Sabrina K. Griggs, Trustee of the Gloria A. Griggs Revocable Living Trust v. Dalhart Butane & Equipment Co., Ltd., Etter Water Well, LLC, D/B/A Etter Water Well Service and Dale Ball

CourtCourt of Appeals of Texas
DecidedJune 25, 2019
Docket07-17-00208-CV
StatusPublished

This text of Sabrina K. Griggs, Trustee of the Gloria A. Griggs Revocable Living Trust v. Dalhart Butane & Equipment Co., Ltd., Etter Water Well, LLC, D/B/A Etter Water Well Service and Dale Ball (Sabrina K. Griggs, Trustee of the Gloria A. Griggs Revocable Living Trust v. Dalhart Butane & Equipment Co., Ltd., Etter Water Well, LLC, D/B/A Etter Water Well Service and Dale Ball) 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.

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Sabrina K. Griggs, Trustee of the Gloria A. Griggs Revocable Living Trust v. Dalhart Butane & Equipment Co., Ltd., Etter Water Well, LLC, D/B/A Etter Water Well Service and Dale Ball, (Tex. Ct. App. 2019).

Opinion

In The Court of Appeals Seventh District of Texas at Amarillo

No. 07-17-00208-CV

SABRINA K. GRIGGS, TRUSTEE OF THE GLORIA A. GRIGGS REVOCABLE LIVING TRUST, APPELLANT

V.

DALHART BUTANE & EQUIPMENT CO., LTD., ETTER WATER WELL, LLC, D/B/A ETTER WATER WELL SERVICE AND DALE BALL, APPELLEES

On Appeal from the 84th District Court Ochiltree County, Texas Trial Court No. 14123, Honorable Curt Brancheau, Presiding

June 25, 2019

MEMORANDUM OPINION Before QUINN, C.J., and CAMPBELL and PARKER, JJ.

Dalhart Butane & Equipment Company, Ltd. (DBE) sued Sabrina Griggs, trustee

of the Gloria A. Griggs Revocable Trust (Griggs), to foreclose a mechanic’s lien on trust

property. Griggs answered and filed a counterclaim. With leave of court Griggs joined

Etter Water Well Service, LLC and its employee or agent, Dale Ball, as third-party

defendants. Etter filed a counterclaim against Griggs. DBE’s claim against Griggs, and

Griggs’ counterclaim, were both resolved in favor of DBE through death-penalty sanctions against Griggs for discovery abuse. Through a hybrid motion Etter and Ball obtained

summary judgment against Griggs on Griggs’ claim for damages and on Etter’s

counterclaim for damages. The court incorporated its rulings into a final judgment

resolving all claims. Griggs appeals. The judgment will be reversed in part and otherwise

affirmed.

Background

According to Griggs, DBE improperly drilled an irrigation well on trust property in

Ochiltree County, and did not complete the well on time, causing Griggs to lose a crop.

Griggs refused to pay DBE for its work, prompting DBE’s suit, and Griggs’ counterclaim.

DBE served Griggs with interrogatories and requests for production “concerning the

claims and damages alleged in” Griggs’ counterclaim. Following DBE’s motion to compel

and for attorney’s fees, on July 14, the court signed an order requiring Griggs to respond,

without objection, to DBE’s written discovery and within ten days pay DBE attorney’s fees

of $1,100. Griggs did not pay the $1,100.

Griggs served responses to DBE’s discovery requests but DBE believed them

inadequate. After July 29 correspondence to Griggs identifying the four specific

deficiencies it found in Griggs’ responses and demanding their correction, DBE filed a

second motion to compel and request for sanctions on August 26. The motion pointed

out that Griggs had not paid the $1,100 sanction ordered on July 14, and requested that

Griggs’ counterclaim be struck. In a written response, Griggs argued there could be no

consideration of lesser sanctions on submission only, that death-penalty sanctions could

2 not be used to adjudicate the merits of a defense, and that she had named two experts

with written opinions disputing the adequacy of the well DBE drilled.

