PEDERNAL ENERGY, LLC, PETITIONER, v. BRUINGTON ENGINEERING, LTD., RESPONDENT
No. 15-0123
IN THE SUPREME COURT OF TEXAS
April 28, 2017
ON PETITION FOR REVIEW FROM THE COURT OF APPEALS FOR THE FOURTH DISTRICT OF TEXAS
JUSTICE JOHNSON
Argued September 14, 2016
JUSTICE JOHNSON
JUSTICE DEVINE filed a concurring opinion.
Pedernal Energy, Ltd. sued Bruington Engineering, LLC and others for damages resulting from а fracturing operation on Pedernal‘s gas well. Pedernal alleged that Bruington provided substandard engineering services in connection with the operation, but failed to file a certificate of merit expert affidavit with its claim. Bruington moved for dismissal and Pedernal non-suited,
We reverse the judgment of the court of appeals and reinstate the judgment of the trial court.
I. Background
Pedernal‘s predecessors in interest hired Schlumberger Technology Corporation, Schlumberger Services, Inc., and Schlumberger, Ltd. (collectively, Schlumberger) to perform fracturing operations on a gas well in Zapata County. Bruington was hired as project engineer.
The fracturing operations did not go well, resulting in Pedernal‘s suing Schlumberger and Bruington for damages to the well and the formation. Pedernal did not file a certificate of merit expert affidavit (affidavit) as to Bruingtоn with its original petition, so Bruington moved for dismissal of the claims against it with prejudice pursuant to
Certificate of Merit
(a) In any action or arbitration proceeding for damages arising out of the provision of professional services by a licensed or registered professional, the plaintiff shall be required to file with the complaint an affidavit of a third-party licensed architect, licensed professional engineer, registered landscape architect, or registered professional land surveyor . . . .
(b) Thе affidavit shall set forth specifically for each theory of recovery for which damages are sought, the negligence, if any, or other action, error, or omission of the licensed or registered professional in providing the professional service, including any error or omission in providing advice, judgment, opinion, or a similar professional skill claimed to exist and the factual basis for each such claim. . . .
(c) The contemporaneous filing requirement of Subsection (a) shall not aрply to any case in which the period of limitation will expire within 10 days of the date of filing and, because of such time constraints, the plaintiff has alleged that an affidavit of a third-party licensed architect, licensed professional engineer, registered landscape architect, or registered professional land surveyor could not be prepared. In such cases, the plaintiff shall have 30 days after the filing of the complaint to supplement the pleadings with the affidavit. The trial сourt may, on motion, after hearing and for good cause, extend such time as it shall determine justice requires.
. . . .
(e) The plaintiff‘s failure to file the affidavit in accordance with this section shall result in dismissal of the complaint against the defendant. This dismissal may be with prejudice.
(f) An order granting or denying a motion for dismissal is immediately appealable as an interlocutory order.
Pedernal amended its petition several months after the non-suit to reassert the same claims against Bruington that it had asserted in its original petition. This time it attached an affidavit. Bruington moved for dismissal with prejudice of the claims in the amended petition on two grounds. The first was that Pedernal did not file an expert affidavit with its original petition as required by
The trial court denied the motion and Bruington filed an interlocutory appeal as authorized by
The trial court made findings of fact, including findings that Pedernal‘s claims against Bruington had merit and Pedernal‘s failure to file a certificate of merit with its original petition was neither intentional nor done with conscious indifference. The court dismissed Pedernal‘s suit without prejudice.
Bruington appealed again, arguing that the trial court abused its discretion by not dismissing with prejudice. The court of appeals agreed. Its reasoning was similar to that in its Bruington I opinion: dismissal without prejudice of an amended complaint—one making the same claims as the first petition filed without the required certificate of merit—would allow a plaintiff to avoid an unfavorable ruling on the first complaint by non-suiting it and re-filing with a certificate of merit. 456 S.W.3d 181, 189–90 (Tex. App.—San Antonio 2014) (Bruington II). The appeals court reversed
As an initial matter, Bruington points out that the trial court‘s dismissal order does not sever the claims against it from the claims against Schlumberger, nor does the order limit the dismissal to Pedernal‘s claims against Bruington. But neither party questions the finality of the order of dismissal; Schlumberger is not a party to this appeal; thus no issue is presented, and we express no opinion, as to the effect of the ordеr on Pedernal‘s claims against Schlumberger. Because Schlumberger is not a party to this appeal, our references to the “claim” or “claims” will be references only to Pedernal‘s claims against Bruington.
