Case Information
*0 FILED IN 2nd COURT OF APPEALS FORT WORTH, TEXAS 03/02/2015 6:50:39 PM DEBRA SPISAK Clerk *1 ACCEPTED 02-15-00069-CV SECOND COURT OF APPEALS FORT WORTH, TEXAS 3/2/2015 6:50:39 PM DEBRA SPISAK CLERK NO. 02-15-__________-CV THE STATE OF TEXAS COURT OF APPEALS SECOND DISTRICT OF TEXAS AT FORT WORTH In Re PENTEX FOUNDATION and JOSHUA UNGER, TRUSTEE of GBU FRIENDS AND ASSOCIATES, TRUST, Relators
v.
THE YET TO BE DESIGNATED HONORABLE DISTRICT JUDGE
OF TARRANT COUNTY, TEXAS, Respondent , and KENNTH VERN GIBBS and CANDACE GIBBS WALTON, Real Parties in Interest PETITION FOR WRIT OF MANDAMUS Scott Smith 120 South Crockett Street P.O. Box 354 Sherman, Texas 75091-0354 e-mail: smithlaw@airmail.net Facsimile (903) 870-1446 Telephone (903) 868-8686 A TTORNEY FOR P ENTEX F OUNDATION AND J OSHUA U NGER , T RUSTEE OF GBU F RIENDS AND A SSOCIATES T RUST , R ELATORS O RAL A RGUMENT R EQUESTED February 27, 2015 *2
TABLE OF CONTENTS TABLE OF AUTHORITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii
STATEMENT OF THE CASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
STATEMENT OF JURISDICTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
ISSUE PRESENTED
Should mandamus be granted to enforce the parties’ agreed,
mandatory venue provisions of the contract, pursuant to Section
15.020 of the Texas Civil Practices and Remedies Code? . . . . . . . . . . . . . . . 2
STATEMENT OF FACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
A. PROCEDURAL BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
B. FACTUAL BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
ARGUMENT AND AUTHORITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
VENUE IS MANDATORY WHERE THERE IS A WRITTEN
CONTRACT WITH A STATED VALUE OF $5,000,000 AND AN
EXPRESS AGREEMENT FOR VENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
PRAYER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
CERTIFICATE OF COMPLIANCE
WITH APPELATE RULE 52.3(j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
CERTIFICATE OF COMPLIANCE
WITH APPELATE RULE 9.4(j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
CERTIFICATE OF SERVICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
TABLE OF AUTHORITIES Cases
Airvantage, L.L.C. v. TBAN Properties # 1, L.T.D.,
269 S.W.3d 254, 257 (Tex. App.-Dallas 2008, no pet.) . . . . . . . . . . . . . . . . 12
Carrothers Const. Co, L.L.C. v. City of S. Hutchinson ,
288 Kan. 743, 207 P.3d 231 (Kan. 2009) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Flores v. Millennium Interests, Ltd. , 185 S.W.3d 427 (Tex. 2005) . . . . . . . . . . . . . 9
Gator Apple, LLC v. Apple Texas Restaurants, Inc. ,
No. 05-12-01369-CV, 2014 Tex. App. LEXIS 2539
(Tex. App. – Dallas, Mar. 5, 2014) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
In Re Adan Volpe Properties, Ltd. , 306 S.W.3d 369, 373
(Tex. App – Corpus Christi 2010) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In re Applied Chem. Magnesias Corp. , 206 S.W.3d 114, 117 (Tex. 2006) . . . . . . . 8
In Re AutoNation , 228 S.W.3d 663 (Tex. 2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
In re Cont'l Airlines, Inc. , 988 S.W.2d 733, 735 (Tex. 1998) . . . . . . . . . . . . . . . . . . 8
In re David Lopez, Sr. , 372 S.W.3d 174, 176-77 (Tex. 2012) . . . . . . . . . . . . . . . . . . 8
In Re: Fisher , 433 S.W.3d 523 (Tex. 2014) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,10
In Re: Kenneth Vern Gibbs, et al. , No. 06-15-00002-CV,
2015 Tex. App. LEXIS 906 (Tex. App. – Texarkana, Jan. 30, 2015) . . . . . . 5
In Re Lisa Laser USA, Inc. , 310 S.W.3d 880, 887 (Tex. 2010) . . . . . . . . . . . . . . . . 10
In Re: Pentex Foundation, et al. , No. 06-15-00003-CV,
2015 Tex. App. – LEXIS 889 (Tex. App. – Texarkana, Jan. 30, 2015) . . . .
ii
In Re Railroad Repair , No. 05-09-0135-CV, 2009 Tex. App.
LEXIS 8404 (Tex. App. – Dallas, Nov. 2, 2009, no pet) . . . . . . . . . . . . . . . 12
Kj Eastwood Invs. v. Enlow , 923 S.W.2d 255, 258
(Tex. App. – Ft. Worth 1996) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Maranatha Temple, Inc. v. Enter. Products Co., et. al. ,
833 S.W.2d 736 (Tex. App. – Hou. [1st Dist.] 1992, writ denied) . . . . . . . 11
Spin Doctor Golf, Inc v. Paymentech, L.P. , 296 S.W.3d 354
(Tex. App. – Dallas 2009, pet. denied) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Valence v. Dorsett Operating Co. ,164 S.W.3d 656, 664, 48 (Tex. 2005) . . . . . . . . 9
Wichita County v. Hart , 917 S.W.2d 779 (Tex.1996) . . . . . . . . . . . . . . . . . . . . . . . . 12
Statutes and Rules
T EX . C IV . P RAC . & R EM . C ODE § 15.002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,12
T EX . C IV . P RAC . & R EM . C ODE § 15.020 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,3,4,9,12
T EX . C IV . P RAC . & R EM . C ODE § 15.0642 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,5,7,8
T EX . G OVT . C ODE § 22.221 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
T EX . R. C IV . P. 87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
iii
STATEMENT OF THE CASE Pentex Foundation, Relator, brought suit in the 336 th Judicial District Court
of Fannin County, Texas, to enforce and declare the terms of a written contract,
with a stated value in excess of $1,000,000, and an express venue provision for
Fannin County, Texas. Kenneth Gibbs and Candace Walton, Respondents and
Real Parties in Interest, filed a motion to transfer venue to Tarrant County, Texas,
for convenience. The presiding judge of the 336 th District Court of Fannin County,
Judge Laurine Blake, initially granted the motion to transfer venue, but
subsequently reconsidered and denied the motion to transfer venue. At the time
Judge Blake reconsidered her ruling on venue, the trial of the case was also set for
June 1, 2015.
