Tracy Sahualla and Pam Sahualla v. CNH Industrial America, LLC and Trinity Valley Tractors, Inc.

Court of Appeals of Texas·Decided May 23, 2024·No. 09-23-00069-CV·Published

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

NO. 09-23-00069-CV

TRACY SAHUALLA AND PAM SAHUALLA, Appellants V.

CNH INDUSTRIAL AMERICA, LLC AND TRINITY VALLEY TRACTORS, INC., Appellees

On Appeal from the County Court at Law No. 1 Jefferson County, Texas

Trial Cause No. 133189

MEMORANDUM OPINION

Appellants Tracy and Pam Sahualla (“Sahuallas” or “Appellants”) appeal the trial court’s final summary judgment in favor of Appellees CNH Industrial America, LLC (“CNH”) and Trinity Valley Tractors, Inc. (“TVT”) (collectively “Defendants” or “Appellees”) in a lawsuit related to the Sahuallas’ purchase of a hay baler. We affirm the trial court’s judgment.

Background Facts

On December 1, 2021, the Sahuallas filed a Second Amended Petition 1 asserting claims against the Defendants for violations of the Texas Deceptive Trade Practices Act, breach of contract, breach of express warranty, breach of the implied warranty of merchantability, and breach of the implied warranty of fitness for a particular purpose against the Defendants regarding a hay baler they purchased in 2016 from TVT that was manufactured by CNH. According to the petition, the hay baler malfunctioned after it was delivered to the Sahuallas, and even though the baler was subsequently repaired and updates to it were completed by TVT, it still did not work properly.

After the Defendants filed their Amended Answers, Plaintiffs’ counsel and his firm filed a Motion to Withdraw as counsel on July 7, 2022, and provided the following justification for the withdrawal:

[] Withdrawal can be accomplished without material adverse effect on the interests of the clients inasmuch as the case has been mediated, considerable discovery has been completed, and trial will not commence until 26 September 2022;

[] The clients insist upon pursuing an objective that the Movants consider to be imprudent and with which [Plaintiffs’ counsel] has fundamental disagreement;

[] The representation will result in an unreasonable financial burden on the Movants inasmuch as Clients insist that Movants obtain ever more depositions and incur greater case expenses. Moreover, further

1 The Second Amended Petition was the live petition at the time CNH filed its Motion for Summary Judgment and at the time the Defendants filed their Joint No- Evidence Motion for Summary Judgment.

representation has been rendered unreasonably difficult by the clients, in part because they have refused to provide Movants with settlement authority sufficient to successfully negotiate a satisfactory disposition of their claim; and [] Other good cause for withdrawal exists because clients ignore the lawyer’s advice about litigation tactics and economic risks. Moreover, clients continue to hold what, in the professional opinion of the Movants, are unrealistic expectations about probable risks and benefits of going to trial.

The motion states that Plaintiffs’ counsel had written to Plaintiffs about the above issues on multiple occasions, Plaintiffs’ counsel informed the Plaintiffs in writing of their intention to withdraw via certified letter mailed on July 6, 2022, the letter informed the Plaintiffs that they were free to hire other counsel to pursue their claims, and on the date the motion was filed the Plaintiffs were served a copy of the motion, a proposed order, and notice of the hearing. The Motion to Withdraw represents that Plaintiffs had received an adequate opportunity to retain substitute counsel and to prepare for trial because the trial court had set the case for trial on September 26, 2022, the parties had completed substantial discovery in the case, and newly substituted counsel for Defendant CNH and newly designated lead counsel for Defendant TVT “appear to face the same obstacles” in reviewing the case and preparing for trial such that Plaintiffs were not at a material disadvantage given their counsel’s withdrawal. As exhibits to the Motion to Withdraw, Plaintiffs’ counsel attached the previously executed Power of Attorney Contract between Plaintiffs and Plaintiffs’ counsel; the withdrawal letter dated July 6, 2022 addressed to Plaintiffs,

