Lead Opinion
OPINION
James Shook appeals the imposition of a “death penalty” sanction — the dismissal of Shook’s causes of action against all three defendants — for abuse of the litigation and discovery process and for interfering with the orderly and proper administration of justice. Shook complains that the trial court erred in dismissing his causes of action against Gilmore & Tatge Manufacturing Company and Owen Smith because the court lacked authority to impose sanctions for the type of conduсt shown. Shook also complains that the court erred in dismissing his cause of action against Belfalls Electric Cooperative as a punishment for contempt of court. Finding that the trial court abused its discretion in dismissing Shook’s causes of action, we reverse the judgment and remand the cause for further proceedings in accordance with this opinion.
BACKGROUND
James Shook’s son and two other young men were killed in a farming accident in 1986. The families of the men filed suit against Gilmore & Tatge Manufacturing Co., Owen Smith, and Bеlfalls Electric Cooperative, Inc. to recover damages for their deaths. In 1988 all of the plaintiffs, except Shook, non-suited their claims in Falls County, refiled them in Hidalgo County, and soon thereafter settled their causes of action. Shook refused to join the suit in Hidalgo County, and instead, continued with the litigation in Falls County. During
Beginning in January 1990, Shook made numerous harassing, threatening telephone calls to the opposing parties and their attorneys. These calls were a barrage of dark threats designed to intimidate and frighten the defendants and their attorneys. This aberrant behavior occurred while Shook was represented by counsel, as well as while he was acting as a pro se litigant. These disconcerting threats and comments included: “Have you ever killed a man? I wanted you to know that it is easier after the first time”; “Do yоu have the nerve to show up at next week’s hearing?”; “The only way to get rid of me is pay me or kill me”; “It will be a long drop to the pavement from your building”; “This case is not going to trial. I am going to take care of it outside of the courthouse”; and “Tell him his worst nightmare called.” The defendants’ attorneys received several threatening phone calls from Shook per day, despite their repeated requests that he stop calling.
On April 18, 1991, just nineteen days before a scheduled trial date, the court cоnducted a hearing on Smith’s and Gilmore & Tatge’s motions for sanctions based on Shook’s pattern of abuse and harassment of the defendants and their attorneys. Shook admitted making these telephone calls, offering the excuse, “I would like to get this thing [the case] settled. It’s been going on five years and everybody else has been paid off and I would like to be.” Finding that Shook’s conduct was “beyond the bounds of human decency” and an “abuse of the litigation and discovery process,” the court struck Shook’s рleadings against Smith and Gilmore & Tatge and dismissed those causes of action with prejudice. After the hearing, as the defense attorneys left the courthouse, Shook continued to verbally abuse and insult them. Shook threatened the lives of the attorneys and their families as a result of the dismissal. The bailiff from the court had to physically restrain Shook until the defendants’ attorneys were safely in their cars and on their way home. The hectoring phone calls continued until one week after the sanctions hearing.
On July 18, 1991, the court held a telephone-conference hearing on Belfalls’ motion for sanctions based on the same type of conduct shown in the prior hearing. Even though Shook had not made any phone calls to Belfalls, Smith, or Gilmore & Tatge since a week after the April 18 hearing, the court found that Shook’s conduct was a contempt of court and interfered with “the orderly and proper administration of justice.” The court granted Bel-falls’ motion and dismissed Shook’s cause of action against Belfalls. Shook appeals the court’s dismissal of his causes of action against all three defendants, claiming that the court abused its discretion in imposing such a harsh sanction.
