Lead Opinion
OPINION
T. Christopher Robson appeals the trial court’s order sanctioning him $10,000 for failure to conduct a reasonable inquiry pri- or to filing a negligent entrustment claim against appellee David Gilbreath. Robson contends that the negligent entrustment claim was not groundless and that he conducted a reasonable inquiry prior to filing the claim. He also contends that the trial court erred by failing to state the specific reasons for the sanctions in the order and by imposing sanctions absent evidence that he filed the negligent entrustment claim in bad faith or for the purpose of harassment. We affirm.
Robson represented plaintiffs in a lawsuit against appellees David Gilbreath and Garrett Gilbreath. The lawsuit concerned an automobile accident that occurred in February 2004 during which a vehicle driven by Garrett Gilbreath struck and killed Elizabeth Daley, the mother and wife of plaintiffs. Plaintiffs asserted claims against Garrett Gilbreath for negligence and against Garrett’s father, David Gil-breath, “for negligently entrusting a large vehicle, such as his Chevrolet Suburban, to a sixteen-year-old minor [Garrett] who had little driving experience.”
After the first amended petition was filed on November 10, 2004, the parties agreed to postpone taking depositions until the minor children of the estate of Elizabeth Daley were brought into the case and the probate matters of the estate of Elizabeth Daley were resolved. On December 3, 2004, Fred Coogan, attorney for appellees, sent a letter brief to Robson requesting him to dismiss the negligent en-trustment claim against David Gilbreath because it was groundless. Coogan attached a copy of Garrett’s driver’s license and an affidavit from David Gilbreath to the letter brief. Robson contends that he informed Coogan that he would consider nonsuiting the negligent entrustment claim if appellees’ deposition testimony did not provide support for the claim.
On August 5, 2005, appellees filed a no-evidence motion for partial summary judgment and a traditional motion for partial summary judgment on the negligent en-trustment claim. In the traditional motion for partial summary judgment, appellees requested sanctions against Robson “for filing a groundless claim and/or for failing to nonsuit a groundless claim against Defendant, David Gilbreath.” A hearing on the motions for partial summary judgment was originally scheduled for September 1, 2005. However, on August 23, 2005, the parties agreed that Coogan would cancel the summary judgment hearing and that the depositions would be postponed until such time as the probate matters of the estate of Elizabeth Daley were resolved.
The probate court signed and approved a judgment declaring heirship and authorizing letters of dependent administration in the estate of Elizabeth Daley on January 24, 2006. On March 22, 2006, Robson filed a motion for continuance of the hearing on appellees’ no-evidence motion for partial summary judgment, which was scheduled for March 30, 2006, arguing that appellees had not cooperated with several requests for depositions. The court held a
David Gilbreath and Garrett Gilbreath were deposed on April 14, 2006. Shortly thereafter, plaintiffs nonsuited their claims against David Gilbreath. On May 2, 2006, the trial court held a hearing on appellees’ motion for sanctions and found “good cause for sanctions because of the failure of Plaintiffs’ counsel [Robson] to conduct a reasonable inquiry prior to filing suit.” It ordered Robson to pay $10,000 to David Gilbreath. On July 10, 2007, the parties entered into a Rule 11 settlement agreement dismissing the plaintiffs’ claims against Garrett Gilbreath. The trial court subsequently entered a take nothing judgment in favor of Garrett Gilbreath.
The only issue in this appeal concerns the trial court’s order sanctioning Robson $10,000 for failure to conduct a reasonable inquiry prior to filing suit. A trial court’s decision to impose sanctions under Texas Rule of Civil Procedure 18 will not be reversed on appeal unless an abuse of discretion is shown. Randolph v. Jackson Walker L.L.P.,
Texas Rule of Civil Procedure 13 authorizes a trial court to impose sanctions against an attorney, a represented party, or both, who file a pleading that is either (1) groundless and brought in bad faith; or (2) groundless and brought for the purpose of harassment. See Tex.R. Civ. P. 13. One purpose of the rule is to check abuses in the pleading process — that is, to ensure that at the time the challenged pleading was filed, the litigant’s position was factually grounded and legally tenable. Appleton v. Appleton,
In his first issue, Robson contends that the trial court erred by granting appellees’ motion for sanctions because the claim he filed against David Gilbreath for negligent entrustment was not groundless. Groundlessness turns on the legal merits of a claim. River Oaks Place Council of Co-Owners v. Daly,
In his second issue, Robson contends that he conducted a reasonable inquiry prior to filing the negligent en-trustment claim. Reasonable inquiry means the amount of examination that is reasonable under the circumstances of the case. Monroe,
In his third and fourth issues, Robson contends that the trial court abused its discretion by failing to state the specific reasons for the sanctions in the order and by imposing sanctions absent evidence that
In imposing rule 13 sanctions, the trial court is required to state the particulars of good cause justifying sanctions in the order. See Tex. R. Civ. P. 13. Failure to comply with this directive is an abuse of discretion. Texas-Ohio Gas, Inc. v. Mecom,
the Court, after considering said Motion, the response, the pleadings on file, the evidence, and arguments of counsel, finds good cause for sanctions because of the failure of Plaintiffs’ counsel [Robson] to conduct a reasonable inquiry prior to filing suit.
