Court of Appeals of Texas, Thirteenth District, Corpus Christi-Edinburg
CHRISTOPHER M. PROPST AND STRIDE INVESTMENTS, LLC, Appellants,
GREGORY K. PROPST, INDIVIDUALLY AND DERIVATIVELY ON BEHALF OF RIOSTAR SOLUTIONS, INC., Appellees.
appeal from the 275th District Court of Hidalgo County,
Justices Benavides, Hinojosa, and Perkes
GREGORY T. PERKES JUSTICE
September 2016, Appellees RioStar Solutions, Inc. (RioStar)
and RioStar co-owner Gregory K. Propst (Greg) filed suit and
application for injunctive relief against appellants RioStar
co-owner Christopher M. Propst (Chris) and his management and
consultant company Stride Investments, LLC. (Stride),
alleging breach of fiduciary duty, civil conspiracy,
violations of the Texas Civil Theft Act, and tortious
interference with contract. In October 2016, the trial court
entered a temporary injunction order. In June 2018, the trial
court signed an order extending the 2016 temporary injunction
following hearings on appellees' request for enforcement
of the 2016 temporary injunction and appellants' motion
to dissolve the 2016 temporary injunction.
bring this interlocutory appeal from the trial court's
2018 temporary injunction order. See Tex. Civ. Prac.
& Rem. Code Ann. § 51.014. By two issues, appellants
argue that the trial court (1) entered an
invalid temporary injunction order, and (2) abused
its discretion in denying appellants' motion to dissolve
the temporary injunction. The temporary injunction order at
issue, however, expired by its own terms on September 24,
2018. The interlocutory appeal is therefore moot, and we
dismiss the appeal for want of subject-matter jurisdiction.
31, 2013, RioStar, a Texas corporation, was created and
incorporated. At its inception, RioStar was owned in equal
shares by relatives, Chris and Greg. On August 23, 2013,
RioStar entered into an "Independent Contractor/Sales
Agent Agreement" with Patterson Freight Systems, Inc.
(Patterson). Under the contract, Patterson provided RioStar
with sales and operational materials, including an email
domain and computer software that tracked RioStar's
business transactions and customer lists. On October 1, 2013,
RioStar entered into a "Management Services
Agreement" with Stride.
mid-2016, the relationship between Chris and Greg had
deteriorated, which adversely affected RioStar. On August 31,
2016, RioStar received a termination notice from Patterson.
Chris and Greg, on behalf of RioStar, requested a termination
extension date, and Patterson agreed to extend the
termination date until September 26, 2016.
September 20, 2016, Greg filed suit and an application for
temporary injunction against Chris and Stride. Meanwhile, on
behalf of Stride, Chris executed a new contract with
Patterson on September 27, 2016; Stride then subsumed use of
RioStar's former software and email account.
October 19, 2016, the trial court entered a temporary
injunction order requiring Chris to: (1) "pay RioStar a
royalty of 10% of the gross brokerage or $10, 000, which ever
is greater, during the term of the Temporary
Injunction"; (2) provide "weekly reports to RioStar
of all brokerage activity"; (3) resign as RioStar's
director and officer; (4) terminate Stride's contract
with RioStar; and (5) turn over electronics used by former
RioStar employees, including his personal laptop and cell
phones, to counsel for a forensic sweep. The court
[t]his Temporary Injunction Order shall remain effective
until the trial on the merits set for 9:00 o'clock a.m.,
on the 1st day of May 1, 2017, in the Courtroom of the 275th
Judicial District Court, Hidalgo County, Texas, unless
dissolved or modified sooner by Order of this Court.
case did not proceed to trial on May 1, 2017. On May 24,
2017, appellees filed a motion to hold appellants in contempt
for failure to comply with the 2016 temporary injunction, to
extend the temporary injunction, and to enforce the temporary
injunction. Appellants responded by filing a motion to
dissolve, deny removal, or modify the temporary injunction,
and alternatively, appellants requested a bond increase.
Although the court held the injunction evidentiary hearing on
May 30, 2017, and multiple hearings thereafter on this
matter, the second temporary injunction order was not signed
until June 19, 2018.
trial court's order took "judicial notice of all
prior proceedings, the pleadings, including the evidence
presented, the pleadings, responses and arguments of counsel,
[and found] that the Temporary Injunction issued on October
19, 2016 should be extended." The court specifically
ordered that: "[T]his Temporary Injunction Order shall
remain effective until the trial on the merits set for 10:00
o'clock a.m., on the 24th day of September, 2018, in the
Courtroom of the 275th Judicial District Court, Hidalgo