In this Court, Pedernal does not dispute that
Bruington counters that the court of appeals correctly concluded that under
II. Statutory Construction
We construe statutory language de novo. Crosstex Energy Servs., L.P. v. Pro Plus, Inc., 430 S.W.3d 384, 389 (Tex. 2014). Our goal is to determine and give effect to the Legislature‘s intent. Tex. Mut. Ins. Co. v. Ruttiger, 381 S.W.3d 430, 452 (Tex. 2012). We look to and rely on the plain meaning of a statute‘s words as expressing legislative intent unless a different meaning is supplied, is apparent from the context, or the plain meaning of the words leads to absurd or nonsensical results. Crosstex Energy Servs., L.P., 430 S.W.3d at 389–90. Words and phrases must be “read in context and construed according to the rules of grammar and common usage.”
“May,” when used in a statute, indicates that the provision is discretionary.
III. Analysis
A. The Statute
(e) The plaintiff‘s failure to file the affidavit in accordance with this section shall result in dismissal of the complаint against the defendant. This dismissal may be with prejudice.
Referencing Craddock v. Sunshine Bus Lines, Inc., 133 S.W.2d 124, 126 (Tex. 1939), Pedernal urges adoption of a “good cause” standard for
We were faced with a similar statutory structure and similar language in Samlowski. There we considered an argument that we should adopt a “good faith” standard in one subsection of a statute wherе it did not appear, although that standard appeared in another subsection. Samlowski, 332 S.W.3d at 409. We rejected the argument, concluding that a trial court‘s discretion should not be measured by good faith, but by the broader purposes of the statute. Id. at 410.
As noted above, we presume the Legislature intended to use the words it used, and intended to omit words it did not use. Here, also, we decline to read “good cause” language into the statute when the Legislature did not place it there. Cf.
Bruington asserts that the only exception to
Bruington argues that failing to file an affidavit with the first-filed complaint is a more severe violation of the statutory requirements than filing a defective affidavit, thus the more severe sanction of dismissal with prejudice should apply. But
In light of the foregoing, and because the language of
B. Did the Trial Court Abuse its Discretion?
We first address the record that should have been considered by the trial court in exercising its discretion as to whether to dismiss Pedernal‘s claims with prejudice. Bruington urges that the statute‘s focus is on the time the statute was violated—here, when Pedernal filed its original petition without a certificate—and only the facts in existence at that time are materiаl to whether dismissal should be with prejudice. It points, in part, to our statement in Crosstex Energy Services that “failure to file a certificate of merit with the original petition cannot be cured by amendment.” 430 S.W.3d at 395. We agree with Bruington‘s position. However, it does not alter the conclusion we reach in this case.
As explained above, while
The сourt of appeals did not reach Bruington‘s alternative argument that the affidavit Pedernal filed with its amended petition demonstrated that all or at least most of the claims against Bruington lacked merit and, therefore, should have been dismissed with prejudice. The parties have briefed and argued the issue here, so in the interest of judicial economy we will address it rather than remanding to the court of appeals. See Rusk State Hosp. v. Black, 392 S.W.3d 88, 97 (Tex. 2012) (“The court of appeals did not address the Hospital‘s claim of immunity. Rather than remanding the case to the court of appeals for it to do so, however, we address the issue in the interest of judicial economy.“).
At the trial court hearing held pursuant to the court of appeals’ directive in Bruington I, Pedernal introduced into evidence an affidavit by Alfred Jennings, Jr., an engineer and expert in well stimulation. In his affidavit, Jennings described the condition of the well before the fracing operation, described the operation itself, discussed the difficulties encountered during the operation, described the documents provided by Bruington and Schlumberger that he reviewed, and noted that he consulted with a geologist in formulating his opinions. He expressed his opinion that Bruington was negligent and breached the appropriate engineering standard of care.
After the hearing, the trial court dismissed Pedernal‘s suit without prejudice. In its order the court made findings of fact and concluded that Pedernal‘s claims had merit. The court‘s findings, in part, were based on Jennings‘s averments that during the fracing оperations on May 11 and 12, Bruington did not have an engineer at the well site, Bruington‘s representative failed to raise issues with Schlumberger generally concerning Schlumberger‘s poor performance, Bruington failed to document or inform Pedernal of the cause of the difficulties, Bruington offered no options to Pedernal regarding shutting down operations so pumps could be repaired or replaced despite recurrent pumping difficulties, and Bruington failed to require analysis of water from thе well.
Bruington argues that Jennings‘s affidavit demonstrates the lack of merit in Pedernal‘s claims by neither specifically addressing nor referencing a factual basis for each theory of recovery. See
Assuming, without deciding, that the affidavit was deficient for the reasons Bruington urges, those deficiencies were
Bruington argues that interpreting chapter 150 consistently with its purpose leads to the conclusion that permitting a dismissal without prejudice under the circumstances before us will encourage lax attitudes toward the statute
Bruington also asserts that Pedernal‘s claims must be dismissed with prejudice because Bruington was prejudiced by having to put extra work
IV. Conclusion
We reverse the judgment of the court of appeals and reinstate the judgment rendered by the trial court.
Phil Johnson
Justice
OPINION DELIVERED: April 28, 2017