However, because Robson did not object to the form of the sanctions order, he has waived any objection to the absence of a bad faith or harassment finding. See Mecom,
A party acts in bad faith when discovery puts him on notice that his understanding of the facts may be incorrect, and he does not make reasonable inquiry into the facts before filing a pleading. Monroe,
As previously discussed, Robson asserted a groundless claim of negligent entrustment against David Gilbreath and failed to conduct a reasonable inquiry into the facts before filing his first amended petition. Robson’s contention that Garrett’s interrogatory answers led him to believe that there was a factual basis for the negligent entrustment claim based on Garrett’s use of prescription medication at the time of the accident does not support or explain Robson’s filing of the first amended petition, which alleged a claim of negligent entrustment on wholly different grounds (i.e., that David Gilbreath negligently entrusted a large vehicle to an inexperienced driver). Robson’s failure to make a reasonable inquiry into the facts supporting a negligent entrustment claim before filing the claim supports the district court’s implied finding of bad faith. See Monroe,
Affirmed.
Dissenting Opinion by Justice PATTERSON.
Notes
. The dissent bases its conclusions on the notion that the trial court did not hold an
Dissenting Opinion
dissenting.
Without conducting an evidentiary hearing, the trial court sanctioned plaintiffs’ counsel T. Christopher Robson for failure to conduct a reasonable inquiry prior to filing suit. Because the trial court did not have evidence from which it could make required findings that Robson brought suit in bad faith or for the purpose of harassment, I would hold that there was no evidence from which the trial court could exercise its discretion and reverse the trial court’s order.
Because the majority fails to adequately address the procedural and substantive requirements of Texas Rule of Civil Procedure 13, I begin with a review of the rule and its requirements. Rule 13 authorizes a court to sanction a party or his counsel if a party files a pleading that is either (1) groundless and brought in bad faith or (2) groundless and brought for the purpose of harassment. Tex.R. Civ. P. 13; Elkins v. Stotts-Brown,
Pursuant to Rule 13, pleadings are presumed filed in good faith, and the burden is on the moving party to show a pleading was groundless and brought in bad faith or for the purpose of harassment. Tex.R. Civ. P. 13; Emmons v. Purser,
Rule 13 requires the trial court “to base sanctions on the acts or omissions of the represented party or counsel” and, when determining whether sanctions are proper, the trial court must examine the facts that were available and the circumstances existing at the time the party filed the pleading. Id. at 668; Monroe,
In its order, the trial court states it was sanctioning Robson “because of the failure of Plaintiffs’ counsel to conduct a reasonable inquiry prior to filing suit.”
Robson contends on appeal that even if this Court determines that the negligent entrustment claim was groundless and that his inquiry was not reasonable under the circumstances, Mr. Gilbreath offered no evidence that Robson filed the petitions in bad faith or for the purpose of harassment. Assuming without deciding that the plaintiffs’ petitions alleging negligent entrustment were groundless, because Robson did not timely object to the form of the order or request more particularity in the order, the issue for this Court is whether there is evidence to support an implied finding that Robson filed the petitions in bad faith or for the purpose of harassment. See Texas-Ohio Gas Inc. v. Mecom,
Without addressing (i) Rule 13’s presumption that pleadings are filed in good faith, (ii) Mr. Gilbreath’s burden, as the movant, to offer evidence that plaintiffs’ petitions were filed in bad faith or for the purpose of harassment, or (iii) the distinction between argument and evidence, the majority concludes that the trial court did not abuse its discretion in finding bad
Without receiving evidence at the hearing of Robson’s motives at the time he filed the plaintiffs’ petitions, the trial court had no evidence to determine that Robson filed the petitions in bad faith or for the purpose of harassment.
Because Mr. Gilbreath failed to offer evidence to overcome the presumption that Robson filed the petitions in good faith, I would conclude that there was no evidence from which the trial court could exercise its discretion to sanction Robson pursuant to Rule 13, and I would reverse the trial court’s order.
. Because of the complete lack of evidence that Robson filed the negligent entrustment claim in bad faith or for the purpose of harassment that should have been fatal to the motion for sanctions, I have not addressed the circumstances of the automobile accident that was the basis for the plaintiffs' suit, the chronology of events in discovery between the parties, or evidence of a medical impairment that was disclosed during discovery.
