Thuesen v. Amerisure Insurance Co.

487 S.W.3d 291, 2016 Tex. App. LEXIS 1281, 2016 WL 514404
Court of Appeals of Texas·Decided February 9, 2016·No. NO. 14-14-00666-CV·Published·Cited by 12 cases

Opinion

OPINION

Kem Thompson Frost, Chief Justice'1

This appeal presents an interesting issue of first impression under Texas, Rule of Civil Procedure 91a, a rule adopted in 2013 governing dismissal of baseless claims.- At issue is whether a trial court may consider a Rule 91a movant a “prevailing party” entitled to attorney’s fees under the rule if the trial court determines the respondent nonsuited- the claims to avoid an adverse ruling on the 91a motion. We conclude that a trial court may not do so. We also address whether the trial court erred in consolidating two cases, whether the consolidation violated the bankruptcy stay, whether the trial court abused its discretion in assessing. sanctions, and whether the failure to recuse the trial judge amounted to an abuse of discretion. We modify the trial court’s judgment to delete the award of costs and attorney’s fees under Rule 91a, and affirm the judgment as modified.

I. Factual and Procedural Background

Appellees/plaintiffs Swamplot Industries, L.L.C., -Laurence David Albert, and Beth Anne Brinsdon (collectively the “Swamplot Parties”) filed suit against appellant/defendant Mark Thuesen and the condominium association of which he was president.. The condominium association’s insurer, appellee. Amerisure Insurance Company, provided Thuesen with a defense in the action. Thuesen filed counterclaims pro se.

After the litigation was underway, on November 13,- 2013, . Thuesen filed for bankruptcy, triggering < the automatic bankruptcy stay under title 11, section 362 of the United States Code. The Swamplot Parties sought relief from the bankruptcy stay. . The bankruptcy court granted relief, allowing the Swamplot Parties to “prosecute, liquidate and settle claims and defenses asserted” against Thuesen only as long as Amerisure was providing Thuesen’s defense. After getting relief from the stay, the Swamplot Parties ,moved for summary judgment.. Thuesen, acting pro se, then filed a separate lawsuit against Swamplot Industries’s lawyers, Michael Patrick Doyle and Jeffrey Lewis Raizner, [295]*295and their law firm, Doyle Raizner L.L.P. (hereinafter collectively the “Doyle Parties”); Thuesen also sued Amerisure and the Swamplot Parties.

Motion to Consolidate

The Swamplot Parties settled their claims against Thuesen in the first lawsuit. The Swamplot Parties and the Doyle Parties all moved to consolidate the second lawsuit with the first lawsuit in March 2014. The Swamplot Parties’ settlement caused Amerisure to stop providing Thuesen with a defense in the first suit, and-Thuesen’s defense counsel notified the trial court of that fact on April 8, 2014. Thereafter, the trial court sighed an order confirming the nonsuit with prejudice of the Swamplot Parties’ claims against Thuesen in the first lawsuit. About one month later, the trial court consolidated the second suit into the first suit.

Motions to Dismiss under Rule 91a

The Swamplot Parties moved to dismiss Thuesen’s claims against them under Texas Rule of Civil Procedure 91a.1 Thuesen then amended his pleadings. In response, the Swamplot Parties filed an amended motion to dismiss under 91a. A week before the scheduled hearing on this motion, Thuesen nonsuited all of his claims against the Swamplot Parties.

Aivard of Attorney’s Fees Under Rule 91a

After the nonsuit, the Swamplot Parties moved the trial court to consider them “prevailing parties” as to the claims Thuesen originally asserted against them in the second suit that were consolidated into the first suit (hereinafter the “2014 Claims”). The Swamplot Parties asserted that because Thuesen nonsuited his claims without prejudice to avoid an adversé ruling on the Swamplot Parties’ motion to dismiss, the Swamplot Parties should be considered the “prevailing parties” and the trial court should order1 Thuesen’s claims dismissed with prejudice. The trial court granted this motion, found that Thuesen had nonsuited the 2014 Claims to avoid an unfavorable ruling on the merits, ordered that the Swamplot Parties would be considered “prevailing parties” as to the 2014 Claims, and dismissed the 2014 Claims with prejudice.

The Swamplot Parties then filed a motion in which they sought to recover under Rule 91a costs and reasonable and necessary attorney’s fees incurred with respect to the 2014 Claims. The trial court granted this motion, and ordered Thuesen to pay the Swamplot Parties .specified amounts' as costs and as reasonable and necessary attorney’s fees in the trial court and in the event of an appeal.

Sanctions

Thuesen filed a series of documents in the trial court that prompted the trial court to sanction him. Each 8.5⅛⅛ by ll-4nch page of these documents contained a 6.5-inch colored, computer-generated Star-of-David watermark. In addition, each of the proposed orders Thuesen submitted to the trial court.also contained a separate, bold-faced black Star-of-David symbol next to the signature line for the trial judge.

[296]*296The trial court issued an order requiring Thuesen to appear to show cause why he should not be sanctioned for filing the Star-of-David documents. Thereafter, Thuesen continued to file documents containing the Star-of-David watermark and symbol. The trial court sanctioned Thuesen by striking all documents containing the watermark. The trial court allowed Thuesen thirty days to request leave to refile the documents without any Star-of-David watermarks or symbols, but Thuesen did not do so. Thuesen, however, moved to recuse the trial judge, who declined to recuse himself and referred the motion to the presiding judge of the Second Judicial Administrative Region for assignment. An assigned judge denied the recusal motion.

On appeal, Thuesen challenges the trial court’s consolidation of the cases, the award of fees and costs, the sanctions, and the denial of his recusal motion.

II. Issues and Analysis

A. Consolidation

In his first two appellate issues, Thuesen asserts that the trial court erred in consolidating the second suit into the first suit. A trial court has broad discretion to consolidate cases, and appellate courts review such decisions for an abuse of that discretion. See Guar. Fed. Sav. Bank v. Horseshoe Operating Co., 793 S.W.2d 652, 658 (Tex.1990) (op. on reh’g); Eagle Fabricators, Inc. v. Rakowitz, 344 S.W.3d 414, 421 (TexApp. — Houston [14th Dist.] 2011, no pet.).

In his first issue, Thuesen argues that the trial court erred in consolidating the cases because the consolidation caused him prejudice. Thuesen contends he suffered prejudice because Doyle and Raizner were the attorneys in the first case and potential witnesses in the second case.

According to Thuesen, if he called them to testify at trial, they would have a dual role as attorneys and witnesses. But, Thuesen nonsuited all of his claims and none of them ever went to trial.

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Thuesen v. Amerisure Insurance Co., 487 S.W.3d 291, 2016 Tex. App. LEXIS 1281, 2016 WL 514404 (Tex. Ct. App. 2016).

487 S.W.3d 291 (Thuesen v. Amerisure Insurance Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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