R.D. Tips, Inc. v. Virginia Jett

ACCEPTED
03-13-00336-CV
4219443
THIRD COURT OF APPEALS
AUSTIN, TEXAS
2/19/2015 4:33:41 PM
JEFFREY D. KYLE
CLERK

CASE NO. 03-13-00336-CV

IN THE COURT OF APPEALS FILED IN
3rd COURT OF APPEALS
THIRD COURT OF APPEALS DISTRICT AUSTIN, TEXAS
AUSTIN, TEXAS 2/19/2015 4:33:41 PM
JEFFREY D. KYLE
Clerk

R.D. TIPS, INC.,
Appellant

v.

VIRGINIA JETT,
Appellee

Appeal from the 419th District Court, Travis County, Texas
Trial Court Cause No. D-1-GN-11-003799
Hon. Rhonda Hurley, Judge Presiding

APPELLANT'S RESPONSE TO
MOTION TO INCREASE AMOUNT
OF SUPERSEDEAS BOND

Jonathan D. Pauerstein
State Bar No. 15637500
ROSENTHAL P AUERSTEIN
SANDOLOSKI AGATHER LLP
755 E. Mulberry, Suite 200
San Antonio, Texas 78212
Telephone: (210) 225-5000
Facsimile: (210) 354-4034

ATTORNEYS FOR APPELLANT,
R.D. TIPS, INC.

1
469216.1
To The Honorable Third Court of Appeals:

Appellant, R.D. Tips, Inc., in opposition to Appellee's Motion To Increase

Amount of Supersedeas Bond, states the following:

1. Appellee seeks to increase the amount of Appellant's supersedeas

bond because the passage of time has led to the accrual of interest. As Appellee

would have it, the bond that originally was sufficient in amount should be

increased to account for additional interest accrued while this case has been under

consideration by this Court.

2. The amount of a supersedeas bond is supposed to equal the amount of

compensatory damages, "interest for the estimated duration of the appeal," and

costs of court. Tex. Civ. Prac. & Rem. Code Ann. § 52.006(a) (West 2014).

3. The supersedeas bond posted by Appellant includes post-judgment

interest for one year at a rate of 5%. See Exhibit A hereto. This Court has held

that security for one year of post-judgment interest complies with section 52.006 of

the Civil Practice & Remedies Code. Shook v. Walden, 304 S.W.3d 910, 929-30

(Tex. App.-Austin 201 0). 1

Another aspect of this decision was disapproved in In re Corral-Lerma, 2014 WL
6612872, at *2 (Tex. Nov. 21, 2014) ("Accordingly, we disapprove of Texas Standard
and Shook to the extent they hold that a security amount must include interest on
attorney's fees or any other category of a judgment not required to be included in the
security amount.").

2
469216.1
 4. Appellee does not contend that Appellant's bond was not sufficient

when it was posted. In fact, the amount of Appellant's bond includes attorneys'

fees of $85,000.00 and interest on that sum. Under recent decisions, it generally is

not necessary to include attorneys' fees in the amount superseded. In re Corral-

Lerma, 2014 WL 6612872, at *1 (Tex. Nov. 21, 2014). The amount originally

posted thus was excessive by the amount of the attorneys' fees and post-judgment

interest thereon.

5. This Court also has recognized that the question of an increase in the

bond amount is one for the district court: "If security to cover post-judgment

interest for a longer period becomes warranted as the appeal progresses, the district

court retains jurisdiction to revisit the matter at that juncture." Shook v. Walden,

304 S.W.3d at 929-30; see also Tex. R. App. P. 24.3 (providing for continuing

district court jurisdiction).

6. This Court is authorized to review a trial court's action on a request

for an increase in the amount of a bond. Tex. R. App. P. 24.4. A trial court's

ruling as to the amount of a supersedeas bond is reviewed under an abuse of

discretion standard. Fairways Offshore Exploration, Inc. v. Patterson Services,

Inc., 355 S.W.3d 296, 299 (Tex. App.-Houston [1st Dist.] 2011, no pet.).

7. Appellee does not contend that the amount originally set for the bond

was an abuse of discretion, or that it was inadequate at the time it was set. Nor

3
469216.1
does she complain of a district court's ruling on a request for an increase of the

bond amount.

8. Appellee thus does not present anything for review by this Court

under Tex. R. App. P. 24.4.

9. Moreover, particularly since the penal amount of the bond includes

$85,000 for attorneys' fees and interest thereon, which was not required to be

superseded, the amount of the bond is adequate to protect Appellee.

For the foregoing reasons, Appellee's motion should be denied.

