Ron v. Ron

• Decision Date: 25 June 2020
• Docket Number: NO. 14-18-00753-CV,NO. 14-18-00710-CV,14-18-00710-CV
• Parties: Suzanne Sondrup RON, Appellant v. Avishai RON, Appellee
• Court: Texas Court of Appeals

604 S.W.3d 559

Suzanne Sondrup RON, Appellant

v.Avishai RON, Appellee

NO. 14-18-00710-CV

NO. 14-18-00753-CV

Court of Appeals of Texas, Houston (14th Dist.).

Opinion filed June 25, 2020

Melissa A. Lorber, Shelby Leigh O'Brien Austin, Jorge Borunda, Houston, for Appellant in No. 14-18-00710-CV.

Andrew K. Meade, Marilyn Vilandos, Houston, for Appellee in No. 14-18-00710-CV.

Melissa A. Lorber, Paula Krause Lear, Shelby Leigh O'Brien Austin, Jorge Borunda, Houston, for Appellant in No. 14-18-00753-CV.

Andrew K. Meade, Samuel Haren, Leann Pinkerton, Marilyn Vilandos, Houston, for Appellee in No. 14-18-00753-CV.

Panel consists of Justices Christopher, Spain, and Poissant.

Charles A. Spain, Justice In these interlocutory appeals, appellant Suzanne Sondrup Ron challenges the trial court's August 3, 2018 order granting an anti-suit injunction (appellate case number 14-18-00710-CV) and August 23, 2018 order granting a temporary injunction (appellate case number 14-18-00753-CV) in favor of appellee Avishai (Avi) Ron, Suzanne's ex-husband. See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(4) ; Golden Rule Ins. Co. v. Harper , 925 S.W.2d 649, 650 (Tex. 1996) (per curiam). In three issues, Suzanne argues that the trial court abused its discretion by (1) issuing the anti-suit injunction and the anti-suit provisions of the temporary injunction, (2) issuing the temporary injunction, and (3) prohibiting Suzanne from filing for bankruptcy protection. We reverse and order the August 3 anti-suit injunction dissolved. We reverse in part the August 23 temporary injunction and order paragraph 33 dissolved, but otherwise affirm.

I. BACKGROUND

Suzanne and Avi are former spouses. While they were married, Avi granted some of his separate property interests in real-estate partnerships to the Suzanne Ron 2012 Family Trust (the Trust). Suzanne was appointed Trustee of the Trust and Gary Stein was appointed Trust Protector; the beneficiaries are Suzanne and Avi's and her three children.

The couple divorced in 2017. Before the family court signed its final divorce decree on April 13, 2017,¹ Suzanne, on March 20, 2017, individually and as Trustee of the Trust, filed the instant suit against Avi and various entities,² alleging that Avi was mismanaging the partnerships and damaging the Trust.³ We refer to this suit as the Trust Suit.

In the Trust Suit, Suzanne and Avi entered a Rule 11 agreement in which Suzanne agreed to allow Stein to appoint Murray Fogler as Trustee. Suzanne and Avi participated in mediation before Alan Levin to globally resolve their disputes. On October 17, 2017, Suzanne and Avi entered into a confidential Mediated Settlement Agreement (MSA), signed by Suzanne, Avi, and their respective counsel.

Among other things, the MSA provides for: retirement of the Divorce Suit equalization payment (just over $19 million) for a reduced payment of $8.5 million to be made by Avi to Suzanne; what assets Avi would purchase from the Trust; the formation of and funding details for three separate spin-off trusts for their children; the dissolution of the receivership in the Divorce Suit; and the mutual dismissal and release of lawsuits (including the Trust Suit and the Divorce Suit appeal) and claims.⁴ The MSA further provides: "This Agreement shall be governed by the laws of Texas, with exclusive venue in Harris County, Texas, and the parties agree to submit any dispute related to this Agreement to Alan Levin for binding arbitration."

Pursuant to the MSA, Avi paid Suzanne a $1 million advance and over $7 million of the remaining $7.5 million payment for the purchase of various entities. On December 19, 2017, also pursuant to the MSA, Stein removed Fogler as Trustee, re-appointed Suzanne as Trustee, and tendered his resignation.⁵

Disputes arose between Susanne and Avi regarding the formation, validity, and effect of the MSA. Arbitration pursuant to the MSA was scheduled for February 2018, which was rescheduled to April 2018. Suzanne thereafter refused to submit to arbitration. On May 2, 2018, Avi filed his claim and demand in arbitration against Suzanne. On June 5, 2018, Avi filed a motion to compel Suzanne to participate in arbitration under the MSA.⁶

On July 13, 2018, Suzanne filed notice in the trial court of her purported resignation as Trustee of the Trust and appointment of Joshua Tillotson of Utah as successor Trustee. Before filing this notice in the Trust Suit, on June 12, 2018, the same day she allegedly resigned as Trustee and appointed Tillotson, Suzanne filed a petition for order appointing Trust Protector in the Third Judicial District Court in Salt Lake County, Utah. This petition requested that Robert Collins be named as Trust Protector. We subsequently refer to this action as the Utah Trust Protector Suit.

