MKM Engineers, Inc., and Pika International, Inc. v. Jal B. Guzder

ACCEPTED 14-14-00077-CV FOURTEENTH COURT OF APPEALS HOUSTON, TEXAS 2/24/2015 10:52:36 AM CHRISTOPHER PRINE CLERK CHAMBERLAIN, HRDLICKA, WHITE, WILLIAMS & AUGHTRY A PARTNERSHIP OF PROFESSIONAL CORPORATIONS Attorneys at Law 1200 SMITH STREET, SUITE 1400 KEVIN D. JEWELL HOUSTON, TEXAS 77002-4496 FILEDHOUSTON IN SHAREHOLDER (713) 658-1818 (800) 342-5829 14th COURT OF APPEALS ATLANTA DIRECT DIAL NO.(713) 654-9620 HOUSTON,PHILADELPHIA TEXAS E-MAIL: kevin.jewell@chamberlainlaw.com (713) 658-2553 (FAX) SAN ANTONIO chwwm@chamberlainlaw.com 2/24/2015 10:52:36 AM CHRISTOPHER A. PRINE Clerk February 24, 2015 Christopher Prine, Clerk Fourteenth Court of Appeals 301 Fannin, Room 245 Houston, Texas 77002 Re: No. 14-14-00077-CV; MKM Engineers, Inc., et al v. Jal B. Guzder; in the Fourteenth Court of Appeals, Houston, Texas. Dear Justices Christopher, Donovan, and Wise: Appellants MKM and PIKA would like to respond to Appellee’s February 19, 2015 letter. 1. Appellants stated in oral argument that Guzder never provided a signed document containing releases. That statement is true. Guzder’s February 19, 2015 letter cites unsigned, proposed releases. The May 27, 2011 letter, assuming it is binding, required Guzder (and others) to provide signed releases, not draft or proposed releases. They never provided signed releases to Appellants or to the District Court and Guzder did not prove (or argue) otherwise in his motion for summary judgment. 2. Guzder contends that EETCO and Zenobia Guzder did not have to sign the Rule 11 letter because Mr. Voyles, their lawyer, could sign for them. Clients settle cases, not counsel, and Mr. Voyles signed only as agent for one principal, i.e., “on behalf of Jal Guzder.” If EETCO and Zenobia wanted to sign the letter, counsel should have so indicated instead of expressly limiting his signature to only Guzder. Imagine the roles were reversed and EETCO/Zenobia argued they were not bound by the Rule 11 letter. They would be right. That their lawyer now says they will go along with the deal February 24, 2015 Page 2 after the fact does not mean the Rule 11 letter was binding on all parties when it was signed. “All of the parties must assent to the same thing in the same sense at the same time.” Soliman v. Goltz, No. 05-93-00008-CV, 1993 WL 402740, at *8 (Tex. App.—Dallas October 6, 1993, no writ) (emphasis added); Finley v. Hundley, 252 S.W.2d 958, 962 (Tex. Civ. App.—Dallas 1952, no writ). 3. Citing Justice Christopher, Guzder argues that parties who do not wish to be bound by a preliminary letter should expressly say so. This is a preferable approach to be sure, but not one Texas law has ever required. Appellate courts holding settlement agreements unenforceable have done so despite the absence of contract language stating, “This agreement is non-binding.” E.g., Martin v. Martin, 326 S.W.3d 741, 754 (Tex. App.—Texarkana 2010, pet. denied); Brooks v. Metiscan Technologies, Inc., No. 05-08-01042-CV, 2009 WL 3087258, at *3 (Tex. App.—Dallas September 29, 2009, no pet.); Soliman, 1993 WL 402740, at *8. 4. Guzder says Appellants are bound because they drafted the Rule 11 letter. But every appellate decision that held a settlement agreement unenforceable did so on behalf of a party who either proposed the agreement or expressly agreed to it. See, e.g., Martin, 326 S.W.3d at 754; Brooks, 2009 WL 3087258, at *3; Soliman, 1993 WL 402740, at *8. Enforcement does not depend on who proposed or drafted the alleged agreement. Respectfully submitted, CHAMBERLAIN, HRDLICKA, WHITE, WILLIAMS & AUGHTRY By: /s/ Kevin Jewell Kevin D. Jewell State Bar No. 00787769 1200 Smith Street, Suite 1400 Houston, Texas 77002 Telephone: (713) 658-1818 Telecopy: (713) 658-2553 ATTORNEYS FOR APPELLANT, PIKA INTERNATIONAL, INC. February 24, 2015 Page 3 AKIN, GUMP, STRAUSS, HAUER & FELD LLP By: /s/ Murry B. Cohen Murry B. Cohen Texas Bar No. 04508500 1111 Louisiana Street, 44th Floor Houston, Texas 77002 (713) 220-5800 (Telephone) (713) 236-0822 (Facsimile) ATTORNEYS FOR APPELLANT, MKM ENGINEERS, INC. KDJ/dlk 1739319_1 Via electronic service Adam Q. Voyles Lubel Voyles LLP 5020 Montrose Blvd., Ste. 800 Houston, Texas 77006 Via electronic service Alan N. Magenheim Magenheim & Associates 3701 Kirby Drive, Suite 1144 Houston, Texas 77098 Via electronic service Michael L. Orsak, L.P. 611 Houston Street Richmond, Texas 77469