Warren Chen and Dynacolor, Inc. v. Razberi Technologies, Inc.

CourtTexas Supreme Court
DecidedMay 27, 2022
Docket21-0499
StatusPublished

This text of Warren Chen and Dynacolor, Inc. v. Razberi Technologies, Inc. (Warren Chen and Dynacolor, Inc. v. Razberi Technologies, Inc.) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warren Chen and Dynacolor, Inc. v. Razberi Technologies, Inc., (Tex. 2022).

Opinion

Supreme Court of Texas ══════════ No. 21-0499 ══════════

Warren Chen and DynaColor, Inc., Petitioners,

v.

Razberi Technologies, Inc., et al., Respondents

═══════════════════════════════════════ On Petition for Review from the Court of Appeals for the Fifth District of Texas ═══════════════════════════════════════

Argued March 23, 2022

JUSTICE DEVINE delivered the opinion of the Court.

Justice Bland did not participate in the decision.

Foreign defendants challenging personal jurisdiction filed an accelerated interlocutory appeal from the denial of their special appearances. While the appeal was pending, the trial court rendered a final judgment on the merits. Because the interlocutory order merged into the final judgment, the court of appeals dismissed the pending appeal as moot without resolving the still-live jurisdictional issue. 1 The court held that, following rendition of final judgment, the jurisdictional issue could be challenged only by filing a separate notice of appeal from that judgment, which the defendants failed to do. 2 We reverse and remand to the court of appeals for disposition of the special appearance on the merits. Under Texas Rule of Appellate Procedure 27.3, the court of appeals was obligated to treat the previously perfected appeal as an appeal from the final judgment, but only as to the issues raised in the existing appeal. A second notice of appeal was not required unless the parties wished to expand the scope of the appeal. This conclusion accords with Rule 27.3’s plain language, our opinion in Roccaforte v. Jefferson County, 3 and the well-established principle that “a court of appeals has jurisdiction over any appeal in which the appellant files an instrument in a bona fide attempt to invoke the appellate court’s jurisdiction.” 4 As we have repeatedly affirmed, the appellate rules must be construed “reasonably, yet liberally, so that the right to appeal is not lost by imposing requirements not absolutely necessary to effect the purpose of a rule.” 5 Because Rule 27.3 applies, a second “protective”

1___ S.W.3d ___, 2021 WL 1702938, at *1 (Tex. App.—Dallas Apr. 28, 2021) (order reinstating the court’s previously withdrawn opinion in Chen v. Razberi Techs., Inc., 639 S.W.3d 105 (Tex. App.—Dallas 2020)). For convenience, we refer to the court’s 2020 opinion as Chen I and the 2021 order as Chen II. 2 Chen I, 639 S.W.3d at 107. 3 341 S.W.3d 919, 924-25 (Tex. 2011). 4 Verburgt v. Dorner, 959 S.W.2d 615, 616 (Tex. 1997). 5 Id. at 616-17.

2 notice of appeal from the final judgment was not necessary for the appellate court to maintain its pre-existing jurisdiction over the still-live jurisdictional dispute. The court therefore erred in dismissing the appeal as moot. I Warren Chen is the Taiwanese CEO of DynaColor, Inc., a Taiwanese company that invested in and maintained a business relationship with Razberi Technologies, Inc. When the relationship soured, Razberi sued Chen and DynaColor (collectively, Chen) in Texas under various tort theories. The defendants specially appeared and challenged personal jurisdiction. The trial court denied the special appearances, and Chen filed an accelerated interlocutory appeal 6 along with a motion to stay all trial-court proceedings pending disposition of the appeal. 7 The court of appeals denied Chen’s motion, and the appeal proceeded with merits briefing and a scheduled oral-argument setting. Three months before the argument setting, the trial court rendered final judgment against Chen. 8 The judgment expressly

6 See TEX. CIV. PRAC. & REM. CODE § 51.014(a)(7) (authorizing an interlocutory appeal from the grant or denial of a special appearance); TEX. R. APP. P. 28.1 (describing and setting procedures for accelerated appeals). 7 By statute, commencement of trial was subject to an automatic stay while the interlocutory appeal was pending, but other trial-court proceedings were not automatically stayed. See TEX. CIV. PRAC. & REM. CODE § 51.014(b). But see id. § 51.014(c) (providing an exception to the automatic stay). 8 At least in some circumstances, failure to object to rendition of judgment in violation of an automatic stay can waive the error. See Roccaforte, 341 S.W.3d at 923 (holding that judgment rendered in violation of an automatic stay is voidable and failure to object in the trial court waives any error related to the stay).

