Greiner v. Jameson
| Decision Date | 09 September 1993 |
| Docket Number | No. 05-92-01169-CV,05-92-01169-CV |
| Citation | 865 S.W.2d 493 |
| Parties | G.B. GREINER, H. David Tullos, and Southland Oil Partners, Inc., Appellants, v. Carl E. JAMESON and William D. Brosseau, Appellees. |
| Court | Texas Court of Appeals |
Mike O'Brien, Houston, Bruce W. Bowman, Jr., Charles V. Serafino, Dallas, for appellants.
Scott Henderson, Martin R. Griffin, George H. Barber, David L. Peavler, Dallas, for appellees.
Before BAKER, LAGARDE and BARBER, JJ.
This appeal involves a postjudgment order imposing sanctions against G.B. Greiner, H. David Tullos, and Southland Oil Partners, Inc. (collectively Greiner) for failure to pay a money judgment and dismiss certain litigation pending in Louisiana. Greiner contends the trial court abused its discretion in ordering monetary sanctions. Greiner claims they were excessive and improper and no rule or statute authorized the sanctions. Greiner also contends that the sanctions order exceeded the limits of the trial court's judicial power and is void. We conclude the trial court abused its discretion and exceeded its inherent judicial powers by the entry of the sanctions order. We reverse the trial court's order and render judgment that Jameson and Brosseau take nothing.
Argos Properties, Inc. sued Greiner in 1988. Greiner filed a third party claim against Carl E. Jameson and William D. Brosseau. The court realigned Jameson and Brosseau as plaintiffs in the lawsuit. In June 1991, the parties appeared for trial and announced the terms of a settlement in open court.
The transcript reflects the rule 11 agreement between the parties was that Greiner would pay $10,000 each to Jameson and Brosseau. Greiner also agreed to pay formal court costs of no more than $5000 upon proper documentation. Greiner agreed to pay the $20,000 within 120 days of the date of the agreement. Additionally, the parties agreed to dismiss or settle all other litigation whether pending in Louisiana or Texas. The transcript further reflects that Greiner's attorney stated on the record he had consulted his clients. The attorney said Greiner agreed to the settlement dictated into the record by Jameson and Brosseau's attorney. The court questioned the parties, who said they understood and agreed with the settlement.
In early October 1991, Jameson and Brosseau informed the court that Greiner had breached the June 1991 rule 11 agreement. Greiner had not paid the amounts due to Jameson and Brosseau and had not dismissed the Louisiana litigation. Jameson and Brosseau asked the court to enter the judgment for $75,000 as provided in the rule 11 agreement because of Greiner's default under the agreement.
On November 8, 1991, the trial court entered a judgment against Greiner. The judgment recited that it was an agreed judgment following the rule 11 agreement of the parties. The judgment ordered that:
(1) Greiner pay Jameson and Brosseau the net sum of $73,500; and
(2) all other claims, counterclaims, demands and/or lawsuits involving and/or by and between [Brosseau], [Jameson], C. Jameson, Inc., Argo's Properties, Inc., G.B. Greiner, David Tullos, and Southland Oil & Gas Corporation are settled and all pending claims, counterclaims, demands, and lawsuits are ordered to be immediately dismissed, with prejudice, by each party asserting such claims, counterclaims, demands and/or lawsuits, including but not limited to claims, counterclaims, and demands of the above-named parties in Cause No. 66032, filed in the 16th Judicial Court of Iberia [sic] Parish, Louisiana and in Cause No. 71,042 filed in the District Court of Louisiana.
In December 1991, Argos Properties, Inc. and Brosseau filed a motion for sanctions against Greiner. The motion referred to the June 1991 rule 11 agreement and asserted:
[The settlement agreement] required that both [appellees] and Greiner immediately dismiss with prejudice all lawsuits pending against each other including but not limited to those pending in Dallas County, Texas, and New Iberia Parish, Louisiana.... The settlement agreement further required [Greiner] to dismiss all pending litigation, civil or otherwise against [appellees] and to pay [appellees], each, the total sum of ... $10,000. The payments were to be paid in full within one hundred twenty days of June 4, 1991.... the settlement agreement were further secured by [Greiner's] agreement to have a judgment of ... $75,000 entered against them should they fail to comply with any of the terms of the settlement....
