Sanjay Khanduja, Independent Administrator With Will Annexed to the Estate of Dr. R.K. Dhingra v. Malachite Venture Corp.
CourtTexas Court of Appeals, 1st District (Houston)
Date FiledNovember 6, 2026
Docket01-24-00920-CV
StatusPublished
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Full Opinion
Opinion issued November 6, 2026
In The
Court of Appeals
For The
First District of Texas
————————————
NO. 01-24-00920-CV
———————————
SANJAY KHANDUJA, INDEPENDENT ADMINISTRATOR WITH WILL
ANNEXED TO THE ESTATE OF DR. R.K. DHINGRA, Appellant
V.
MALACHITE VENTURE CORP., Appellee
On Appeal from Probate Court No. 1
Harris County, Texas
Trial Court Case No. 396745-409
MEMORANDUM OPINION
This appeal concerns Appellant’s (R.K. Dhingra’s Estate’s) ability, under
Texas Rules of Civil Procedure 162 and 163, to nonsuit claims against one party in
a multi-party property dispute. The Estate timely nonsuited its claims against
Appellee (Malachite Venture Corporation). This record shows no prejudice by the
Estate’s doing so. Nonetheless, the trial court refused the nonsuit then granted
summary judgment on those claims to Malachite.
That was error. The Estate’s nonsuit of its claims against Malachite became
effective as to those claims when filed. The merits of those claims were no longer
live when trial court attempted to adjudicate their merits. We reverse and remand
this case for further proceedings.
BACKGROUND
This appeal arises out of a property dispute. The Property at issue was part of
a tract of land conveyed in 1992 to Shiva Investment Group.
In 2009, a deed purported to convey the tract from Shiva Investment Group to
The 2525 Brothers, L.P. The deed bears a signature purporting to be that of R.K.
Dhingra on behalf of Shiva Investment Group. In 2010, 2525 Brothers conveyed the
Property to Appellee Malachite.
After Dhingra’s death, the Estate filed suit against several parties, including
David Scheffler and his various entities. The Estate took the position that Scheffler
forged Dhingra’s signature on the 2009 deed to transfer the tract to 2525 Brothers, a
company Scheffler controlled. The record reflects that Scheffler was charged with
the felony offense of securing execution of documents by deception based in part on
the disputed conveyance and was initially placed on deferred adjudication. Later, the
court adjudicated Scheffler guilty and sentenced him to 10 years’ imprisonment.
2
At issue here, in addition to its claims against the other defendants, the Estate
filed (then later sought to nonsuit) a trespass-to-try-title action against Malachite
seeking to divest Malachite of title to the Property. The Estate asserted that
Malachite did not hold valid title to the Property because there was a fraudulent deed
in its chain of title.
Malachite answered and pleaded counterclaims against the Estate and
cross-claims against the Scheffler defendants for fraud, negligence, and breach of
the covenant of seisin. Those filings are not in this (severed) appellate record.
In 2018, while this case was pending, Shiva Investment Group, through a
remaining partner, executed a Special Warranty Deed conveying all of its interest in
the Property to the Estate.
On June 23, 2021, Malachite filed a traditional and no-evidence motion for
summary judgment on the Estate’s claims against it. Malachite argued, among other
things, that the Estate could not maintain a trespass-to-try-title action because neither
Dr. Dhingra nor the Estate owned the Property when the Estate filed suit (as opposed
to obtaining title later).
Before the summary judgment hearing, the Estate filed a “Notice Of Nonsuit
Of Estate’s Claims Against Malachite Venture Corp., Only,” stating that it nonsuited
all its claims against Malachite without prejudice. The notice did not purport to
3
dismiss the Estate’s claims against the other defendants or to dismiss claims pleaded
by Malachite. Malachite objected.
The trial court signed an order sustaining Malachite’s objections and denying
the Estate’s nonsuit, pointing to Texas Rule of Civil Procedure 163.
The trial court then granted Malachite’s motion for summary judgment on the
Estate’s claims against Malachite.
DISCUSSION
The Estate contends the trial court erred by denying its nonsuit of its claims
against Malachite and by subsequently granting summary judgment on those claims.