Gibbs and Walton filed a Petition for Writ of Mandamus with the Texarkana
Court of Appeals, alleging that the trial court was without authority to reconsider
and reverse its ruling on venue. Pentex filed a cross-petition, claiming that in any
event venue was mandatory in Fannin County, Texas. The Texarkana Court of
Appeals held that the trial court was without authority to reconsider the motion to
transfer venue, and that the cross-petition by Pentex was therefore likewise without
For convenience, they shall be referred to by their last names. Pentex Foundation shall be referred to as “Pentex.”
jurisdiction.
STATEMENT OF JURISDICTION This Court has jurisdiction over this petition for writ of mandamus pursuant
to T EX . C IV . P RAC . & R EM . C ODE § 15.0642 and T EX . G OVT . C ODE § 22.221(b);
See also, Kj Eastwood Invs. v. Enlow , 923 S.W.2d 255, 258 (Tex. App. – Ft. Worth
1996)(“[W]e believe that the legislature, by recently enacting section 15.0642, has
obviated a relator's requirement to show that there is no adequate remedy by
appeal.”)
ISSUE PRESENTED Should mandamus be granted to enforce the parties’ agreed, mandatory
venue provisions of the contract, pursuant to Section 15.020 of the Texas Civil
Practices and Remedies Code?
STATEMENT OF FACTS A. PROCEDURAL BACKGROUND
Pentex filed its action to enforce and declare the terms of a written contract
on April 1, 2014, in Fannin County, Texas. Pentex asserted that venue was
mandatory in Fannin County, Texas, as the case arises from a contract involving a
The contract shall be referred to as “Contract”. A copy of the Contract is attached hereto as Appendix “A”. See also, Appendix “B” submitted herewith, at page 17. The record is
submitted in the Appendix, and consists of two parts, “B” and “C”, which are numbered
consecutively, and shall be referred to as “Appx.”
major transaction, with venue specified and agreed by the parties to be in Fannin
County, Texas. T EX . C IV . P RAC . & R EM . C ODE § 15.020. 3
Subsequently, Gibbs and Walton, filed another, similar lawsuit arising out of
the same facts and circumstances, which now involves all of the same parties, in
the statutory probate court of Tarrant County, Texas. 4
In Fannin County, Gibbs and Walton filed a motion to transfer venue for
convenience , essentially asserting that “prejudice was so great” they could not get
a fair trial in Fannin County, Texas, because then counsel for Pentex was also a
3 Section 15.020 of the Texas Civil Practices and Remedies Code applies to a
“major transaction,” which is defined as a transaction evidenced by a written agreement and
which involves $1 million or more:
(c) Notwithstanding any other provision of this title, an action arising from a
major transaction may not be brought in a county if:
(1) the party bringing the action has agreed in writing that an action arising from the transaction may not be brought in that county, and the action may be brought in another county of this state or in another jurisdiction; or
(2) the party bringing the action has agreed in writing that an action arising from the transaction must be brought in another county of this state or in another jurisdiction, and the action may be brought in that other county, under this section or otherwise, or in that other jurisdiction.
4 A copy of this lawsuit is attached as Exhibit “B” to Relator’s answer. Appx. 47.
It was amended in December of 2014, so that it now includes all parties to the Fannin County
lawsuit. Pursuant to T EX . C IV . P RAC . & R EM . C ODE § 15.002.
part-time municipal judge for the City of Bonham. Texas. Appx. 35.
The motion for change of venue filed by Gibbs and Walton was heard on
September 30, 2014, and Judge Laurine Blake determined that venue should be
transferred to Tarrant County. Appx. 650. Within five days, Pentex filed its
Motion to Reconsider Motion to Transfer Venue. Appx. 660.
The motion to reconsider was heard on November 12, 2014. At that hearing,
Judge Blake reconsidered the matter and determined that mandatory venue in fact
existed in Fannin County, Texas. Appx. 650. At that time the court also entered a
scheduling order setting the trial of this case for June 1, 2015. Appx. 747.
Two months later, Gibbs and Walton filed their Petition for Writ of
Mandamus and Motion for Emergency Stay in the Texarkana Court of Appeals,
claiming that Judge Blake was without authority to reconsider her ruling on venue.
Pentex filed a cross-petition for mandamus relief, asserting that in the event the
trial court did not have the authority to reconsider its ruling on venue, mandamus
should have been granted to enforce the parties’ agreed, mandatory venue
provisions of the contract, pursuant to Section 15.020 of the Texas Civil Practices
and Remedies Code.
