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On A ppe a l from the 1 8 9 th D i s t r i ct C o u r t

H a r r i s C o un t y , Te x a s

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e nts

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In J u n e 2 0 1 1

, wh il e E lg o h ary w as o n v aca t i o n

, h e rec e i v ed an e l ec t r o n i c

n o t i f i c a t i o n t h a t h i s a q u ar i u m w as ov e r h ea t i n g

. E l g o h ary ca ll e d hi s n e i gh b o r,

M i t c h e l l Ra nd o lp h

, a n d a s k e d h i m t o g o n e x t do o r a n d c h e c k o n t h e a q u a r i u m

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, Ra n do l p h r e po r t e d t o Elg o h ary th at m os t o f t h e c o ra l

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. El g o h ary t a l k e d t o J a i m e D eP u j a d a s

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th e g e n er a l m a n a g er, a n d t h e t w o a g re e d t h at Aq u a r i u m E nvi r o n m

e nt s wo u l d s e n d

e m plo y ees t o E l go h a

r y ’ s ho m e t o p erf o r m a p ar ti a l w a t er c h a n g e a n d re m ov e t h e

d e a d a n i m a ls

. Elgo h ary a n d D e P u j a d as a g re e d t h at El g o h a ry w ou l d p ay t h e

c o m p a n y for th e ti m

e of i t s e m

plo y ees a n d th e m a t er i a l us e d

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A qu a r i u m E nvi r o n m e n t s s e n t t w o e m plo y ee s

, C h r i s O r d e n e a u x a n d K e n t o n

L u ff, t o Elg o h ar y ’ s ho m e. Ra n d o lp h m

et t h em th ere a n d l et t h em in

. R a n do l p h

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. Ra n do l p h

t e st i f i ed t h a t O r d e r n e a u x re m

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a g a i ns t t h e s i d e o f t h e acr y li c t a n k f o r l e v era g e a n d d r a g g i n g i t n ear t h e t o p wit h a

l on g

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p e r

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re m ovi n g t h e c o r a l w o ul d d a m a g e E l go h a r y ’ s t a n k

, s o h e o f

f er e d t o g o g et a l on g er

l a d d er f o r O r d e n e a x

. O r d e n e a u x re f u s ed th e o f

fer, b u t R a n d ol p h w e n t t o g e t th e4

l a d d er a n y w a y

. O r d e n e a u x c on t i n u ed r e m

ovin g t h e c o ral b y d ra gg i n g i t u p th e

s i d e o f t h e t a n k

.

W h en El g o h ary re t u r

n e d f r o m v aca t i o n

, h e n o t i c e d t h at t h e i n t er i o r su r fac e s

o f h i s a q u a r iu m w ere s cr a t c h e d

. H e t e s ti f i ed t h a t h e h a d c a u s ed on e o f t h e “ di ng s ”

n o t i c e d o n t h e t a nk ’ s i n t er i o r wh en h e i n s t a ll e d it

, b u t t h a t t h e lo n g “ s cra t c h e s ”

w ere n o t t h e r e b e f o r e A qu a r i u m E nvi r o n m e n t s s e r vi c ed th e t a n k

.

P r o cedu r a l B a c k g r o und

E l g o h ary f

il ed s u i t a l l e gi n g b rea c h o f c o n t ra c t

, vi ol a t io n s o f th e T e x a s

D ecept i v e T r a d e Pr a c t i ces A ct [ “ DT P A ” ], n e g l i g e n c e, a n d b r e ach o f a s e t tl e m e n t

a g ree m e n t pu r s u a n t t o w h i ch Aq u a r i u m En v i r on m

e n t s w o ul d r e p a i r t h e a q u ar i u m

i n r e t u rn f o r E lg o h ary not f

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r i a l c o u r t s e v er h i s c l a i m b a s ed o n

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e nt

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E l g o h ar y ’ s m

oti o n i n li m

in e t o p r e v e n t tw o A qu a r i u m E nvi r on m

e n t s e m plo y ees

fr o m te s t i f

y in g b ec a u s e t h ey ne v er a

p p ea re d for d e p os i t i on s

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A f t er a t w o

- d ay t r i a l

, th e t r i a l c o u r t su b m itt e d th e ca s e t o a ju r

y

. T h e j u r y

f o un d in fa v o r of E l g o h ary o n a l l t h ree l i a b i l i t y qu e s t i o n s sub m

i t t e d : DT PA b re ac h

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, t h e t r i al c o u r t re j o i n e d a n d t h e n no n su i t ed Elg o h ar y ’ s

c l a i m f o r b r ea c h o f a s e tt l e m

e n t a g ree m

e n t

. T h e t r i a l c o u rt a l s o s ig n ed a j u d g m e n t

i n E lg o h ar y ’ s fav o r i n ac c o r d a n ce wi t h t h e j u r y ’ s verdi c t

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ov e d t o a m

e n d t h e j u d g m

e n t t o a d d s a n c t i o n s a g a ins t

A qu a r i u m E nvi r on m e n t s a n d i t s c ou n s e l

, R.J. B lu e. H e a t t a c h ed e v i d e n c e t o hi s

m otion

. T h e t r i a l c o u rt h e l d a h ea r i n g o n J a n u a ry 11

, 2 0 1 3

, b u t r e s e t i t f o r a l a t e r

d a t e w h e n A q u a r iu m E n v i r o n m e nt s r e q u e s t ed a f

u l l e v i d e n t i ary he a r i n g

.

O n Mar c h 1

, 20 13

, t h e t r i al c o u rt h e l d a n e v i d e n ti a ry h ear i n g o n El g o h ar y ’ s

re q u e s t f o r p os t

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, a n d l a t er si g n ed a s a n c t i on s o r d er a n d a n

a m e nd e d f i n al j u d g m e n t t h a t i n c l ud e d s a n c t i o n s

. A t t h e s a n c t io n s h e ar in g

, t h e t r i a l

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j u d g m e nt

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e n t s t h e n s ou g h t t o f

i l e a f o r m al b i l l o f e x c e p t i on s

. A t a

h ea r i n g re l a t e d t h er e t o

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af t er B l u e s p e n t ti m

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T h i s a p p e a l f

o l lo w e d

.6 S U B M I SS I ON OF D T P A C L A I M

In it s f i r s t i s s u e o n a p p e a l

, Aq u ar i u m En v i r on m e n t s c o n t e n d s “ [ t ] h e t r i a l

c o u rt err e d b y s u b m

it t i n g A pp e l l ee ’ s i m

p l i ed w arr a nt y DT PA c l a i m s t o t h e j u r y .”