. Although there are circumstances when a trial court may sanction by taking judicial notice of items in the trial court's file at the hearing, see Gibson v. Ellis,
. At the conclusion of counsel's arguments at the hearing, the trial court stated its reason for sanctioning Robson: "The reason for it, Counsel, is, again, the discovery and the investigation before you file your lawsuit, not
. At the time of the accident, Garrett Gil-breath was 16 years old.
. The record reflects that Garrett Gilbreath settled the claims against him for approximately $125,000.
. Prior to the scheduled May 2, 2006, hearing on Mr. Gilbreath’s motion for partial summary judgment and motion for sanctions, the parties entered into a rule 11 agreement, dated April 18, 2006, in which Mr. Gilbreath agreed to cancel the summary judgment hearing that was set for May 2, and the plaintiffs agreed to non-suit Mr. Gilbreath with prejudice. On May 2, plaintiffs non-suited Mr. Gilbreath with prejudice, but the trial court proceeded with the sanctions hearing. The parties dispute the terms of the rule 11 agreement. Robson contends that the parties agreed to cancel the hearing in its entirety, including the hearing on Mr. Gilbreath’s motion for sanctions. Robson was not present at the hearing; another attorney from his firm was present.
.In its order, the trial court states that it considered the "Motion, the response, the pleadings on file, the evidence, and arguments of counsel.” Although Mr. Gilbreath attached two letters sent by Mr. Gilbreath’s counsel to Robson after suit was filed to his motion for partial summary judgment and sanctions, the record reflects that neither party offered evidence at the hearing and that the trial court did not admit any evidence.
. The majority equates its conclusion that Robson failed to make a reasonable inquiry prior to filing the negligent entrustment claim with an implied finding of bad faith, citing to Monroe v. Grider, 884 S.W.2d 811, 819 (Tex. App.-Dallas 1994, writ denied). In Monroe, the trial court held that depositions should have put a party and her counsel on notice that their understanding of the facts was incorrect, showing bad faith in signing and filing an amended petition after the depositions took place. Id. In contrast, the relevant time period for determining whether to sanction Robson was before the depositions of Mr. Gilbreath and his son were taken — when Robson filed the original and first amended petitions. Shortly after the depositions were taken, Robson, on behalf of his clients, dismissed the negligent entrustment claim against Mr. Gilbreath.
. Even if counsels’ argument and the letters attached to Mr. Gilbreath’s motion for partial summary judgment and for sanctions are considered as evidence in determining sanctions, Mr. Gilbreath failed to offer evidence of bad faith or harassment at the time Robson filed the original petition and the first amended petition alleging negligent entrustment. Counsel did not address Robson's motives when Robson filed these petitions against Mr. Gilbreath. Nor did the summary judgment evidence address these issues. The two letters — a December 2004 letter briefing the elements of a negligent entrustment claim and demanding that plaintiffs immediately non-suit Mr. Gilbreath, and a January 2005 letter with an affidavit from Mr. Gilbreath concerning his son’s driving record and a copy of his son’s driver's license — were sent after the petitions were already filed. Letters sent after the petitions were already filed are not evidence of Robson's motives at the time the petitions were filed. See Karagounis v. Property Co. of Am.,
.In the briefing to this Court, Mr. Gilbreath cites evidence that Robson filed with the trial court in a motion for reconsideration and rehearing from the sanction award. This evidence was not before the trial court when it made its ruling and does not provide the
. The majority’s opinion is simply incorrect that "Robson did not raise the lack of an evidentiary hearing as a point of error on appeal.” Robson’s third issue on appeal directly raises the lack of evidence to support sanctions: “The trial court erred in granting Appellee’s Motion for Sanctions on the ground that Appellee offered no evidence of bad faith or that the claim complained of was brought for the purpose of harassment, as required under Texas Rule of Civil Procedure 13.” The majority’s opinion fails to recognize the significance and relevance of an evidentia-ry hearing on a motion for sanctions in light of the presumption that pleadings are filed in good faith. The lack of an evidentiary hearing is relevant and significant in this case because, without the movant presenting evidence to overcome the presumption of good faith, the trial court abused its discretion in awarding sanctions. See Alejandro v. Bell,
. Robson also contends that the sanction that was awarded against him should be reversed because Mr. Gilbreath did not offer evidence from which the trial court could assess $10,000 in attorney’s fees: "Appellees offered no evidence whatsoever in support of any attorney’s fees.” See Tex.R. Civ. P. 13 (trial court directed to impose an "appropriate sanction available under Rule 215”). Because the lack of evidence to overcome the presumption of good faith is dispositive, I do not address this additional ground for reversal. See Tex.R.App. P. 47.1.