The Texarkana Court of Appeals held that Judge Blake was without
jurisdiction to reconsider her order on venue, 6 and that the cross-petition should be
denied as the “relief Pentex seeks by petition for writ of mandamus should be
addressed to the Second Court of Appeals, the appellate court having jurisdiction
over Tarrant County.” 7
As of the date of this Petition, the file has not physically arrived to Tarrant
County, Texas. It is believed to be in transit. 8 Therefore, it has not been assigned
to a particular Tarrant County district court. Nevertheless, the Tarrant County
district courts presently have jurisdiction over this dispute. See, In Re: Kenneth
Vern Gibbs, et al. , No. 06-15-00002-CV, 2015 Tex. App. LEXIS 906 (Tex. App. –
Texarkana, Jan. 30, 2015)(“The failure to transfer the physical file from Fannin
County to Tarrant County affects neither the finality of the transfer order nor the
transferring court's plenary jurisdiction.”) Because of the previously set trial date,
in order to be timely filed, this petition claims relief with respect to a yet-to-be
6 In Re: Kenneth Vern Gibbs, et al. , No. 06-15-00002-CV, 2015 Tex. App. LEXIS
906 (Tex. App. – Texarkana, Jan. 30, 2015), found at Appx. 848.
7 In Re: Pentex Foundation, et al. , No. 06-15-00003-CV, 2015 Tex. App. – LEXIS
889 (Tex. App. – Texarkana, Jan. 30, 2015), found at Appx. 854.
8 See , the index of proceedings received from the Fannin County District Clerk’s
Office on February 26, 2015. Appx. 857-58. Section 15.0642 provides specific statutory authority for the filing of a writ of
mandamus to enforce mandatory venue provisions. It states that an application for writ of
mandamus must be filed before the 90 th day before the trial starts.
designated Tarrant County district judge.
B. FACTUAL BACKGROUND
This case concerns and arises out of the Contract entered into between and
among Gibbs, Walton, Howard Kirk Gibbs and Albert Barcroft. Pentex and
Joshua Unger, Trustee are successors in interest to Mr. Barcroft. The Contract
itself, at paragraph 4, stipulates a buyout and liquidated damages provision of
$5,000,000, as follows:
It is understood and agreed that Gibbs may cancel or nullify this
contract only under the following conditions: a) If Gibbs pays over to
Barcroft the sum of five million dollars ($5,000,000.00 US) in full, in
addition to any money received prior to said one time payment, as
liquidated damages and full settlement of all consideration on Gibbs
part.
Contract ¶ 4 (emphasis original). The present dispute involves allegations that in
excess of a million dollars were not distributed pursuant to the terms of the
Contract. Paragraph 37 of the Plaintiff’s Original Petition in this case alleges:
A true and correct copy of that contract was attached to the Response to Motion to Transfer Venue, Plaintiff’s Exhibit “A”. Appx. 226-233. It’s authenticity was not in dispute.
Also attached to the Response was Plaintiff’s Exhibit “B” is a copy of a portion of the Response
to a Request for Admissions, by which the Contract is acknowledged in Response to Request for
Admission number 1. Appx. 234, 236.
Plaintiff has had over a million dollars of money rightfully due
Plaintiff taken by Ken, Candy and Howard to pay the attorney fees
that were due to be paid only by Ken, Candy and Howard under
written agreement, i.e. the Contract here. 11
The prayer in the Plaintiff’s Original Petition requests, “All actual damages; but, in
any case, no less than one million dollars [$1,000,000.00].”
Importantly the Contract addressed venue in a very direct and forceful
manner in paragraph 9:
Notwithstanding any other provisions of the law, it is expressly agreed
that this contract shall be performable only in Fannin County, Texas;
and, any dispute(s) will be resolved in the Courts of Fannin County,
Texas.
(Emphasis original).
ARGUMENT AND AUTHORITIES VENUE IS MANDATORY WHERE THERE IS A WRITTEN
CONTRACT WITH A STATED VALUE OF $5,000,000 AND AN
EXPRESS AGREEMENT FOR VENUE.
Pentex filed suit in Fannin County, for which mandatory venue was
established. Mandamus relief is specifically authorized to enforce a statutory
mandatory venue provision. In Re: Fisher , 433 S.W.3d 523, at 528-29 (Tex.
2014), citing T EX . C IV . P RAC . & R EM . C ODE § 15.0642. Moreover, mandamus
relief is the proper remedy to enforce a mandatory venue provision when the trial
Appx. 12.
court has denied a motion to transfer venue. In re Cont'l Airlines, Inc. , 988 S.W.2d
733, 735 (Tex. 1998)(orig. proceeding); T EX . C IV . P RAC . & R EM . C ODE § 15.0642.
Where a party seeks to enforce a mandatory venue provision a party is only
required to show that the trial court clearly abused its discretion by failing to
transfer the case and is not required to prove that it lacks an adequate appellate
remedy. In re David Lopez, Sr. , 372 S.W.3d 174, 176-77 (Tex. 2012)(orig.
proceeding); In re Applied Chem. Magnesias Corp. , 206 S.W.3d 114, 117 (Tex.
2006)(orig. proceeding).
Contractual venue provisions are mandatory and enforceable. In general,
forum-selection clauses should “be given full effect and should control absent a
strong showing that [they] should be set aside." In Re AutoNation, Inc. , 228
S.W.3d 663, 667 (Tex. 2006). Strong public policy supports the enforcement of
forum-selection clauses. Subjecting a party to trial in a forum other than that
agreed upon and requiring an appeal to vindicate the rights granted in a forum-
selection clause is:
“[C]lear harassment” – harassment that injures not just the non-
breaching party but the broader judicial system, injecting inefficiency
by enabling forum-shopping, wasting judicial resources, delaying
adjudication on the merits, and skewing settlement dynamics contrary
to the parties' contracted – for expectations.
Id., at 667-668 (citations omitted).
In cases involving a “major transaction” the parties are free to agree that
venue will lie in a particular county. This case involves is a “major transaction” as
defined by law. A “major transaction” is defined by statute as a transaction
evidenced by a written agreement under which a person pays or receives, or is
obligated to pay or entitled to receive, consideration with an aggregate stated value
equal to or greater than one million. T EX . C IV . P RAC . & R EM . C ODE § 15.020(a).