T h e j u ry c h ar g e c on t a i n e d t h ree s e p a ra t e qu e s t i on s o n A qu ar iu m E nvi r o n m

e nt’ s

li a b i l it y : t h e f

i r s t q u e s t i o n a s k e d t h e ju ry t o f i n d w h e t h er A q u a

r iu m E n v i r on m

e n t

v i o l a t ed t h e DT PA b y fa il i n g t o c o m pl y wi t h a w arr a nt y t o p er f o rm it s se r v i c e s i n a

g oo d a n d w o r

k m a nl i k e m a nn e r ; t h e s e c on d q u e s t i o n a s k ed w h e th e r i t h a d b rea c h e d

i t s c o nt r act wi t h El g o h ar y ; a n d th e t hi rd q u e st i o n a s k e d w h e t h er Aq u a r iu m

E n v i r o n m e nt s w as n e g li g e nt

. T h e j u ry w as t h en i n s t r u c t ed t o a w ard d a m a g es t o

E l g o h ary i f it m a d e a n a f f i r m a t i v e f i n di n g o n a n y on e o f t h e s e t h ree q u e s ti o n s

. T h e

j u ry w as th e n a s k ed t o a w a r d a t t o r n e y ’ s fees i f i t a n s w er e d af f i r m a ti v e l y t o e i t h er

th e DT PA o r b rea c h o f c o nt r a c t q u e st i o n s

. T h e j u ry a ns w er e d a l l t h ree l i a b i l it y

q u e s t io n s af

f i r m a tiv e ly

, f

i n d in g t h a t A qu a

r i u m E nvi r on m

e n t s f a i l ed to c o m

pl y w i t h

a w arranty un d er t h e DT P A

, b rea c h e d i t s c o n t ra c t wi t h E l g o h ar y

, a n d w a s

n e g l i g e n t i n d a m a gi n g E l go h ar y ’ s aq u a r iu m

.

If an i n d e p e n d e n t g r o u n d f ul l y sup p o r t s t h e c o m

pl a i n e d

- o f judg m e nt

, b u t a n

a p p e l l a n t a s si g n s n o err o r t o t h a t i n d e p e n d e n t g r o u n d

, t h en w e m us t acc e p t t h e

v a li d i t y o f th e u n c h a ll e n g e d i n d e p e nd e n t g r ou n d a nd

, t h u s

, a n y err o r i n a n o t h e r

g r ou n d c h a l l e n g ed o n a p p e al i s h ar m

l e ss

. B r i t to n v. T

e x. D e p ’t o f C ri m i n a l

J u st i ce

, 9 5 S. W .3d 6 7 6

, 6 8 2 ( T e x

. A pp.

— H o u s to n [ 1 s t D i s t .] 2 0 02

, n o7

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, 18 8 ( T e x

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. — S an

A n t o ni o 1 99 6

, w r i t d e n i e d ). T h e r u l e re q u i r i n g an a

p p e ll a n t t o a

t t ack a l l

i n d e p e n d e n t g r o un d s s u pp o r ti n g a j u d g m e n t h as b e e n a p p l i e d i n m a n y c o n t e xt s

,

in c l u di n g in d e p e nd e n t j u ry f i n d in g s f

ull y s u p p o r

t in g a t r i al c o u r t ’ s

j u d g m e nt

. S ee Br i tt o n

, 9 5 S. W .3d at 6 8 2 ( st a t i n g t h at “ a pp e l l a n t m us t a t t ack e ac h

i n d e p e n d e n t j u ry f

i n d i n g t o o b t a i n a re v er s a l ”). Alt h ou g h Aq u a r iu m E nvi r o n m

e n t s

h as c h a l l e n g ed t h e j u r y ’ s f in di n g t h a t i t h a d f

a i l ed t o c o m

pl y w it h a n i m

pli e d

w arranty und e r t h e D T P A

, i t h a s no t a s s e r t ed a n y c h a l l e n g e t o th e j u r y ’ s s e p a r a t e

aff i r m a t i v e f

i nd i n g t o th e b re a ch o f c o n t r act qu e s t i on

. Bec a us e t h e j u ry a ns w er e d

b ot h l i a b i li t y qu e s t io n s af

f i r m a ti v e l y

, a n d be c a

u s e t h e j u ry c h a r g e w as s t r u c tu r ed to

a l l o w t h e ju ry t o a w ard d a m a g es a n d a tt o r n e y ’ s fees b a s e d u p o n a n af f i r m a ti v e

f i nd i n g t o e i t h er o f th e s e li a b i l it y qu e s t i ons

, t h e t r i al c o u r t ’s a w ard o f a c t u a l

d a m a g es i n fa v o r o f E l go h ary can b e u p h e l d b y th e j u r y ’ s l i a b il it y f i nd i ng s o n

e i t h er t h e b r ea c h o f c o n t ra c t o r w a rra n t y qu e st i on s

. Beca u s e Aq u a r i u m

E n v i r o n m e nt s d o es n o t c h a ll e n g e t h e j u r y ’ s aff i r m a tiv e f

i n d in g o n t h e b r ea c h o f

c o nt r a ct q u e s t io n

, w hi c h i s an i n d e p e n d e n t g r o u n d su p po r t in g l i a bi l i t y a n d

d a m a g e s

, w e h o l d th at a n y err o r b y th e t r i al c o u r t i n su b m itt in g th e DT PA i m

pli e d

w arranty q u e s t io n i s h ar m l e ss

.

A cc o r d in gl y

, w e ov e r r u l e A q u ar i u m E nvi r on m e n t s ’ f i r s t i s s u e o n a p p e a l

.8 E XC L U S I ON OF TE S T I M O N Y

In it s s e c o n d i s s u e o n a p p e a l

, Aq u a r

i u m E n v i r o n m

e nt s c o n t e n d s t h e “ t r i al

c o u rt a b u s e d i t s d i s c r e t io n b y ex c l u di n g t h e test i m on y of A pp e l l a nt ’ s fa c t w i tn e s s e s

du r i n g t r i a l .” S p ec i f

i c a ll y

, A qu ar i u m E n vi r o n m e nt s c o n t e n d s th a t t h e t r i a l c o u r t

erred b y ref

u si n g t o p er m

i t O r d e n e a u x a n d L u ff f r o m t e s t i f

y ing

, a n d t h a t su c h

e x c l us i o n w a s

, i n ef

f ec t

, a d e a t h p e n a l t y s a n c t io n b ec a

us e th o s e w ere t h e o nl y t w o

w i t n e s s e s f

r o m A q u ar i u m E nvi r o n m e n t s w h o w ere p r e s e n t w h en t h e t a n k w as

c l e a n e d

. E l go h ary re s po n d s that t h e e x c lu s io n of O r d e n e a u x a n d Lu ff w a s a p r o p e r

d i s c o v ery s a n c t i o n a s a r e s ul t o f th e i r fa ilu re t o a p p ear f o r a d e p o s i t i o n a f

t er b e i n g

o r d er e d t o d o s o

.

