in Re Guggenheim Corporate Funding, LLC, Orpheus Holdings LLC, Stellar Funding Ltd., and Orpheus Funding LLC
380 S.W.3d 879
| Tex. App. | 2012Background
- Guggenheim seeks a writ of mandamus to force enforcement of jury waivers in the 2006 loan documents regarding Valerus’s Amended Warrants.
- Valerus filed suit seeking rescission of 2009 Amended Warrants, alleging fraud and mistaken terms, with Valerus requesting a jury trial.
- Original Warrant (2006) granted Guggenheim a 3.5% equity stake with anti-dilution protections; it was later split into Interim Warrants (2008) and then amended in 2009 to alter 'calculated at exercise' mechanics.
- Valerus’s recapitalization with TPG increased the number of units Guggenheim could acquire, allegedly altering the original economic bargain.
- The Fee Letter (also a Loan Document) incorporated the Original Warrant by reference and expressly includes it as a Loan Document.
- The trial court denied Guggenheim’s motion to enforce the jury waivers; the matter is reviewed under mandamus standard for scope and enforceability of the waivers.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 2006 jury waivers apply to the Amended Warrants. | Guggenheim argues waivers cover any amendments and related actions. | Valerus contends waivers do not cover standalone Amended Warrants. | Yes; waivers apply to Amended Warrants and related claims. |
| Whether the scope of the waivers is broad enough to include claims arising from the underlying intent of the Original Warrant. | Guggenheim contends scope includes any related disputes and amendments. | Valerus asserts scope is limited to the Amended Warrants themselves. | Yes; scope includes claims relating to original warrant and its amendments. |
Key Cases Cited
- In re Prudential Ins. Co. of Am., 148 S.W.3d 124 (Tex. 2004) (mandamus standards for enforcing contract-based waivers; no adequate remedy by appeal)
- In re Bank of Am., N.A., 278 S.W.3d 342 (Tex. 2009) (no presumption against waiver; conspicuous waiver suffices; breadth of waiver)
- In re General Elec. Capital Corp., 203 S.W.3d 314 (Tex. 2006) (conspicuous waiver evidence of knowing and voluntary waiver)
- In re Key Equip. Fin., Inc., 371 S.W.3d 296 (Tex. App.—Houston [1st Dist.] 2012) (enforcement of contractual jury waivers in commercial leases; strong contract‑freedom policy)
- In re Lisa Laser USA, Inc., 310 S.W.3d 880 (Tex. 2010) (focus on underlying claim scope to determine if within arbitration/forum clause)
- Nafta Traders, Inc. v. Quinn, 339 S.W.3d 84 (Tex. 2011) (broad interpretation of related-to and related-to clauses; contract intent)