Accordingly, the Contract constitutes a "major transaction" for purposes of
section 15.020 because it expressly provides – in paragraph 4 – for the payment of
"consideration with an aggregate stated value" of more than $ 1 million. Venue is
therefore mandatory when there is a written agreement specifying venue, which
involves one million dollars or more.
The Contract plainly and expressly provides for liquidated damages of
$5,000,000 in the event of breach. Of course, the term “liquidated damages”
refers to an acceptable measure of damages that parties stipulate in advance will be
assessed in the event of a contract breach. A liquidated damages clause allows
contracting parties to protect themselves against the difficulty, uncertainty, and
See, Flores v. Millennium Interests, Ltd. , 185 S.W.3d 427, 431 (Tex. 2005); Valence v. Dorsett Operating Co. ,164 S.W.3d 656, 664, 48 (Tex. 2005).
expenses involved when trying to ascertain actual damages. “Given this desirable
goal, it is well established that parties may stipulate at the time of contracting to a
set damages amount for a breach of that contract, as long as the liquidated damages
provision is not a penalty.” Id.
Notwithstanding the liquidated damages of $5,000,000 stated in the
Contract, Pentex asserted that its damages, in excess of $1,000,000, directly related
to the Contract. Claims that are associated with a major transaction trigger the
mandatory venue if they “arise” from a major transaction.
We concluded that the forum selection clause itself applied more
broadly than to mere sales transactions because it applied to "any
dispute arising out of" the agreement and the trial court erred in
refusing to enforce the forum selection clause.
Fisher , 433 S.W.3d at 530, citing In Re Lisa Laser USA, Inc. , 310 S.W.3d 880, 887
(Tex. 2010). Here, the Contract broadly stipulates venue in Fannin County for “all
disputes” arising out of the contract, not merely for purposes of enforcement of the
liquidated damages provision. Contract, ¶ 9.
Pentex established mandatory venue by prima facie proof. A copy of the
Contract was attached to the Plaintiff’s Original Petition; the existence of the
Gator Apple, LLC v. Apple Texas Restaurants, Inc. , No. 05-12-01369-CV, 2014 Tex. App. LEXIS 2539 (Tex. App. – Dallas, Mar. 5, 2014, pet. filed), citing to Carrothers Const.
Co, L.L.C. v. City of S. Hutchinson , 288 Kan. 743, 207 P.3d 231 (Kan. 2009).
Contract was asserted; the specific agreement for venue to be exclusively in Fannin
County, Texas was described; and the amount of damages sought were all
specifically pleaded venue facts. Gibbs and Walton did not deny any of the
pleaded venue facts. They are therefore taken as true. That is all Pentex needed
to do to establish mandatory venue. “A party must establish mandatory venue by
prima facie proof. T EX . R. C IV . P. 87(3). . . . Spin Doctor Golf, Inc v.
Paymentech, L.P. , 296 S.W.3d 354, 357, 359 (Tex. App. – Dallas 2009, pet.
denied). In Spin Doctor Golf the Court of Appeals found:
The agreement attached to the motion to transfer venue lists annual
sales of over $1,000,000. Thus, on its face, it constitutes prima facie
evidence of a major transaction within the meaning of 15.020(a).
Id. So too here, the undisputed venue facts establish – on the face of the Contract –
that this was a major transaction.
Frankly, Gibbs and Walton never challenged the fundamental venue facts.
They simply asserted that Fannin County was inconvenient, despite their written
promises. Gibbs and Walton only requested that venue be changed pursuant to
T EX . C IV . P RAC . & R EM . C ODE § 15.002, a permissive venue provision. It is clear
T EX . R. C IV . P. 87(3)(a)("properly pleaded" venue facts taken as true unless specifically denied by adverse party.) ; see e.g., Maranatha Temple, Inc. v. Enter. Products Co.,
et. al. , 833 S.W.2d 736 (Tex. App. – Houston [1st Dist.] 1992, writ denied).
that mandatory venue provisions trump permissive ones,
The parties agreed to venue in Fannin County, Texas. It was mandatory. It
was error to transfer the case to Tarrant County, Texas, an error later recognized
and corrected too late by Judge Blake.
PRAYER
Pentex submits that the initial ruling relating to venue was incorrect and
should be the proper subject of mandamus.
Respectfully submitted, /s/ Scott Smith By:___________________________________ Scott Smith State Bar Number 18688900 120 South Crockett Street P.O. Box 354 Sherman, Texas 75091-0354 e-mail smithlaw@airmail.net Facsimile (903) 870-1446 Telephone (903) 868-8686 Airvantage, L.L.C. v. TBAN Properties # 1, L.T.D., 269 S.W.3d 254, 257 (Tex. App.-Dallas 2008, no pet.) (citing Wichita County v. Hart , 917 S.W.2d 779, 781 (Tex.1996).
Further, section 15.020(c) provides in pertinent part that, when applicable, section 15.020
controls over other venue statutes in title 2 of the Civil Practice and Remedies Code. See T EX .
C IV . P RAC . & R EM . C ODE § 15.020(c). In In Re Railroad Repair , No. 05-09-0135-CV, 2009 Tex.
App. LEXIS 8404 (Tex. App. – Dallas, Nov. 9, 2009, no pet.), the Court specifically found that
venue under section 15.002, a permissive venue statute, must yield to the mandatory venue
provision in section 15.020.
Unsworn Delcaration Pursuant to T EX . C IV . P RAC . & R EM . C ODE § 132.001 "My name is Thomas Scott Smith, my date of birth is December 18, 1957,
and my address is 120 South Crockett Street, Sherman, Texas 75090, and I declare
under penalty of perjury that, I am fully competent to testify as to the matters stated
herein. I have personal knowledge of each of the facts stated in this petition are all
true and correct.
Executed in Grayson County, Texas on this February 27, 2015.
