Terrence Mann and Evelyn Mann v. Kendall Home Builders Construction Partners I, Ltd.

464 S.W.3d 84, 2015 Tex. App. LEXIS 3246, 2015 WL 1545004
CourtCourt of Appeals of Texas
DecidedApril 2, 2015
DocketNO. 14-13-01069-CV
StatusPublished
Cited by23 cases

This text of 464 S.W.3d 84 (Terrence Mann and Evelyn Mann v. Kendall Home Builders Construction Partners I, Ltd.) 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
Terrence Mann and Evelyn Mann v. Kendall Home Builders Construction Partners I, Ltd., 464 S.W.3d 84, 2015 Tex. App. LEXIS 3246, 2015 WL 1545004 (Tex. Ct. App. 2015).

Opinions

OPINION

Tracy Christopher, Justice

In this appeal of a sanctions order, the appellants argue in the alternative that the trial court signed the order after its plenary power expired; that the order is unenforceable due to lack of specificity; that a party cannot be sanctioned for a pleading that was amended before sanctions were sought; and that the trial court abused its discretion in impliedly finding that the challenged statements in their original petition violated Rule 13 of the Texas Rules of Civil Procedure. Because we agree only with the last contention, we reverse and render judgment denying the request for sanctions.

I. BACKGROUND

Appellants Terrence and Evelyn Mann bought their home from appellee Kendall Home Builders Construction Partners I, Ltd. (“Kendall”). After the closing, the Manns sued Kendall, alleging that Kendall failed to apply all of the incentives promised in the sales contract. The Manns asserted claims for fraud, civil conspiracy, and violations of the Real Estate Settlement Procedures Act, the Texas Insurance Code, and the Deceptive Trade Practices-Consumer Protection Act (“DTPA”). After the Manns amended their petition, the trial court rendered a partial summary judgment in Kendall’s favor on some claims and set the remaining claims for trial. When the Manns failed to appeal*, the trial court rendered judgment dismissing their claims for want of prosecution.

One week later, Kendall filed a motion seeking sanctions pursuant to Texas Rule of Civil Procedure 13 against the Manns and their attorney, who signed the Manns’ pleadings on their behalf. Kendall argued that the Manns’ original petition was groundless and that the suit was brought in bad faith and for the purpose of harassment. Kendall asked the trial court to order the Manns and their attorney to pay Kendall more than $24,000 for all of the attorney’s fees Kendall had paid throughout the litigation. After an evidentiary hearing, the trial court issued an order in which it found that the Manns’ claims “were without any factual foundation, were frivolous, and brought in bad faith for the purpose of wrongfully gaining money or services from [Kendall].”1 The trial court [89]*89ordered that Kendall shall “have and recover judgment against [the Mannsj sanctions in the amount of $6,500.00,” and ordered the Manns to pay additional amounts if Kendall prevailed on appeal. The trial court signed the order thirty-five days after rendering final judgment.

II. Issues Presented

In its motion for sanctions, Kendall argued that the Manns’ original petition was signed in violation of Texas Rule of Civil Procedure 13. Under Rule 13, the signatures of attorneys or parties on a pleading, motion, or other paper “constitute a certificate by them that they havé read the [instrument, and] that to the best of their knowledge, information, and belief formed after reasonable inquiry the instrument is not groundless and brought in bad faith or groundless and brought for the purpose of harassment.” Tex. R. Civ. P. 13. “If a pleading, motion or other paper is signed in violation of this rule, the court, upon motion or upon its own initiative, after notice and hearing, shall impose an appropriate sanction ... upon the person who signed it, a represented party, or both.” Id.

On appeal, the Manns challenge the sanctions order on jurisdictional, procedural, and substantive grounds. We address each in turn.

III. The sanctions oedeR is not void.

In the Manns’ first issue, they argue that the sanctions order is void because the trial court signed it after its plenary power expired. For thirty days .after signing the judgment, a trial court has plenary power to vacate it, to make nonsubstantive changes to it, or to grant a new trial. See Tex. R. Civ. P. 329b. If within that time a party files a motion for a new trial or a motion to vacate, modify, correct, or reform the judgment, then the trial court’s plenary power is'extended for thirty days after the last such motion is expressly or implicitly overruled. Id. The Manns contend that the sanctions order is void because the trial court signed it more than thirty days after it signed the final judgment even though no one filed a motion that extended the trial court’s plenary power. They acknowledge, however, that the Texas ■ Supreme Court has held that any timely filed motion for a substantive change in the existing judgment is a motion to modify that extends the trial court’s plenary jurisdiction. See Lane Bank Equip. Co. v. Smith S. Equip., Inc., 10 S.W.3d 308, 314 (Tex.2000) (holding that a postjudgmént motion to incorporate a sanction as part of the final judgment is a -motion to modify the judgment and extends the trial court’s jurisdiction).

The Manns attempt to distinguish Lane on the'ground that the postjudgment motion for sanctions in that casé included an explicit request for the trial court to render a new final judgment; whereas Kendall’s postjudginent motion for sanctions did not include such an express request. The identical argument was presented to the Third Court of Appeals in Cocke v. Elliott, No. 03-12-00667-CV, 2013 WL 4821123, at *7 (Tex.App. — Austin Aug. 27, 2013, pet. denied) (mem. op.). The appellant in that case argued that the motion for sanctions could not be considered' a motion to modify the judgment because the sanctions motion did not even mention the final judgment. Id. The appellate court rejected this argument, stating that a request for modification of the judgment “was plainly the legal effect and gravamen of appellees’ motion, whether or not appellees said so, and we reject-[the appellant’s] attempt to elevate form over substance.” [90]*90Id.; see also Thota v. Young, 366 S.W.3d 678, 690 (Tex.2012) (“[W]e have long favored1 a common sense application of our procedural rules that serves the purpose of the rules, rather -than a technical application that rigidly promotes form over substance.”).

The procedural history of this case falls between Lane and Cocke; we do not have an explicit request for modification of the judgment such as that in. Lane, but unlike in Cocke, we have more than an inference that the movant wanted the sanctions incorporated in the judgment. Here, we also have Kendall’s proposed sanctions , orr der, which included language that it “have and recover judgment jointly and severally”, against the Manns and; their attorney (emphasis added). We previously have characterized a proposed order as part of a litigant’s request for relief. See In re A.G.C., 279 S.W.3d ,441, 450 (Tex.App.— Houston [14th Dist.] 2009, no pet.) (characterizing a parent’s proposed order, terminating his parental rights as a request that his parental rights be terminated). The record also shows that the tel,.court was aware of the content of the .proposed order. At the sanctions hearing, Kendall’s attorney pointed out to the trial court that a proposed order was attached to the motion for sanctions, and the trial court responded, “Okay. I can look at that, but I these kind of things, I generally write my own.” The trial court wrote its own order, and included language in the sanctions order that Kendall “have and recover judgment” against the Manns.

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Bluebook (online)
464 S.W.3d 84, 2015 Tex. App. LEXIS 3246, 2015 WL 1545004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terrence-mann-and-evelyn-mann-v-kendall-home-builders-construction-texapp-2015.