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in Re Sam Houston Electric Cooperative, Inc.

Citation: Not availableDocket: 09-19-00285-CV

Court: Court of Appeals of Texas; October 3, 2019; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In a case reviewed by the Court of Appeals for the Ninth District of Texas, Sam Houston Electric Cooperative, Inc. (SHEC) sought a writ of mandamus to reverse the trial court’s order compelling depositions of its Board of Directors. This litigation arose from a wrongful death claim initiated by the heirs of Lester B. Berry, alleging that SHEC's termination of electricity led to Berry's death due to his dependence on an oxygen concentrator. Additional claims included negligence, gross negligence, and breach of fiduciary duty, along with a proposed class action. The trial court initially denied SHEC's motion to compel arbitration and stay class action claims, a decision later reversed by the appellate court, which mandated arbitration and severed class action claims from wrongful death allegations. Berry filed for depositions of SHEC's Board members, asserting their relevance, while SHEC opposed, citing lack of pertinent knowledge among the Board members. The appellate court conditionally granted the writ of mandamus, finding the trial court's order compelling depositions was an abuse of discretion due to insufficient evidence of the Board's unique knowledge relevant to the claims. The court ordered the trial court to vacate its deposition orders, with the writ to be issued if noncompliance persisted.

Legal Issues Addressed

Abuse of Discretion in Discovery Orders

Application: The trial court's decision to compel depositions was deemed improper due to a lack of evidence that the Board members possessed the necessary unique knowledge for the depositions.

Reasoning: The court found that the trial court improperly compelled the depositions without adhering to established procedural standards.

Apex Doctrine

Application: The court considered whether SHEC's Board members had unique or superior knowledge relevant to the case, finding that Berry did not demonstrate such knowledge.

Reasoning: Berry maintained that less intrusive discovery methods were unnecessary due to the Board’s unique insights.

Mandamus Relief

Application: The appellate court granted a conditional writ of mandamus to vacate the trial court's order compelling depositions, as there was a clear abuse of discretion and no adequate legal remedy existed.

Reasoning: The principles of mandamus dictate that it can correct a clear abuse when no other adequate legal remedy exists.

Severance of Class Action Claims

Application: The appellate court severed the class action claims from the wrongful death claims, mandating arbitration for the former.

Reasoning: The appellate court reversed this decision, mandating arbitration and severing the class action from wrongful death claims.