F a c t u a l B a c k

g r o und

O n J ul y 5

, 2 01 2

, O r d e n e a u x a n d L u ff fa il e d t o a p p ear f o r t h e i r p r o p e r l y

n o t i c e d d e p o s i ti o n s

. E l g oh a ry f il ed a M o t i o n t o C o m

p el D e p o s it i o n a n d f

o r

Sa n c t io ns , a n d o n O c t o b er 1 9

, 20 12

, t h e t r i al c o u r t g r a nt e d t h e m

otio n t o c o m

p e l

,

b u t d e n i ed s a n c t i o n s at t h a t ti m e. I n s t ea d

, t h e t r i al c ou r t g r a nt e d Aq u a r iu m

E n v i r o n m e nt s a d d i t i o n al t i m

e t o c o m pl e t e d i s c o v ery i n o r d er t o a l l o w i t a n o t h e r

o pp o r tu n i t y t o p r o d u ce O r d e n e a u x a n d Lu ff f o r d e po s i t io n

. Th e t r i al c o u rt w a r n e d

A qu a r i u m E nv i r o n m e n t s t h a t i f i t fa i l e d t o p r od u ce O r d e n e a u x a n d L u ff f o r

d e p o s it i o n

, t h e t

r i a l c ou r t wou l d n o t p er m i t t h em to t e s t i fy at t r i a l

.9

O n No v e m

b er 2 1

, 2 0 1 2

, s h o r tl y b e f o re t r i a l

, El g o h ary f

i l ed a m oti o n i n

li m in e t o p r o h ib i t Aq u a r iu m E nvi r on m e n t s fr o m a dd re s s in g o r m e nt io n in g i n fr on t

o f t h e j u ry a n y t e s t i m on y b y O r d e n e a u x a n d L u ff b ec a u s e Aq u a r iu m E nvi r on m

e n t s

h a d s t i l l no t m a d e th em a v a il a b l e f o r d e p o si t i o n s

. T h e t r i a l c o u r t g r a n t e d

E l g o h ar y ’ s m

ot i on

, a n d t h e f

o l l o win g e x c h a n g e t o o k pl a ce:

[ T r i al C o u r t ] : I’m a s su m in g t h ey g o t s o m e ki n d o f e x c u s e f o r [ fa i l i n g

t o a p p ear a t t h e i r i ni ti a l l y not i c e d d e p os i t i on s ] ; b u t

, C ou ns e l

, I t h i n k

y o u l e f t o u t o n e i m

p o r t a n t fa c t i n y ou r r e v i ew o f t h e m ot i o n s

, th at w a s

w h en y ’ a l l ca m

e d ow n h e re o n t h a t M o t i o n f o r S a n c t i o n s a n d y o u

a s k ed f o r t h e c on t in u a n ce. I s a i d

, o k a y

, I ’ l l g i v e y o u a c o n ti n u a n c e

b u t si n ce y o u h a d a

rra n g e d f o r t h o s e g e n t l e m

en t h ey w ere e n ou g h

u n d er y ou r c on t r o l t o w o rk o u t

— t h a t y o u h a d arrang e d t o h a v e th em

c o m e th e r e a n d th ey w ere f

o r m er e m plo y ees o f y ou r c l i e n t

. I m a d e

cr y st al c l ear t o y o u th a t i f y o u w a n t e d t h em t o t e s t i fy y o u n eed t o

m a k e t h em a v a il a

b l e f o r d e po s i t io n ; a n d I d id n ’ t p u t i t o n t h e P l a i nt i ff

t o no ti c e t h em a g a i n a n d h a v e y o u a rr a n g e, y o u kn o w

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th em a g a in

. T h ey h a d d o n e t h at o n ce. Y o u h a d s a i d y o u w ere g o in g

t o p r o du c e th em a n d th ey d i d n ’ t sh o w

. S o I m a d e cr y st al c l e ar t o y o u

th a t i f y o u w a n t ed t o b r i n g th em t o t e s t i fy at t r i a l

, y o u w e r e go i n g t o

h a v e t o p r o d u ce t h em f

o r d e p o s it i o n a n d th at m

ea n t y o u w ere go i n g t o

h a v e t o t a k e t h e in i ti a t i v e a n d s a y

, h e re t h ey are; t h e y ’ re rea d y t o b e

d e p o s e d ; w h e n d o y o u w a n t th e m ; a n d i f t h ey di d n ’ t g o f o r w a r d t h e n

, th a t w ou l d b e a

t t h e i r risk.

[ D efe n s e C o un s e l ] : Y o u wo n ’ t h e ar a n y t h in g fr o m m e. Y ou ’ re r i gh t

. I d o n ’ t w a n t t o m a k e th e m ist a k e o f c o m m

uni ca t i n g t h is

, b u t th e re ’ s

n ot h i n g I w a n t y o u t o inte r p r e t as m e sa y in g I c a n ’ t c o nt r o l t h e s e g u y s

.

[ T r i al C o u r t ] : Yo u c l ear l y can b e c a us e y o u b r o u gh t t h em here t o t r i a l

.

[ D efe n s e C o un s e l ] : R i gh t

.

