Justia Texas Supreme Court Opinion Summaries

This appeal arose from a suit by ExxonMobil Corporation against DSTJ, LLP and Milestone Operating, Inc. (collectively Milestone). After Milestone failed to answer, ExxonMobil obtained a default judgment. Milestone appealed, arguing that service on Donald Harlan - DSTJ's partner and Milestone Operating, Inc.'s director and registered agent - was defective, and that Milestone established the necessary elements set forth in Craddock v. Sunshine Bus Lines, Inc. to set aside the default judgment. The trial court denied the motion for new trial. The court of appeals affirmed, holding that Milestone failed to meet its burden to satisfy Craddock's first element. The Supreme Court reversed and remanded, holding that because the evidence in this case established that Defendants' failure to answer was no intentional or the result of conscious indifference, Defendants' motion for new trial could not be denied on the ground that Defendants failed to satisfy the first Craddock element. Remanded. View "Milestone Operating, Inc. v. ExxonMobil Corp." on Justia Law

At issue in this case was whether a non-hurricane windstorm case could be joined as a tag-along to a previously created pre-trial Hurricane Ike multidistrict litigation (MDL) court. A single pretrial judge remanded this case because it did not arise from a hurricane. The Supreme Court granted the motion for rehearing and vacated the single pretrial judge's order of remand, holding (1) the case was related to the MDL litigation because the issue of whether State Farm covered shingle damage arising from wind events during the period between 2008 and 2010 was common to all cases; and (2) transfer would promote efficiency and serve the convenience of parties and witnesses. View "In re State Farm Lloyds Hurricane Litig." on Justia Law

Since first imposing a franchise tax in 1893, the Legislature restructured it several times, drawing various distinctions among taxpayers with adjustments, deductions, and exemptions that became elaborate. Petitioner in this original proceeding contended that the franchise tax bore no reasonable relationship to its object, the value of the privilege of doing business in Texas, and therefore it violated the Texas Constitution's mandate that "taxation shall be equal and uniform," the Fourteenth Amendment's equal protection and due process guarantees, and the U.S. Constitution's Commerce Clause. The Supreme Court denied the petition, holding (1) Petitioner failed to establish that the franchise tax violates the Equal and Uniform Clause; (2) the failure of Petitioner's challenge based on the Equal and Uniform Clause foreclosed its equal protection challenge; (3) the franchise tax does not violate due process; and (4) the manufacturing rate does not discriminate against interstate commerce and is fairly related to the services provided by Texas. View "In re Nestle USA, Inc." on Justia Law

G.W., David Gray and Lucy Wood's nine-year-old daughter, had lived with her maternal grandmother, Ann Shook, for her entire life. The trial court appointed Shook as G.W.'s sole managing conservator and named Gray and Wood as G.W.'s possessory conservators. The court of appeals reversed, holding that the trial court abused its discretion in naming Shook, a nonparent, as G.W.'s sole managing conservator because Shook failed to present any evidence that could overcome the presumption that a parent should be named as managing conservator. The court then remanded the case to the trial court to determine the custody and visitation rights as between Gray and Wood only. The Supreme Court affirmed the court of appeals' judgment remanding the case but reversed to the extent the judgment limited the trial court's consideration of the role Shook should play in G.W.'s life, whether as conservator or a person with defined access rights. View "Shook v. Gray" on Justia Law

In this employer retaliation case, a broad-form jury question allowed the jury to find liability based on a legal theory that was jurisdictionally barred and thus could not support liability. The trial court entered a judgment reinstating Employee to her position and awarding her damages and attorney's fees. Employer appealed, arguing that the jury charge allowed a finding of liability based on invalid legal theories. The court of appeals concluded that Employer waived its objection. The Supreme Court reversed, holding (1) Employer properly preserved its objection; and (2) because the Court could not determine whether the jury relied on the invalid theory, the case was remanded for a new trial. View "Tex. Comm'n on Human Rights v. Morrison" on Justia Law