/s/ Thomas Scott Smith ______________________________ Thomas Scott Smith, Declarant CERTIFICATE OF COMPLIANCE WITH APPELATE RULE 52.3(j)
This certifies that the undersigned has reviewed this Petition and concluded
that every factual statement in it is supported by competent evidence in the
appendix submitted herewith, or the record, as required by Appellate Rule 52.3(j).
/s/ Scott Smith Scott Smith CERTIFICATE OF COMPLIANCE WITH APPELATE RULE 9.4(j)
I certify that this document contains 7,935 words, as indicated by word-
count function of the computer program used to prepare it, and excludes the
caption, statement regarding oral argument, table of contents, table of authorities,
statement of the case, statement of issue presented, statement of jurisdiction,
statement of procedural history, signature, proof of service, certification, certificate
of compliance, and appendix, as required by Appellate Rule 9.4(j).
/s/ Scott Smith Scott Smith
CERTIFICATE OF SERVICE I do hereby certify that a true and correct copy of the above and foregoing
document was served, by electronic transmission and facsimile (800) 437-7901 to
Christy L. Lee, Esq., of Law Offices of Christy Lee, P.C., 777 Main Street, Suite
600, Fort Worth, Texas 76102, and to Howard Kirk Gibbs, Pro Se, at 4360
Western Center Blvd., Suite 205, Ft. Worth, Texas 76137, on this February 27,
2015.
Scott Smith *19 A PPENDIX
A Contract
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TREITTOO TX 75'490 17
*21 C11n.tra~r for Sale· Of Lami, Mineral Rlg~I$ iln"d koy11Utes, ao~ :all oii!er Asseb Qr l\tqpi~s ij_tJ:~lved fl"j)J11.tht.Esl11re-<1f 8'rtHilgb~s Cll!l;is; KaihrylJ G. Gibbs.-a11d/11r lh!!Macy I,. HoUSl!Wllr:tli Trnsi(s) or "Tile Kalhtyn !l<tli•£wortli Gibbs I rrevosilblrTrust~ Th.is agrcomont bciwccn Al~_ert Lynn A_a-rcroll_, hercinaftct ''Jlar~ri>rt''; Md Kettrieth Yem Gilibs, _Can~:it~ Gibbs· Walton, an~ l!ow11ril. :Kirk G1f\!Js, herdnallcr cullectiv~ly .also "Gltlbi.'', is a ·contract rot sale oJ lhltty pei'ctol JO% or all latid, mineral rlglits, ro)'altlo, ilad a·oy 01lrtf 1n1rnfM or assets Wbldi Gibbs, or any <if the three individuals referred. to colloclively a• "Gibbs" 11i tlli~ agreement:, re.:e1vcs, or is .due,, frolJl tl\is da_te (orWard. cl1h·er :toll~cuvcly or indi'v.idually, as a resuh of any inherita11cc or cslate. proceeds,. or any othe< property assets re.:civcd ftom any trust(S') Qr tnmsfcrs from Bert Hughes.Gibbs, Mary L. Houscwm1h.-an\fior-KathrytJ G. Oibb~ a_t any umc, past, present, oduiure; inclu_t11.t1g, but 1101 limited to. tbc following\ ai A.II pr~eeqs l'rom the f;stat~ ofQcn H\lghes dibbs •. andtor, hJ All piopen"y and1ur asset.~of'any"kl1i"d-whlcli ate received J!S· a resul1 of any past or l\Jh1re traiJ"Sfercnce. from Bert "Hughes Gibbs, Kathl)TI G. Gibbs; 0r any lrust to which Gibbs, or. any ur lhe ind1\'1duals r.efcrrctl 10 cqllecltvt:ly ·a$ "Gibbs":m this agreement, arc beneficiary: and1or,
~) All inl>eri.t.~n~c of -~\•Y -~ind "II~' in 1!11Y" fonn tiy: Qibbs, or .any of tht mdiv_ldulifs refCNed .to cullectivdly.·us "Gibbs'' fn 1hh1 u:g_o;:¢'Jti.cntt.<µJQ/dr; d) All proceeds:from ai1y .lawsuit which currcnt1y·cx1s1s,_or.may amc, becau>1: ot; or m conneeuon wiih,. the ro!a11onshipto) wi_1h Den H_ughe.; G_ibl)s, l(a1hryn ci .Gi~bs, Kip Hu~e• GjbJ>s, S;mdra Eayo· Gibbs, "The ·Mar)' L. Houscwonh lrrevccable:1'rusf'._ ·"The Ka!hr)'.11 HouscworllrOfbbs lire.votablc '\rust'";o1111d 111IY oth~r 1rus_1(sH> ••hie_~ dtbbs_ar" b¢11c(lci•t.viies} or 1ru.Si~l~J:iiHfriY foi(il: ;l\ldJor, ~) f!"!I ;pto~1w '!ll<llor ass~1~, wliid.1. may :hi•~ b'"'" ,~•-•Vmilsly ·passed t<Hhern h)' Ben. Hu)lhes (Jil>hs·, K01hr}11 G. Gihbs, "The· Muty L, HousowoMh Irrevocable l"rust", amlicl"Th~ l(a1myn Hou~MMh Qitil!s. hrev®.able 'rrusl''; atit)lor, I) All tl!h.•r prop:eny a~d!orasscts pa~ Hi Gihbs. or anfot!M _indil:.idualsref!'m!l to, «1.llec11~cly· •$ "Glb.6!" .IJ1 this •Jir""111ent, from :my ,source involv.ing ili:n. Hug~wGllibs, Kathryn G. dibhs, "The Kaihryn Houseworth Gibbs lrrovocl!hfe. Jfno:iJ~·o~- d~= &1.i= .ifili_-_J (~unu~_tfOf-.~afeu_~.f.:~n<i_;M., in~,.J ~tilf'iM. t Jlf P"11~ -~ :Tl#' ~ ~o)~llfcs-oil\d Olh:ci i\Mfh ;Htij1(ll M~r~t
18 *22 Tt11st''. a1.1d!Qr ''Thi;· ((~tbr~ BouscwQ!'lff Gibb~ lriiW<>calilt Trust"; or, ;1ny 91her lrusl(s) or business otganrt.ation(s) of any klrid, whiCh might be uncovered or discov~re<! in "the f\Jiore; andlo(,
g) All property anti.for oilier·asseis in any trust or. forl'rl.cr trust; an\!,.any. pr,;perty or Other assets in any comorat1on; ·11mited iiability company, partilership(s>, sole propnetorsliip(slo or .any other business orgamzation of any kind in which one or morccofthe Gibbs arc owners. irus1~sJ or ti~neficiijry'(1~sj.
