Sandra Hale v. Rising S Company, LLC, Gary Lynch, Clyde Wayne Scott, in Their Individual and Official Capacities

CourtCourt of Appeals of Texas
DecidedMay 30, 2023
Docket05-21-01103-CV
StatusPublished

This text of Sandra Hale v. Rising S Company, LLC, Gary Lynch, Clyde Wayne Scott, in Their Individual and Official Capacities (Sandra Hale v. Rising S Company, LLC, Gary Lynch, Clyde Wayne Scott, in Their Individual and Official Capacities) 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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Sandra Hale v. Rising S Company, LLC, Gary Lynch, Clyde Wayne Scott, in Their Individual and Official Capacities, (Tex. Ct. App. 2023).

Opinion

Affirm in Part, Reverse and Remand in Part and Opinion Filed May 30, 2023

In The Court of Appeals Fifth District of Texas at Dallas No. 05-21-01103-CV

SANDRA HALE, Appellant V. RISING S COMPANY, LLC, GARY LYNCH IN HIS INDIVIDUAL AND OFFICIAL CAPACITY, AND CLYDE WAYNE SCOTT IN HIS INDIVIDUAL AND OFFICIAL CAPACITY, Appellees

On Appeal from the County Court at Law No. 1 Kaufman County, Texas Trial Court Cause No. 100179-CC

MEMORANDUM OPINION Before Justices Carlyle, Garcia, and Miskel Opinion by Justice Miskel In what we construe as five issues, Sandra G. Hale appeals pro se from a final

judgment that followed two partial summary judgments and a directed verdict at

trial. First, Hale challenges the denial of her TCPA motion. We hold this challenge

is moot on appeal from a final judgment.

Second, Hale asserts that because of defects in the way appellee Rising S

Company LLC pleaded and presented its claim for a suit on sworn account, the

directed verdict on this claim was improper. We agree. Third and fifth, Hale challenges the dismissal of her counterclaims. However,

Hale herself nonsuited all of her claims before any ruling on their merits, and any

complaints concerning the substance of these claims is now moot.

Fourth, Hale contests the denial of her motions for sanctions. We conclude

that Hale has not shown that the trial court abused its considerable discretion by

denying sanctions.

We therefore reverse and remand the final judgment to the extent that it

awarded Rising S relief on its suit on sworn account. We affirm the final judgment

in all other respects.

I. BACKGROUND

Rising S sued Hale in July 2018. The petition alleged that Hale purchased a

survivalist bunker from Rising S in 2015 for an initial prepaid cost of $45,000. Their

agreement warned that additional charges would apply for certain site conditions,

such as when the job required excavation of rock, tree removal, or anything else that

complicated installation of the bunker. According to Rising S, Hale incurred $9,300

in additional charges from complicating factors during the installation of the bunker

on Hale’s property in Minnesota. Rising S sent Hale an invoice, but Hale refused to

pay.

Rising S sought relief through a claim for suit on sworn account. As support,

Rising S attached pleading exhibits including the contract, the additional invoice,

the receipt for Hale’s prior payment of $45,000, and a verification of the petition by

–2– Rising S’s general manager Gary Lynch. The invoice stated that Hale had incurred

the following additional charges: $6,200 for concrete backfill materials and labor,

$750 for working in confined spaces, $1,000 for excavation of boulders, $350 for a

solar panel mounting bracket, $300 for spreading gravel onsite, and $750 for

spreading excavated spoils. The verification claimed $9,300 was the outstanding

balance on Hale’s account.

The petition further alleged that Hale published false information online about

the quality of Rising S’s services and the bunker itself. Hale allegedly posted to a

site called RipOffReport.com, complaining that the installation was faulty and that

the bunker itself leaked and corroded. Rising S further alleged that Hale’s statements

harmed its business reputation and sales. Based on these facts, Rising S pleaded

business disparagement and tortious interference with prospective business

relations.

In August 2018, Hale answered with a multifaceted document, which she

amended multiple times over the course of the litigation. The amended version of

this document that appears in our record functioned as a plea to the jurisdiction, an

objection to venue, an answer with many specific denials and affirmative defenses

(both orthodox and unorthodox), a set of special exceptions, a motion to dismiss

under the Texas Citizen’s Participation Act (TCPA), and a counterpetition

presenting a variety of claims against Rising S and its principals, Lynch and Clyde

Wayne Scott, whom Hale sued both “individually and in their official capacity.” In

–3– subsequent proceedings, Rising S and the trial court construed Hale’s petition as

raising claims for negligence, false advertising, fraud, products liability, breach of

contract, violations of the DTPA and the Texas Debt Collection Practices Act, abuse

of process, and breach of warranty. Hale did not dispute these classifications in the

trial court, and we find it to be a fair characterization of her claims. However, in

Hale’s third amended petition, which was filed more than a year before trial, she

omitted all of the allegations that could be construed as affirmative claims for relief,

thus nonsuiting all of her counterclaims.

After a hearing, the trial court denied Hale’s TCPA motion by operation of

law, and Hale appealed the denial to this court. We held that Hale’s appeal was

untimely, and we dismissed the appeal for want of jurisdiction. Hale v. Rising S Co.

LLC, No. 05-19-00932-CV, 2020 WL 104626, at *1 (Tex. App.—Dallas Jan. 9,

2020, no pet.) (mem. op.).

Rising S, Lynch, and Scott moved for partial traditional summary judgment.

They noted that Hale’s suit against Rising S was filed in August 2018, roughly three

years after the parties’ contract was signed in June 2015 and the bunker was installed

in August 2015. Thus, Rising S argued to the extent that Hale’s omnibus filing

appeared to raise counterclaims for negligence, products liability, and DTPA and

debt collection violations, they were barred by the two-year statutes of limitations

for each of those claims. As to Hale’s claims against Lynch and Scott, they argued

that Hale had failed to serve Lynch and Scott until 2020 and had failed to exercise

–4– diligence in obtaining service, thus warranting summary judgment on limitations

grounds. Finally, they further argued Hale could not hold Lynch and Scott

personally liable because she had not pleaded any theories that would warrant

piercing the corporate veil.

The trial court granted the motion and dismissed Hale’s claims against Lynch

and Scott with prejudice. The trial court also dismissed with prejudice Hale’s claims

against Rising S for negligence, products liability, and DTPA and debt collection

violations. Hale attempted to appeal this ruling. We held that because the summary

judgment was not final, we lacked jurisdiction over the appeal. Hale v. Rising S Co.,

LLC, No. 05-20-01025-CV, 2021 WL 1248273, at *1 (Tex. App.—Dallas Apr. 5,

2021, no pet.) (mem. op.).

Hale moved for no-evidence summary judgment on Rising S’s claim for

business disparagement. She also moved for sanctions, arguing that Lynch had

knowingly perjured himself in a declaration. After consideration, the trial court

granted her motion for summary judgment and dismissed the business

disparagement claim with prejudice, but it denied her motion for sanctions.

Rising S then filed a motion for partial summary judgment on no-evidence

grounds with respect to Hale’s claims for fraud, breach of contract, abuse of process,

breach of warranty, and false advertising. The trial court granted partial summary

judgment on Hale’s claims for false advertising, abuse of process, fraud, and breach

–5– of warranties, though it denied Rising S’s motion as to her claim for breach of

contract.

The case went to trial on what the parties had viewed as the three remaining

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Sandra Hale v. Rising S Company, LLC, Gary Lynch, Clyde Wayne Scott, in Their Individual and Official Capacities, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sandra-hale-v-rising-s-company-llc-gary-lynch-clyde-wayne-scott-in-texapp-2023.