In this appeal from a summary judgment dismissal of a direct and collateral attack, Petitioner contended that the underlying judgment was void and subject to collateral attack at any time. In this regard, Petitioner argued that the trial court rendering the default judgment never acquired personal jurisdiction over it because the service of process was defective. Alternatively, Petitioner argued that its adversary's extrinsic fraud prevented it from learning about the underlying default judgment and that limitations was thereby tolled, making its direct attack through a bill of review timely. The court of appeals affirmed the summary judgment, concluding that the underlying default judgment was not void and that there was no evidence of extrinsic fraud that would toll limitations. The Supreme Court reversed, holding (1) the alleged defects in service of process were not sufficient to render the default judgment void, but (2) summary judgment was improperly granted because there was some evidence of extrinsic fraud. Remanded. View "PNS Stores, Inc. v. Rivera" on Justia Law

An employee (Employee) of the Austin Independent School District (AISD), a self-insured governmental entity, was injured on the job. AISD acknowledged that Employee had been injured but disputed whether the compensable injury extended to two alleged conditions. A hearing officer sided with Employee on the contested issues, as did the administrative appeals panel. In the district court, Employee filed a counterclaim seeking attorney fees. AISD filed a nonsuit, leaving only the counterclaim for fees. After a jury trial, Employee won a judgment on the verdict that included pre-nonsuit and post-nonsuit attorney fees. The court of appeals found (1) the evidence was sufficient to support the pre-nonsuit fee award, but (2) the post-nonsuit fee award could not stand. AISD brought a petition for review in the Supreme Court, arguing for the first time that governmental immunity from suit barred the award of attorney fees. The Supreme Court reversed in part, holding (1) the defense of sovereign immunity may be raised for the first time on appeal; and (2) AISD was immune from Employee's claim for attorney fees. View "Manbeck v. Austin Indep. Sch. Dist." on Justia Law

At issue in this case was whether, for purposes of Tex. Civ. Prac. & Rem. Code Ann. 16.068, an action for cargo damage against a common carrier, brought under the Carmack Amendment to the Interstate Commerce Act, relates back to an action for breach of an agreement to settle the cargo-damage claim. The answer depended on whether the cargo-damage claim was, in the words of section 16.068, "wholly based on a new, distinct, or different transaction or occurrence" than the breach-of-settlement claim. A divided court of appeals held that the cargo-damage claim did not relate back and was therefore barred by limitations. The Supreme Court reversed and rendered judgment for the plaintiff, holding that the cargo-damage claim and the breach-of-settlement claim both arose out of the same occurrence, and therefore, the cargo-damage claim was not barred by limitations. View "Lexington Ins. Co. v. Daybreak Express, Inc." on Justia Law

In this primary election case, Choco Meza, chair of the county democratic party, determined that petitions filed with Monica Caballero's application for a place on the county democratic party primary election ballot as a candidate for justice of the peace did not contain the required number of valid signatures. Caballero sued Meza, the county democratic party, and the county, and sought injunctive relief precluding them from omitting her name from the ballot. Tomas Uresti, Caballero's opponent, intervened. The trial court subsequently issued a temporary injunction effectively compelling Meza to place Caballero's name on the ballot. Uresti applied for a writ of mandamus directing the trial court to vacate its temporary injunction. The Supreme Court dismissed the petition for mandamus relief as moot, as the primary election, which Meza won, had concluded. View "In re Uresti" on Justia Law

A corporation (Infodisc) and one of its subsidiaries (M-TX) defaulted on a loan from a bank. A California court placed the borrowers in receivership to liquidate their assets securing the loan, and an ancillary receivership was opened in Texas. Meanwhile, another Infodisc subsidiary, a California corporation (M-CA), declared bankruptcy. The receiver claimed and sold property in a Texas warehouse that the Landlord alleged was not leased to Infodisc or M-TX but to M-CA. The parties disputed who the tenant was and who owned the property and fixtures in the warehouse. After the trial court rejected almost all of the Landlord's claims, the Landlord appealed. The court vacated the trial court's judgment and dismissed the case, holding that the proceedings violated the automatic stay even though M-CA was not a party to the case. The Supreme Court granted review and reversed, holding that the court of appeals should have abated the appeal to allow the application of the automatic stay to be determined by the trial court in the first instance. Remanded. View "Evans v. Unit 82 Joint Venture" on Justia Law