Callaway v. Martin
Decision Date | 25 May 2017 |
Docket Number | NO. 02-16-00181-CV,02-16-00181-CV |
Parties | EDGAR 'PAT' CALLAWAY APPELLANT v. GRANVILLE 'RANDY' MARTIN, III, AND JUDY MARTIN, INDIVIDUALLY AND D/B/A LUKES MOBILE HOME PARK APPELLEES |
Court | Texas Court of Appeals |
FROM THE 43RD DISTRICT COURT OF PARKER COUNTY
Appellant Edgar "Pat" Callaway sued his daughter, Appellee Judy Martin, and her husband, Appellee Granville "Randy" Martin III, individually and doing business as Lukes Mobile Home Park, after their 1999 business deal involving the park soured. The parties had created two corporations—one, JRP Enterprises, Inc., to own the park, and the other, Lukes Mobile Home Park, Inc., to manage the park,2 and in June 2000, Pat paid $89,970 of the purchase price and borrowed the remaining amount—$200,000—from a bank before the sale closed. Opal Lukes signed the deed transferring the property to JRP. Pat waited until after the closing to tell Judy and Randy that he had obtained the loan instead of using his own cash, and for the following five years—from August 12, 2000 to July 12, 2005—JRP and Lukes struggled to pay off the bank note at more than $4,000 per month and ultimately paid the bank an additional $48,000 in interest that was not contemplated at the outset of the transaction. Neither corporation fully recovered from this financial blow.
In December 2012, Pat filed his lawsuit. Among the other claims that Pat asserted during the course of the litigation, he alleged fraud, undue influence, coercion, breach of fiduciary duty, and breach of an oral contract, and he sought a declaratory judgment. Pat added his declaratory judgment claim in his thirdamended petition, which he filed in April 2013, and he added his breach-of-oral-contract claim in his fifth amended petition, which he filed a week before the first summary judgment hearing in 2014. The trial court granted a partial summary judgment for Randy and Judy on all but the declaratory judgment and contract actions.
A few days after Randy and Judy filed a second motion for summary judgment on Pat's remaining claims, they also sought rule 13 sanctions, complaining that all of Pat's pleadings had been groundless, had been filed in bad faith, and had been filed for purposes of harassment. Undeterred, Pat filed a sixth amended petition, raising a new fraud claim in addition to his breach-of-oral-contract claim and requiring Randy and Judy to supplement their second summary judgment motion. The trial court granted the second summary judgment motion but denied Randy and Judy's motion for sanctions.
After Randy and Judy were realigned as plaintiffs based on the counterclaims they had asserted against Pat, Pat moved for summary judgment on their claims, and Randy and Judy asked the trial court to reconsider assessing sanctions. At the January 7, 2016 hearing on the parties' motions, Randy and Judy informed the trial court that they would dismiss their counterclaims but that they wanted reimbursement for their expenditures made in defending against Pat's unmeritorious lawsuit. After hearing additional testimony, including Pat's, the trial court awarded sanctions against Pat in the amount of $75,000 in attorney's fees and $45,000 in court costs.
Pat does not challenge the amount awarded. Nor does he appeal the trial court's summary judgments on his claims. Instead, in three issues, he appeals only the propriety and basis for the sanctions imposed. We affirm.
On the same day, the trial court signed its final judgment, rendering a take-nothing judgment against Pat, dismissing Randy and Judy's claims, and incorporating the sanctions award.
Pat argues that the trial court abused its discretion (1) by granting Randy and Judy's motion for reconsideration because no new, reliable evidence was presented to support it, (2) by granting the sanctions because his pleadings were not filed in bad faith or with the intent to harass, and (3) by finding that Randy and Judy's evidence of Pat's alleged conduct after he filed the case showed his bad faith or intent to harass when he filed his lawsuit.
Randy and Judy respond that the trial court's judgment must be affirmed because, among other reasons, the trial court did not clearly abuse its discretion by awarding the sanctions after considering and weighing the evidence submitted to show that Pat had asserted his claims in bad faith and with the intent to harass.
We review both a trial court's decision on a motion to reconsider3 and a trial court's imposition of sanctions for an abuse of discretion. See Nath v. Tex. Children's Hosp. (Nath I), 446 S.W.3d 355, 361 (Tex. 2014); Mullins v. Martinez R.O.W., LLC, 498 S.W.3d 700, 705 (Tex. App.—Houston [1st Dist.] 2016, no pet.). A trial court abuses its discretion if it acts without reference to any guiding rules or principles, that is, if its act is arbitrary or unreasonable. Low v. Henry, 221 S.W.3d 609, 614 (Tex. 2007); Cire v. Cummings, 134 S.W.3d 835, 838-39 (Tex. 2004). A trial court also abuses its discretion by ruling without supporting evidence. Ford Motor Co. v. Garcia, 363 S.W.3d 573, 578 (Tex. 2012). But an abuse of discretion does not occur when the trial court bases its decision onconflicting evidence and some evidence of substantive and probative character supports its decision. Unifund CCR Partners v. Villa, 299 S.W.3d 92, 97 (Tex. 2009); Butnaru v. Ford Motor Co., 84 S.W.3d 198, 211 (Tex. 2002) (op. on reh'g).
With regard to imposing rule 13 sanctions, a trial court abuses its discretion if it does not ensure that there is a direct relationship between the...
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