Owens-Corning Fiberglas Corp. v. Caldwell

807 S.W.2d 413, 1991 Tex. App. LEXIS 715, 1991 WL 37032
CourtCourt of Appeals of Texas
DecidedMarch 20, 1991
Docket01-91-00058-CV, 01-91-00068-CV
StatusPublished
Cited by16 cases

This text of 807 S.W.2d 413 (Owens-Corning Fiberglas Corp. v. Caldwell) 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
Owens-Corning Fiberglas Corp. v. Caldwell, 807 S.W.2d 413, 1991 Tex. App. LEXIS 715, 1991 WL 37032 (Tex. Ct. App. 1991).

Opinion

OPINION

SAM BASS, Justice.

Relators, Owens-Corning Fiberglas Corporation (“Owens-Corning”), Wright, Robinson, McCammon, Osthimer & Tatum (“Wright, Robinson”), and Richard K. Hines (“Hines”), seek mandamus relief from respondent’s, Judge Neil Caldwell’s, sanctions order of December 20, 1990, and amended sanctions order of January 11, 1991. In his orders, Judge Caldwell found that Owens-Corning, Wright, Robinson, and Hines abused the discovery process and obstructed the judicial process in the underlying causes of action, 1 and sanctioned them as follows:

(1) Owens-Corning was fined in the amount of $2,356,160, to be paid to the plaintiffs and their attorneys.
(2) Owens-Corning was ordered to pay attorney’s fees of $160,000 each to plaintiffs’ attorneys, Robert E. Ballard and Lawrence Madeksho.
(3) Wright, Robinson was fined in the amount of $250,000, to be paid to the plaintiffs and their attorneys.
(4) Hines was fined in the amount of $50,000, to be paid to the plaintiffs and their attorneys.

Relators contend that penalties for “abuse of the discovery process and obstruction of justice and the judicial process” are governed by Tex.R.Civ.P. 215(3). They argue that rule 215(3) does not allow for the imposition of monetary fines; therefore, the orders are void insofar as they impose fines. Respondent, through the real parties in interest (the plaintiffs in the underlying cause), replies that a trial court has inherent power to sanction and is not limited to sanctions under rule 215. Rela-tors also assert that rule 215(3) permits sanctions only after notice and hearing; therefore, the orders constitute an abuse of discretion insofar as they impose attorney’s fees because there was no notice or hearing before the trial court. Respondent replies that relators received notice on three occasions and had a hearing before the master and that an evidentiary hearing before the court was not required.

Discovery sanctions are not ap-pealable until the trial court renders a final judgment. Bodnow Corp. v. City of Hondo, 721 S.W.2d 839, 840 (Tex.1986); Stringer v. Eleventh Court of Appeals, 720 S.W.2d 801, 802 (Tex.1986); Street v. Second Court of Appeals, 715 S.W.2d 638, 639-40 (Tex.1986); Wal-Mart Stores, Inc. v. Street, 761 S.W.2d 587, 589 (Tex.App.— Fort Worth 1988, orig. proceeding); Tex.R. Civ.P. 215(2)(b)(8), (3). However, mandamus relief may be afforded where the trial court’s order is void. Dikeman v. Snell, 490 S.W.2d 183, 186 (Tex.1973); D.A. Buckner Constr., Inc. v. Hobson, 793 S.W.2d 74, 76 (Tex.App.—Houston [14th Dist.] 1990, orig. proceeding); Zep Mfg. Co. v. Anthony, 752 S.W.2d 687, 689 (Tex.App.—Houston [1st Dist.] 1988, orig. proceeding). The issue before this Court is whether the orders of December 20 and January 11 are void.

Propriety of Monetary Fines

Rule 215(2)(b) of the Texas Rules of Civil Procedure provides for sanctions in the event a party (or its officer, director, or managing agent) or person designated to testify fails to comply with proper discovery requests or to obey discovery orders. The rule specifies eight sanctions, Tex.R.Civ.P. 215(2)(b)(l) through (8), as well *415 as, in its introductory paragraph, “such orders in regard to the failure as are just.” Tex.R.Civ.P. 215(2)(b). Monetary fines come within the ambit of “such orders ... as are just.” See, e.g., Ismail v. Ismail, 702 S.W.2d 216, 224 (Tex.App.—Houston [1st Dist.] 1985, writ ref d n.r.e.) (the trial court entered monetary sanctions when appellant failed to file an inventory as ordered); Clear Lake City Water Auth. v. Winograd, 695 S.W.2d 632, 640-41 (Tex.App.—Houston [1st Dist.] 1985, writ ref' d n.r.e.) (trial court awarded monetary sanctions for abuse of the discovery process); Firestone Photographs, Inc. v. Lamaster, 567 S.W.2d 273, 277 (Tex.Civ.App.—Texarkana 1978, no writ) (the right to impose monetary penalties is not specifically mentioned, but if a court is empowered to enter a default judgment it surely can impose periodic monetary penalties).

Rule 215(3) of the Texas Rules of Civil Procedure provides that if the trial court finds a party is abusing the discovery process in seeking, making, or resisting discovery, it may “after notice and hearing, impose any appropriate sanction authorized by paragraphs (1), (2), (3), (⅝), (5), and (8) of paragraph 2b of this rule.” (Emphasis added.) These paragraphs do not authorize monetary fines, nor do they contain the broad encompassing language, “such orders as are just.” Unlike rule 215(2)(b), rule 215(3) itself does not contain the broad encompassing language “such orders as are just.”

The Texas Rules of Civil Procedure have the same force and effect as statutes. Missouri Pac. R.R. v. Cross, 501 S.W.2d 868, 872 (Tex.1973). We apply to them the same rules of construction and interpretation. The plain meaning of “any appropriate sanction authorized by” in rule 215(3) is that only those specific sanctions, and no others, may be applied. See Heard v. Heard, 305 S.W.2d 231, 235 (Tex.Civ.App.—Galveston 1957, writ ref’d) (court rules are to be liberally construed, but their plain meaning cannot be ignored). The express mention of “any appropriate sanction authorized by” in rule 215(3) expressly excludes any sanction not mentioned, particularly when compared with the nonexclusive language in rule 215(2)(b). See Smith v. Baldwin, 611 S.W.2d 611, 616 (Tex.1980) (when the legislature employs a term in one section of a statute and excludes it elsewhere, it should not be implied where excluded).

Judge Caldwell’s orders, by their language, applied sanctions for abuse of the discovery process. Therefore, the sanctions had to comport with those allowed under rule 215(3). Because rule 215(3) does not provide for monetary fines, Judge Caldwell had no authority to assess monetary fines against relators under the rule.

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Bluebook (online)
807 S.W.2d 413, 1991 Tex. App. LEXIS 715, 1991 WL 37032, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owens-corning-fiberglas-corp-v-caldwell-texapp-1991.