Victory Cheval Holdings, LLC Garrett Jennings And Castle Crown Management, LLC v. Dennis Antolik Victor Antolik And Cheval Manor, Inc. D/B/A Austin Polo Club

ACCEPTED 03-15-00464-CV 6735032 THIRD COURT OF APPEALS AUSTIN, TEXAS 8/31/2015 6:53:58 PM JEFFREY D. KYLE CLERK NO. 03-15-00464-CV FILED IN 3rd COURT OF APPEALS AUSTIN, TEXAS 8/31/2015 6:53:58 PM IN THE COURT OF APPEALS JEFFREY D. KYLE Clerk FOR THE THIRD SUPREME JUDICIAL DISTRICT AT AUSTIN, TEXAS VICTORY CHEVAL HOLDINGS, LLC, GARRETT JENNINGS AND CASTLE CROWN MANAGEMENT, LLC, Appellants v DENNIS ANTOLIK, VICTOR ANTOLIK and CHEVAL MANOR, INC., Appellee APPELLANTS' RESPONSE TO APPELLEES DENNIS ANTOLIK'S AND CHEVAL MANOR, INC'S MOTION FOR CONTEMPT AND REFERRAL TO TRIAL COURT TO THE HONORABLE COURT OF APPEALS: Appellants, Victory Cheval Holdings, LLC, Garrett Jennings and Castle Crown Management, LLC, respond to Appellees Dennis Antolik's and Cheval Manor, Inc.'s Motion for Contempt and Referral to Trial Court (the "Motion") as follows: 1. The Motion should be denied for the following reasons: (a) Appellants have not violated the Temporary Injunction (the "Order"); and (b) the Order is not sufficiently clear and definite to be enforceable by contempt. 2. Appellees first complain that Appellants have not established a new Operating Account for the property as required under Section C1 of the Order. At the time the Order was entered, Victory Cheval Holdings, LLC ("VCH") had an account established at Horizon Bank. VCH began depositing into this account all revenue from the property and paying out of this account all expenses associated with the property. 3. VCH attempted to make Victor Antolik an authorized person on the account but without signature privileges.1 Horizon Bank's administrative policies would not accommodate this request. Therefore, VCH is in the process of moving the account to an institution that will allow one of the members of VCH, Victor Antolik, to be an authorized person on the account with full access to the account but without signature privileges. 4. Appellees apparently contend that the Order requires VCH somehow to pay all of the expenses listed in paragraph C3 regardless of whether there is money in the account. This is clearly erroneous. 5. Paragraph C3 of the Order simply states that "unless otherwise agreed in writing by Garrett Jennings and Victor Antolik, funds in the Operating Account shall 1 As stated in Appellants' Motion to Stay Temporary injunction filed herein on July 29, 2015, Appellants interpret the first sentence of Section C5 of the Order to make Mr. Jennings the sole signatory on the Operating Account: "Garrett Jennings is authorized to make and shall be responsible for making and keeping an accurate accounting of all payments outlined in paragraph C3 of this Order from the Operating Account." (Emphasis added), Motion to Stay, paragraph D2. 2 only be used to fund the following", followed by a list of items beginning with Veterinarian DVM Jonathan Cohen. Nothing in the Order requires any of Appellants to furnish the funds to make the payments if they are not available for operations of the property.2 Funds available from operation of the property are not adequate to pay its expenses, and those funds that are available are being used to pay only authorized expenses. 6. Appellees also complain that Mr. Jennings has not made a capital contribution of $35,000 to repair damage to the polo field as provided in paragraph C6 of the Order. Paragraph C6 does not say to whom the payment is to be made or when. Therefore, it is not something that can be enforced by contempt. See discussion below. Furthermore, C6 conflicts with Section C3(d) of the Order which authorizes payment out of the Operating Account of "up to $6,000 per month for labor and maintenance relating to the polo field." In this regard, Mr. Jennings is in the process of making arrangements to have the polo field repaired prior to the October 2015 event using fees to be paid by the persons promoting the event. Finally, there are questions of equity concerning Appellees' claim that Mr. Jennings should be held in contempt for alleged violation of C6. Setting aside the undisputed fact that it was Dennis Antolik's actions in allowing his horses to roam on the field when it was soaked from the torrential late May rains that caused the damage in the first place, Mr. Antolik continues to allow his horses to roam on the polo field in violation of Section B6 of the Order. 