[ T r i al C ou r

t ] : A n d I m a d e c l ear t o y o u t h at d ay th a t i f y o u w a n t e d

th em t o t e s t i fy at t r i al y o u n ee d ed t o p r o d u ce t h em f o r d e p o s i ti o n

. Y o u di d n o t d o t h at s o t h ey are no t g oin g t o t e st i fy at t r i a l . If th a t10

m ea n s w e h a v e t o d o t h i s a g a in

, s o b e i t ; b u t I’m no t g oi n g t o l et y o u

i gn o re t h e s p e c i f

i c r u l i n g t h a t I m a d e a

b ou t h o w t o d e a l w i t h th i s

p r ob l em a n d t h e n c o m

e i n o n t h e l a s t d ay a n d h a v e th em t e st i fy

w i t h o u t h a vi n g m a d e th em a v a i l a b l e f o r d e p os i t i o n

. I t ’ s n o t fa i r t o t h e

P l a in ti f f. T h ey d i d w h at th ey c ou l d t o g e t th e d e po s i t io n

, a n d I ’ m n o t

g oi n g t o m a k e t h em k e e p b e g g i n g y o u t o g e t t h e s e f o l k s t o p r o d u c e

th e m

. I m a d e c l ear af

t er y o u h a d t o l d m e th e f i r s t ti m e t h at y o u

t ho u g h t t h ey w ere g o i n g t o b e th e re a n d t h ey j us t d id n ’ t s ho w t h at y o u

n e e d e d t o g et t h em th ere i f y o u w a nt e d t h em t o t e s t i f y ; a n d I d o n ’ t

t h i n k t h ere ’ s a n y d o u b t i n y ou r m in d t h a t t h at w as t h e eff

e ct o f m y

r u li ng

. I t w a s n ’ t t h a

t t h e P l a i n t i ff h a d t o k e e p b e a ti n g o n y o u t o g e t

th e m

.

* * * *

So y o u n e e d ed t o t a k e t h e i n i t i a t i v e t o r e s c h e d u l e th e m

. I’m so rr y

, Mr. B lu e, bu t t h a t ’ s fa i r a n d t h ere ’ s n o t h i n g u n fa i r a b o u t w h at I ’ m

d oi ng

. If y o u a l l w a n t t o r e c on s i d er y o u p o s i ti o n o n a l l t h i s i n l i g h t o f

th a t

, f i n e; b u t I’m h a pp y t o l e t t h e C o u rt o f Ap p e a l s d e c id e w h e t h er I

a m j usti f i e d i n i m po s i n g t h i s s a n c t io n

. Y o u h a d w i t n e s s es un d e r y ou r

c o nt r o l wh o d i d n o t s ho w up

. Yo u n e v er o ff e red t o m a k e t h em

a v a il a b l e a g a in ; a n d i n t h a t ca s e, I’m n o t g o in g t o l e t t h em te s t i f y

.

[ D efe n s e C o u n s e l ] : I t ’ s to t a l l y fa i r. I jus t w a n t e d t o g et a r ec o rd o f

th a t a n d l a c k in g c ons id e ra ti o n o f a l e s s s e v ere s a n c t i o n f o r t h e d ea t h

p e n a l t y

.

S ta n d a r d o f Re v i ew a nd A

p p l i c a b l e L a w

W e re vi ew a t r i a l c ou r t’ s d e c i s io n w i t h r e g ard t o d i s c o v ery m a tt ers f o r a b u s e

o f d i s cre ti on

. W

i g f a l l v. Tex. D e

p ’ t o f C rim i n a l J

u st i c e

, 1 3 7 S .W .3d 2 6 8

, 2 7 2 ( T e x

.

A pp

. — H o u s to n [ 1 s t D i s t .] 20 0 4

, n o p e t .). A t r i a l c ou r t a b us e s i t s di s cr e t io n i f a

d e c i si o n i s s o a r

b it ra ry a n d u n r e a s o n a

b l e as t o a m

oun t t o a c l ear a n d p re

j u d i c i a l

err o r o f l a w

. W

h ee l er v. M

e t h o di s t H o s p

. , 9 5 S. W .3d 62 8

, 6 4 4 ( T e x

. Ap p

. —

H o u s to n [ 1 s t D i s t .] 2 0 0 2

, n o p e t .).11

If a p e r s o n d e si g n a t e d t o t e s ti fy o n b e h a l f o f a p ar t y fa i l s t o c o m pl y w it h

p r o p er d i s c o v ery re q u e s ts

, a t r i a l c ou r t m a y m a k e an o r d er p r o h i b it i n g t h e

d is ob e d i e n t p a r

t y fr o m int r o du c i n g d e s ign a t e d m a tt ers i n t o e v i d e n ce. T E X . R. C I V

.

P. 2 15

. 2 ( b )( 4 ). N e v e r

th e l e ss

, s a n c t io n s i m

p o s e d u n d er R ul e 21 5 m

us t b e j u s t u nd e r

th e c i r c u m st a n c e s

. I

n r e F o r d Mo t o r C

o

., 9 8 8 S. W .2d 7 14

, 7 1 8 ( T e x

. 19 98 ). W e

c o n s i d er t w o fa c to r s w h en d e t e r m ini n g w h e t h er a t r i a l c o u rt a b u s e d i t s d is c re tio n

b y o r d er in g an un

j u s t s a n c t i on

. I

d

. ; I n r e S up p o r t k id s

, I n c

. , 12 4 S. W .3d 8 0 4

, 80 7

( T e x

. A pp

. — Ho u sto n [ 1 s t D i s t .] 2 0 03

, o r i g

. p r o c ee di n g ). F i r s t

, w e d e t er m in e

w h e t h er a d i re c t r e l a ti o ns h i p e x i st s b e tw een t h e o ff e n s i v e c o n d u ct a n d t h e

s a n c ti o n s

. F

o r d

, 9 8 8 S. W .2d at 7 18 ; S upp o r t k i d s

, 1 2 4 S. W .3d at 8 07

. Se c o nd

, w e

c o n s i d er wh e t h er t h e trial c o u r t o r d er e d a n ex c e s si v e s a n c t i on

. F o r d

, 9 8 8 S

. W .2d a

t

7 18 ; Su p po r t k i d s

, 12 4 S. W .3d a t 8 07

. A s a n c t i o n i m po s ed f o r d i s c o v ery a b u s e

s ho u l d b e n o m

o re s e v ere t h a n n ec e ss ary t o s a t i s fy it s l e g it i m a t e p u r po s e.

T r an s Am e r i c a n N

a t u r a l G a s C o rp . v. P o w e l l

, 8 1 1 S. W .2d 9 1 3

, 9 1 7 ( T e x

. 1 99 1 ). A

t r i al c ou r t m

us t t a k e in t o ac c o u n t t h e a v a i l a b i li t y o f l e s s st r

i n g e n t s a n c t io n s a n d

w h e t h er s u ch s a n c tio n s w ou l d f u ll y pr o m ot e c o m pli a n ce. I d

.

