Texas Industrial Gas v. Phoenix Metallurgical Corp.

828 S.W.2d 529, 1992 Tex. App. LEXIS 840, 1992 WL 63146
CourtCourt of Appeals of Texas
DecidedApril 2, 1992
Docket01-91-00747-CV
StatusPublished
Cited by55 cases

This text of 828 S.W.2d 529 (Texas Industrial Gas v. Phoenix Metallurgical Corp.) 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
Texas Industrial Gas v. Phoenix Metallurgical Corp., 828 S.W.2d 529, 1992 Tex. App. LEXIS 840, 1992 WL 63146 (Tex. Ct. App. 1992).

Opinions

OPINION

O’CONNOR, Justice.

This court is asked to determine whether the trial court abused its discretion when it denied injunctive relief to plaintiff, Texas Industrial Gas (TIG).1 TIG sought an injunction to prohibit defendant, Phoenix Metallurgical Corporation (PMC), from purchasing Argon gas from other suppliers. We reverse and remand for additional evidence.

Fact summary

TIG is an industrial gas and welding equipment supplier. On October 18, 1989, TIG and PMC executed a contract in which TIG (as seller) and PMC (as buyer) agreed that PMC would purchase its entire requirement of Argon gas for five years from TIG. The evidence at the hearing was that the contract was repeatedly rewritten at the insistence of PMC. Paragraph four of the contract required TIG, if necessary to supply PMC’s requirements, to install storage, control, and vaporization equipment. After executing the contract with PMC and based on that contract, TIG contracted with another company to install a $65,000 tank for use by PMC. To pay for the tank, TIG financed the tank with the company that installed it, with which TIG had been doing business for 20 years.

After TIG began supplying Argon gas to PMC, PMC fell into arrears. PMC paid down some of its balance, but, at trial, it owed over $16,000 of the balance due, which triggered a provision of the contract that allowed TIG to impose new payment terms, such as requiring cash on delivery.

TIG also provided PMC with YGL’s (vessel gas liquid) for use in an emergency. Using Argon gas from the VGL’s is more expensive than using gas from the large tank because the VGL’s are a type of thermos container that keep the gas chilled and are delivered individually. In March or April of 1991, a driver for TIG noticed that PMC was using YGLs that belonged to Tech-Weld. TIG claims this was a breach of the contract because PMC was procuring Argon gas from another source. On April 29, 1991, the purchasing agent for PMC stated to Ms. Trail at TIG that PMC would no longer purchase small items from TIG so its bill would not get any bigger.

TIG sought an injunction requesting that PMC be enjoined from the following:

1. Moving or damaging the bulk storage tank belonging to TIG and upon premises of PMC;
2. Contracting for, purchasing, ordering, receiving, or taking delivery directly or indirectly, of Argon gas for use by or on behalf of PHOENIX METALLURGICAL CORP. from any company, firm, entity, person, supplier, or agency except plaintiff, TEXAS INDUSTRIAL GAS;
3. Interfering with the ingress of plaintiff’s employees, agents, or any persons designated by plaintiff upon the premises of defendant during weekdays and Saturdays, between the hours of 9:00 a.m. and [532]*5325:00 p.m., at reasonable intervals, not less than weekly, or at any time in the event of emergency circumstances which in the sole discretion of plaintiff threaten destruction or damage to plaintiff’s bulk storage tank, in order to conduct inspection, maintenance, and repair of plaintiff’s bulk storage tank on defendant’s premises; and
4. Interfering with the ingress of Plaintiff’s employees, agents, or persons designated by Plaintiff upon the premises of Defendant during weekdays and Saturdays, between the hours of 9:00 a.m. and 5:00 p.m., for the purpose of removal of the bulk storage tank on defendant’s premises.

After a hearing on this request for injunction, the parties agreed to the conditions of paragraphs 1, 3, and 4. The trial court entered an injunction as to the agreed paragraphs and, without stating a reason, granted PMC’s motion for instructed judgment, and refused to temporarily enjoin PMC from purchasing Argon gas from other companies.

Standards of review

The applicant for an injunction must plead a cause of action, show a probable right to recover the relief sought, and a probable injury in the interim. Sun Oil Co. v. Whitaker, 424 S.W.2d 216, 218 (Tex.1968); David v. Bache Halsey Stuart Shields, Inc., 630 S.W.2d 754, 756 (Tex.App.—Houston [1st Dist.] 1982, no writ). The applicant must show also that it has no adequate legal remedy. Surko Enters., Inc. v. Borg-Warner Acceptance Corp., 782 S.W.2d 223, 225 (Tex.App.—Houston [1st Dist.] 1989, no writ). For a legal remedy to be adequate, it must give the applicant complete, final, and equal relief. David, 630 S.W.2d at 756.

At the hearing for a temporary injunction, the only question before the trial court is whether the applicant was entitled to an order to preserve the status quo pending trial on the merits. Davis v. Huey, 571 S.W.2d 859, 862 (Tex.1978); Martin v. Linen Sys. for Hosps., Inc., 671 S.W.2d 706, 709 (Tex.App.—Houston [1st Dist.] 1984, no writ). The status quo is defined as the last, actual, peaceable, non-contested status that preceded the controversy. State v. Southwestern Bell Tel. Co., 526 S.W.2d 526, 528 (Tex.1975).

A trial court may not issue a temporary injunction except to prevent a threatened injury. Dallas General Drivers, Warehousemen and Helpers v. Wamix, Inc., 156 Tex. 408, 295 S.W.2d 873, 879 (1956); see also Ginther-Davis Center v. Houston Nat’l Bank, 600 S.W.2d 856, 863 (Tex.Civ.App.—Houston [1st Dist.] 1980, no writ). The commission of the act to be enjoined must be more than just speculative, and the injury that flows from the act must be more than just conjectural. Otten v. Town of China Grove, 660 S.W.2d 565, 569 (Tex.App.—San Antonio 1983, writ dism’d); see also Manufacturers Hanover Trust Co. v. Kingston Investors Corp., 819 S.W.2d 607, 611 (Tex.App.—Houston [1st Dist.] 1991, no writ). The trial court will abuse its discretion if it grants a temporary injunction when the evidence does not clearly establish that the applicant is threatened with an actual, irreparable injury. Manufacturers Hanover, at 610.

Our review of the temporary injunction is limited to deciding whether the trial court abused its discretion; we are not to resolve the merits of the underlying case. Davis, 571 S.W.2d at 861-62; Moreno v. Baker Tools, Inc., 808 S.W.2d 208, 211 (Tex.App.—Houston [1st Dist.] 1991) (orig. proceeding). We will not substitute our judgment for that of the trial court, but will limit our review to whether the court’s action was so arbitrary that it exceeded the bounds of reasonable discretion. Davis, 571 S.W.2d at 862; Moreno,

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828 S.W.2d 529, 1992 Tex. App. LEXIS 840, 1992 WL 63146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-industrial-gas-v-phoenix-metallurgical-corp-texapp-1992.