INHERENT POWER TO SANCTION
In his first point, Shook complains that the court lacked authority to dismiss Shook’s causes of action against Smith and Gilmore & Tatge. Imposing an available sanction is left to the sound discretion of the trial court. Koslow’s v. Mackie,
Rule 13 authorizes a trial court to impose sanctions for groundless pleadings brought in bad faith or brought for the purpose of harassment. Tex.R.Civ.P. 13. Smith and Gilmore & Tatge did not allege, nor does the sanction order find, that Shook's pleadings were groundless and brought in bad faith or that the pleadings were brought for the purpose of harassment. Therefore, the imposition of the
Until recently, no case has determined whether Texas courts also have an inherent, common law power to sanction similar in scope to the federal power. See Chambers v. NASCO, Inc., — U.S. -,
The Texas Supreme Court, however, has never recognized the inherent power of Texas courts, absent the violation of a rule or pretrial order, to sanction a party’s bad faith conduct during litigation. We note that, in Remington Arms Co., v. Hon. Benjamin Martinez, the Supreme Court recognized the trial court’s “comprehensive inherent and statutory power to discipline errant counsel for improper trial conduct in the exercise of its contempt power. Trial counsel are also subject to disciplinary action for improper trial conduct.”
The sanctions order in Remington did not result from discovery misconduct and was, therefore, not authorized by Rule 215. Finding that the trial court had refused to hold the offending attorney in contempt and had failed to refer him to the appropriate bar authorities for discipline, the Supreme Court held that the trial court was not justified in imposing the death penalty sanction. See id. The Supreme Court limited the trial сourt to the “guiding rules and principles” of contempt and attorney-discipline rather than unleashing an inherent power to sanction bad faith conduct during litigation. See id. As a result, we decline to wholeheartedly follow the holding of the Corpus Christi Court of Appeals in Kutch.
The Just and AppRopriate Standard
Whether an imposition of sanctions is just and appropriate is measured by two standards: first, a direct relationship must exist between the offensive conduct and the sanction imposed; and second, the sanction imposed must not be excessive. TransAmerican Natural Gas Corp. v. Powell,
Due Process Considerations
According to the Supreme Court in TransAmerican, “there are constitutional limitations upon the power of courts, even in aid of their own valid processes, to dismiss an action without affording a party the opportunity for a hearing on the merits of the case.” TransAmerican National Gas Corp.,
Shook’s Bad Faith Conduct During Litigation
Nothing in the record indicates that the court considered the availability of lesser sanctions. See TransAmerican,
Furthermore, the record does not support a presumption that Shoоk’s claims lack merit. To the contrary, the record shows that the other plaintiffs in this case settled their causes of action for substantial sums of money. More importantly, this case does not involve a party’s hinder-
Because the court failed to consider a lesser sanction before striking Shook’s pleadings, and because the record does not support a presumption that his claims lacked merit, we hold that the trial court abused its discretion in dismissing Shook’s causes of action against Smith and Gilmore & Tatge. We sustain point one.
CONTEMPT SANCTIONS
In his fourth point, Shook complains that the court erred in dismissing his cause of action against Belfalls as a punishment for contempt of court. Contemptuous conduct may be classified as either direct or constructive. Ex parte Gordon,
In the present case, the contemptuous conduct occurred outside the presence of the court. Therefore, to hold Shook in constructive contempt, the court must have afforded Shook full and complete notice apprising him of the accusation of contemрt against him. The only notice Shook received was Belfalls’ motion for sanctions. This motion did not request the court to hold Shook in contempt. As a result, Shook received no notice apprising him of the accusation of contempt against him. Because Shook was not personally served with a show cause order or the equivalent, the contempt judgment against Shook is a nullity. See id.
According to Belfalls, the sanction imposed was not a contempt sanction but was a sanction under the inherеnt power of the court. Belfalls argues that, because Shook did not request findings of fact and conclusions of law, this court must presume that the trial court made all the necessary findings to support the sanction of dismissal. This is incorrect. See Otis Elevator Co. v. Parmelee,
CONCLUSION
Having sustained points one and four, we need not consider Shook’s remaining points. This court does not condone Shook’s conduct and hopes that no attorney or party to litigation will be subjected to such psychological vigilantism in the future. Nevertheless, the record before us establishes that the trial court abused its discretion by dismissing Shook’s causes of action against Smith, Gilmore & Tatge, and Belfalls. We reverse the judgment and remand the cause for further proceedings.
Dissenting Opinion
dissenting.
