ctl/thompson Texas, Llc v. Starwood Homeowner's Association, Inc.
390 S.W.3d 299
| Tex. | 2013Background
- Section 150.002 of the Texas Civil Practice and Remedies Code requires a plaintiff in professional-services actions to file an affidavit supporting merit; 150.002(e) permits dismissal with or without prejudice, with dismissal possibly issued as a sanction.
- Starwood sued CTL/Thompson Texas for deficient geotechnical engineering services and attached an affidavit Starwood believed complied with §150.002.
- CTL moved for dismissal with prejudice under §150.002(e); the trial court denied the motion, and CTL appealed under §150.002(f).
- Starwood nonsuited its claims before the appellate decision, and the court of appeals held the nonsuit mooted the appeal for lack of jurisdiction.
- The Supreme Court held the nonsuit did not moot the appeal; §150.002(e) dismissal may be with prejudice and can survive a nonsuit, requiring reversal and remand.
- The decision remands to determine exercise of discretion under §150.002(e) and keeps open the authority to sanction meritless claims beyond the nonsuit.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a plaintiff’s nonsuit moots an interlocutory appeal under §150.002(e). | Starwood contends the nonsuit moots CTL’s §150.002(e) appeal. | CTL argues the appeal survives because §150.002(e) creates sanctions that may endure nonsuit. | No; the nonsuit did not moot the appeal. |
| Whether §150.002(e) dismissal with prejudice can survive a nonsuit. | Starwood asserts dismissal with prejudice cannot survive nonsuit since relief was already granted. | CTL contends §150.002(e) authorizes further relief (dismissal with prejudice) beyond nonsuit. | Yes; the dismissal with prejudice can survive nonsuit. |
| Whether §150.002(e) sanctions are governed by general rules on sanctions post-nonsuit, or require broader statutory interpretation. | Starwood relies on broader purpose of sanctions to deter meritless suits. | CTL emphasizes statutory sanction framework and case law like Samlowski guiding discretion. | Guidance comes from broader purposes of the statute; the court must exercise discretion on sanction with prejudice. |
Key Cases Cited
- Villafani v. Trejo, 251 S.W.3d 466 (Tex. 2008) (sanctions for meritless claims can survive a nonsuit)
- Samlowski v. Wooten, 332 S.W.3d 404 (Tex. 2011) (section 150.002(e) provides no particular guidance; broader purposes govern)
- Univ. of Tex. Med. Branch at Galveston v. Estate of Blackmon, 195 S.W.3d 98 (Tex. 2006) (plea to jurisdiction based on sovereign immunity not a claim for affirmative relief surviving nonsuit)
- Aetna Cas. & Sur. Co. v. Specia, 849 S.W.2d 805 (Tex. 1993) (sanctions for discovery and related conduct can survive nonsuit)
- Klein v. Dooley, 949 S.W.2d 307 (Tex. 1997) (per curiam; absolute right to nonsuit does not prejudice other claims)