An a l y si s

In t h e p re s e n t c a s e, th e s a n c ti o n s o r d e r e d b y th e t r i a l c ou r t w ere di r ec t l y

re l a t e d t o t h e o ff

e n s i v e c on d u c t

, i .e

. , t h e f a i l u re t o p r od u ce O r d e n e a u x a n d L u ff f

o r

d e p o s it i o n

. A j u s t s a n c t io n m us t b e di r ec t ed a g a in s t t h e a bu s e a n d to w a r d12

re m e d y in g th e p re

j u d i ce su f

f er e d b y th e i n n o ce n t p a r t y

. I d

. H ere, b y p r o h ib i tin g

O r d e n e a u x a n d L u ff fr o m t e s t i f y i n g a t t r i a l

, t h e t r i al c ou r t d i re c t ed i t s o r d er a

t th e

a b us e a n d p r e v e nt e d th e p r e ju di c e t h at w o u l d h a v e b e e n c a us e d b y E lg o h ar y ’ s

h a v i n g t o p r e p are f

o r t r i al w i t h ou t t h e b e n e f i t o f i n f o r m a ti o n h e w o u l d h a v e g a i n e d

th r o u g h h i s p r o p e r l y n o t i c e d d e p o s i ti o n s

.

A nd

, t h e t r i al c o u r t ’ s o r d er c a nn o t b e r e g a r d e d a s a n e x c e s s i v e s a n c t i o n

.

A f t er O r d e n ea u x a n d L u ff f a i l ed t o a pp e ar f o r t h e i r p r o p e r l y no t i c e d d e p o s it i o ns

,

th e t r i al c ou r

t g r a nt ed E l go h ar y ’ s m

oti o n t o c o m

p el t h e i r a

p p ear a n ce, b u t a l s o

g r a nt e d Aq u a r

i u m En v i r on m

e n t s ’ a d d i tio n al d is c o v ery ti m e s o t h a t i t c ou l d m a k e

O r d e n e a u x a n d L u ff a v a i l a b l e t o Elg o h a

ry f o r d e p o s i ti on

. A s s u c h

, t h e re c o r d

s h o w s th a t t h e t r i a l c o u rt d i d

, i n fac t

, a t t e m p t a l e ss e r s a n c t io n b e f

o re e x c l ud i n g

O r d e n e a ux ’ s a n d L u f

f ’ s t e s ti m on y at t r i a l

. O nl y w h en t h e t r i a l c o u r t ’ s o r d er d i d

n o t p r o d u ce c o m

pl i a n ce b y A qu a r iu m E n v i r on m e n t s d i d t h e t r i al c o u r t t a k e t h e

n e x t s t e p i n e x c l ud i n g O r d e n e a ux ’ s a n d L u ff ’ s t e s t i m

on y at t r i a l

. A s su c h

, th e t r i al

c o u rt did n o t a

bu s e it s d is c re ti o n in p r o hib i t i n g O r d e n ea u x a n d L u ff fr o m t e s ti f y i n g

at t r i a l

. S e e Ad

a m s v. A l ls t

a t e C ou nt y M ut

. I n s

. C o

. , 1 9 9 S

. W .3d 5 0 9

, 5 1 3

– 1 4

( T e x

. Ap p

. — H o u s to n [ 1 s t D i s t .] 2 0 0 6

, p e t

. d e n i e d ) ( h o ld i n g t r i al c o u r t ’ s d i s c o v ery

s a n c ti o n e x c lu d i n g w i t n e s s ’ s a f f i d a v i t n o t a n a

b u s e o f d i s c r e t io n a f

t er wi t n e s s

e v a d e d se r v i ce t o a vo i d d e p o s it i o n ).

A cc o r d in gl y

, w e o v e r

r u l e A q u ar i u m E nvi r on m e n t s ’ s ec on d i s su e on a

p p e a l

.13 P OST

- J UD G M E N T S A NC T I O N S

In t h e i r t h i r d i s s u e o n a

p p e a l

, A qu a

r i u m E n v i r o n m

e nt s a n d i t s c o u n s e l

, R.J.

B l u e, c on t e n d “ th e t r i a l c o u r t a b u s e d i t s d i s cr e t i o n b y a w a r d in g p o s t

- jud g m e n t

s a n c ti o n s of $ 30

, 0 0 0 a g a i ns t A p p e l l a n t a n d A pp e ll a n t ’ s c o u ns e l

. ”

F a c t u a l B a c k

g r o und

A f t er f in a l jud g m

e n t w as s i g n e d

, Elg o h ary f il ed i t s S e c o n d M o t i o n f o r

Sa n c t io n s s e e k i n g m

o n e t ary s a n c t io n s a g a i ns t Aq u a r iu m E n v i r o n m e nt s a n d i t s

a t t o r n ey R.J. B lu e “ f

o r o v e r a l l c o nd u ct i n t h i s c a s e a n d a l s o a s k s t h e c o u rt t o

m odi fy th e j u d g m

e n t t h i s ca s e t o i n c l ud e a n d c o n f o rm t o t h e s a n c t io n s o r d e r.”

S p e c i f i c a ll y

, E lgo h a r

y ar gu e d t h at th e f

o ll o wi n g pl e a d i ng s w ere f il e d i n v i o l a t io n

o f t h e a b o v e

- refer e n c ed r

u l e s : ( 1 ) a m

ot i o n f o r n o e v i d e n ce s u mm a r y j udg m e nt ; ( 2 )

a m oti o n i n o pp o s i tio n t o m

e di a ti o n ; ( 3 ) a f

i r s t a m e nd e d a ns w e r a n d c o u n t er c l a i m ;

( 4 ) a m ot i o n f o r c o nti n u a n c e; a n d (5) t w o m otio n s t o qu a s h

.

T h e t r i al c ou r

t h e l d a h e ar in g o n th e m oti o n f or sanctio n s on Jan u a r y 11, 2013.

At that hearin g

, A q uar i um Env i ro n m e n ts a s s e rted that it was e n titled to a f ull evident i a r y

hearing on the motion f or sanct i ons. The t r ial court a greed a n d a second h earing was

held on Mar c h 1, 20 0 3. A t the hear i ng, El goha r y produced no w itnesses, but instead

relied on the evidence attached to h i s m oti o n, which con s isted most l y of pleadi n gs f iled

in the c a s e

, e m a ils a nd corr e s p ondence b e tween the attorn e y s

, and an a ff idavit on

attorn e y ’s f

ees. Blue called Elgoha r y as a witness and e x plored with h i m Elg o ha r y ’s14

content i ons that the pl e adings were g r oundl e s s

. Blue also tes t i f ied and explained w h y he

f iled each of the chall e nged plead i ngs and th a t he had “no bad f aith m o tive” in the f ilings.