3 incorporated prior summary-judgment orders and mentioned, but did not expressly incorporate, the prior special-appearance rulings. Chen, having fired his trial counsel, did not file a notice of appeal from the final judgment. When the deadline for filing an appeal had expired, 9 Razberi moved to dismiss the interlocutory appeal, asserting that rendition of a final judgment while an interlocutory appeal is pending moots the appeal even if the issue on appeal remains a live controversy. In opposition, Chen argued that, under Texas Rule of Civil Procedure 120a(4), an objection to jurisdiction is not waived by continued litigation in the trial court. 10 The court of appeals granted Razberi’s motion and dismissed the appeal. 11 Although the special-appearance issues remained substantively in dispute, the court concluded that “the purpose” of the pending appeal was mooted when the interlocutory order merged into the final judgment. 12 The court rejected Chen’s Rule 120a argument, stating that “[t]he issue is not one of waiver because [the] appellants could have challenged the special appearance post-judgment by filing a separate notice of appeal” but “[t]hey chose not to.” 13

9 See TEX. R. APP. P. 26.1. 10 The rules provide: “If the objection to jurisdiction is overruled, the objecting party may thereafter appear generally for any purpose. Any such special appearance or such general appearance shall not be deemed a waiver of the objection to jurisdiction when the objecting party or subject matter is not amenable to process issued by the courts of this State.” TEX. R. CIV. P. 120a(4). 11 Chen I, 639 S.W.3d at 107. 12 Id. 13 Id.

4 Chen moved for rehearing, arguing, in part, that the court was required to consider the perfected interlocutory appeal as an appeal from the final judgment. In support of this argument, Chen cited Texas Rule of Appellate Procedure 27.3, which provides:

After an order or judgment in a civil case has been appealed, if the trial court modifies the order or judgment, or if the trial court vacates the order or judgment and replaces it with another appealable order or judgment, the appellate court must treat the appeal as from the subsequent order or judgment and may treat actions relating to the appeal of the first order or judgment as relating to the appeal of the subsequent order or judgment. The subsequent order or judgment and actions relating to it may be included in the original or supplemental record. Any party may nonetheless appeal from the subsequent order or judgment. 14

The court of appeals granted Chen’s motion for rehearing and withdrew its original opinion in Chen I. Razberi then filed motions for panel and en banc rehearing, and the court of appeals requested supplemental briefing on the merits and on the rehearing motions. Shortly thereafter, we issued ERCOT, Inc. v. Panda Power Generation Infrastructure Fund, LLC, which cited Chen I for the proposition that “the trial court’s entry of a final summary judgment in the plaintiff’s favor moots the defendant’s pending interlocutory appeal from a prior order denying the defendant’s special appearance, because the prior order merges into the final judgment.” 15 Panda Power also cited another of the court of appeals’ opinions, City of Lancaster v. White

14 TEX. R. APP. P. 27.3 (emphases added).

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Hernandez v. Ebrom
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355 S.W.3d 664 (Texas Supreme Court, 2011)
Verburgt v. Dorner
959 S.W.2d 615 (Texas Supreme Court, 1998)
Roccaforte v. Jefferson County
341 S.W.3d 919 (Texas Supreme Court, 2011)
Texas Department of Transportation v. Flores
513 S.W.3d 826 (Court of Appeals of Texas, 2017)
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Warren Chen and Dynacolor, Inc. v. Razberi Technologies, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/warren-chen-and-dynacolor-inc-v-razberi-technologies-inc-tex-2022.