the Branch Law Firm L.L.P and Turner W. Branch v. W. Shane Osborn ( 2015 )


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  •                                                                                                                   ACCEPTED
    14-14-00892-CV
    FOURTEENTH COURT OF APPEALS
    HOUSTON, TEXAS
    THOMAS C. WRIGHT       9/1/2015 4:53:39 PM
    CHRISTOPHER PRINE
    wright@wrightclose.com              CLERK
    Board Certified
    Civil Trial Law and Civil Appellate Law
    Texas Board of Legal Specialization
    FILED IN
    14th COURT OF APPEALS
    HOUSTON, TEXAS
    September 1, 2015
    9/1/2015 4:53:39 PM
    CHRISTOPHER A. PRINE
    Clerk
    14th Court of Appeals                                                  Via Electronic Submission
    Christopher A. Prine, Clerk
    301 Fannin, Suite 245
    Houston, Texas 77002
    Re:   The Branch Law Firm L.L.P. and Turner W. Branch v. W. Shane Osborn
    Cause No. 14-14-00892-CV
    Dear Mr. Prine:
    During today’s oral argument, counsel for Appellee Shane Osborn argued
    that the twenty-day deadline to file a notice of accelerated appeal is steadfast, and
    that extensions do not apply. However, the Texas Supreme Court disagrees. In
    Hone v. Hanafin, 
    104 S.W.3d 884
    (Tex. 2003), attached hereto, the Texas Supreme
    Court applied TRAP 26.3 to an interlocutory, accelerated appeal. The court noted
    that because the petitioners in that case filed their notice of accelerated appeal after
    the twenty-day deadline, but within TRAP 26.3’s fifteen-day window for
    extension, the court of appeals could have considered the petitioners’ notice of
    appeal as an implied motion for extension of time to file the notice. 
    Id. at 886.
    Though the Branch Parties do not believe it is necessary for the Court to imply a
    motion for extension in this case, I wanted to bring Hone v. Hanafin to the panel’s
    attention.
    Very truly yours,
    /s/Thomas C. Wright
    Thomas C. Wright
    TCW/trs
    WRIGHT & CLOSE, LLP
    ONE RIVERWAY, SUITE 2200, HOUSTON, TEXAS 77056  TEL: 713.572.4321  FAX: 713.572.4320
    Mr. Christopher Prine
    September 1, 2015
    Page 2
    cc via electronic submission:
    Christopher A. Grimm
    O’CONOR, MASON & BONE, P.C.
    1616 S. Voss, Suite 200
    Houston, Texas 77057
    cgrimm@ombtxlaw.com
    Corey J. Seel
    MEHAFFY WEBER, P.C.
    One Allen Center
    500 Dallas, Suite 1200
    Houston, Texas 77002
    coreyseel@mehaffyweber.com
    Ernest W. Boyd
    BUTCH BOYD LAW FIRM
    2905 Sackett Street
    Houston, Texas 77098
    butchboyd@butchboydlawfirm.com
    Ronald G. Franklin
    Tamara Stiner Toomer
    MCGUIRE WOODS LLP
    600 Travis Street, Suite 7500
    Houston, Texas 77002
    rfranklin@mcguirewoods.com
    tstinertoomer@mcguirewoods.com
    Hone v. Hanafin, 
    104 S.W.3d 884
    (2003)
    