b.). Sp~ilkally exempt¢ from lhfs agre~l)len.t are ;my properties lllldlor other assets whh:h are currenll)' 1111der lh<t full .contr¢.1 of Gibbs, or an)! of th·c individuals rcfcrr!!d lei collc,;cri\·dy as "Gibbs" m lh1s agreem~llt; provi<kd, i1owevcr; ttJat if any· legal work 1s reljllired to aid ;·n the coll«:liOrl .uf said assets, or the sale or control of said property, lhtn $aid property or. other assets shall be subject to the tenns,·condltions. ~nd c!!ll$hlera\iol)ll ~et forili wit!iill lhis a!lfeemenl as:p;rr.t .11fllie pJoperty artdiM· as·~cts li~1~4 above, .artd shall have n(i exemption-lo llie terms ~nd considerations of this agtccmem .. AISo exeltlp!~ from this agreement are any peNIOnal: items 11iat wcie passcd. ttl ·GibBs from ·their falhet, wlii~h were not included II\ ihc divorce d1srnbu1ion bCIWeen 1heirmotller and father.
Tli{s sak of 30°/. · of,lil!. l~n.d. 1 p.rope.rty •!Id o)li.tr e~5el.s. described here{?! .abo\(c. ~!\all
i>e &l'V• .. ~d by die fc!Uowlrtg lor.')ls, £<!11.ill1lo1u, ud c nsldn•tlonr:
I Gibbs. or· any ofliie 'individuals referred io·colleclively·as'"Gibb~" in this a~ccmcn1, sh~ll giv~ llieir11Ji¥i1et (uJ.( ~goJi.or~tion 1<>.aU efforts liy U~rQroil, to co.ll~~I urry <if\!Jc fundneforrcd fo·in th" agreen\"l:nt. Silld coor,erall<in shall include, bili not"be hniitCd. ti>, pro~idiJjg no~~$$\1TY urfonnatlcm .;md. documoo1a11on •.. boh)g «v~ifab.i~ to g1)·e tostimony, Jlnd glvmg full sopp.ort t<> th•. o.verall :effon .of ~ollcctin& lilll~• and .. oS§ols fNm· 111<: sourc<s s!atO\I h~rcin,
2. An».parly"6ereto Shall .haw.1l1e right to. orde. a complelc tnY•n.IOry of all propetiY rurd: othetais~I~ <!escri~t:ll heri;1~ al llli> tlnie, ?nd all panies· agre~ !() :prov1~e full c09peralion to..such an.effort. Any·:cosls shall be born by lho party rcqucsiin1rihe tnvenfory .. tvnlf;ii;ffrlt S.trc ofWnd, M:rrrtfJ1I R!S)lU . . Ruya!Uci"iill!d Ol~FA1Mt1 andlo(J.i.on1r~
19
*23 J. As full consideration; 13arcrot't agrees 10 provide, or has provideJ, the followi"~:
a) Uarcr-0ft has patd to Gibbs a lolal ·of twent}'·one (21) silver dollars minted by the Unileil S11m:s Mini, photocopy {)f'Sa1d coin·s attached· herelo as Exhibit "A". and 1nc0Jpor,a1ed herein for all purposes as real cons1deratio1\' under this ab"'~emelil; md Gib.b's hereby acknowledgilS rec.cipl of Slllllci with thia 8igoing;· imd. b) lfarcr<>ft will provide hiuervices. knowle4gc and 'bcsrcfforts in: the pursuit of all available tl..11t.d~. propeny, and/or olbcr assets from the:sourci!s.sratL'd herein; and, c) Bnrcroil, .. at hts cKIJ'tnse, will jii'i:Nldi:. le.gal co.unset by acquiring. a ficensi:d attorney for any rea.'><>na~lc and prudcni actions neces~ary (o tl;c coll!'Cting ofthe fu11ds: from ihe sources sta.te(! herein; however, sho11td Gibhs, :or any of the-. ind1viduql Gibbs, tecl that lho1rlhis.llter interests are• riot Jir'ulJ'erly served by the allomey Bare.rot\ provides, that pany will be rcsponsil}le for 1.he legal fees of any Other .attomcy{sl hired hy Oihhs, or any individual Oilib$. to protect thdrlhliilher In tliat event, it is a&rced by all. ·parties hereto that the. indiYtd·oal interests. attorn~y hired by Bar.crofl will represent only Barcrofi in all 011ure, uction(s). Fu.nhermor~. 1t is •Mcifically agtet.'d that said ~ltomcy hired l;y Barcroll w.ill represent only BarCnif\ should a dispute anse b~tween the parties hereto; and, {ii.bbs [1] in~ividually a11d ~ollecttvely; agree not lodaini conflict of interest should ~aid 11t1ofltey rl:j)J'CS¢.n.1 BarcJ9f\ in .~ co.nfliel betw~n the panie~ hereto; and, Gibbs, colliictivnly anil. indivld11ally, hercll>-· wai\'c thiiltlliiSlhcr right to claim conflicl of iiitcr()st Willi regUrds:to s~uhllomcy 1ti such instance.
