People Priority Solutions, LLC v. MCILVEEN Real Estate & Management, Inc.

CourtCourt of Appeals of Texas
DecidedAugust 22, 2022
Docket05-21-00409-CV
StatusPublished

This text of People Priority Solutions, LLC v. MCILVEEN Real Estate & Management, Inc. (People Priority Solutions, LLC v. MCILVEEN Real Estate & Management, Inc.) 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
People Priority Solutions, LLC v. MCILVEEN Real Estate & Management, Inc., (Tex. Ct. App. 2022).

Opinion

Affirm and Opinion Filed August 22, 2022

In The Court of Appeals Fifth District of Texas at Dallas No. 05-21-00409-CV

PEOPLE PRIORITY SOLUTIONS, LLC, Appellant V. MCILVEEN REAL ESTATE & MANAGEMENT, INC., Appellee

On Appeal from the 192nd Judicial District Court Dallas County, Texas Trial Court Cause No. DC-20-02057

MEMORANDUM OPINION Before Justices Partida-Kipness, Pedersen, III, and Nowell Opinion by Justice Pedersen, III

People Priority Solutions, LLC (People Priority) appeals the trial court’s

May 3, 2021 order dismissing its plea in intervention for want of prosecution. In a

single issue, People Priority contends the dismissal was erroneous because it did not

receive notice of the court’s intent to dismiss its claims against

appellee/intervention-defendant McIlveen Real Estate & Management, Inc. (McIlveen) and intervention-defendant Alicia Hernandez. We affirm the trial court’s

order. 1

Background

The case below involved three parties and a series of agreements to sell a

residential property. Hernandez owned the property and initially contracted to sell it

to People Priority. Hernandez told McIlveen that People Priority’s option to buy the

property had recently expired, and she contracted to sell the property to McIlveen

instead. Approximately one week before that sale was scheduled to close, however,

Hernandez told McIlveen that she had extended the agreement to sell to People

Priority. McIlveen sued Hernandez for breach of contract and fraud, seeking

injunctive and declaratory relief as well as specific performance of its contract.

McIlveen also sued People Priority for tortious interference with Hernandez’s

contract to sell the property to McIlveen.

Hernandez filed no answer below; McIlveen filed a series of motions for

default judgment against her. Approximately six months into the litigation, McIlveen

nonsuited its claims against People Priority, but People Priority filed a Plea in

Intervention urging claims against both Hernandez and McIlveen regarding its own

purported purchase rights to the property. When McIlveen filed its final motion for

1 People Priority’s notice of appeal states that this proceeding is a regular (not restricted) appeal from “an interlocutory default judgment signed January 26, 2021, an order denying Intervenor’s motion for summary judgment signed on January 26, 2021, and an order of dismissal signed May 3, 2021.” The single issue before us challenges the dismissal order; we do not address the trial court’s earlier rulings. –2– default against Hernandez, People Priority objected to the motion. People Priority

then filed a motion for partial summary judgment, arguing that McIlveen could not

prove that Hernandez breached a contract with McIlveen. McIlveen challenged

People Priority’s standing to resist Hernandez’s default. On January 26, 2021, the

trial court granted an interlocutory default judgment against Hernandez (stating that

“Relief for said breach shall be determined”) and denied the motion for partial

summary judgment.

Our record contains a notice dated April 19, 2021 and addressed to Calvin D.

Johnson, counsel for plaintiff McIlveen, stating that a dismissal hearing was set for

May 3, 2021 at 9:00 a.m. and directing Mr. Johnson, prior to that hearing, to provide

the trial court with a written statement as to the status of the case. The notice states

that failure to do so would result in the case’s being dismissed pursuant to rule 165a

of the Texas Rules of Civil Procedure. On May 3, the trial court signed its Order of

Dismissal for Want of Prosecution (the May 3 Order), which stated in its entirety:

P1aintiff(s) having failed to take certain action heretofore specified by the court within the time period prescribed, and having not disposed of this case, the court finds that the cause should be dismissed for want of prosecution pursuant to Tex. R. Civ. P. 165a. The Court finds that Plaintiff was duly notified of a dismissal hearing set 05/03/2021 at 9:00 AM and did not take the necessary action. Accordingly,

IT IS ORDERED that the case is dismissed for want of prosecution with costs taxed against Plaintiff, for which [let] execution issue.

–3– People Priority contends that its counsel did not receive notice of the May 3

dismissal hearing. The record does not contain a copy of the April 19 notice directed

to counsel for People Priority, and the notice to Mr. Johnson does not indicate a copy

was sent to anyone else. A Clerk’s Note on the trial court’s docket sheet for May 3

indicates “NOTICE OF DISMISSAL TO PLAINTIFF AND INTERVENOR.”

This appeal followed. At People Priority’s request, we abated the appeal and

ordered the trial court to clarify its intent in the May 3 Order. Specifically, we

instructed the court—if it intended its dismissal order to be a final and appealable

judgment that disposed of all claims and all parties—to modify the order to make

that clear. If the trial court did not intend to render a final judgment, we ordered it to

certify that in writing and to state what claims remained pending. In response, the

trial court signed an amended Order of Dismissal for Want of Prosecution, dated

October 12, 2021 (the October 12 Order), which stated:

The Court finds that on February 15, 2021, the parties were duly notified that the case had been pending without action for 30 days and a dismissal hearing was set for April 5, 2021, at 9:00 am. The Court further finds that on April 19, 2021, the parties were duly notified that the dismissal hearing was postponed until May 3, 2021, at 9:00 a.m., and the case would be dismissed if the parties failed to provide the Court with a written statement as to the status of the case or take other action to prosecute their case.

The parties having failed to take certain actions heretofore specified by the Court by May 3, 2021, and having not disposed of this case, the Court finds that the cause should be dismissed for want of prosecution pursuant to Tex. R. Civ. P. 165a. Accordingly,

IT IS ORDERED that the case is dismissed without prejudice for want of prosecution with costs taxed against Plaintiff, for which let –4– execution issue. This is a final, appealable judgment, which disposes of all parties and claims in this case.

As our order required, the October 12 Order was made part of a supplemental clerk’s

record in this appeal.

Discussion

The single issue before us complains of the trial court’s failure to give People

Priority notice of the dismissal hearing scheduled for May 3, 2021, before dismissing

its claims in intervention. We review a dismissal for want of prosecution under an

abuse of discretion standard. Elite Door & Trim, Inc. v. Tapia, 355 S.W.3d 757, 763

(Tex. App.—Dallas 2011, no pet.). A party must be provided with notice and an

opportunity to be heard before a court may dismiss a case for want of prosecution

under Rule 165a. See TEX. R. CIV. P. 165 a(1); Villarreal v. San Antonio Truck &

Equip., 994 S.W.2d 628, 630 (Tex. 1999). These requirements of notice and a

hearing are necessary to ensure a claimant at risk of dismissal has

received due process. Franklin v. Sherman Indep. Sch. Dist., 53 S.W.3d 398, 401

(Tex. App.—Dallas 2001, pet. denied) (per curiam).

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Wright v. Texas Department of Criminal Justice-Institutional Division
137 S.W.3d 693 (Court of Appeals of Texas, 2004)
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811 S.W.2d 942 (Texas Supreme Court, 1991)
Franklin v. Sherman Independent School District
53 S.W.3d 398 (Court of Appeals of Texas, 2001)
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994 S.W.2d 628 (Texas Supreme Court, 1999)
Elite Door & Trim, Inc. v. Tapia
355 S.W.3d 757 (Court of Appeals of Texas, 2011)

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