Elogoha r y ’ s m ot i on al s o asserted that he was e ntitled to sanct i ons p u r suant to T EX

.

R. C I V

. P. 215 f

or v a r ious d i scove r y abus e s attributable to Blue’s conduct in t h e cas e

.

However, at the M a r ch 1, 2003 hearing, Elg o ha r y w ithdrew h i s cla i m f or attorn e y ’s f

ees

sanctions u n der Rule 215 a f ter Blue, citing Remington Arms C o

., Inc. v. Cald w el l

, 850

S

. W .2d 167 ( T ex. 1 9 93 ), 1 argued that sanc t ions un d er Ru l e 215 were not availab l e

because El g oha r y h a d not obtain e d a pretr i al ruling on t he alleg e d discove r y a buse, of

which he w as aware b ef ore trial.

The trial co u rt grant e d Elgoha r y ’ s m ot i on f or sanctions and s ig ned an order

f inding that t h e f

ive pl e adings w ere gr o undle s s and b r ought in b a d f aith. The trial court’s

order also st a ted, “The Court is of the f irm c onclusion t hat the se ri es of pleadings and

m o tions b y Mr. Blue af

ter Janua r y 2 0 1 2 2 was f

or an i m prop e r pu r po s e, n a m e l y to harass,

del a y

, and i ncrease t he cost of litigation

. ” T he order al s o awar d ed Elgoha r y $ 30,000 in

sanction s

— $15,0 0 0 p a y ab le b y Aqua r i u m E n viro n m ents a nd $15, 00 0 p a y a ble b y B l ue,

individual l y

, p l us c o nt i n gent app e llate a ttorn e y ’s f ees f rom Blue in th e event the sanctio n s

1 In Remi n gton Arm s

, t he relator argu e d that the tr i al co u rt’s p os t

- trial sanc t ions

against it were not recoverable under Rule 2 15 because the trial court could not

impose disc o ve r y san c tions pos t

- tr i al f or pretrial dis c ove r y a b use. 850 S

. W .2d at

170. The s upr e m e c ourt held t hat “the fa ilure to ob t ain a pr e t r ial ruling o n

discove r y disput e s that exist be f ore c o mmen c e m e nt of trial c onstitu t es a wa i ver of

a n y cla i m f

or sanctio n s based on that cond u ct,” but recognized t h at “if pretrial

discove r y abuse is not revealed u ntil a f ter the trial has beg u n, or ev e n a f ter trial, a

par t y cannot be said to have waived a cla i m fo r sanctions

. ” Id.

2 The record s hows t he s igni f icance of Janua r y 2012 as be i ng the mon t h in which

Elgoha r y made a $ 6 0 0 0 settl e m e n t d e m a n d o n Aquari u m Envi r o n ments.15

were unsuccess f

ul l y a p pealed. The sancti o ns were a global award a nd did not apport i on

a n y speci f

ic a m ount to a n y one of the f ive cha l lenged f

ilings.

These sanctio n s were then incorpora t ed into the tri a l court’s Sec o nd A m ended

Final Jud g ment.

S ta n d a r d o f Re v i ew

W e re vi ew a t r i al c o u r t ’ s r u l in g o n a m

o t i o n f o r s a n c ti o n s f

o r an a b us e o f

d i s cr e t i o n

. C i r e v. C umm in g s

, 1 3 4 S. W .3d 8 3 5

, 8 3 8 ( T e x

. 2 0 0 4 ) ; T a y l o r v. T a y l or

,

2 5 4 S. W .3d 5 2 7

, 5 3 2 ( T e x

. A p p

. — Ho u sto n [ 1 s t D i s t .] 2 0 0 8

, n o p e t .). A t r i al c o u rt

a b us e s i t s d i s cr e t i o n w h en i t a c t s w i tho u t refer e n c e t o a n y g ui d i n g r u l e s a n d

p r i n c i pl e s

, a n d w e re v e r s e a t r i a l c o u r t ’ s r u l i n g on l y i f it s a c t i o n i s a r b it r ary o r

un r ea so n a

bl e. C i r e

, 1 3 4 S. W .3d at 8 3 8

– 3 9 ( c i t in g D o w n er v. A q u a ma r i n e

O p e r a to rs

, I n c

. , 70 1 S. W .2d 2 3 8

, 24 1

, 2 4 2 ( T e x

. 1 98 5 )). A t r i a l c o u r t d o e s n o t

a b us e i t s d is c r e ti o n i f i t b a s es i t s d e c i s i o n o n c o n f l i c ti n g e v i d e n ce a n d so m e

e v i d e n ce s u p p o r t s i t s d e c i s io n

. I n r e Bar b e r

, 98 2 S. W .2d 36 4

, 3 6 6 ( T e x

. 19 98 )

( o r ig

. p r o ce e d in g ); G l a t t l y v. Ai r St a r t e r C o mpo n e nt s

, I n c

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, 6 4 2

( T e x

. A pp

. — Ho u s t o n [ 1 s t Dis t .] 20 1 0

, p e t

. d e ni e d ). W e m a k e a n i nd e p e n d e n t

i nq ui ry o f t h e e nt i r e re c o r d t o d e t er m in e w h e th e r th e t r i a l c o u r t a b u s ed i t s

d i s cr e t i o n i n i m

pos i n g t h e p a

r t i c ul a r s a n c ti o n s

. S c o t t B a d e r

, I n c. v. S an d

s t on e

P r o ds

. , I n c.

, 2 4 8 S .W .3d 8 0 2

, 81 2 ( T e x

. A pp

. — H o u s to n [ 1s t D ist .] 2 0 0 8

, n o p e t .)16

(c i t i n g Da n i el v. K

e l l ey Oi l C

o r p

. , 9 8 1 S .W .2d 2 30

, 2 3 4 ( T e x

. A pp

. — H o u s to n [ 1s t

D i s t .] 1 9 9 8

, p e t

. d e ni e d )).

