Spoon Ranch Family Limited Partnership and DDMP, LLC v. Atmos Energy Corporation

Court of Appeals of Texas·Decided November 30, 2023·No. 11-22-00210-CV·Published

Opinion

Opinion filed November 30, 2023

In The

Eleventh Court of Appeals

No. 11-22-00210-CV

SPOON RANCH FAMILY LIMITED PARTNERSHIP AND DDMP, LLC, Appellants V.

ATMOS ENERGY CORPORATION, Appellee

On Appeal from the 1st Multicounty Court at Law Mitchell County, Texas Trial Court Cause No. CCL17799

OPINION This is a condemnation suit. See TEX. PROP. CODE ANN. §§ 21.001–.103 (West 2014 & Supp. 2023). In two issues, Appellants (1) challenge the trial court’s denial of their motion for new trial, and (2) contend that the trial court violated their constitutional right to due process when it conducted a hearing in their absence. Because no party objected to the special commissioners’ award, the underlying

administrative condemnation proceeding was never converted into a judicial proceeding. Accordingly, we dismiss this appeal for want of jurisdiction. TEX. R. APP. P. 42.3(a), 43.2(f).

I. Factual Background The issues that we must address arise from the sale of the subject property that overlapped with the underlying condemnation proceeding. In September 2021, in order to acquire an easement and a temporary workspace easement across certain property in Mitchell County, Appellee, Atmos Energy Corporation, filed a condemnation action against Appellant, Spoon Ranch Family Limited Partnership, the owner of the land. On December 8, 2021, the appointed special commissioners set a hearing via Zoom for January 4, 2022 to hear evidence concerning the value of the proposed taking. Spoon Ranch was served with notice of this hearing on December 14, 2021.

One day later, on December 9, Spoon Ranch entered into a contract to sell the subject property to Derek Potts. 1 As evidenced by their reference to the proceeding in their sales contract, both Spoon Ranch and Potts were aware of the pending condemnation proceeding. The contract provided that Spoon Ranch relinquished to Potts its authority and any proceeds related to the condemnation action. It also stated that Potts “is to negotiate with Atmos Energy directly after the closing.”

On December 29, Michael Bins, an attorney with the Potts Law Firm, 2 notified Appellee that he “represented an individual [Potts] who is purchasing the subject property . . . [and] [t]hey executed a contract last week but it has not closed.” On

1 Appellants contend that the terms of the contract required that the property be sold to Potts and his assignee, DDMP, LLC. Although the contract identifies the buyer as “Derek Potts or Assigns,” the record shows that DDMP, LLC was not formed until January 14, 2022, approximately one month after the sales contract was executed.

2 Potts is also an attorney with the Potts Law Firm.

January 4, 2022 the special commissioners heard the eminent domain proceeding. Although it was provided notice of this hearing, Spoon Ranch did not appear. At the conclusion of the hearing, the special commissioners awarded $9,341 to Spoon Ranch for the easement; the award was later filed with the trial court. On January 18, Appellee deposited the awarded amount into the registry of the trial court. The trial court thereafter signed an order authorizing Appellee to take possession of the condemned property.

On January 24, Bins electronically filed a document entitled “Defendant’s General Denial and Objections and Exceptions to the Award of the Special Commissioners.” These purported objections to the special commissioners’ award were not signed. They merely contained the typewritten name “Spoon Ranch Family Limited Partnership” but no identifying contact information, whether for Spoon Ranch or an attorney on its behalf, was included.

On March 15, 2022, Bins filed a notice of appearance in the case on behalf of Appellant, DDMP, LLC, as the assignee of Spoon Ranch’s rights, titles, interests, and claims for just compensation and “any and all other rights” Spoon Ranch may possess in the suit. However, Bins did not file a notice of appearance on behalf of Spoon Ranch. Simultaneous to this, DDMP (represented by Bins) filed amended objections to the commissioners’ award. These amended objections were substantively identical to the objections that Bins filed on January 24, except that Bins’s signature block was included. On the day he filed his notice of appearance, Bins also spoke with Appellee’s counsel by phone and acknowledged that he did not represent Spoon Ranch; rather, and as his notice of appearance shows, he represented DDMP.

On March 16, the day after Bins appeared on behalf of DDMP, Appellee filed a special appearance, objected to the trial court’s exercise of jurisdiction over the case, moved for Bins to show his authority to act on behalf of Spoon Ranch under

Rule 12 of the Texas Rules of Civil Procedure, and requested the entry of judgment in accordance with the special commissioners’ award. TEX. R. CIV. P. 12. In its verified motion to show authority, Appellee recited Bins’s acknowledgment that he did not represent Spoon Ranch and specifically challenged Bins’s authority to file the January 24 objections to the award on behalf of a party that he did not represent at the time of filing. Further, in the absence of any objections to the award by a party to the proceedings, Appellee requested that the trial court render judgment on the award in accordance with its ministerial duty.

On March 25, Spoon Ranch assigned all of its rights, titles, interests, and claims for compensation in this litigation to DDMP. DDMP subsequently filed a response to Appellee’s motion to show authority and conceded that (1) Bins never claimed to represent Spoon Ranch and (2) Bins filed the January 24 objections. DDMP asserted that Bins filed the January 24 objections “as a favor” to Spoon Ranch.

The trial court set a hearing on Appellee’s motion to show authority and request for judgment for May 4, 2022, and electronically served Bins with the order setting hearing. Neither Bins nor any other attorney or other individual appeared at this hearing on behalf of either DDMP or Spoon Ranch. As a result, no testimony or evidence was presented or admitted at the hearing. In a subsequent hearing on Appellants’ motion for new trial, Appellants argued that notice of the show-authority hearing was sent to their counsel’s spam/junk e-mail folder and Appellants consequently never received actual notice of the hearing.

After the show-authority hearing concluded, the trial court dismissed the January 24 objections and ordered them stricken. The trial court signed a final judgment on May 4, after the show-authority hearing had concluded, and adopted the special commissioners’ award in accordance with its ministerial duty. See Tex. Dep’t of Transp. v. A.P.I. Pipe and Supply, LLC, 397 S.W.3d 162, 167–68 (Tex.

2013); Oak Lawn Apartments, Ltd. v. State, 584 S.W.3d 11, 15 (Tex. App.—Fort Worth 2018, pet. denied).

On May 23, Bins filed a motion for new trial purportedly on behalf of both Spoon Ranch and DDMP. In that motion, Appellants argued that (1) the January 24 objections were sufficient to appeal the commissioners’ award and confer jurisdiction upon the trial court to hear and decide the case, and (2) the subsequent March 25 assignment from Spoon Ranch to DDMP was sufficient to vest DDMP with the authority to challenge the award going forward. The motion for new trial did not address the trial court’s order striking the January 24 objections in accordance with the result of the hearing on the motion to show authority.

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