OPINION
Intercontinental Terminals Company LLC (ITC) appeals from a temporary injunction in favor of Vopak North America, Inc. and Vopak Terminal Deer Park, Inc. (collectively, Vopak), which allows Vopak certain use of ITC’s railroad track during the pendency of this litigation. ITC challenges the trial court’s temporary injunction on the grounds that it impermissibly alters the status quo and is not supported by evidence of two elements essential to temporary injunctive relief: probable, imminent, and irreparable harm and a probable right to recover. We conclude that the trial court did not abuse its discretion in determining that its order was necessary to preserve the status quo and that the order is supported by evidence of probable, imminent, and irreparable harm and a probable right to recover. We therefore affirm the trial court’s temporary injunction order.
Background
ITC and Vopak are neighbors and competitors. 1 These two storage and transport businesses each have a location in Deer Park, Texas, alongside the Houston ship channel. The land on which they are located was once a single property owned by Union Equity Cooperative Exchange, Inc. In 1972, Union Equity sold a parcel of its land to Robertson Land Company. At the time of the sale, Union Equity and Robertson Land entered into a “lead trackage agreement.” Under this agreement, Union Equity granted Robertson Land a right to use its railway track, track 805, which traverses Union’s land and connects to the Port Terminal Railway Association’s (PTRA) main rail line. In exchange, Robertson Land agreed to share in track 805’s maintenance costs, proportionate to its track usage. 2
Vopak now owns the land sold to Robertson Land and uses track 805 as Robertson Land’s successor under the lead track-age agreement. ITC owns the land on which track 805 is located and is Union Equity’s successor under the agreement. Railway transportation is an important part of both ITC’s and Vopak’s storage and transport businesses. Track 805 is their only rail access to the PTRA’s main line. Much of this litigation centers on the following language in the agreement: “Any movement of [Vopak’s] cars over [ITC’s] track shall be subject to the control of [ITC] so as not to interfere with [ITC’s] use thereof.”
During the past decade, ITC, Vopak, and a third party, Clear Harbors, have shared use of track 805. The number of railcars inbound or outbound to ITC or Vopak varied widely on a day-to-day basis. For example, over a four day period in 2009, Vopak received zero railcars the first
Historically, ITC and Vopak transported their materials via manifest trains, which are generally made up of railcars holding different types of product from multiple customers. In 2010, Vopak anticipated an increased demand for storage of ethanol and implemented a business plan that would allow it to receive ethanol via unit trains. Unit trains are considerably longer than manifest trains and generally transport only a single product from a single customer. This new delivery method was likely to result in an increase in the number of cars delivered to Vopak over track 805. After learning of Vopak’s intentions, ITC attempted to limit Vopak’s use of track 805 to a maximum of thirty-five railcars per day going into Vopak’s facility and thirty-five railcars per day going out. In May 2010, ITC communicated this limit to the PTRA, which handles rail deliveries to ITC’s and Vopak’s Deer Park locations. In June 2010, ITC informed Vopak of its intended limitation on Vopak’s use of the track. Vopak disputed ITC’s right to impose the proposed limit on Vo-pak’s track use.
The PTRA was reluctant to take a side in the dispute, and in early-October 2010, it filed a petition seeking a declaration of ITC’s and Vopak’s rights relating to track 805. Vopak filed a cross-action and sought to enjoin ITC from restricting or interfering with its use of track 805, both during the pendency of the litigation and permanently. After several evidentiary hearings, 3 the trial court entered a temporary injunction order enjoining ITC from restricting Vopak’s use of the track to less than seventy cars per day into Vopak’s facility and seventy cars per day out of Vopak’s facility. That injunction is the subject of this interlocutory appeal.
Standards for Granting and Reviewing Temporary Injunction
A temporary injunction is an extraordinary remedy, the purpose of which is to preserve the status quo of the litigation’s subject matter pending a trial on the merits.