S a n c t i o n s U n d e r C h a p t e r 1 0

C i vi l Pra c ti c e a n d R e m

e di e s C o d e s e c t io n 1 0

. 0 0 1 p r o v i d e s th at t h e si g ni n g

o f a p l e a d in g c o n s ti t u t es a ce r t i f i ca ti o n b y th e s i g n a

t o ry th a t t o t h e s ig n a t o r y ’ s b e s t

k n o wl e d g e, i n f

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b l e i nq ui r y :

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otio n i s no t b e in g p r e s e n t e d f o r a n y i m

p r o p er

pu r p o s e, i n c l u d i n g t o h a r a s s o r t o c a u s e un n ec e s s ary d e l ay o r n e e d l e s s

in c re a s e i n t h e c o s t o f lit i g a t io n ;

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, d efe ns e, o r o th e r l e g al c o n t e n ti o n i n t h e p l e a d in g o r

m otio n is w ar r a n te d by e xi s t in g l aw o r b y a n o n f r i v o l ou s a r gu m e n t f

o r

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e s t a b l is h m e n t of n ew law;

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m otio n h a s e v i d e n ti ary su p po r t o r, f o r a s p ec i f

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a n d

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w arrant e d o n t h e e vid e n ce o r, f o r a s p ec i f

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rea s o n a b l y ba s e d o n a la c k of i n f o r m a t i o n o r b e l i ef.

T E X . C I V . P RA C . & R E M . C OD E A NN

. § 1 0 .001 ( V e r n o n 2 00 2 ); s ee a l s o M

a tt o x v.

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o

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, 3 0 5 S. W .3d 3 75

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. A pp.

— H o u s t o n [ 1 4t h

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, p e t

. d e ni e d ) ( “ Sa n c t i o n s u n d e r c h a p t er 1 0 o f t h e C i vi l Pr a c t i ce a n d

Re m e di es C o d e are a u th o r i z e d i f t h e e v i d e n ce e s t a b l is h e s t h a

t ( 1 ) a pl e a d i n g o r

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ar g u m e nt s a d v a n ce d

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s up po r t .”). T h e t r i al c o u rt m a y i m pos e s a n c ti o n s o n a p er so n w h o h as s i g n ed a

pl e a di n g i n v i o l a

t io n o f s ec ti o n 1 0

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. S e e T E X

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. §

10

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ti o n s o f c h a

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1 99 3) ). Bec a

u s e t h at w as n o t do n e i n t hi s c a s e, t h e t r i a l c o u r t c o u l d n o t i m

po s e

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p t er 1 0

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S a n c t i o n s U n d e r Ru l e 13

R u l e 1 3 a ut h o r i z es t h e i m pos it i o n o f s a n c ti o n s a g a i ns t a n a t t o r n e y

, a

re p r e s e n t ed p a

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i n b ad f a i t h o r ( 2 ) g r o un dl e s s a n d b r o ug h t t o h a r a s s

. T E X . R. C I V . P. 13

. T h i s i s a

t w o

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i n g a p a r t y m ovi n g f o r r u l e 1 3 s a n c t io n s t o d e m o n st r a t e bot h

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r ty ’ s f il in g s are g r o u nd l e s s a n d th e n t o a l s o s ho w t h at t h e

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, 2 5 8 S .W .3d 6 94

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,

p e t

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ea n s n o b a s i s i n l aw o r f a c t

a n d n o t w ar r a n t e d b y go o d f a i t h a r gu m e n t f

o r t h e e x t e n s io n

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odi f i c a t io n

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re v e r s a l o f e x i st i n g l a w

. T E X

. R. C I V

. P. 13

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p l y b ad j u d g m

e n t

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t h e r, i t i s t h e c o n s c i o u s d o i n g o f a w r o n g f o r d i s h o n e s t

,

d i s c r i m in a t o r y

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k er v. W a lt o n

, 2 3 3 S. W .3d 53 5

, 54 0

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. Ap p

. — Ho u sto n [ 14 t h D i s t .] 2 0 07

, n o p e t ). I m p r op e r m o t i v e i s a n e ss e n ti a l

e l e m e n t o f b a d f

a i th

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e th a t pl e a di n g s a n d m o t i on s are f i l ed i n go o d f

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o r go o d c a u s e, t h e p ar t i c u l a r s o f wh i c h

m us t b e s t a t e d i n t h e s a n c ti o n o r d er.” T E X

. R. C I V

. P. 13

. T h e p a r t y m

ovi n g f o r

s a n c ti o n s b ea r s t h e b u r d en o f o v er c o m in g t h e p re s u m

pt i o n t h a t p l ea di n g s a r e f il e d

i n g oo d fa i t h

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ke r

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u l e 1 3 s a n c t i o n s a r e p r o p er, t h e t r i a l c o u r t m us t

e x a m in e t h e f a c t s a v a i l a

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l i t i g a n t f i l ed th e p l e a d in g

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A pp

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, n o p e t .). T h e t r i a l c o u r t m us t p r ov i d e n o t i ce a n d

h ol d a n e v id e n ti a

ry h ea r i n g “ t o m a k e t h e n e c e s s ary fac t u a l d e t er m in a t i on s a

b o u t

th e m o t iv e s a n d cr e d i b i li t y o f th e p e r s o n s i g n in g t h e g r o un dl e s s p e ti t io n .” Pa r k e r

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, n o w r i t )). W i th o u t s u c h a h e ar in g

, th e

t r i al c o u r t h as n o e v i d e n ce b e f

o re i t t o d e t er m

in e t h a t a p l e a d i n g w a s f i l ed i n b a d19

fa i t h o r t o h ar a s s

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j an d r o v. Rob s t o w n I

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pu s Ch r i s t i 2 00 4

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.

W e rec o gn i ze t h a

t c ou r t s h a v e n o t g e n er a ll y a pp li e d R e m i ngt o n A r m s to

R u l e 1 3 s a n c t i o n s b e ca u s e “ [ r ] ul e 1 3 s a n c t io n s a re un l i k e d is c o v ery s a n c t io n s i n

th a t t h ey di re c tl y c o n cern t h e m er it s o f th e u n d e r l y i n g a c t i o n [, ] ” a n d “ b eca u s e th e

c o u rt m us t f i r s t d e c i d e w h e t h er a p a r t y ’ s p l ea d i n g i s g r ou n d l e ss

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,

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, 7 6 9 ( T e x

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l o s in g p a r

t y f o r f i l in g a c l a i m o r d e f

e n s e w i t h n o b a s i s i n l a w o r fa c t a f t er t h a t

c l a i m has be e n r e s o l v ed a g a in s t t h e s a n c t io n e d pa r t y o n t h e m er its

.