In the Trust Suit, on July 26, 2018, Avi filed an amended motion to compel arbitration against Suzanne and the Trust, which he later supplemented to include Tillotson. Avi also filed a counterclaim for breach of the MSA against Suzanne; a third-party petition against Tillotson; an application for an anti-suit injunction; an application for temporary restraining order; and requests for temporary and permanent injunctions. That same day, the trial court signed a temporary restraining order, as well as an order granting Avi's application for anti-suit injunction.⁷

In the meantime, the Utah district court already had signed an order on July 18, 2018, granting Suzanne's request to appoint Collins as Trust Protector of the Trust in the Utah Trust Protector Suit. On July 19, 2018, Tillotson as Trustee filed in the Third Judicial District Court in Salt Lake County, Utah, a petition for court determination, instruction to Trustee, and other relief. Within this petition, Tillotson expressly sought "a determination that the MSA is not binding on the Trust." We subsequently refer to this action as the Utah MSA Suit.

On August 1, 2018, Avi filed an amended counterclaim and third-party petition. Avi named Collins as another third-party defendant.⁸ Avi again applied for an anti-suit injunction and for a temporary restraining order and a temporary and permanent injunction.

On August 3, 2018, the trial court signed an order again granting Avi's application for anti-suit injunction. The trial court stated there was evidence that harm was imminent and the injury was irreparable and without adequate remedy at law because "there is a direct and present threat to this Court's exclusive jurisdiction, as Suzanne, the Trust, and Tillotson have filed suit in a Utah court ... seeking to avoid the MSA." The trial court further stated: "The Utah suit, if allowed to proceed, will delay, obstruct, or otherwise interfere with the instant suit, including the potential for inconsistent judgments and rulings." The trial court enjoined Suzanne, the Trust, and Tillotson from:

proceeding with any lawsuits other than the instant suit and the divorce proceeding in Family Court because such suits are: (1) threats to the Court's exclusive jurisdiction under the MSA; (2) contravene Texas public policy in favor of honoring forum selection clauses, against forum shopping, and in favor of encouraging and honoring settlement agreements; (3) are vexatious and harassing; and (4) will delay, obstruct, or otherwise interfere with any Judgment rendered by this Court.

That same day, the trial court also signed an order extending the temporary restraining order, as well as an order granting Avi's amended and supplemental motion to compel arbitration.⁹ Suzanne appealed the trial court's August 3, 2018 order granting the anti-suit injunction.¹⁰ The trial court set the hearing on Avi's motion for temporary injunction for August 17, 2018.

On August 14, 2018, Suzanne filed a motion asking this court to stay the August 3, 2018 anti-suit injunction and temporary restraining order. On August 16, 2028, we granted Suzanne's motion as to the anti-suit injunction but not as to the temporary restraining order. On August 17, 2018, the parties agreed to extend the temporary restraining order until August 23, 2018 at 5:00 p.m.

On August 23, 2018, the trial court held an evidentiary hearing on Avi's application for temporary injunction. That same day, the trial court signed a temporary injunction applicable to both Suzanne and Avi. The trial court's order enjoined Suzanne and Avi "from initiating or participating in any litigation involving the MSA, including any non-monetary assets of the Trust which are implicated by the MSA." The order further enjoined Suzanne and Avi:

• from conveying, encumbering, alienating, pledging, or otherwise decreasing the value/marketability of the assets conveyed or to be conveyed by the MSA;

• from contacting lenders, business associates or partners of the other and representing that he or she is the owner of any assets conveyed or to be conveyed in the MSA, unless such representation is accompanied by a copy of this injunction and disclosure that such ownership is subject to ongoing litigation; and

• from representing to any third party that she or he is trustee, unless such representation is accompanied by a copy of this injunction and disclosure that such status is subject to ongoing litigation.

On August 28, 2018, Suzanne filed a motion asking this court to stay the temporary injunction order signed August 23, 2018. We granted her motion in part as to paragraph 33 of the temporary injunction, effectively, the anti-suit portion of the injunction.

Suzanne timely appealed the trial court's August 3, 2018 anti-suit injunction and August 23, 2018 temporary injunction.¹¹ See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(4). She brings three issues: first, the trial court abused its discretion by issuing the anti-suit injunction and the anti-suit provision of the temporary injunction; second, the trial court abused its discretion by issuing the temporary injunction; and third, the trial court abused its discretion to the extent either injunction order prohibits Suzanne from filing...