Butnaru v. Ford Motor Co.,
The decision to grant or deny an injunction rests within the trial court’s
Temporary Injunction
A. The trial court’s temporary injunction preserves the status quo
ITC contends that the only permissible use of a temporary injunction is to preserve the status quo but that the trial court’s temporary injunction changes, rather than preserves, the status quo. According to ITC, the circumstances that existed in June 2010 establish the status quo. ITC points out that under the injunction’s seventy-railcars-per-day limit, Vopak could receive as many as 2,100 rail-cars each month. By comparison, ITC asserts, Vopak received an average of 692 railcars per month from January to June 2010 and has not received more than 1,000 railcars in any single month over the last seven years.
Vopak rejects ITC’s framing of the status quo, contending that the status quo is instead established by the circumstances that have existed over the parties’ forty-year relationship. Vopak asserts that ITC has never before placed any pre-deter-mined limitation on the number of railcars inbound or outbound to Vopak and that Vopak has often received seventy or more railcars in a single day. Thus, Vopak contends that any alteration of the status quo in the injunction favors ITC by placing a limit on the number of cars Vopak may receive when no limit existed before this dispute.
In the injunction context, the status quo is “the last, actual, peaceable, non-contested status that preceded the pending controversy.”
In re Newton,
Generally, “whe[n] the applicant for temporary relief proves the probability of some easement right in the property of another, the status quo is the applicant’s continued right to exercise such possession of the property as the easement right carries with it.”
Getz v. Boston Sea Party of Houston, Inc.,
The trial court could have reasonably concluded that its seventy-railcars-per-day limit balanced the parties’ competing interests in the status quo: Vopak’s interest in operating its business free from new restrictions on its track usage and ITC’s interest in preventing Vopak from expanding its track usage to a point that interferes with ITC’s own operations. If Vopak wants to receive 100 railcars on one particular day, it will have to reallocate those deliveries to comply with the trial court’s injunction, even though it has received more than 100 railcars in a single day in the past without incident. Correspondently, if Vopak transports the maximum number of railcars permitted under the injunction each day, Vopak’s track usage under the injunction will far exceed its historical track usage. But the trial court was not required to presume that Vopak will abuse the injunctive relief granted. ITC is free to seek modification of the trial court’s injunction if Vopak’s use of the track under the injunction is so excessive as to interfere with ITC’s own use of the track.
Under these circumstances, we hold that the trial court did not abuse its discretion in its efforts to preserve the status quo in its temporary injunction.
Butnaru,
B. Vopak presented evidence of probable, imminent, and irreparable harm
ITC next contends that Vopak did not present evidence that it would suffer probable, imminent, and irreparable harm if the temporary injunction was not granted. ITC asserts that Vopak’s evidence of harm is too dated to show imminent harm because most of its evidence was presented at the first temporary injunction hearing, which occurred over five months before the trial court granted the temporary injunction now on appeal. ITC also argues that Vopak could compensate for restrictions on its track usage by using other means of transportation into and out of its facility, and that Vopak’s customer contracts do not prevent Vopak from using other means of transportation. ITC points out that Vopak did not prove that it actually lost any customers as a result of the restrictions ITC imposed on its track 805 usage. Finally, ITC argues that Vopak’s
With respect to its first complaint, ITC cites no authority for its contention that a finding of imminent harm cannot be based on evidence from an earlier temporary injunction hearing. Evidence from more than five months earlier may be outdated but is not necessarily so. ITC does not identify any specific evidence from the trial court’s earlier hearings that it contends was no longer accurate or applicable at the time of the trial court’s temporary injunction order. Much of Vopak’s evidence at the first hearing in October tended to show factual circumstances of an enduring nature. For example, Vopak presented evidence of the nature of its business and the “pivotal” role that rail transport plays in its integrated transportation operations. Absent a change in these facts, Vopak was not required to re-present this same evidence at the trial court’s subsequent hearings.
