SpeedeMissions, Inc. v. Bear Gate, LP and Spencer Head, LLC

404 S.W.3d 34, 2013 WL 1341308, 2013 Tex. App. LEXIS 4275
CourtCourt of Appeals of Texas
DecidedApril 4, 2013
Docket01-12-00431-CV
StatusPublished
Cited by14 cases

This text of 404 S.W.3d 34 (SpeedeMissions, Inc. v. Bear Gate, LP and Spencer Head, LLC) 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
SpeedeMissions, Inc. v. Bear Gate, LP and Spencer Head, LLC, 404 S.W.3d 34, 2013 WL 1341308, 2013 Tex. App. LEXIS 4275 (Tex. Ct. App. 2013).

Opinion

OPINION

EVELYN V. KEYES, Justice.

Appellant, Speedemissions, Inc., filed suit for a declaratory judgment construing the agreements between itself and appel-lees, Bear Gate, L.P. and Spencer Head, LLC (collectively, “Bear Gate”). Spee-demissions alleged that Bear Gate was obligated to submit to arbitration on Spee-demissions’ claims of breach of contract and conversion, and it moved the trial court to compel arbitration. In its sole issue, Speedemissions argues that the trial court erred in denying its motion to compel arbitration.

We affirm.

Background

Speedemissions is a publicly-traded company that owns and operates forty vehicle emissions and safety inspection stations in several different states, including Texas. In 2005, Speedemissions sought to purchase Mr. Sticker, Inc., a Texas corporation that operated six vehicle inspection stations in Houston, Texas. David and Barbara Smith and their son, Grant Smith (collectively, “the Smiths”), owned Mr. Sticker. Mr. Sticker owned the real estate for two of its locations (“the Properties”), and it leased the remaining four premises from third parties.

In the course of negotiations over the purchase of Mr. Sticker, Speedemissions indicated that it was not interested in purchasing the real estate owned by Mr. Sticker. Rather, it desired to lease the Properties. On May 6, 2005, the Smiths formed Spencer Head, LLC, with Grant Smith as its sole manager and member. The Smiths formed Bear Gate, L.P. on May 13, 2005, with Spencer Head as its managing partner. On June 21, 2005, Mr. Sticker transferred ownership of the Properties to Bear Gate. The general warranty deed transferring the Properties from Mr. Sticker to Bear Gate was signed by Grant Smith as the vice-president of Mr. Sticker.

On June 30, 2005, Speedemissions, Mr. Sticker, and the Smiths executed the Stock Purchase Agreement. On the same day, Bear Gate and Speedemissions entered into two leases for the Properties (the “Lease Agreements”).

The Stock Purchase Agreement provided that the Smiths, as shareholders of Mr. Sticker, sold “all of the outstanding shares of [Mr. Sticker] which represent all of the *38 issued and outstanding capital stock of [Mr. Sticker].” It specifically excluded some assets, including the two Properties. The purchase price was listed as $8.1 million. The Stock Purchase Agreement also contained an arbitration provision providing that “[a]ny controversy or claim arising out of or relating to this Agreement or any related agreement shall be settled by arbitration in accordance with the following provisions.” The arbitration provision further provided that the parties’ agreement to arbitrate “covers all disputes of every kind relating to or arising out of this Agreement or any of the Contemplated Transactions.”

The Stock Purchase Agreement defined “Contemplated Transactions” as “the transactions contemplated by this Agreement.” It went on to state that the Contemplated Transactions

shall take place contemporaneously with the execution of this Agreement in the offices of the Purchaser. At the Closing the parties shall deliver the following documents:
1.5.1 Selling Parties’ Deliveries at the Closing. The Shareholder shall deliver to Purchaser at the Closing the following items:
(i) All certificates representing the Shares, duly endorsed in blank as assigned to Purchaser;
(ii) The Company’s corporate minute book and all company records, books, and materials;
(iii) A copy of the resolutions duly adopted by Company’s Board of Directores] and Shareholder authorizing the execution, delivery, and performance of this Agreement and the consummation of the Contemplated Transactions, certified by an officer of Company;
(iv) Unaudited financial statements and management reports for year end 2004 and financial period subsequent to June 1, 2005 and prior to the Effective Time;
(v) The Certificate of the Secretary of the Company certifying as true and correct a copy of the Articles of Incorporation and bylaws, and all amendments thereto, of the Company, dates as of the date of Closing;
(vi) A certified copy of the Articles of Incorporation of the Company and a certificate of good standing as to the Company, issued not more than fifteen (15) days prior to the Closing by the Secretary of State of the State of Texas;
(vii) The written resignations of all directors and officers of the Company effective as of the Closing;
(viii) Signature cards for all bank and investment accounts of the Company removing the current signatories and adding the signatories specified by Purchaser;
(ix) All other documents or instruments required by this Agreement or reasonably required by Purchaser’s counsel to consummate the Contemplated Transactions.
1.5.2 Purchaser’s Deliveries at the Closing. Purchaser shall deliver to Company Parties at the Closing, the following items:
(i) A copy of the resolutions duly adopted by the Board of Directors of Purchaser authorizing the execution, delivery, and performance of this Agreement and the consummation of the Contemplated Transactions, certified by an officer of Purchaser; and
(ii) All other documents or instruments required by this Agreement or reasonably required by Purchaser’s counsel to consummate the Contemplated Transactions.

*39 The Contemplated Transactions thus comprised the deliveries at the closing necessary to complete the sale of Mr. Sticker to Speedemissions under the Stock Purchase Agreement.

In addition to setting out the Contemplated Transactions required to complete the sale, the Stock Purchase Agreement contained a non-compete provision that continued in effect “so long as [Speedemis-sions] continues to operate the state inspection business as defined by the Texas Department of Public Safety, on the [Properties].” The non-compete provision further provided, “In the event [Speedem-issions] ceases to operate said business within a period of two (2) years after close, of this transaction, this provision is no longer effective.”

The Stock Purchase Agreement also contained a non-solicitation provision and a confidentiality provision, which provided that, in the event Speedemissions discontinued operations of a state inspections business on the Properties within a two-year period after the close of the transaction, those provisions would no longer be effective.

Finally, the Stock Purchase Agreement contained the following clause:

6.11 Entire Agreement; Waiver. This Agreement of the parties hereto with respect to the subject matter hereof, and no amendment, waiver, modification or alteration of the terms hereof shall be binding unless the same be in writing, dates subsequent to the date hereof and duly approved and executed by each party.

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Cite This Page — Counsel Stack

Bluebook (online)
404 S.W.3d 34, 2013 WL 1341308, 2013 Tex. App. LEXIS 4275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/speedemissions-inc-v-bear-gate-lp-and-spencer-head-llc-texapp-2013.