Respectfully submitted,

J athan D. Pauerstein
State Bar No. 15637500
ROSENTHAL P AUERSTEIN
SANDOLOSKI AGATHER LLP
755 E. Mulberry, Suite 200
San Antonio, Texas 78212
Telephone: (21 0) 225-5000
Facsimile: (210) 354-4034
jpauerstein@rpsalaw.com

ATTORNEYS FOR APPELLANT,
R.D. TIPS, INC.

4
469216.1
 CERTIFICATE OF SERVICE

The undersigned counsel hereby certifies that a true and correct copy of the
foregoing Appellant's Response To Motion To Increase Amount Of Supersedeas
Bond was served via United States Mail on this 19th day of February, 2015, to the
following counsel of record:

Eric J. Taube
Hohmann, Taube & Summers LLP
100 Congress Avenue, 18th Floor
Austin, Texas 78701

~~
Joatilan D. Pauerstein

5
469216.1
 SUPERSEDEAS/APPEALBOND
Bon~ No. "'"'33...,.5;..o.l""'98""'5'--------'l~ & :2 ~
In ~e 419th Judicial District Court ::s ::3J 4, · o
ofth.e State of_T._~ex~as~----
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Case or Cause No. D~l-GN-11~003799 ~ § ....... '~
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...,R"-".D=._.T"""IP'""S~. .,IN..,..C"'"'.----------'' Defendant

KNOW ALL BY THESE PRESENTS, That we, R.D. Tips. Inc., as principal, and SureTec Insurance
Company, a corporation organized under the laws of the State of Texas, and duly authorized to transact
business in the State of Texas, as Surety, are held and ftnnly bound unto Virginia Jett in the just and full
sum Three Million Seven Hundred Eighty Eight Thousand Seven Hundred Forty Five Dollars and Fortv
Seven Cents ($3.788.745.47), for which sum, well and truly to be p~d, we bind ourselves, our and each of
our heirs, executors, administrators, successors and assigns, jointly and severally, ftnnly be these presents.

WHEREAS, on the 11th day of February, m a judgment was ~ndered by the 4191h Judicial District
Court of the State of Texas, in and for the County of Travis. in the ~hove entitled and numbered action in
favor of the Plaintiff, Virginia Jett, and against the Defendant, R.D. tips. Inc. adjudging and decreeing that
the Plaintiff will have and recover from said Defendant the sum stated above, with interest at the legal rate,
until paid, together with the Plaintiff's costs in this action; and

WHEREAS, said Defendant has appealed, or is about to appeal, to the 419th Judicial District Court of the
State of Texas, from the above mentioned judgment and the whole thereof, and said Defendant desires to
suspend execution of said judgment pending such appeal.

NOW THEREFORE, the condition of this obligation is such that, iftjle above named Defendant, R.D. Tips.
Inc., shall prosecute his appeal with effect and shall, if the judgmenti of the 4191h Judicial District Court be
against him, perfonn such judgment or decree of said court, and pay iall such damages, interest and costs as
may be awarded against him, perform such judgment or decree of said court, and pay all such damages,
interest and costs as may be awarded against him on such appeal, then this obligation shall be void,
otherwise to remain in full force and effect.

PROVIDED, HOWEVER, that in no event shall the surety's liability ~xceed the penal sum of this bond.

Signed, sealed, and dated this 7th day of October, W,l.

Jonathan D. Pauerstein and Esther Juanita Pelaez-Prada
Attorney of Record
755 East Mulben:y. Suite 220
Address
San Antonio. Texas 78212

(210) 225-5000
Phone

PLACED IN BOND BOOK NO. 9
 POA#:,_ __,3=3=51.:.-=9::..:8=5__

SureTec Insurance C~mpany
LIMITED POWER OF ATTORNEY
Klrow AH Mm by Tltese Presmts, That SURETEC INSURANCE COMPANY (the "CompiUly''), a corporation dllly organized and
existing under the laws of the State of Texas, and having its principal office in Houston, Harris County, Texa8, does by these presents
make, constitute and appoint
Dan Webster
its true and lawfui Attorney-in-fact, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge
and deliver BllY and all bonds, recognizances, undertakings or other instruments dr contracts of suretyship to include waivers to the
conditions of contracts and consents of surety for:
Priucipal: RD. Tips Inc.