7. Finally, Appellees complain that Appellants have not provided Dennis Antolik with the passwords needed to access Austin Polo Club's Facebook page and 2 When intended that someone in particular was to provide funding for a payment, the order is relatively clear. See, Section C6, where Mr. Jennings is required to make a "capital contribution" to VCH in an amount not to exceed $35,000 to repair damage to the polo field. There is no similar provision regarding the list of expenses that can be paid out of the Operating Account that are listed at C3, subparagraphs a. through j. 3 web site. The Order does not contain any such provision. All it says is that Appellants "shall not use the name 'Austin Polo Club' or limit Dennis Antolik from using it in any way." 8. The black letter law in Texas is that an order sufficiently clear and definite to be enforceable by contempt must set out the terms of compliance so specifically and unambiguously that the party knows precisely the duties and obligations he must perform. Ex Parte Hodges, 625 S.W.2d 304 (Tex. 1981); see also, Ex Parte Slavin, 412 S.W.2d 43 (Tex. 1967) (in order for a person to be held in contempt for disobeying a court decree, the decree must spell out the details of compliance in clear, specific, and unambiguous terms so that a person will readily know what obligations are imposed upon him by the decree). Put another way, the judgment must clearly order the party to perform the required acts. Ex Parte Brister, 801 S.W.2d 833, 834 (Tex.1990), citing, Ex Parte Gorena, 595 S.W.2d 841, 845 (Tex. 1979). 9. Interpretation of the provisions of the court order in question should not rest upon implication or conjecture. Ex Parte Blasingame, 748 S.W.2d 444, 446 (Tex. 1988). The trial court's underlying order, when tested by itself, must speak definitely to the meaning and purpose of the act ordered. Ex Parte Hodges, 625 S.W. 2d at 306. It cannot contain uncertainty or susceptibility of more than one construction or meaning. Ex Parte Glover, 701 S.W.2d 639, 640 (Tex. 1985). 10. The provisions of the Order cited by Appellees as grounds for contempt are, as discussed above, clearly not sufficiently clear and definite to be enforceable by contempt. Therefore, therefore those provisions are, as matter of law, unenforceable by contempt. WHEREFORE, Appellants respectfully pray that the Motion be denied and for general relief. 4 Respectfully submitted, /s/ Kemp Gorthey Kemp W. Gorthey State Bar No. 08221275 Kendall L. Bryant State Bar No. 24058660 THE GORTHEY LAW FIRM 604 West 12th Street Austin, Texas 78701 Tele: 512/2368007 Fax: 512/4796417 Email: kemp@gortheylaw.com Email: kendall@gortheylaw.com ATTORNEY FOR APPELLANTS, GARRETT JENNINGS and CASTLE CROWN PROPERTIES MANAGEMENT, LLC and /s/ Peyton Smith PEYTON N. SMITH Attorney in Charge State Bar #: 18664350 Brian L. King State Bar #24055776 REED & SCARDINO LLP 301 Congress Avenue, Suite 1250 Austin, Texas 78701 Tel: 512/474-2449 Fax: 512/474-2622 psmith@reedscardino.com emoskowitdz@reedscardino.com ATTORNEY FOR APPELLANT, VICTORY CHEVAL HOLDINGS, LLC 5 CERTIFICATE OF SERVICE By my signature above, I hereby certify that a true and correct copy of the foregoing Appellants' Response to Appellees Dennis Antolik's and Cheval Manor, Inc.'s Motion for Contempt and for Referral to Trial Court has been forwarded to Appellees' attorneys on this 31st day of August, 2015, as follows: Cleveland R. Burke Via Email: cburke@taubesummers.com Mark Taylor Via Email: MarkT@hts-law.com Taube Summers Harrison Taylor Meinzer Brown LLP 100 Congress Avenue, Suite 1800 Austin, Texas 78701 Donald R. Taylor Via Email: dtaylor@taylordunham.com Isabelle M. Antongiorgi Via Email: ima@taylordunham.com Taylor, Dunham & Rodriguez, LLP 301 Congress Avenue, Suite 1050 Austin, Texas 78701 6