which provides a detailed explanation for the counsel’s withdrawal and counsel’s advise to Plaintiffs that they were “free to seek other counsel[;]” a signed “green card” indicating Plaintiffs’ receipt of the withdrawal letter; a letter dated July 7, 2022 regarding the Motion to Withdraw and the hearing on the motion (with the Motion to Withdraw, the notice of oral hearing on July 20, 2022, and proposed order attached); a signed “green card” indicating Plaintiffs’ receipt of the notice of the hearing on the Motion to Withdraw; and an expense ledger for the case.

The trial court held a hearing on the Motion to Withdraw July 20, 2022,2 and the trial court signed an Order granting the Motion to Withdraw.

On December 12, 2022, CNH filed a Traditional Motion for Partial Summary Judgment on the Sahuallas’ claims of breach of contract under the Texas Business and Commerce Code, breach of implied warranty of fitness for a particular purpose, and for exemplary damages. CNH attached exhibits in support of its motion. On December 21, 2022, the Defendants filed a Joint No-Evidence Motion for Summary

2 A docket sheet entry for 7/20/22 signed by the trial court states that “plaintiffs did appear and testified[]” at the hearing on the Motion to Withdraw and presented evidence to support the motion before the trial court granted the motion. A letter in the appellate record that was filed by the Court Reporter for the County Court at Law No. 1 states that a record was taken of the hearing the trial court conducted on the Motion to Withdraw. The record does not show, however, that any of the parties requested the Court Reporter to prepare a transcript of the Reporter’s Record of the July 20, 2022 hearing for the appeal.

Judgment alleging that Plaintiffs have no evidence to support each claim against each Defendant.3 On January 18, 2023, the Sahuallas filed a pro se Response to CNH’s Motion for Partial Summary Judgment, and the Sahuallas attached exhibits as evidence. On January 25, 2023, CNH filed a Reply to the Sahuallas’ Response to CNH’s Motion for Partial Summary Judgment, which included objections to the Sahuallas’ summary judgment evidence. Also on January 25, 2023, TVT filed a Notice of Joining Objections to Plaintiffs’ Exhibits Submitted with Response to CNH’s Motion for Partial Summary Judgment, stating that TVT joined in the objections to the Sahuallas’ summary judgment evidence filed by CNH “[t]o the extent that the Court considers the exhibits submitted by the Sahuallas[] in response to Reply to Plaintiffs’ Response to CNH’s Traditional Motion for Partial Summary Judgment[.]” The Sahuallas did not file a response to the objections.

On January 27, 2023, the trial court held a hearing on CNH’s Motion for Partial Summary Judgment and on the Defendants’ Joint No-Evidence Motion for Summary Judgment, the Sahuallas appeared pro se, and no reporter’s record was

3 Because the disposition of the appeal does not require us to reach the underlying merits of the case, we need not discuss the specific arguments in CNH’s Motion for Partial Summary Judgment or Defendants’ Joint No-Evidence Motion for Summary Judgment. See Tex. R. App. P. 47.1 (instructing appellate courts to “hand down a written opinion that is as brief as practicable but that addresses every issue raised and necessary to final disposition of the appeal”).

taken of the hearing. That same day, the trial court signed an Order on Defendant CNH’s Objections to Plaintiffs’ Summary Judgment Evidence, sustaining many of the objections to Plaintiffs’ summary judgment evidence.

On January 30, 2023, the trial court granted the Defendants’ Joint No-

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Tracy Sahualla and Pam Sahualla v. CNH Industrial America, LLC and Trinity Valley Tractors, Inc., (Tex. Ct. App. 2024).

Tracy Sahualla and Pam Sahualla v. CNH Industrial America, LLC and Trinity Valley Tractors, Inc. (Tracy Sahualla and Pam Sahualla v. CNH Industrial America, LLC and Trinity Valley Tractors, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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