Amount: $ 3,788,745.47
and to bind the Company thereby as fully Blld to the same extent as if such bond were signed by the President, sealed with the corporate
seal of the CompiUly and dllly attested by its Secretary, hereby ratifying and confirming all1hat the said Attorney-in-Fact may do in the
premises. Said appointment is made under and by authority of the following resCilutions of the Board of Directors of the SureTec
Insurance Company:
Be it Resolved, that the President, any Vice-President. any Assistant Vice-Presiden~ any Secretary or any Assistant Secretary shall be and is
hereby vested with full power and authority to appoint any one or more suitable persons as Attomey{s)·in·Fact to represent and act for and on
behalf of the Company subject to the following provisions:
Anorney-in-Fact may be given full power and authority for and in the name of and, of behalf of the Company, to execute, acknowledge and
deliver, any and all bonds, recognizanllCS, contracts, agreements or indexnnil)' and ot1ter conditional or obligatory wdertaldngs and any and all
notices and documents canceling or terminating the Company's liability thereunl1er, and any such instruments so executed by any such
Attorney-in-Fact shall be binding upon the Company as if signed by the President and sealed and effected by the Cmporatc Secretary.
Be it Resolved, that the signature of any authorized officer and seal of the Company heretofore or hereafter affixed to any power of attorney or
any certificate relating thereto by facsimile, and any power of attorney or certificate beanng facsimile signature or facsimile seal shall be valid
and binding upon the Company with respect to any bond or undertaking to which it Is attached. (Adopted at a meeting held on 2fl' ofApril,
1999.)

In Witness Whereof, SURETEC INSURANCE COMPANY has caused these presents to be signed by its President. and its corporate seal
to be herlrto affixed this 21st day of March, A.D. 2013.

State ofTexas ss:
County of Harris
On this 21st day of March. AD. 2013 before me personally came John Knox Jr., to me known. who, being by me duly sworn, did depose and say, that he
resi9es in Houston, Texas, that he is President of SURETEC INSURANCE COMPANY, tpc company described in and which executed the above
instrument; that he knows the seal of said Company; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the
Board of Directors of said Company; and that he signed his name thereto by like order.

e JACQUELYN MAI.OONADO
Notary Publlo
State of Texas
My Comm. Exp. 6/18/2017 :tf.cqueJYDMaidODllo, Notary PubHc:
My commission expires May 18,2017
"
1, M. Brent Beaty, Assistant Secretary of SURETEC INSURANCE COMPANY, do hereby certify that the above and foregoing is a tru.e and correct copy
of a Power of Attorney, executed by said Company, which is still in full force and effect; and furthermore, the resolutions of the BOBid of Directors, set
out in the Power of Attorney are in full force and effect.

Given under my hand and the seal of said CompBlly at Houston, Texas this 7th

Any Instrument !llued In txCMt of the penalty alated above II totally vote! and without ••'I
validity.
For ~cation of the authority of this power you may call (713) 812-oBOO any bull ness city between 8:00am and 15:00 pm CST.
 SURETEC INSURANCE COMPANY
1330 Post Oak Blvd., Suite 1100, Houston, TX 77056

TO BE ATTACHED TO AND FORM A PART OF SUPERSEDEAS/APPEAL BOND:

Bond No. 3351985
issued by SureTec Insurance Company
in favor of (Obligee) Virginia Jett, Plaintiff
on behalf of (Principal) R. D. Tips, Inc., Defendant

IN CONSIDERATION OF THE PREMIUM CHARGED, it is understood and agreed that:

effective October 7, 2013 the third paragraph:
1
The third paragraph "WHEREAS, said Defendant has appealed, or is about to appeal, to the 419 h
Judicial District Court of the State of Texas, from the above mentions judgment and the whole
thereof, and said Defendant desires to suspend execution of said judgment pending such
appeal."

Is hereby changed to

"WHEREAS, said Defendant has appealed, or is about to appeal, to the 3'd Court of Appeals of
the State of Texas, from the above mentions judgment and the whole thereof, and said Defendant
desires to suspend execution of said judgment pending such appeal."

AND

effective October 7, 2013, the fourth paragraph:

"NOW THEREFORE, the condition of this obligation is such that, if the above named Defendant,
R.D. Tips, Inc., shall prosecute his appeal with effect and shall, if the judgment of the 419th
Judicial District Court be against him, perform such judgment or decree of said court, and pay all
such damages, interest and costs as may be awarded against him, perform such judgment or
decree of said court, and pay all such damages, interest and costs as may be awarded against
him on such appeal, then this obligation shall be void, otherwise to remain in full force and effect".

Is hereby changed to:

"NOW THEREFORE, the condition of this obligation is such that, if the above named Defendant,
R.D. Tips, Inc., shall prosecute its appeal with effect and shall, if the judgment of the 3rd Court of
Appeals be against Defendant, perform such judgment or decree of said court, and pay all such
damages, interest and costs as may be awarded or affirmed against Defendant on said appeal,
then this obligation shall be void, otherwise to remain in full force and effect."

PROVIDED, HOWEVER, that the liability of SureTec Insurance Company, under the attached bond as changed
by this Rider shall not be cumulative.