    46 Tex. Sup. Ct. J. 619
    104 S.W.3d 884
    
                                               Supreme Court of Texas.
    William J. HONE and Falk & Fish, L.L.P., Petitioners,
    v.
    Bernard M. HANAFIN, Respondent.
    No. 02–0548. | May 1, 2003.
    Plaintiffs brought action for fraudulent inducement against defendants. The trial court sustained
    defendant’s special appearance. Plaintiffs appealed. The Dallas Court of Appeals dismissed
    appeal. Upon grant of review, the Supreme Court held that plaintiffs were not required to
    concede that their appeal was untimely to obtain extension of time for appeal
    Reversed and remanded.
    Attorneys and Law Firms
    *885 Mark A. Ticer, Law Office of Mark Ticer, Dallas, for Petitioner.
    Gerald C. Conley and Linda Richichi Stahl, Andrews & Kurth, L.L.P., Dallas, for Respondent.
    Opinion
    PER CURIAM.
    In this case, we consider whether Texas Rule of Appellate Procedure 26.3 requires an appellant
    to concede that its notice of appeal was untimely in order to satisfy the rule’s
    “reasonable-explanation” requirement.1 The court of appeals held that, because Petitioners did
    not concede that their appeal was untimely, they did not satisfy Rule 26.3’s requirement and
    therefore were not entitled to an implied extension under Verburgt v. Dorner, 
    959 S.W.2d 615
    (Tex.1997). 
    105 S.W.3d 15
    . To satisfy Rule 26.3’ s requirements, however, an appellant need
    not concede untimeliness. And, under Verburgt, an appellant’s good faith belief that its appeal
    was timely is, under the circumstances described below, a reasonable explanation. Because this
    issue is dispositive, we do not consider whether Petitioners’ request for findings of fact and
    conclusions of law, or their failure to receive notice of the trial court’s order until after the time
    for filing their notice of appeal had passed, extended the appellate timetable in this accelerated
    appeal. Accordingly, without hearing oral argument, we grant the petition for review, reverse the
    © 2015 Thomson Reuters. No claim to original U.S. Government Works.                  1
    Hone v. Hanafin, 
    104 S.W.3d 884
    (2003)
    
    46 Tex. Sup. Ct. J. 619
    courts of appeals’ judgment, and remand the case to that court for further proceedings.
    TEX.R.APP. P. 59.1.
    William Hone and Falk & Fish, L.L.P. (Petitioners) sued Bernard Hanafin, and others, for
    fraudulent inducement and attorney’s fees. Hanafin answered by special appearance. After a
    February 21 hearing, the trial court advised the parties that it would sustain Hanafin’s special
    appearance. Ten days later, Petitioners requested findings of fact and conclusions of law. The
    trial court signed an order sustaining Hanafin’s special appearance on May 9, and issued
    findings of fact and conclusions of law on May 17. Petitioners allege, however, that they did not
    receive notice of the trial court’s May 9 order until May 31, when they received a faxed copy
    from Hanafin’s counsel. The next day, Petitioners filed their notice of appeal, challenging the
    trial court’s interlocutory order granting Hanafin’s special appearance. Hanafin challenged the
    court of appeals’ jurisdiction to consider the appeal, contending that, because Petitioners filed
    their notice of appeal twenty-two days after the trial court’s May 9 order, they failed to perfect
    their appeal timely.
    The court of appeals dismissed the appeal. The court recognized that, pursuant to Texas Rule of
    Appellate Procedure 26.3, an appellate court may extend the time to file a notice of appeal if,
    within fifteen days after the deadline for filing the appeal notice, the party files a notice of
    appeal in the trial court and a motion for extension *886 of time in the court of appeals. 
    105 S.W.3d 15
    . The court also acknowledged that, under this Court’s decision in Verburgt, a motion
    for extension of time is implied when an appellant, acting in good faith, files an appeal notice
    within Rule 26.3’ s fifteen-day period permitting an appellant to move to extend the filing
    deadline. 
    Id. at 19.
    The court of appeals concluded, however, that because Petitioners only provided explanations
    “for why their notice of appeal was timely filed,” they failed to “offer any explanation for their
    failure to timely file their notice of appeal.” 
    Id. at 20
    (emphasis in original). The court of appeals
    held that Petitioners failed to satisfy Rule 26.3’s extension requirements and dismissed their
    appeal. 
    Id. at 19.
    We granted review to determine whether the rule requires an appellant to admit
    untimeliness to merit an extension. 46 Tex. Sup.Ct. J. 619.
    In an accelerated appeal, such as this, an appellant has twenty days after the trial court signs its
    order to file a notice of appeal. TEX.R.APP. P. 26.1(b); see also TEX. CIV. PRAC. &
    REM.CODE § 51.014(a)(7) (permitting interlocutory appeal of a district court’s order granting
    or denying defendant’s special appearance); TEX.R.APP. P. 28.1 (“An appeal from an
    interlocutory order ... will be accelerated.”). Texas Rule of Appellate Procedure 26.3 provides:
    The appellate court may extend the time to file the notice of appeal if, within 15 days after the
    deadline for filing the notice of appeal, the party:
    (a) files in the trial court the notice of appeal; and
    © 2015 Thomson Reuters. No claim to original U.S. Government Works.                 2
    Hone v. Hanafin, 
    104 S.W.3d 884
    (2003)
    
