Stealth Onsite Solutions, L.L.C. v. Resolute ENVTL, & Response

Court of Appeals of Texas·Decided February 20, 2025·No. 01-23-00841-CV·Published

Opinion

Opinion issued February 20, 2025

In The

Court of Appeals

For The

First District of Texas

Resolute Environmental & Response Services, LLC—awarding actual damages, pre- and post-judgment interest, and attorney’s fees.

We affirm.

Background

Resolute is engaged in the business of industrial, waste-management, safety and training, and chemical and natural-disaster remediation services. According to the allegations in Resolute’s petition, Stealth requested that Resolute supply labor and materials to Stealth in connection with Stealth’s remediation services. According to Resolute, it provided the labor and materials requested by Stealth in accordance with the parties’ contract. And Stealth agreed to pay Resolute for the labor and materials based on the pricing listed on the invoices submitted by Resolute.

After Stealth received and accepted the labor and materials provided by Resolute, Resolute invoiced Stealth. Resolute alleged that Stealth failed to tender the amount owed—$18,112.50. Thereafter, Resolute sued Stealth, alleging causes of action for a suit on a sworn account, breach of contract, quantum meruit, promissory estoppel, and unjust enrichment. Resolute sought damages, pre- and post-judgment interest, and attorney’s fees. Stealth answered with a general denial and asserted the affirmative defense of offset.

In June 2023, Resolute served Stealth with requests for production and interrogatories. In those discovery requests, Resolute requested that Stealth produce

copies of all documents supporting its claim that Resolute failed to provide an offset or credit that Stealth was entitled to receive. Resolute also requested that Stealth identify: (1) the amount of each credit or offset claimed; (2) the invoice to which each credit or offset applied; (3) the applicable date of each credit or offset claimed; and (4) a description of the facts supporting Stealth’s claim of entitlement to such credit or offset. . Stealth failed to respond to the discovery requests—even after communications between counsel for Resolute and Stealth regarding the late responses.

Resolute filed a motion to compel Stealth’s responses to discovery, which the trial court granted on August 29, 2023. The trial court ordered Stealth to serve its responses to Resolute’s discovery requests, and produce all responsive documents, within 10 days of the date of the order—by September 8.

After Stealth did not comply with the trial court’s order compelling discovery responses, Resolute moved for traditional summary judgment on all of its causes of action. As summary-judgment evidence, Resolute attached an affidavit from Ragan Ygdevik, its custodian of records, stating that the charges described in the attached invoices are just and true, that the amount owed by Stealth “after giving all lawful offsets, payments and credits is $18,112.50,” and that Stealth has refused to pay that amount due. Resolute also attached six invoices describing the labor and materials provided to Stealth and the amounts charged.

Resolute set its motion for summary judgment for submission for October 9, 2023, making Stealth’s response due October 2.1 Stealth failed to file its response by October 2.

Instead, on October 9, the date of submission, Stealth moved for leave to file a late summary-judgment response and filed a response. In its motion for leave and attached affidavit, Stealth’s counsel stated that there was good cause for Stealth’s failure to timely respond to the motion because he “had three other motions to respond to last week and accidentally thought this matter had been resolved.” Stealth also argued that permitting it to late file its summary judgment response would not cause Resolute undue prejudice because it would not hamper Resolute’s ability to prepare for trial, as the close of discovery was not until December 1, 2023. In the alternative, Stealth moved for a two-week continuance of the summary-judgment submission date “so as to permit its response to be timely and to permit [Resolute] time to file a reply to the response.”

Stealth also attached to its summary judgment response an affidavit from Stealth’s corporate representative, Kenneth Isbell, stating that Resolute’s labor and materials were defective, that Resolute failed to provide all the required labor or materials, and that Resolute double billed and overcharged for work it did perform. Isbell averred that Stealth was therefore entitled to a setoff of at least $7,000 and

1 See TEX. R. CIV. P. 166a(c).

that, despite being informed of Stealth’s position with respect to the offset, Resolute refused to provide amended invoices reflecting any offset.

Resolute objected to the motion for leave and to Stealth’s summary judgment response.

The trial court denied Stealth’s request for leave and granted Resolute’s motion for summary judgment. The final summary judgment awards Resolute $18,112.50 in damages, as well as pre- and post-judgment interest and attorney’s fees.

Late-Filed Summary-Judgment Response Stealth initially argues that the trial court erred in denying its motion for leave to file a late summary judgment response, or in the alternative a continuance, because it established good cause for its failure to timely respond. A. Standard of Review We review a trial court’s ruling on a motion for leave to file a late summary judgment response for an abuse of discretion. Carpenter v. Cimarron Hydrocarbons Corp., 98 S.W.3d 682, 686 (Tex. 2002). We likewise review a trial court’s denial of a motion for continuance for an abuse of discretion. See Joe v. Two Thirty Nine Joint Venture, 145 S.W.3d 150, 161 (Tex. 2004). A trial court abuses its discretion when it acts without reference to any guiding rules or principles. Carpenter, 98

S.W.3d at 687 (citing Downer v. Aquamarine Operators, Inc., 701 S.W.2d 238, 241– 42 (Tex. 1985)). B. Motion for Leave to File Late Response 1. Applicable Law In a summary judgment proceeding, the nonmoving party may file and serve opposing affidavits or other written responses no later than seven days prior to the scheduled date of the hearing. TEX. R. CIV. P. 166a(c). The nonmoving party must obtain leave to file evidence after that deadline. Id.

A motion for leave to file a late summary judgment response should be granted when a litigant establishes good cause for failing to timely respond by showing that (1) the failure to respond was not intentional or the result of conscious indifference, but the result of accident or mistake, and (2) allowing the late response will occasion no undue delay or otherwise injure the party seeking summary judgment. Carpenter, 98 S.W.3d at 688. Conscious indifference is more than negligence; it involves behavior such as a “pattern of ignoring deadlines and warnings from the opposing party.” Levine v. Shackelford, Melton & McKinley, L.L.P., 248 S.W.3d 166, 168–69 (Tex. 2008) (discussing conscious indifference in default-judgment context).

2. Analysis In its motion for leave and its accompanying unsworn declaration from counsel, Stealth argued that it established good cause for its failure to file a response until the date of submission because its counsel (1) had three other motions to respond to in the same week and (2) accidentally thought the matter had been resolved. But applying the good-cause standard set forth above, we conclude that the trial court did not abuse its discretion in denying Stealth leave to file a late response.

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Stealth Onsite Solutions, L.L.C. v. Resolute ENVTL, & Response, (Tex. Ct. App. 2025).

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