We agree. Because this issue is dispositive, we need not address the Estate’s
remaining issues. See TEX. R. APP. P. 47.1.
A. Governing Law
We begin with Texas Rule of Civil Procedure 162. Rule 162 provides that
“[a]t any time before the plaintiff has introduced all of his evidence other than
rebuttal evidence, the plaintiff may dismiss a case, or take a non-suit, which shall be
entered in the minutes.” TEX. R. CIV. P. 162.
Rule 162 also makes clear that “[a]ny dismissal pursuant to this rule shall not
prejudice the right of an adverse party to be heard on a pending claim for affirmative
relief . . . .” Id. (also providing that “[a] dismissal under this rule shall have no effect
4
on any motion for sanctions, attorney’s fees or other costs, pending at the time of
dismissal, as determined by the court”).
Applying Rule 162, the Texas Supreme Court has explained that, generally,
“parties have an absolute right to nonsuit their own claims for relief at any time
during the litigation until they have introduced all evidence other than rebuttal
evidence at trial.” Villafani v. Trejo, 251 S.W.3d 466, 468–69 (Tex. 2008) (emphasis
added); see also Epps v. Fowler, 351 S.W.3d 862, 868 (Tex. 2011) (“In Texas,
plaintiffs may nonsuit at any time before introducing all of their evidence other than
rebuttal evidence. No court order is required.” (citations omitted)).
“In the context of a summary judgment proceeding, a plaintiff may take a
nonsuit at any time prior to the time the court renders judgment.” Birnbaum v. CSD
Van Zandt, LLC, 735 S.W.3d 911, 914 (Tex. App.—Tyler 2026, no pet.).
Texas law also provides that the granting of a nonsuit is, generally, a
ministerial act by the court. See Travelers Ins. Co. v. Joachim, 315 S.W.3d 860, 862
(Tex. 2010); In re Fort Bend Indep. Sch. Dist., 589 S.W.3d 301, 311 (Tex. App.—
Houston [1st Dist.] 2019, orig. proceeding); Birnbaum, 735 S.W.3d at 914. A
nonsuit extinguishes the claims from the moment the motion is filed; it renders the
merits of the nonsuited claims moot. See City of Dallas v. Albert, 354 S.W.3d 368,
375 (Tex. 2011); Joachim, 315 S.W.3d at 862–63; In re Fort Bend Indep. Sch. Dist.,
589 S.W.3d at 310–11; Birnbaum, 735 S.W.3d at 914.
5
When a party seeking to nonsuit claims has asserted claims against multiple
parties, we then turn to Rule 163 as well. Rule 163 states:
When it will not prejudice another party, the plaintiff may dismiss his
suit as to one or more of several parties who were served with process,
or who have answered, but no such dismissal shall in any case, be
allowed as to a principal obligor, except in the cases provided for by
statute.
TEX. R. CIV. P. 163; see also C/S Sols., Inc. v. Energy Maint. Servs. Grp. LLC, 274
S.W.3d 299, 306 (Tex. App.—Houston [1st Dist.] 2008, no pet.) (plaintiff must
dismiss all claims against the defendant it wishes to nonsuit).
Thus, when a plaintiff dismisses all its claims against one defendant while its
claims involving other defendants remain pending, the Court considers Rules 162
and 163. See C/S Sols., Inc., 274 S.W.3d at 306. Rule 162 governs the plaintiff’s
abandonment of its own claims; Rule 163 additionally requires that dismissal of one
of several parties not prejudice another party. Id. at 306–07 (“Rules 162 and 163
allow the plaintiff to nonsuit a party within seven days of trial without leave of
court.”); see also In re United Parcel Serv., Inc., No. 09-18-00002-CV, 2018 WL
753503, at *5 (Tex. App.—Beaumont Feb. 8, 2018, orig. proceeding) (“Nonsuiting
a party to a lawsuit is litigation conduct that is expressly allowed by Rules 162 and
163 of the Texas Rules of Civil Procedure, unless it is shown that their dismissal will
prejudice a party to the suit.”).
6
While a plaintiff may nonsuit its own claims, a plaintiff’s nonsuit does not
extinguish a defendant’s claims for affirmative relief. Villafani, 251 S.W.3d at 469.