    46 Tex. Sup. Ct. J. 619
    (b) files in the appellate court a motion complying with Rule 10.5(b).
    TEX.R.APP. P. 26.3. Rule 10.5(b) requires an appellant to “reasonably explain” its need for an
    extension. TEX.R.APP. P. 10.5(b)(1)(C), (b)(2)(A).
    Here, Petitioners filed their notice of appeal twenty-two days after the trial court signed its order
    sustaining Hanafin’s special appearance. Because Petitioners filed their notice beyond the
    twenty-day time limit imposed by appellate Rule 26.1(b), but within the fifteen-day period in
    which they could have moved to extend the filing deadline under Rule 26.3, the court of appeals
    could have considered Petitioners’ notice of appeal as an implied motion for extension of time to
    file a notice of appeal. See 
    Verburgt, 959 S.W.2d at 617
    ; see also Garcia v. Kastner Farms, Inc.,
    
    774 S.W.2d 668
    , 669–70 (Tex.1989). Consequently, the question is whether Petitioners’
    contention regarding their request for findings of fact and conclusions of law constituted a
    reasonable explanation for filing their notice of appeal beyond the twenty-day deadline.
    [1]
    We first considered the meaning of “reasonably explain” in Meshwert v. Meshwert, 
    549 S.W.2d 383
    , 383–84 (Tex.1977) (discussing Texas Rule of Civil Procedure 21c—Rule 26.3’s
    predecessor). We held that a reasonable explanation is “any plausible statement of
    circumstances indicating that failure to file within the [specified] period was not deliberate or
    intentional, but was the result of inadvertence, mistake or mischance.” 
    Id. at 384.
    In Garcia v.
    Kastner Farms, Inc., we applied the Meshwert standard to all cases in which an appellant fails to
    file a notice of appeal 
    timely. 774 S.W.2d at 669
    –70. We explained that, “[w]hile the definition
    of reasonable explanation is settled, the courts of appeals have not applied the definition
    consistently.” 
    Id. at 669–70
    (comparing Heritage Life Ins. Co. v. Heritage Group Holding
    Corp., 
    751 S.W.2d 229
    (Tex.App.-Dallas 1988, writ denied) with Home Ins. Co. v. Espinoza,
    
    644 S.W.2d 44
    (Tex.App.-Corpus Christi 1982, writ ref’d n.r.e.)). We emphasized that, under
    the liberal *887 standard of review applied in these cases, “[a]ny conduct short of deliberate or
    intentional noncompliance qualifies as inadvertence, mistake or mischance....” 
    Id. at 670.
    Here, the court of appeals rejected Petitioners’ contention that their request for findings of facts
    and conclusion of law extended the appellate timetables.2 
    105 S.W.3d 15
    . Having disagreed with
    Petitioners’ legal justification for filing their notice of appeal twenty-two days after the trial
    court’s order, the court of appeals concluded that because Petitioners did not concede their
    failure to timely file their notice of appeal, they were not entitled to an extension under Rule 26.3
    The court of appeals did not, however, hold that Petitioners’ late filing resulted from their
    intentional or deliberate noncompliance with the rule.
    In National Union Fire Insurance Co. v. Ninth Court of Appeals, this Court implicitly rejected
    any requirement that an appellant admit its mistake in order to provide a reasonable explanation
    for its untimely filing. 
    864 S.W.2d 58
    , 60 (Tex.1993). There, the appellee contended that,
    because National Union’s motion failed to contain a reasonable explanation for its late filing,
    National Union could not assert confusion about the law as a justification for not complying
    © 2015 Thomson Reuters. No claim to original U.S. Government Works.                 3
    Hone v. Hanafin, 
    104 S.W.3d 884
    (2003)
    
    46 Tex. Sup. Ct. J. 619
    with the rules. 
    Id. at n.
    5. In disapproving that approach, we stated:
    [W]e are unwilling to hold that a party confused about the law is prohibited
    from having such confusion serve as a reasonable explanation unless through a
    fleeting lucid moment or jurisprudential epiphany, the party suddenly realizes
    its mistake or confusion. Such a requirement would nearly eliminate “mistake”
    from those excuses which this court has repeatedly held suffice as reasonable
    explanation.
    