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— th e m ot io n s t o

q u a s h a n d t h e m

oti o n f o r c o n ti n u a n c e

—

w ere b a s e d o n d i s c o v ery a b u s e, o f w h i c h

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ot ion s t o q u a sh

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g r ou n d l e s s

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d e l a y

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, a n d h ar a s s E l g o h ar y

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i n d s t h at B l u e ’ s c o nt i n u e d re f us a l t o

c o m m uni ca t e w it h o p po s i n g c ou ns e l i n g e t ti n g d e p o s it i on s s c h e d ul e d

a n d h a v e p a r

ti e s t h at w ere un d er B l u e ’ s a n d Aq u a r i u m E nvi r o n m e nts ’

c o nt r o l t o a

p p ear f o r p r o p e r l y no t i c e d d e p o s i ti o n s c a u s ed Elgo h ary t o

l e gi ti m a t e l y s c h e d ul e th e r e q u e s t e d d e p o s i ti o n s u n i l a t er a l l y

. T h e

c o u rt f u r t h er f i nd s th at B lu e ’ s f

i l i n g a n d s i g n in g o f t h e s e m ot i o n s t o

q u a s h w ere g r o u nd l e s s a n d b r o ug h t i n b a d f a i t h a n d w a s in t e n d e d t o

ca u s e u n n e ce s s ary d e l ay a n d i n cre a s e th e c o s t s o f l i t i g a ti o n f o r

E l g o h ar y

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r iu m E nv i r o n m

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c o nt a ct El g o h ary t o r e s c h e d u l e d e p o si t i o n s o r s t a t e a rea so n a b l e ti m e

a n d p l ace i n t h e m

o t i o n wi t h w h i ch t h e p er s o n s s c h e d u l ed t o a p p ear

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pl y

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ot io n for c on t in u a n ce, t h e t r i a l c o u r t ’ s o r d er s t a

t e d :

T h i s C o u r t ’ s a m

e nd e d d o c k e t c on t

r o l o r d e r w as e n t er e d o n S e pt e m b er

24

, 20 1 2 a n d g a v e A q u ar i u m E nvi r o n m e nt s a dd i t i o n a l d is c o v e r y t i m e

as w e l l a s t h e o pp o r tu n i t y t o c o m pl y w i t h t h e c o u r t ’ s d i r ec t i v e

re g a r d i n g E l go h ar y ’s m ot i o n t o c o m

p el O r d e n e a ux ’ s d e po s i t io n

. A qu a r i u m E nvi r o n m

e n t s a n d B l u e t o o k n o a c t i o n t o f u l f i l l th i s c o u r t ’ s

di r ec ti v e t o p r o v i d e d a t e s t o El g o h ary at wh i ch O r d e n e a u x m ig h t

a p p ear. Y e t o n t h e d ay o f t h e t r i a l O r d e n e a u x w as p r e s e n t i n thi s

c o u rt a n d re a d y t o t e s t i f

y

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t

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o b t a i ni n g a n y f

u r th e r d i s c o v ery i n t h e a d d i ti o n s i x w e e k s t h at th e

d i s c o v ery p er i o d w as re o p e n e d a n d f o r w hi c h t h ey p ra y ed th at t h e

c o u rt g r a n t a c o nt i nu a n ce b a c k o n Au g u s t 3

, 2 01 2

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fr o m A qu ar i u m E nvi r on m e n t s ’ a n d B l u e ’ s c o n d u c t t h a t t h e m ot i o n f o r

c o n t i n u a n ce w a s g r o u nd l e s s a n d p r e s e nt e d f o r a n i m p r o p er p u r po s e,

m a inl y t o h a r a s s

, ca u s e u n n ec e ss a ry d e l ay a n d n e e d l e s s i n cr e a s e i n th e

c o s t o f l i ti g a ti o n t o E l g o h ar y

.

A s m a d e c l ear f

r o m th e t r i a l c o u r

t ’ s o r d er, th e b a si s f

o r f i nd i n g t h e m

oti on s t o

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ot io n f o r c o n t i n u a n ce g r o un dl e s s a n d i n b a d fa i t h w as B l u e ’ s a n d

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. Th e r a t i o n a l e

b e h i n d R e mi n gt o n A r

m s ( a p pl y i n g R

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th e m ov a n t i s a w are p r e

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3 Indeed, the dispute ov e r Luf f ’s and Ordeneaux’s f ailure to appear f o r a deposit i on

was resolved at t r ial when their test i mo n y was prohibit e d. Elgo h a r y re c eived all

the relief he request e d i n co n necti o n with t his discove r y a buse.21

re s u l t s i n a w a i v e r o f t h e r i g h t t o s e e k s a n c t io n s b a s e d o n t h at d i s c o v ery a b u s e

p os t

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a w ard o f po s t

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, i f a n y

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re m a ini n g p o r

t io n s o f t h e s a n c ti o n s o r d e r.

In Gr a v e s v. T

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$ 25 0

, 0 0 0 a g a i n s t t h e a p p e l l a n t “ f o r a l l o f G ra v e s ’ c o l l e c t i v e m is c on d u ct d u r in g t h e

d iv o rce p r o ce e d in g s

. ” 3 2 9 S. W .3d 12 8

, 1 5 0 ( T e x

. A pp

. — H o us t o n [ 1 4 t h D i s t .]

2 01 0

, p e t

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y a bus e, w h i ch w a s

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t o s a n c ti o n a

b l e c o nd u c t

. I

d

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, t h e s a n c t i o n c ou l d n o t b e

u p h e ld

.

T h e s a m e i s t r u e i n t h i s c a s e. Beca u s e El g o h ary d i d n o t s h o w ho w m u ch h e

w as d a m a g ed b y n o n

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t r i al c o u r t a

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f i n es a g a i n s t h i m i n t w o s e p ar a t e p o s t

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. D ec i si o n s i n c on t e m p t p r o c ee di n g s c a n n o t b e r e v i e w e d o n

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p t

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t a k e n ot h in g o n h i s c l a i m f o r po s t

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. W e af

f i r m th e re m a ind e r o f

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e nt

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Pa n e l c o n s is t s o f C h i ef Ju s ti c e R a d a c k a n d Justic e s M a s s e n g a l e a n d H u dd l e.