William "Bo" Bean, Jr. v. Reynolds Realty Group, Inc., and Richard Reynolds, William J. Fuerst, and Jack W. Gooding, Individually and as Officers and Directors of Reynolds Realty Group, Inc.

CourtCourt of Appeals of Texas
DecidedMay 9, 2006
Docket06-05-00121-CV
StatusPublished

This text of William "Bo" Bean, Jr. v. Reynolds Realty Group, Inc., and Richard Reynolds, William J. Fuerst, and Jack W. Gooding, Individually and as Officers and Directors of Reynolds Realty Group, Inc. (William "Bo" Bean, Jr. v. Reynolds Realty Group, Inc., and Richard Reynolds, William J. Fuerst, and Jack W. Gooding, Individually and as Officers and Directors of Reynolds Realty Group, Inc.) 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.

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William "Bo" Bean, Jr. v. Reynolds Realty Group, Inc., and Richard Reynolds, William J. Fuerst, and Jack W. Gooding, Individually and as Officers and Directors of Reynolds Realty Group, Inc., (Tex. Ct. App. 2006).

Opinion



In The

Court of Appeals

Sixth Appellate District of Texas at Texarkana


______________________________


No. 06-05-00121-CV



WILLIAM "BO" BEAN, JR., Appellant

 

V.

REYNOLDS REALTY GROUP, INC., AND

RICHARD REYNOLDS, WILLIAM J. FUERST, AND

JACK W. GOODING, INDIVIDUALLY AND AS

OFFICERS AND DIRECTORS OF

REYNOLDS REALTY GROUP, INC., Appellees



                                              


On Appeal from the 102nd Judicial District Court

Bowie County, Texas

Trial Court No. 03C0256-102



                                                 



Before Ross, Carter, and Cornelius,* JJ.

Opinion by Justice Carter

Morriss, C.J., Not Participating



O P I N I O N


            William "Bo" Bean, Jr., appeals from a take-nothing summary judgment rendered in his lawsuit against Reynolds Realty Group, Inc., and Richard Reynolds, William J. Fuerst, and Jack W. Gooding, Individually and as Officers and Directors of Reynolds Realty Group, Inc. (Reynolds), and against the corporation itself. The undisputed facts show that Bean was one of four directors of the corporation, and an owner of twenty-five percent of the common stock, and that the corporation is a Texas Close Corporation. The Shareholder Agreement is dated March 2001.

            The major focus of Bean's argument rests on his contention that the other directors acted in a way not permitted by the Shareholder Agreement by creating bylaws over his objections. Bean argues that, by so doing, the other directors substituted bylaws for the Shareholder Agreement—and that this was improper because the Agreement provided that it could not be modified unless all parties agreed in writing.

            Summary judgment evidence shows that, after some disagreement about the propriety of some of Bean's behavior, the appellees barred Bean from access to the offices of the corporation and from its assets November 11, 2002. Further, the appellees held a meeting of the stockholders December 30, 2002, and over Bean's objections, adopted bylaws to replace the Shareholder Agreement. Nearly a year later, on November 7, 2003, a stockholders' meeting was held, with all four present, and the corporation was dissolved.

            There is evidence that, at dissolution, the intention was to liquidate the assets of this corporation and divide them among the four stockholders. Bean alleged that the controlling stockholders neither created a schedule for distribution, nor distributed its assets, and that the remaining trio formed a separate entity that he believes used all the assets (including furniture, equipment, and cash) of the Group.

Procedural Problems

            We first recognize that Reynolds filed a motion for summary judgment that contains no grounds on which the trial court could grant a judgment. Rather than filing a motion for summary judgment setting out grounds, Reynolds filed a pro forma motion simply alleging that "there is no evidence to support the plaintiff's causes of actions and allegations." Reynolds also filed a brief with attachments. In response, Bean filed only a denial with attachments. This is not proper practice.

            An appellate court errs in affirming the trial court's judgment when a motion for summary judgment states no grounds. McConnell v. Southside Indep. Sch. Dist., 858 S.W.2d 337, 344 (Tex. 1993). "Specific grounds for summary judgment must be expressly presented in the motion for summary judgment itself and not in a brief filed contemporaneously with the motion or in the summary judgment evidence because a 'brief in support' of a motion is not a motion, answer, or response as contemplated by Texas Rule of Civil Procedure 166a." Id. at 339; Protective Life Ins. Co. v. Russell, 119 S.W.3d 274, 285 (Tex. App.—Tyler 2003, pet. denied). The term "grounds" refers to the reasons entitling the movant to summary judgment. McConnell, 858 S.W.2d at 339. Even a no-evidence summary judgment motion must allege that there is no evidence of an essential element of the adverse party's claim. Southwestern Elec. Power Co. v. Grant, 73 S.W.3d 211, 215 (Tex. 2002). The motion must state the elements as to which there is no evidence. Tex. R. Civ. P. 166a(i). A motion that merely states there is no evidence to support the other party's claim is insufficient. If the motion is not specific in challenging a particular element of a claim or defense, it is insufficient as a matter of law. See Abraham v. Ryland Mortgage Co., 995 S.W.2d 890, 892 (Tex. App.—El Paso 1999, no pet.).

            Even if the nonmovant fails to except or respond, if the grounds for summary judgment are not expressly presented in the motion for summary judgment itself, the motion is legally insufficient as a matter of law. The Texas Supreme Court has concluded that Rule 166a(c) does not require a nonmovant to except to the legal sufficiency of a traditional motion for summary judgment. McConnell, 858 S.W.2d at 342. Several of our sister courts have applied McConnell to a no-evidence motion for summary judgment. We agree with the majority of the courts that have considered the issue, that the sufficiency of a no-evidence summary judgment motion may be challenged for the first time on appeal. Cimarron Hydrocarbons Corp. v. Carpenter, 143 S.W.3d 560, 564 (Tex. App.—Dallas 2004, pet. denied); In re Estate of Swanson, 130 S.W.3d 144, 147 (Tex. App.—El Paso 2003, no pet.); Crocker v. Paulyne's Nursing Home, Inc., 95 S.W.3d 416, 419 (Tex. App.—Dallas 2002, no pet.); Cuyler v. Minns, 60 S.W.3d 209, 213 (Tex. App.—Houston [14th Dist.] 2001, pet. denied); Callaghan Ranch, Ltd. v Killam, 53 S.W.3d 1, 3–4 (Tex. App.—San Antonio 2000, pet. denied). Reynolds' motion did not comply with these requirements and is insufficient as a matter of law.

            Further, the Texas Supreme Court has held that summary judgment cannot be granted except on the grounds expressly presented in the motion. Johnson v. Brewer & Pritchard, P.C.

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William "Bo" Bean, Jr. v. Reynolds Realty Group, Inc., and Richard Reynolds, William J. Fuerst, and Jack W. Gooding, Individually and as Officers and Directors of Reynolds Realty Group, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-bo-bean-jr-v-reynolds-realty-group-inc-and-richard-texapp-2006.