    Id. Our reasoning
    in National Union applies equally in this case.
    [2] [3]
    A court of appeals cannot require appellants to admit that their filings were untimely if they
    offer a plausible good faith justification for filing their notice of appeal when they did. See 
    id. at 59–60;
    see also 
    Verburgt, 959 S.W.2d at 616
    –17. Absent a finding that an appellant’s conduct
    was deliberate or intentional, the court of appeals should ordinarily accept the appellant’s
    explanations as reasonable. 
    Garcia, 774 S.W.2d at 670
    .
    Courts and scholars disagree about whether filing a request for findings of fact and conclusions
    of law extends the deadline for perfecting an appeal when the appeal is accelerated. Compare,
    e.g., Hone v. 
    Hanafin 105 S.W.3d at 19
    (holding request for findings and conclusions does not
    extend appellate deadline in accelerated appeals), with John Hill Cayce, Jr. et al., Civil Appeals
    in Texas: Practicing Under the New Rules of Appellate Procedure, *888 49 BAYLOR L.REV.
    867, 880 (1997) (stating request for findings and conclusions “should extend the time to perfect
    [an accelerated] appeal to ninety days”). The rule does not clearly state that such a request does
    not extend the time period within which to file a notice of appeal. Cf. TEX.R.APP. P. 28.1
    (“Filing a motion for new trial will not extend the time to perfect the appeal.”). Under these
    circumstances, we hold that Petitioners could have plausibly assumed that their request for
    findings of fact and conclusions of law would extend the time for filing a notice of appeal under
    Rule 26.1(a)(4). Hanafin does not address, nor do we, whether the trial court’s findings of fact
    and conclusions of law “could properly be considered” by the court of appeals. See TEX.R.APP.
    P. 26.1(a)(4).
    Based on the liberal standard established by this Court for considering untimely appeals, we
    hold that the court of appeals erred by imposing a requirement that Petitioners concede their
    appeal was untimely. Accordingly, without hearing oral argument, we reverse the court of
    appeals’ judgment and remand the case to that court for further proceedings. TEX.R.APP. P.
    59.1.
    All Citations
    © 2015 Thomson Reuters. No claim to original U.S. Government Works.                  4
    Hone v. Hanafin, 
    104 S.W.3d 884
    (2003)
    
    46 Tex. Sup. Ct. J. 619
    104 S.W.3d 884
    , 
    46 Tex. Sup. Ct. J. 619
    Footnotes
    1      To receive an extension under Rule 26.3(b), an appellant must, among other things, file a motion complying with Rule 10.5(b).
    TEX.R.APP. P. 26.3(b). Rule 10.5(b) requires all motions for extension of time to file a notice of appeal to set forth “the facts
    relied on to reasonably explain the need for an extension.” TEX.R.APP. P. 10.5(b)(1)(C), (b)(2)(A).
    2      The court of appeals reasoned that Rule 26.1(a)(4) applies only to final judgments, as opposed to interlocutory orders. 
    105 S.W.3d 15
    (“[T]he notice of appeal must be filed within ninety days after the judgment is signed if any party timely files ... a request for
    findings of fact and conclusions of law.”) (emphasis in original) (quoting TEX.R.APP. P. 26.1(a)(4)). Because we do not reach
    Petitioners’ second issue, we do not consider whether a request for findings of fact and conclusions of law extends the appellate
    timetable in an interlocutory appeal under Rule 26.1(b).
    3      The court also rejected Petitioners’ other arguments explaining that their notice of appeal was timely filed because: (i) the appellate
    record suggested May 17—the date the trial court entered its findings of fact and conclusions of law—was the date of final
    judgment, and (ii) they had twenty days from May 31—the date they first received notice of the trial court’s May 9 order—to file
    their notice of 
    appeal. 105 S.W.3d at 20
    .
    End of Document                                                           © 2015 Thomson Reuters. No claim to original U.S. Government Works.
    © 2015 Thomson Reuters. No claim to original U.S. Government Works.                                                      5