Sun Metals Group v. Yu

2025 Tex. Bus. 48

• Court: Texas Business Court
• Decided: December 5, 2025
• Docket: 25-BC01A-0050
• Status: Published

Opinion

FILED IN BUSINESS COURT OF TEXAS BEVERLY CRUMLEY, CLERK ENTERED 12/5/2025

2025 Tex. Bus. 48

The Business Court of Texas, First Division

SUN METALS GROUP, LLC, § Plaintiff/Counter-Defendant, § § v. § § Cause No. 25-BC01A-0050 SHUANGCHENG YU, § MENGLING SUN, SUNMETALS § PRODUCTS OF AMERICA, LLC, § and SUNMETALS PRODUCTS § DE MEXICO, S.A. de C.V., § Defendants/Counter-Plaintiffs. § ═══════════════════════════════════════ Memorandum Opinion & Order for Remand ═══════════════════════════════════════ ¶1 Before the Court is Plaintiff Sun Metals Group, LLC’s Motion to

Remand Baselessly and Tardily Removed Action Involving Less than $5million

in Pleaded and Disclosed Compensatory Damages and Request for Evidentiary

Hearing on Motion for Sanctions Under TRCP 355 and Ch. 25A. Plaintiff’s

motion challenges this Court’s subject-matter jurisdiction on two grounds: (1)

Plaintiff’s asserted damages do not meet this Court’s $5,000,000 jurisdictional threshold, and (2) Defendants’ removal was untimely.

Following an oral hearing on December 1, 2025, the Court GRANTS

Plaintiff’s motion to remand for untimeliness.

¶2 Section 25A.006(f) of the Texas Government Code allows a

party’s unilateral removal to the Business Court in two circumstances. See

TEX. GOV’T CODE § 25A.006(f)(1)-(2). As is relevant here, Subsection (1)

allows a party to remove the action “not later than the 30th day after the later

of: . . . (B) the date the party requesting removal of the action discovered, or

reasonably should have discovered, facts establishing the business court’s

jurisdiction over the action.” TEX. GOV’T CODE § 25A.006(f)(1); see also Tex.

R. Civ. P. 355(c)(2)(A).

¶3 In its motion to remand, Plaintiff argues that Defendants’ removal

of this action is untimely because the “lawsuit has been pending for ten (10)

months” in the district court. Plaintiff’s Motion to Remand at ¶ 1. However,

the window for removal under Section 25A.006(f)(1)(B) is open through the

“30th day after . . . the party requesting removal of the action discovered, or

reasonably should have discovered, facts establishing the business court’s

jurisdiction over the action.” TEX. GOV’T CODE § 25A.006(f)(1)(B).

Page 2 ¶4 Defendants contend that the 30-day window for removal opened

on October 27, 2025, when they filed Defendants’ Fourth Amended Answer,

Affirmative Defenses and Third Amended Counterclaim, which contained a

counterclaim with damages in the amount of $710,000. See Defendants’

Fourth Amended Answer at ¶¶ 81-82. As Defendants see it, those damages

pushed the amount in controversy over this Court’s jurisdictional threshold

amount for the first time—and constituted facts establishing this Court’s

jurisdiction.1 Because Defendants filed their Notice of Removal on October 28,

2025, they believe their removal was timely. But having closely examined the

pleadings in this action, the Court concludes Defendants’ basis for removal

was evident no later than September 8, 2025.

¶5 On that date, Plaintiff filed Plaintiff’s Second Amended Petition

Request for Declaratory Judgment, which raised Plaintiff’s asserted damages

1 Plaintiff argues Defendants’ counterclaims are irrelevant to the Court’s analysis. But the Business Court has made clear that the amount in controversy applies to an “action,” not individual claims. C Ten 31 LLC v. Tarbox, 2025 Tex. Bus. 1, ¶ 25 (3rd Div. 2025). Thus, when calculating the amount in controversy, the Court “consider[s] all claims properly joined before the Court, rather than as a per-claim minimum.” Id. All claims properly joined before the Court—that is, the “entire lawsuit”—includes counterclaims. Chaudhry v. Stillwater Oz Dev. Fund, 2025 Tex. Bus. 31, ¶ 92 (1st Div. 2025) (stating that party’s “counterclaims are part of th[e] lawsuit”); see also In Re T. Bently Durant, 720 S.W.3d 438, 442 (Tex. App.—15th Dist. 2025) (stating that “‘action’ refers to the entire lawsuit”). Defendants’ counterclaims were pending at removal, rendering their value relevant. Page 3 and costs to “over $3,343,694.58.” Plaintiff’s Second Amended Petition at ¶

3.1. Defendants read that pleading as putting Plaintiff’s “identified and

ascertainable governance-related claims” at a “total [of] at least

$4,669,518.37.” Defendants’ Response to Motion at ¶ 15. No finding is made

as to whether Defendants’ reading is accurate because it is immaterial to the

outcome.

¶6 Importantly, by the time Plaintiff filed its Second Amended

Petition, Defendants had already asserted materially significant damages in

their counterclaims. Defendants’ Second Amended Answer, Affirmative

Defenses and Counterclaims, filed (before Plaintiff’s Second Amended

Petition) on August 13, 2025, contained, inter alia, alternative causes of

action for breach of contract with damages in the amount of $499,823.79 and

for money had and received with damages in the amount of $712,529.45. See

Defendants’ Second Amended Answer at ¶¶ 53, 56; see also Defendants’

Original Answer at ¶¶ 44, 47, 49 (identifying same causes of action but not in

the alternative).

¶7 Consequently, even taking the damage calculations limned in

Defendants’ response as accurate, see Defendants’ Response to Motion at ¶ 14,

the damages which Defendants contend satisfy this Court’s jurisdictional

Page 4 requirement were facially pleaded by the combination of Plaintiff’s September

8, 2025 petition with Defendants’ prior August 13, 2025 counter-petition—

not, as Defendants argue, upon the combination of Plaintiff’s September 8,

2025 petition with Defendants’ later October 27, 2025 counter-petition. Thus,

the deadline for removing this action from the district court to the Business

Court elapsed on October 8, 2025, 30 days after Plaintiffs’ September 8, 2025

petition was filed. Defendants’ Notice of Removal, filed October 28, 2025, was

untimely.

¶8 IT IS THEREFORE ORDERED that Plaintiff's motion to remand

is GRANTED, and this matter, including Plaintiff’s pending request for

sanctions, is remanded to the 14th Judicial District Court, Dallas County,

Texas, for further proceedings.

_____ _________________ ANDREA K. BOURESSA Judge of the Texas Business Court, First Division

SIGNED ON: December 5, 2025.

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Envelope ID: 108793607 Filing Code Description: Proposed Order Filing Description: Memorandum Opinion and Order for Remand Status as of 12/5/2025 4:49 PM CST

Case Contacts

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