4. II is undemood Md agreed ·1ha1 Gibbs may cancel or nullify this: contracf QJl]y under the followini;·conditions:
~) If Gjl!!Js pay~ <l11•r to ~;i.i:~rollihe sum offlve.mill!\11'! iloll~r~ ($5,Qi.lb,00\),00 J.!~l in• Toll, ill addition to any· money received pnot m said one time payment, as .li~uidatcd ·damages gnd full .<ct!lemelit ofall consl<leralion on Gibbs pai1. *24 .V{lrich. is c•;wc~ by this agrecmeni aod :has lx:cn b10Ugh1 inter the control i:lf Gibb~. or is paying beMiiJ~ of any ki\ld at tile tim~ o(S:arcrotl's abandonment; or, Which is b'rouglil .Into t·he tontrolofGtbbs; ·or stat!. Pl!ying benefits ai a la(ef date, provided that said control or payments is a result of actions prior to Bari:rofl's Jlb~n!l.on.ment .
. 5. lf B~rcr<Jft dies or becomes incapacitated. the c9nUact will .remain in force. ·~nd l.he
<l<stls w,~1ch havelie~1i ai:cess<:!l atld are p~yihg al thli 11m¢ ul' aru:~.rofl'~ \l~ib. or whl9~
.are later acc.esse\I. as a result 0JB11rcr9fl's effons.'wil! !f9 lo iiis h~irs and assigi)s,
6 It is hereby agr~d thai there shall be a business· organization, the ~xact lype to be
agrc~d upon at a lilfor date, created by the par11M· h6rcI6; and; thal all ri:venuc of any kind
received from "!IY of ti)~ property andior assets covered h~rc[n s.h1111 ·11~ <kpositcd inl<> ;i
b~nk accounj in that entity's. natne, an<! tha1 all cxp<mses necessai:y 10. 1he.con1inl!ation of
revenue beinw paid lo .the: panks· l\.l!f'tto (1.e. ptopcny taxes on the royalties or propei:ty
covcrc<.l 11.i:feln• and any a~c~ury exptlni;es:such· as wdi .lfpk¢11J!; cle;) shalJ.be Jedu~te&
and p.~id as (equifod bctbr~ the 701JO d1visioo agr<led t<I m: .this contr.lcl. $ar¢ro0 shull
have a 50% vote in :lli,; operation of said b.lfStness organiiatroil;· w1<1,.1he cmlyfonction of
said business :organization shall b~ to rac1htalc !he agreement ·in· .this contrac.I. Any
monlc.s paid out of.said business organlzanon, other than ihe ~greed upon spill between
ihc paMies; shall be agre"d upon by all parlies hereto; The dil/mon shall Ile divided on a
basis or 3l}% to U~r>;.ro:Ct. ;n.~4% to !(.ennct~ Yem Gib~~. ~3.33% to C:311dacc Wqlton
G1.bbs, :al)<l ~3:3~% to Howard :Kirk Gibbs, at e~ch i.nst~cc of dis!'l'~•l I() th.1: P.•it.1'1l·
Any p•tl>- nray dei:nand ~.split o( the assets of '!Hid bus.iness organizat( 0n >it ~Y time. 1; If ~itlier po,ny ~.hould :hrcak th~ terms .,ritifngr.eemcni in a1iy- fashion, or uttempl to render 1he confrac.i invalid, in any way which would require leg;il aciion lo -co·rrt<:l or ·enforce. th~ party found: at taull, o·r the pllrty failing to 11rev11il. stiitll pay Iii! !¢gal
expe-n!il!s t)f 311r1yp·c for hnnsclflhmelf. and !\Ir tfrc prevailloJn>al1Y• S Thrs coniratl is wnlicn to .comply with the laws of ihe .. S\afo <>f Tex<1>; <111d, 1111y provision foulid hy a court Of eohlpe!ctit jµrisdicli'on 10 bli in non-complialli:C shall be -.- M .. :·_ .. -.. -: .. -.k·"' ... L.. d-AIL ·1 IU!l;tit!1; t.\uuucd'or S:afc·t>(l..:.1tsd, i\itncnu Roy:.il.uc.~ 11~d-().1t.~~ A:r.~~ ;Hl'.CttOf M~liii:s - 4 lnn1ah.bf 1:MJ .J!.. ~W~iC~ ~ " . . [1] ii
21 *25 automatically ·amended to comply with said laws in such a·manner as to keep 1ht original intcni \!f1h~ provision as closely in place as possi\>Jc. Jn.no event shall any such findings on one pniv1$ion .. affcc1 uny diner prov1~1on wnbm ilte cootra.Ci.
9. Notwiths1andi11g any other pr<i\<lsson under the :Jaw, it I~ express.ly agretd chat ihis contract .shall be performable only i·n Fannm County, Texas; and. any disputc(SJ, will be reso.lve.d tnth" courts. of Fannin Coumy, Texas. The sigiiing hereto ofthis contraCt h)' all purtics complete& the salo of3ll% oi'·affpropcny anti assets l1f.Gibb•.lo Barcrotl. J(l, Tl"ils aiircen:tent sha.ll bet binding on all neirs an~ ;\Ssigns <)flhe pi!r*s hereto. 11. ;-.;., lien(sl ma)' be placed 11po1rnny of the propcny covered her~m \lnl~ss such lien(s) islare agreed to by aU parti.c.s liertlQ; ·reduced 10 w111in~, and. sisned by ull par1i'* hereto !iefqre a nptarypubli.t.
