HMT Tank Service LLC and HMT LLC D/B/A and F/K/A HMT, Inc. v. American Tank & Vessel, Inc.
565 S.W.3d 799
| Tex. App. | 2018Background
- HMT LLC (HMT) and HMT Tank Service LLC (HMT Service) sued American Tank & Vessel, Inc. (ATV) in Harris County seeking a declaratory judgment that neither owed ATV defense or indemnity for potential third-party claims arising from failed seals sold under a Purchase Order.
- ATV previously sued HMT in Mobile, Alabama, seeking a declaration that HMT must defend and indemnify ATV under the Purchase Order; ATV had also demanded defense/indemnity (the record is unclear whether demands named HMT Service).
- ATV moved to dismiss the Harris County suit on two alternative grounds: (1) under Tex. R. Civ. P. 91a, HMT Service had no basis to sue because it was not a signatory to the Purchase Order; and (2) a forum-selection clause in the Purchase Order required venue in Mobile County, Alabama.
- The trial court granted ATV’s motion without stating the ground(s) relied upon and awarded ATV attorney’s fees and costs.
- On appeal, the court concluded HMT Service prevailed as to the Rule 91a portion (its declaratory claim survived), but the forum-selection dismissal was not shown reversible error; the attorney-fee award was reversed in part and remanded for re-determination consistent with the opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 91a dismissal was proper as to HMT Service's declaratory-judgment claim | HMT Service argued its allegations (ATV demanded defense/indemnity) presented a justiciable controversy and thus a basis in law and fact | ATV argued HMT Service lacked a legal right to seek relief because it was not a party to the Purchase Order | HMT Service survives Rule 91a: non-signatory may seek UDJA relief when its rights are affected; the claim had factual and legal basis — Rule 91a dismissal improper |
| Whether the forum-selection clause required dismissal/transfer to Alabama | Appellants argued Rule 91a was improper vehicle to enforce forum clause and contested clause applicability | ATV argued Purchase Order’s Mobile, Alabama forum-selection clause applied and alternatively sought dismissal under general motion practice | Court affirmed dismissal on forum-selection grounds: ATV properly sought enforcement as alternative; appellants did not make the required “strong showing” to overcome clause or dispute ATV’s prima facie showing at trial |
| Whether ATV’s motion must be treated only as Rule 91a because of its caption | Appellants contended the motion’s title limited analysis to Rule 91a | ATV asserted the motion’s substance invoked both Rule 91a and general dismissal for forum clause enforcement | Court treated the motion by substance: it was a hybrid — Rule 91a relief sought as to HMT Service, and general-motion forum-selection relief sought as to both plaintiffs |
| Whether trial court’s attorney-fee award to ATV was proper | Appellants argued fees tied to Rule 91a relief and HMT Service prevailed on Rule 91a so ATV could not recover those fees | ATV argued appellants failed to challenge fees and also sought fees under UDJA | Court reversed fee award insofar as it included fees for ATV’s unsuccessful Rule 91a efforts; remanded for re-determination of fees/costs, allowing discretionary UDJA fees to be considered by trial court |
Key Cases Cited
- In re AIU Ins. Co., 148 S.W.3d 109 (Tex. 2004) (forum-selection clause enforcement via motion to dismiss)
- Deep Water Slender Wells, Ltd. v. Shell Int’l Expl. & Prod., Inc., 234 S.W.3d 679 (Tex. App.—Houston [14th Dist.] 2007) (motion to dismiss is proper to enforce forum-selection clause)
- Phoenix Network Techs. (Europe) Ltd. v. Neon Sys., Inc., 177 S.W.3d 605 (Tex. App.—Houston [1st Dist.] 2005) (plaintiff opposing forum clause must make strong showing to overcome prima facie validity)
- City of Dallas v. Sanchez, 494 S.W.3d 722 (Tex. 2016) (Rule 91a de novo review)
- MBM Fin. Corp. v. Woodlands Operating Co., 292 S.W.3d 660 (Tex. 2009) (UDJA may be used to declare contractual non-liability)
- Pinto Tech. Ventures, L.P. v. Sheldon, 526 S.W.3d 428 (Tex. 2017) (circumstances where non-parties may be bound by contract terms)
