that the trial court abused its discretion by issuing a temporary

injunction without evidence of a probable right of recovery, an irreparable injury, or the absence of an adequate remedy at law, and by granting overbroad relief that did not preserve the status quo.

III. STANDARD OF REVIEW AND APPLICABLE LAW A temporary injunction serves to preserve the status quo pending a trial on the merits.

Butnaru v. Ford Motor Co., 84 S.W.3d 198, 204 (Tex. 2002). It is an extraordinary remedy and not a matter of right. Id. To obtain such relief, a party must plead and prove a cause of action, a probable right to relief, and irreparable injury in the interim. Id.

We review an order granting a temporary injunction for an abuse of discretion. State v. Loe, 692 S.W.3d 215, 226 (Tex. 2024). Under this standard, we defer to the trial court’s factual findings if supported by evidence, but review its legal determinations de novo. Id. A reviewing court must not substitute its judgment for that of the trial court unless the trial court’s action was so arbitrary it exceeded the bounds of reasonable discretion. Butnaru, 84 S.W.3d at 204. In determining

whether the trial court abused its discretion, “we view the evidence in the light most favorable to the trial court’s order, indulging every reasonable inference in its favor.” Grossman v. City of El Paso, 642 S.W.3d 85, 107 (Tex. App.—El Paso 2021, pet. dism’d).

IV. ANALYSIS

A. Probable right of recovery

To show a probable right of recovery, a party seeking a temporary injunction must “present enough evidence to raise a bona fide issue as to its right to ultimate relief.” Daugherty v. Ellington, No. 05-22-00991-CV, 2024 WL 177482, at *5 (Tex. App.—Dallas Jan. 17, 2024, pet. denied) (mem. op.). This means the party must produce “some evidence supporting every element of at least one valid legal theory.” Id. The party need not “show that it will prevail at trial,” nor must the trial court “evaluate the probability that [the party] will prevail at trial” because the ultimate merits are not yet before the court. Id.

Baem contends that Western’s pleading of its claims is inadequate, as the pleading is “just a recitation of the elements of each cause of action.” However, Baem neither discusses nor cites any authority regarding what a proper pleading would minimally require. See Tex. R. App. P. 38.1(i) (requiring an appellant’s brief to contain “a clear and concise argument for the contentions made, with appropriate citations to authorities”). Further, Western’s pleading separately sets forth the alleged facts underlying its claims. Baem does not explain why these alleged facts together with Western’s description of its claims do not meet Texas’s fair-notice pleading standard. See id.; see also Texas Dep’t of Transp. v. Lara, 625 S.W.3d 46, 61 (Tex. 2021) (“Texas follows a fair- notice standard for pleading, which measures whether the pleadings have provided the opposing party sufficient information to enable that party to prepare a defense or a response.”) (internal quotation marks omitted). We conclude that Baem has not shown Western’s pleading is inadequate.

Baem further contends that the record contains no evidence of at least one element of each of Western’s claims. We disagree and focus our analysis on the evidence of each element of Western’s theft claim. See Daugherty, 2024 WL 177482, at *5 (to show a probable right of recovery, the party seeking the temporary injunction must produce “some evidence supporting every element of at least one valid legal theory”).

The Texas Theft Liability Act authorizes a civil claim for theft as defined under certain Texas Penal Code provisions. See Tex. Civ. Prac. & Rem. Code Ann. §§ 134.002–.003. Under the theory pleaded here, the plaintiff must show that the defendant unlawfully appropriated the plaintiff’s property with intent to deprive the plaintiff of it and the plaintiff suffered damages. See id.; see also Cluck v. Mecom, 401 S.W.3d 110, 117 (Tex. App.—Houston [14th Dist.] 2011, pet. denied); Tex. Penal Code Ann. § 31.03(a). Baem contends that “[w]hile [Western] did provide evidence as to the first and third elements, [it] failed to provide any evidence whatsoever of [Baem’s] intent to deprive [Western] of the property.” However, the Audio Fanatics checks entered in evidence were made out to Baem personally, not Western, and Broberg testified the checks were deposited into Baem’s personal account, not Western’s account. Further, the checks spanned a period from April 2022 to June 2023, and suit was not filed until February 2025. This is some evidence that Baem intended to deprive Western of the funds. See McCullough v. Scarbrough, Medlin & Associates, Inc., 435 S.W.3d 871, 907 (Tex. App.—Dallas 2014, pet. denied) (“The intent to deprive can be inferred from the words and acts of the person.”).

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

Nidal T. Baem v. Western Frontier Trading, LLC., (Tex. Ct. App. 2026).

Nidal T. Baem v. Western Frontier Trading, LLC. (Nidal T. Baem v. Western Frontier Trading, LLC.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Metra United Escalante, L.P. v. Lynd Co.
158 S.W.3d 535 (Court of Appeals of Texas, 2004)
Butnaru v. Ford Motor Co.
84 S.W.3d 198 (Texas Supreme Court, 2002)
Kaufmann v. Morales
93 S.W.3d 650 (Court of Appeals of Texas, 2002)
Robert L. & Julia T. McCullough v. Scarbrough, Medlin & Associates, Inc
435 S.W.3d 871 (Court of Appeals of Texas, 2014)
David Reyes and Sonia Valenzuela v. Annette Burrus
411 S.W.3d 921 (Court of Appeals of Texas, 2013)
Cluck v. Mecom
401 S.W.3d 110 (Court of Appeals of Texas, 2011)