On November 21, the trial court conducted a short live hearing. The court heard

only from counsel. Counsel for DBE gave a brief assessment of the merits of the case

from DBE’s perspective. He asked to have Griggs’ counterclaim struck because she had

not provided evidence of damages and DBE’s liability. Counsel added that DBE did not

seek death-penalty sanctions on the entire case. Griggs could still “put on a defense to

our lien foreclosure case.” Besides requesting Griggs’ counterclaim be struck, DBE’s

counsel asked for a monetary sanction of $6,600 consisting of the yet unpaid $1,100

awarded on July 14, plus current attorney’s fees, and travel expenses.

On December 1, the court signed an order dismissing Griggs’ counterclaims with

prejudice and awarding DBE $6,600. It further ordered: “If [Griggs] fails to pay the above

specified sum to [DBE] within ten (10) days, then Final Judgment shall be entered in favor

of DBE and against [Griggs].”

On December 23, DBE filed its “motion for entry of final judgment.” It alleged

Griggs had not paid the $6,600 sanction awarded on December 1 and requested rendition

of a final judgment for damages, lien foreclosure, and attorney’s fees. On December 27,

the court signed an order granting all the relief requested by DBE. The record indicates

that in February 2017 Griggs deposited $6,600 in the registry of the court which DBE was

later permitted to withdraw.

Etter’s claim against Griggs alleged she did not fully pay Etter for drilling test wells.

Griggs’ pleadings alleged Etter was vicariously liable for DBE’s actions with regard to the

3 well it drilled. Griggs alleged Etter thus was jointly and severally liable for the damage-

producing conduct of DBE.

Etter and Ball filed a hybrid motion for summary judgment on January 12, 2017.

In part, they alleged because Griggs’ claims against them were derivative of those against

DBE and because judgment was for DBE on the same claims, Griggs’ derivative claims

against Etter and Ball could not succeed as a matter of law. Concerning Griggs’ failure

to fully pay for test wells, Etter sought a money judgment and an award of attorney’s fees.

The court granted Etter’s motion for summary judgment in all respects and

rendered final judgment. This appeal followed.

Analysis

Issues One and Two: Sanctions

Through her first and second issues, Griggs challenges the justness of the trial

court’s December 1 sanctions order, striking her counterclaim, and the December 27

sanctions order, rendering judgment for DBE.

An appellate court reviews a trial court’s ruling on a motion for sanctions under an

abuse of discretion standard. Bodnow Corp. v. City of Hondo, 721 S.W.2d 839, 840 (Tex.

1986) (per curiam). A trial court abuses its discretion when it acts without reference to

any guiding rules and principles. Downer v. Aquamarine Operators, Inc., 701 S.W.2d

238, 241 (Tex. 1985).

Sanctions for discovery abuse serve three legitimate purposes: to secure

compliance with the discovery rules; to deter other litigants from similar misconduct; and

4 to punish violators. Chrysler Corp. v. Blackmon, 841 S.W.2d 844, 849 (Tex. 1992) (orig.

proceeding). A sanction under Texas Rule of Civil Procedure 215 must be “just.” TEX. R.

CIV. P. 215.2(b); TransAmerican Natural Gas Corp. v. Powell, 811 S.W.2d 913, 917 (Tex.

1991) (orig. proceeding). A sanction’s justness depends on two factors. Chrysler Corp.,

841 S.W.2d at 849. “First, there must be a direct nexus among the offensive conduct, the

offender, and the sanction imposed.” Spohn Hosp. v. Mayer, 104 S.W.3d 878, 882 (Tex.

2003) (per curiam) (citing TransAmerican, 811 S.W.2d at 917). “A just sanction must be

directed against the abuse and toward remedying the prejudice caused to the innocent

party, and the sanction should be visited upon the offender.” Id. “The trial court must

attempt to determine whether the offensive conduct is attributable to counsel only, to the

party only, or to both.” Id. A trial court may not, however, impose a sanction that is more

severe than necessary to satisfy its legitimate purpose. Hamill v. Level, 917 S.W.2d 15,

16 (Tex. 1996) (per curiam).

“Second, just sanctions must not be excessive.

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