Nothing herein contained shall be held to vary, waive, alter or extend any of the terms, conditions, agreements or
warranties of the above mentioned bond, other than as stated above.

Signed this 13th day of _ _. . :.N-'-'o:. .:v. : e.:. :.m.:.: b. : e:._r_ _, 2013.

Jonathan D. Pauerstein and Esther Juanita Pelaez-Prada R.D. Tips, Inc.
Attorney of Record Principal
755 East Mulberrv. Suite 220 By: _ _ _ _ _ _ _ _ _ _ _ __
Address
San Antonio Texas 78212 SureTec Insurance Company

(21 0) 225-5000 By: s e o ; : [))~
Phone Dan Webster, Attorney-in-Fact
 POA #: _ _3=-3"--'5'-1'-=9'-=8-=5_ _

SureTec Insurance Company
LIMITED POWER OF ATTORNEY
Know All Men by These Presents, That SURETEC INSURANCE COMPANY (the "Company"), a corporation duly organized and
existing under the laws of the State of Texas, and having its principal office in Houston, Harris County, Texas, does by these presents
make, constitute and appoint
Dan Webster

its true and lawful Attorney-in-fact, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge
and deliver any and all bonds, recognizances, undertakings or other instruments or contracts of suretyship to include waivers to the
conditions of contracts and consents of surety for:
Principal: R.D. Tips Inc.

Amount: $ 3,788,745.47
and to bind the Company thereby as fully and to the same extent as if such bond were signed by the President, sealed with the corporate
seal of the Company and duly attested by its Secretary, hereby ratifYing and confrrrning all that the said Attorney-in-Fact-may do in the
prerrrises. Said appointment is made under and by authority of the following resolutions of the Board of Directors of the SureTec
Insurance Company:
Be it Resolved, that the President, any Vice-President, any Assistant Vice-President, any Secretary or any Assistant Secretary shall be and is
hereby vested with full power and authority to appoint any one or more suitable persons as Attorney(s)-in-Fact to represent and act for and on
behalf of the Company subject to the following provisions:
Attorney-in-Fact may be given full power and authority for and in the name of and of behalf of the Company, to execute, acknowledge and
deliver, any and all bonds, recognizances, contracts, agreements or indemnity and other conditional or obligatory undertakings and any and all
notices and documents canceling or terminating the Company's liability thereunder, and any such instruments so executed by any such
Attorney-in-Fact shall be binding upon the Company as if signed by the President and sealed and effected by the Corporate Secretary.
Be it Resolved, that the signature of any authorized officer and seal of the Company heretofore or hereafter affixed to any power of attorney or
any certificate relating thereto by facsimile, and any power of attorney or certificate bearing facsimile signature or facsimile seal shall be valid
and binding upon the Company with respect to any bond or undertaking to which it is attached. (Adopted at a meeting held on 20th ofApril,
1999.)

In Wimess Whereof, SURETEC INSURANCE COMPANY has caused these presents to be signed by its President, and its corporate seal
to be hereto affixed this 21st day of March, A.D. 2013.
OMPANY
..'\)'1:\P:N"c·"'
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J// "/. -1·····!='()'\
\~\
'"'I IU I -o~
State of Texas ss: ~\ ~}~I
~\, ...............
./. ,//'('/
County of Harris
* . .~
"~~tttnntf <
,50% of Judgment Debtor's net worth( if less than Total Bond Amount)

The amount of bond must be set by the trial court if: Specify type of bond submitted: (Letter of credit cannot be used)
(1) less than amount required per Rule 24.2(a)(1 )(A), T.RAP. _ cash, personal check, cashier's check ***
(2) the judgment indudes non-monetary relief _negotiable securities {must be surrendered to the Clerk)
(3} the judgment includes unspecified future costs or damages _x_ surety: underwritten (include surety's seal + agenfs power of attorney}
_ surety: personal (2 sureties required, oath of surety must be attached)

*Formulas are in conformance with Shook v. Walden, 304 S.W.3d 910. Post judgment interest is presumed to apply to all amounts subject to
supersedeas pursuant to the opinion unless the judgment specifies otherwise. If no interest rate is specified, use the link to look up maximum
interest rate based on ·ud ment date.
•* If total exceeds amount provided in Sec. 52.006(b) Civ. Pract. & Rem. Code; (Rule 24.2(a)(1 }(A}, T.R.A.P}, include Judgment Debtor's
Affidavit with bond as r uired r T.R.AP. Rule 24.2 c 1
:_**.Ic:>l'ta\l'e cash b9ndsJnv~sted, an order QUrsuant to Loc. Govt. Code 117.053 (c) is required. ----