This is, as far as I can determine, the only case in American jurisprudence in which a court has sanctioned a litigant for using death threats to try to extort a settlement. What is significant about the mаjority’s opinion is, first, their reluctance to explicitly hold that a Texas court has the inherent power to sanction a litigant for such conduct and, second, their refusal to hold that such conduct raises the presumption that the extortionist’s claims lack merit. I believe the court had the inherent power to impose the “death penalty” based on a reasonable presumption that a person who attempts to extort a settlement by using death threats has a meritless claim. Accordingly, I would affirm the judgment in its entirety. For these reasons I respectfully dissent.
INHERENT POWER TO SANCTION
Although alluding to the inherent power to sanction, the majority side-steps the question of whether the court could exercise its inherent power to sanction Shook’s flagrant bad-faith conduct. That Texas courts have inherent powers they can rely on to protect their dignity, independence, and integrity and to aid in the administration of justice is well-recognized. Eichelberger v. Eichelberger,
Notwithstanding the ample authority supporting the inherent power of a court to sanсtion flagrant bad-faith trial conduct, the majority refuses to apply the inherent power recognized in Remington because the court sanctioned Shook and not his counsel. The inherent power to sanction extends equally to litigants and counsel. Roadway Exp., Inc.,
CONSTRAINTS ON INHERENT POWER
The ultimate constraint on use of the death penalty is constitutional due process. See TransAmerican Natural Gas Corp. v. Powell,
I believe the due-process constraint requires the trial court always to use a lesser sanction unless the party’s bad-faith conduct justifies a presumption that his claim or defense lacks merit. Only then can the сourt impose the death penalty without violating due process. Id. This is because substantive due process protects meritorious claims or defenses, not meritless ones. Thus, the due-process constraint is merely a corollary of the second requirement in TransAmerican: The sanction imposed must not be excessive. TransAmerican Natural Gas Corp.,
Essentially, the difference in the majority’s view and mine is simple. We disagree on whether Shook’s conduct justifies a presumption that his claims laсk merit. I believe it does; the majority believes otherwise. If they are correct, a lesser sanction should have been used. However, if my view is correct, the death penalty was properly used against Shook’s meritless claims.
The majority concludes that his claims have merit because other plaintiffs had already settled their cases with the defendants. Shook has the burden of showing error requiring a reversal. See Tex. R.App.P. 50(d). Thus, he must demonstrate in the record that the court violated his right to due process by striking meritorious claims. None of the settlement papers of other parties appear in this record, and for all we know any settlement with other parties was premised on the usual blanket denial by the defendants of any wrongdoing or liability. Just because a claim is settled does not mean it has merit.
SHOOK’S ATTEMPTED EXTORTION
Shook admitted that he used death threats against the defendants and their counsel in an attempt to force a settlement of his claims. These threats continued even after the sanction hearing. His аctions amounted to attempted extortion, pure and simple. If Shook’s calculated attempt to extort a settlement by death threats does not justify a presumption that he has a meritless claim, then I cannot imagine what other flagrant, abusive conduct will raise it. His conduct is no different than any other person using death threats to extort money. If the presumption is not justified by his conduct, then a person attempting to extort money from a bank cannot be presumed to have a merit-less clаim to the bank’s money. I believe
The alpha and omega of the judiciary is to administer justice fairly and impartially in a forum and in an atmosphere where the rule of law prevails. Regardless of how one breaks this core funсtion into its various parts, the administration of justice is at the very center of the judiciary’s existence. Shook’s admitted behavior, calculated scheme, and motivating purpose so defile the institution of the judiciary and the administration of justice that only the severest of sanctions can remove the lingering, corrosive effect of his actions. Indeed, so reprehensible is his conduct that, search as I might, I cannot find another case even approaching this one in egregious bad faith. Surely а court must have the inherent power to protect itself and the administration of justice from Shook’s litigation practices. To hold otherwise ignores the very reason for the judiciary’s existence.
TRANSAMERICAN STANDARDS MET
The first requirement of TransAmeri-can is met — the sanction is clearly levied against the offending party, Shook. See TransAmerican Natural Gas Corp.,