The motion further claimed that Greiner's failure to make the payments and dismiss the litigation was intentional. In the motion, Argos and Brosseau asked that:
[Greiner] be compelled to comply with their June 4, 1991, sworn agreement as reflected by this Court's judgment of November 8, 1991. More specifically, that this Court order and compel [Greiner], directly or through their agents, attorneys or representatives [sic] immediately take all actions necessary to dismiss with prejudice cause numbers 71,042-D and 66032-C [in Iberia] [sic] Parish, [Louisiana] and be further compelled to execute the attached form of releases of these claims. Further that this Court immediately enter an order sanctioning [Greiner] in the amount of ... [$50,000] and enter a continuing sanction of ... [$1,000 per day] for each day subsequent to the entry of this Court's order in which [Greiner] failed to fully comply therewith.
Attached to the motion was a form of release. The release called for Greiner as well as Southland Oil Corporation and Southland Oil and Gas Corporation (which were not parties to the litigation) to release various persons from liability. The release included Brosseau, Jameson, and Argos Properties, Inc. However, the release also named other persons or entities not mentioned in the pleadings or the settlement agreement. These additional persons included Teresa L. Brosseau, Argos Energy, Inc., C. Jameson, Inc., and the "respective predecessors, affiliates, partners, spouses, officers, directors, shareholders, employees, agents, heirs, assignees, representatives, parent, subsidiary and/or affiliate entity [sic]."
The trial court heard the motion for sanctions on January 24, 1993. The trial court entered the sanctions order on that day. The trial court found the parties entered into a settlement agreement in June 1991 which required Greiner to pay a total of $20,000 within 120 days and dismiss other litigation pending between the parties. The court found that Jameson and Brosseau had complied with, and Greiner had knowingly and intentionally failed to comply with, the terms of the rule 11 agreement made in open court. The court found that Greiner had not paid the monetary amount of the November agreed judgment. The court found that Greiner had not dismissed the two Louisiana lawsuits listed in the motion.
The trial court ordered Greiner to pay Jameson and Brosseau $50,000 in sanctions, dismiss the two Louisiana lawsuits, and execute the release of claims attached to the order. The court further ordered that if Greiner did not fully comply with the sanctions order immediately, additional sanctions of $1000 per day payable to Jameson and Brosseau would issue for each day of noncompliance.
In the first four points of error, Greiner contends the trial court abused its discretion in granting monetary sanctions in the order because: (1) the amount was excessive and improper; (2) Greiner did not violate any discovery or pretrial orders; and (3) the law does not authorize the sanctions. In points of error five and six, Greiner contends the trial court erred in signing the order because it violates the parties' rule 11 agreement. In its seventh point of error, Greiner contends the trial court erred in entering the sanctions order because the agreed judgment is void. Greiner contends the judgment is void because it does not follow the rule 11 agreement.
Jameson and Brosseau contend the trial court's order is valid because it had the authority to impose the sanctions under rule 308 of the Texas Rules of Civil Procedure. Jameson and Brosseau also contend that the order is valid because of the trial court's inherent power to enforce its judgments.
The facts are not in dispute. The issue is one of law alone--whether the trial court had legal authority to enter the sanctions. On appeal, we determine whether the trial court had the authority to act as it did. We treat the trial court's application of law to the facts with less deference than the trial court's findings of fact. See Walker v. Packer, 827 S.W.2d 833, 839-40 (Tex.1992) (orig. proceeding).
The trial court has broad discretion in enforcing its judgments. Young v. Young, 810 S.W.2d 850, 851 (Tex.App.--Dallas 1991, writ denied). We review the trial court's order using an abuse of discretion standard. See Reynolds v. Harrison, 635 S.W.2d 845, 847 (Tex.App.--Tyler 1982, writ ref'd n.r.e.). The test for abuse of discretion is not whether, in the opinion of the reviewing court, the facts present a proper case for the trial court's action. Rather, the question is whether the court acted without reference to any guiding rules or principles. See Downer v. Aquamarine Operators, Inc., 701 S.W.2d 238, 241-42 (Tex.1985), cert. denied, 476 U.S. 1159, 106 S.Ct. 2279, 90 L.Ed.2d 721 (1986).
If the trial court acts in an arbitrary or unreasonable manner, it abuses its discretion. Loftin v. Martin, 776 S.W.2d 145, 146 (Tex.1989). The trial court does not necessarily abuse its discretion if, under the same facts, an appellate judge would decide the matter differently or if the court commits a mere error in judgment. Loftin, ...
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