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In re Reynolds
369 S.W.3d 638
| Tex. App. | 2012
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Background

  • Richard Sharp sued James Reynolds, Pelhams Industrial Warehouse, Inc., and Farm Bureau for injuries from a collision involving a Reynolds tractor-trailer in Shelby County, Texas.
  • Sharp seeks UIM benefits from Farm Bureau’s predecessor insurer, asserting all conditions for recovery have been satisfied and requesting policy limits.
  • Relators moved to sever Sharp’s claim against Farm Bureau and transfer venue to Tarrant County, arguing Farm Bureau was improperly joined and Sharp’s Farm Bureau claim was not ripe.
  • The trial court denied the motions to transfer venue and, after hearings, denied severance but later granted Sharp’s request to reconsider, without a written order, prompting mandamus review.
  • Relators contend severance is required to avoid injecting insurance into the trial and to permit venue transfer; Sharp argues venue is proper in Shelby County and the claims are interwoven.
  • The court ultimately held that severance was proper to avoid manifest injustice, and that venue should be transferred to Tarrant County upon severance; mandamus relief was granted.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Authority to reconsider venue ruling Relators contend trial court could reconsider its venue ruling. Court lacked authority to reconsider denied venue motion once ruled. Trial court had authority to reconsider its venue ruling.
Severance to avoid insurance prejudice Severance unnecessary; two claims arise from same transaction. Severance necessary to prevent insurance from contaminating liability issues and avoid prejudice. Severance of Farm Bureau claim is proper to avoid prejudice and inject no insurance prejudgment.
Ripeness and venue fixation by Section 1952.110 Section 1952.110 mandates Shelby County venue because Sharp resided there and policy exists. UIM claim against Farm Bureau is not ripe; venue should not fix here. Assuming proper pleading, Sharp’s UIM claim against Farm Bureau can fix venue in Shelby County.
Venue after severance and derivative venue Section 15.005 derivatives fix venue for all claims if one is proper in Shelby. With severance, derivative venue does not govern Relators’ claims; general venue statute applies and favors Tarrant County. After severance, venue for Relators’ claims should transfer to Tarrant County.
Adequacy of appellate remedy (mandamus available) Mandamus is unnecessary; remedies on appeal exist. Appellate remedy would be inadequate and would require two trials; mandamus appropriate. Mandamus review is appropriate; relators have no adequate remedy by appeal.

Key Cases Cited

  • In re Sw. Bell Tel. Co., L.P., 235 S.W.3d 619 (Tex.2007) (mandamus standards and balancing benefits vs. detriments)
  • In re Poly-America, 262 S.W.3d 337 (Tex.2008) (mandamus standards; adequacy of appellate remedy)
  • Walker v. Packer, 827 S.W.2d 833 (Tex.1992) (arbitrary or unreasonable discretion; law application on review)
  • Team Rocket, L.P., 256 S.W.3d 257 (Tex.2008) (adequacy of appellate remedy balancing considerations)
  • Guar. Fed. Sav. Bank v. Horseshoe Operating Co., 793 S.W.2d 652 (Tex.1990) (interwoven vs. severable claims; considerations for severance)
  • Foremost Ins. Co., 966 S.W.2d 770 (Tex.App.-Corpus Christi 1998) (evidence of insurance and prejudice in concurrent trials)
Read the full case

Case Details

Case Name: In re Reynolds
Court Name: Court of Appeals of Texas
Date Published: May 16, 2012
Citation: 369 S.W.3d 638
Docket Number: No. 12-10-00176-CV
Court Abbreviation: Tex. App.