It is true that, in many situations, harm that is imminent in October and December will no longer be imminent the following April — the threat having either been realized or passed. But the harm Vopak asserts here is of a continuing nature: interference with its ongoing business operations and the ramifications of the disruption caused by that interference. During the October 27, 2010 temporary injunction hearing, Vopak presented evidence that ITC’s 35-railcars-per~day restriction on Vopak would result in a backlog of Vopak-bound railcars at the PTRA’s facility, as well as evidence of the effects that backlog would have on Vopak’s customer-relations. At the April 13, 2011 temporary injunction hearing, Vopak presented evidence that such backlogs had in fact occurred and were so severe that, a few weeks earlier, the PTRA had placed an embargo on Vopak, prohibiting Vopak from allowing its customers to send it deliveries by rail. Vopak submitted communications showing that the PTRA agreed to lift the embargo only after ITC agreed to allow delivery of up to seventy railcars per day to Vopak’s facility. Vopak’s evidence at the April 2011 hearing also included communications reflecting costs, delays, and customer complaints relating to ITC’s restriction on Vopak’s use of track 805.
Viewing the evidence in the light most favorable to the court’s ruling and deferring to the trial court’s resolution of conflicting evidence,
see CRC-Evans Pipeline,
ITC asserts that Vopak failed to present evidence that it was unable to compensate for restrictions on its track usage through use of other means of transportation, such as barges. Vopak, however, presented testimonial evidence that the various means of transportation used by Vopak to transport material into and out of its facility operate in conjunction with each other and are interdependent on each other such that when rail transport was interrupted, it had a “domino effect” in delays on the other means of transportation. Vopak also introduced evidence that the customer, rather than Vopak, typically dictates the means of transportation utilized to transport materials from the customer to Vo-pak’s facility. Vopak’s Gulf Coast General Manager specifically testified that Vopak could not fulfill its customer obligations by using barge transportation in the place of railway transportation. His testimony also indicated that the loss of railways as a
This testimony supports the trial court’s conclusion that “ITC’s restrictions threaten to cause and will probably cause at least the following harm to Vopak: business disruption, loss of goodwill, loss of reputation in the marketplace, customer uncertainty, delays in servicing dock/sea customers, backlog costs, [and] demurrage fees[.]” While ITC attempted to controvert this evidence, the trial court was free to choose which evidence to credit and which evidence to discredit, and we must view the evidence in the light most favorable to the trial court’s ruling.
See CRC-Evans Pipeline, Int'l,
Finally, we conclude that there is evidence in the record to support the trial court’s conclusion that “at least some of the harm being suffered by Vopak cannot be remedied with the recovery of money.” An injury is irreparable if it cannot be adequately remedied at law — i.e., if the injunction applicant cannot be adequately compensated in damages or if damages are very difficult to measure by any certain pecuniary standard.
See Butnaru,
The harm found by the trial court includes loss of goodwill and reputation in the marketplace. Threatened injury to a business’s reputation and good will with customers is frequently the basis for temporary injunctive relief.
E.g., Lifeguard Benefit Servs.,
The testimony from Vopak’s Gulf Coast General Manager supports the trial court’s conclusion that the loss of reputation and goodwill threatened here would be “very difficult to calculate.” He further testified that it would be “extremely difficult” to calculate the value of the Vopak brand in order to determine the fiscal impact of its reputational injury. Although ITC’s damage expert indicated that he could calculate the value of a brand, he testified on cross-examination that it would be “rank speculation” to try to determine how much, if any, future business Vopak would lose if a customer terminated its relationship with Vopak due to rail transport issues. Moreover, the trial court was free to credit Vopak’s evidence on this issue and discredit ITC’s contrary evidence. Viewing the evidence in the light most favorable to the trial court’s ruling, it supports the trial court’s conclusion that the threatened injury to Vopak could not be adequately remedied at law.
See Lifeguard Benefit Servs.,
Because there is evidence to support it, the trial court did not abuse its discretion in determining that Vopak would suffer probable, imminent, and irreparable harm in the absence of injunctive relief.
