Minu RX, Ltd. D/B/A Memorial Compounding Pharmacy Minu GP, LLC v. Avant Medical Group, P.A. D/B/A Interventional Spine Associates, and Brett L. Garner D/B/A Allied Medical Centers
14-15-00378-CV
| Tex. App. | May 12, 2015Background
- Appellants (Khyati Undavia, Minu RX, Ltd., MINU GP, LLC) filed a petition for permissive interlocutory appeal from a Harris County trial-court matter involving a mutual release executed by several signatories.
- Appellees (Avant Medical Group, P.A.; Brett L. Garner d/b/a Allied Medical Centers; others) argued the release does not bind them because of disputed facts about agent–principal relationships and agency authorization.
- Appellants contend the controlling legal question is whether an unnamed party that falls within broadly enumerated categories in a release (e.g., officers, agents, employees) is bound as a matter of law when it is sufficiently "connected" to the signatory and the subject matter of the release.
- Appellants rely on prior Texas appellate decisions that applied a "connection" test to extend releases to unnamed defendants without probing agency fact issues, arguing the same principle should apply to unnamed plaintiffs.
- Factual points emphasized by Appellants: Avant procured rental insurance for Sterling (a release signatory); Avant occupied Sterling’s rented space; Sterling managed Avant’s non-medical business dealings; Garner is an officer of Sterling and Nisal (both signatories), showing an "intimate relationship" or connection.
- Appellants request the Fourteenth Court of Appeals grant permissive interlocutory review, arguing the legal question can be resolved as a matter of law and that an immediate appeal would materially advance termination of the litigation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held (Appellants' Position) |
|---|---|---|---|
| Whether an unnamed plaintiff encompassed by broad release categories is bound by the release | The unnamed plaintiff is bound if it falls within the enumerated categories and is connected to the signatory/subject matter | Release cannot bind unnamed parties absent proof of agency/express authorization; disputed facts preclude summary resolution | Appellants: the question is one of law—apply the "connection" test and bind the unnamed plaintiff as matter of law; seek permissive appeal |
| Whether resolving the issue requires probing agency fact questions | Plaintiff: no — precedent extends releases to unnamed parties without detailed agency inquiry | Defendant: yes — agency scope and express authorization are factual matters for the jury | Appellants: precedent avoids agency fact inquiries; courts decide connection as matter of law |
| Whether established precedent supports extending releases to unnamed plaintiffs (not just unnamed defendants) | Plaintiff: courts have applied releases to unnamed defendants via "connection" test; same logic should apply to unnamed plaintiffs | Defendant: distinguished — those cases involved unnamed defendants and do not control here | Appellants: precedent and policy (finality) support treating unnamed plaintiffs similarly |
| Whether permissive interlocutory appeal would materially advance termination | Plaintiff: yes — a favorable ruling would allow final summary judgment and end litigation | Defendant: no — factual disputes remain so appeal would not dispose of the case | Appellants: appellate resolution of the legal question would dispose of the release issue and materially advance termination |
Key Cases Cited
- Winkler v. Kirkwood Atrium Office Park, 816 S.W.2d 111 (Tex. App.—Houston [14th] 1991) (affirming summary judgment by applying a "connection" test to extend a release to unnamed parties without detailed agency inquiry)
- Vera v. North Star Dodge Sales, Inc., 989 S.W.2d 13 (Tex. App.—San Antonio 1998) (applying a connection analysis to hold that a release of a corporation also released employees associated with the transaction)
- Dyrcz v. Graham Bros. of Longview, LLC, 234 Fed. Appx. 236 (5th Cir. 2007) (affirming district-court application of a connection-based analysis to extend a release to related entities/employees)