1 l. All agreement$ between thi: par1ies hereto arc· contained in wri!ll\!J in this contract and no verbal agreemen\s shall be oi:eliled l'aild unless coma·ined in writing. herein. All ameodincnis here10 lii\Js1 be in writing, uJitl.$igned by all parties t>efot~ a ri<ilary pulihc. 13'. Alb.ert .Lyiln Barer.oil. Kenneth VeJTI Gibhs, Can~ace. Gibb~ Waliriii. and Hu\)lard Kirk Clibbs, 1he prinoipal parties hereto, hcrehy agree 10 !his· crinlrac1 in ifs entirety without reservation,: aml, each pledge n~verro.challenge the 1enii~, c6riditions;.intentions, an;dlar l:ons1deralions under iht~ con1tact wilh tl\etr rcspecllv~ signing:h~reundcr. C!)l'ljt~ ~qt:$.af~.rJf.~ • ~~Pt~1s.~1i.~ Ro\';1.h1ct;itl(( l-)IJp:r_.a.~~~U- ;u'lif!or M.l)IJl'l'.5
• 22 *26 ST~TE Oii TF.XA8
:Slibscrlbed,.Si>rorn, ~ad Sealed c;'QONT:Y .OF COLl,IN
On: this IO°' da}' .._,r May 11\ 1hc year· 2005·,. Allier'! Lynn Barcrofl; known to me, ditl pcrsonally·appear befor"' mo; an~. al\cr.ia~in·g the .;•ilr,.d<1'9.~9s anil says th~t he 1~.lh.c m;ill "'ltu exccuto~ tM JQr~go!rr~ insll'IJmcht; anU.. fu)tll~i sta1cd •fiat hu .c~ecUlctl lhc san10 as his free .and mfrimied •cl and:~~•!! f9r the purpost• stRl!:•rttterem, Md wf1h.a:full uudersianding.o'tlhe scop.e.of !he provisions conlwned therein; and; lhat:tw a o • ide·b · JI said proVISlons. _,..--· .. .Sul!scrihed, Sworn, aifd Staled COUNTY OF·COLLIN
On this Io'-' llay of May m tne y~~r 200S, l(•nntlh V~ta Glf\b~. %n<iwn 10 m<. did pc~nally appe;uc IJ!:li>tc rtre; 311d, alltr lak·lng 1h.<oa.l.h. dcpnscs and silys. lh~t he is !he man who ex~ute<! lhC. foregoing inst(1).m<0 t: aii<l, furihC( •uitcd lh~I. h~ cxc·cu\ed ihc some "" his free aJl<! 111fom1ed act •nd deed foe th~ pufllQ<es s1a1ed lhL~cur. 1111dwith a !\ill undersianding of the scnpe ur .theprovisionsconiamod lhercm: llnd,.thar he agrecsto abide by all said provistons. .J.,l 7/~· . h /fl
IL ~ --~~- K.rinethV~nrflihbs
Subscrihtd and -S\VOm ID bOfonrme-lhili 1 o'h day of Moy in th~ Y"ar,2005 .. ' t:%1i,X1 ft?t·S~l.c.l:J(~;:M1M'.till R)_ih·i~. R11y_.111e:s ~rid C)lht1 h~J• -4~t ~J.O!Jrtl
23
-------------··---· *27 ... ,, .
STATK OF TEXAS Subs~rl~lld~ Sworo, ind s .. 1~ COUNTY OJ.' COLLA.Ill
Oii: !his I o•r dl\Y or May· in the year .zoos. Cattdle~ <;lbbs Waltllo, .k®.WQ to ITI« did persomillY:•Ppcar before· m•; anil, afler raknig,the oath, Jify<ises <ind $ay~ !Mt sho Is th• l\l~man whQ cK~_ute!f 1he fotegoinJ! ln$.trun1cnJ; Md, fllnh~r ~1a1e.d t.haqh¢ e~!'<l.ute.d lhe·sillllc !IS her li.c and infomi~d: act and deed for the ~ltqii>~~s st\iiCil therein, titi.d Witlu .full·imdei'slaitdlog 1>f th• wope 9( the prov'is1ons c.on1aim:d \!t~rcin; iUJd._ 1ha1 sh~ agr~s t<;> abi.de by a1f said·pr,ovisions. ~~_.tww~.
Candace Oihbs.Walion Subscribed arid sworn to. ller'1'recnie this IO'' day .of May. in ttie:yc~r 2005.
' N~8~~fort~~~- .Sub.<erlbed, Sworn. 1ad S'•Jiltd
COUNTV()F COLI.IN
.On 1ll)$ I 0 " :da)' (>( ~y 1~· t~~ }'<'ar 2oQ~. llii_W•rd "1t.ll ·{;(bl)~ l:nQ~ 10 me, did pers-Onallx appe~r :be tore· me; an~. atlcr-iakiii!J .lh• oath, deposes wid sa)'s ihat he 1s 1h-0 man who e~~utcd, the fqre11,()1n!l 1nstl\lll'.l•n1:. and, ~1!{htr ~lated 1hat be' exe~uicd the Slime a& 'his free and 1ilfoimoo acr and detd .fof 1h·qiurpos~l sMcd tlicieifi, lllid ivilh a.foll undorsral\dittg'(if lhe:seopc of' lhc provisions contained !herein; ond, that-he agre~to·abide by all said prov.isions. Subscribed and· sworn fo before nre this Hi" day or May in.the year 2005 • 1tn11"'"' .. /"? ... ·_/, f;f),_b 7.
(.'onlf~1 (\'.It $ilf 6f~~~Min:t@ff3.1ghh_, i'iiu.I •A ~Jlpat11u~.K1 .. _k_~ QI. R~>~ll!0-1V'1i,l-C~tf.c1 Asi.els .u1d_lul :M.oo!\'~
24 *28 j!J-L!"l~Ci'<!.j.F7
<{6f? ?1· ~x rR.P
lte.. <!. ~/P..,, '"f:e X.«S . . 7S'o/'/C? C~oo)
E:< 4,.J., .J 'W,.,
25