Cf. Butnaru,
C. Vopak presented evidence of a probable right to recover
ITC’s final contention on appeal is that Vopak failed to established a probable right to recover on the merits, noting that the trial court struck through the portion of Vopak’s proposed order containing an express finding of probable right to recover. We conclude that Vopak presented sufficient evidence of a probable right to recover on its declaratory judgment action against ITC and that the trial
We recognize that courts are often particularly careful when it comes to the element of “probable right of recovery,” sometimes referred to as “likelihood of success on the merits,” because, by its plain language, this element seems to infringe upon two well-engrained judicial prohibitions: against advisory opinions and against forming opinions about the merits of the case before the conclusion of the evidence. But the phrase “probable right of recovery” is a term of art in the injunction context.
Glattly v. Air Starter Components, Inc.,
Instead, to show a probable right of recovery, the applicant must plead a cause of action and present some evidence that tends to sustain it.
Camp v. Shannon,
Initially, the parties dispute the nature of Vopak’s declaratory judgment action. ITC frames Vopak’s action as asserting that Vopak’s right to use track 805 cannot be restricted in any way under any circum
The trial court has broad discretion in determining whether the pleadings and evidence support a temporary injunction.
Recon Exploration, Inc. v. Hodges,
The trial court entered the proposed temporary injunction order submitted by Vopak but made various delineations and alterations to the order. Among the trial court’s changes, it struck-through and initialed a paragraph relating to Vopak’s probable right of recovery:
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In connection with its challenge to the evidence of a probable right of recovery, ITC points out the trial court’s strike-through of this paragraph, asserting that it
Rule 688 requires that an injunc-tive order “set forth the reasons for its issuance.” TexR. Civ. P. 683. In the temporary injunction context, this Court has held that failure to comply with Rule 688 renders an injunction void.
City of Navasota v. Nationstar Mortg., LLC,
No. 01-08-00915-CV,
The Texas Supreme Court has held that Rule 683 mandates that a trial court granting a temporary injunction must explain in the order its reasons for believing that the applicant has shown that it will suffer injury if interlocutory relief is not granted but does not require the trial court to provide reasons for believing that the applicant has shown a probable right to final relief.
State v. Cook United, Inc.,
Conclusion
We hold that the trial court did not abuse its discretion in entering the temporary injunction order. The order does not impermissibly alter the status quo and is supported by sufficient evidence of probable, imminent, and irreparable harm and a probable right of recovery. We therefore affirm the temporary injunction order.
Notes
. ITC states that it is in the petrochemical storage and transfer business. Vopak states that it provides storage and transport services for bulk liquid chemicals and commodities.
. Union also granted Robertson an easement for the construction of a spur track to connect track 805 to Robertson’s property.
. After a hearing on October 27, 2010, the trial court denied Vopak’s initial request for temporary injunction. On December 2, 2010, the trial court entered a temporary restraining order against ITC. On December 13, 2010, the trial court held a second hearing. On March 31, 2011, the trial court entered a second temporary restraining order. The trial court held a third evidentiary hearing on April 13, 2011, and entered the temporary injunction at issue in this appeal on April 20, 2011.
. ITC argues that Vopak’s contracts do not mandate delivery by railcar, such that Vopak could use other means of transportation without violating their contractual obligations. But ITC cites to only one contract for this proposition. Even if we were to accept ITC’s contention that the cited contract does not require delivery by rail, it does not conclusively rebut the testimony offered by Vopak that it has many contracts with customers that cannot be fulfilled if Vopak does not have adequate access to railway transportation.
. ITC complains that Vopak did not prove that any customers actually did pull their business, but evidence of customers threatening to take their business elsewhere is some evidence of probable harm even if the customers have not yet executed the threat.
.
Vopak has asserted other cross-claims against ITC, including tortious interference with existing and prospective business relationships, unfair competition, antitrust violations, breach of contract, and suit to quiet title. Because an applicant is required only to plead and present evidence to support one cause of action to establish a probable right of recovery, we need not reach whether Vopak has presented evidence to support these additional causes of action.
See Butnaru,
. We requested supplemental briefing on this issue, which the parties provided.
