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Hydrogeo, LLC, First Bank & Trust East Texas v. Quitman Independent School District
06-15-00007-CV
| Tex. App. | Aug 11, 2015
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Background

  • Hydrogeo, LLC and First Bank & Trust East Texas (Appellants) appeal a Wood County trial-court judgment in favor of several taxing entities (Quitman ISD, Wood County, Upper Sabine Waste Disposal District, Wood County Central Hospital District).
  • Taxing Entities introduced a seven-page certified tax-records packet (Exhibit A) at trial that was not produced to Appellants before trial. Two pages of that packet (pp. 4 and 7) were never produced previously and were emphasized at trial.
  • Appellants moved on appeal (reply brief) that admission of Exhibit A violated Texas R. Civ. P. 193.6 because Taxing Entities failed to timely produce documents they intended to use at trial and showed no good cause for the late disclosure.
  • The trial evidence supporting the taxing entities’ claim consisted entirely of Exhibit A and testimony that largely read the document into the record. Appellants contend excluding Exhibit A would leave no admissible evidence to support foreclosure.
  • Appellants also argue the taxing entities assessed taxes on both real property (leasehold) and personal property (production/equipment) but did not segregate the portion of the tax lien attributable to personalty, which Appellants say is unenforceable against a buyer in the ordinary course (like Hydrogeo), so the entire lien should not have been foreclosed.

Issues

Issue Plaintiff's Argument (Taxing Entities) Defendant's Argument (Hydrogeo) Held
1) Admission of Exhibit A despite failure to produce pretrial Exhibit A was effectively disclosed; its admission did not cause unfair surprise or tax the court’s discretion because the records were available in the clerk’s file and are tax records routinely used Exhibit A was not timely produced; Rule 193.6 mandates exclusion absent good cause or lack of unfair surprise; Taxing Entities cannot show good cause and relied on undisclosed pages to prove ownership and amounts Appellants urge reversible error; appellate disposition not in this brief—Appellants request reversal and rendition due to improper admission
2) Foreclosure of entire tax lien without segregating personalty portion The judgment forecloses only real property; taxing entities assert personalty was not foreclosed and the lien applies to the leases as taxed Taxing Entities did tax/appraise some equipment/personalty and failed to segregate the unenforceable personalty portion; burden was on plaintiffs to prove enforceable amount Appellants argue the judgment is erroneous and should be reversed; appellate decision pending in the record provided

Key Cases Cited

  • Williams v. County of Dallas, 194 S.W.3d 29 (Tex. App.—Dallas 2006) (discusses limits on undisclosed evidence and unfair surprise under discovery rules)
  • Lopez v. La Madeleine of Texas, Inc., 200 S.W.3d 854 (Tex. App.—Dallas 2006) (Rule 193.6 is mandatory; exclusion penalty unless good cause or lack of unfair surprise shown)
  • Alvarado v. Farah Mfg. Co., 830 S.W.2d 911 (Tex. 1992) (good-cause exception requires record support when discovery compliance is excused)
  • Perry Homes v. Cull, 258 S.W.3d 580 (Tex. 2008) (standards for appellate reversal when trial court acts arbitrarily or without guiding rules)
Read the full case

Case Details

Case Name: Hydrogeo, LLC, First Bank & Trust East Texas v. Quitman Independent School District
Court Name: Court of Appeals of Texas
Date Published: Aug 11, 2015
Docket Number: 06-15-00007-CV
Court Abbreviation: Tex. App.