As the Texas Supreme Court explained, a plaintiff’s nonsuit decision “does not
control the fate of a non-moving party’s independent claims for affirmative relief.”
Id.; see TEX. R. CIV. P. 162; Epps, 351 S.W.3d at 868 (“[A] nonsuit does not affect
any pending claim for affirmative relief or motion for attorney’s fees or sanctions.”).
Accordingly, if the defendant has a pending claim for affirmative relief, the
plaintiff’s nonsuit is effective for its own claims, but not for those of the defendant,
which the defendant may continue to prosecute after the nonsuit. See BHP Petroleum
Co. v. Millard, 800 S.W.2d 838, 840, 842 (Tex. 1990); Birnbaum, 735 S.W.3d at
914; Le v. Kilpatrick, 112 S.W.3d 631, 633 (Tex. App.—Tyler 2003, no pet.).
Cross-claims for affirmative relief similarly survive a nonsuit. See CTL/Thompson
Tex., LLC v. Starwood Homeowner’s Ass’n, 390 S.W.3d 299, 300 (Tex. 2013); N.E.
Indep. Sch. Dist. v. Aldridge, 400 S.W.2d 893, 897 (Tex. 1966).
B. The trial court erred by granting summary judgment on claims the Estate
had nonsuited.
1. The Estate timely exercised its right to nonsuit; the Estate’s claims
against Malachite were no longer pending when the trial court
granted summary judgment.
The first question is whether the Estate timely exercised its right to nonsuit its
claims against Malachite. The answer is yes. It is undisputed that the Estate filed its
notice of nonsuit before trial and before the trial court rendered summary judgment
7
on the Estate’s claims. See TEX. R. CIV. P. 162; Epps, 351 S.W.3d at 868; Villafani,
251 S.W.3d at 468–69; Birnbaum, 735 S.W.3d at 914 (“In the context of a summary
judgment proceeding, a plaintiff may take a nonsuit at any time prior to the time the
court renders judgment.”).
The Estate’s nonsuit was effective as to its claims against Malachite at the
moment of filing. See Albert, 354 S.W.3d at 375; Joachim, 315 S.W.3d at 862–63;
Birnbaum, 735 S.W.3d at 914. For the reasons explained below, the record does not
reflect a legally sufficient basis for denying the nonsuit.
Because of the nonsuit, the Estate’s claims against Malachite were no longer
before the trial court at the time the trial court granted Malachite’s motion for
summary judgment on those claims. See Albert, 354 S.W.3d at 375; Joachim, 315
S.W.3d at 862–63; Birnbaum, 735 S.W.3d at 914–15 (trial court lacked jurisdiction
to enter summary judgment on plaintiff’s claims that plaintiff nonsuited before
summary judgment was granted); see also In re Fort Bend Indep. Sch. Dist., 589
S.W.3d at 311–12 (granting mandamus relief to vacate trial court’s orders issued
after petitioner nonsuited action, explaining trial court erred in continuing to exercise
jurisdiction over merits of nonsuited claims). That requires reversal.
2. The trial court erred in denying the nonsuit.
On this record, the trial court lacked a legally sufficient basis to deny the
nonsuit.
8
a. Malachite’s arguments concerning bad faith, evasion, and
refiling did not render the nonsuit ineffective.
As an initial matter, Malachite objected to the nonsuit on the basis that,
Malachite argued, the Estate acted in bad faith by nonsuiting its claims to avoid an
adverse ruling, evade prior rulings, and refile its claim with more favorable evidence.
Malachite also emphasized the years of litigation and the expense it incurred. But
these arguments did not support rejecting the nonsuit.
First, as discussed, the Estate filed its notice before trial and before the trial
court rendered summary judgment. Its notice therefore was timely. See TEX. R. CIV.
P. 162; Epps, 351 S.W.3d at 868; Villafani, 251 S.W.3d at 468–69; Birnbaum, 735
S.W.3d at 914. Neither the age of the case nor the expense already incurred rendered
this notice untimely. In McQuillen v. Hughes, the plaintiff filed a trespass-to-try-title
action against multiple defendants and sought a nonsuit more than seven years later.
626 S.W.2d 495, 495 (Tex. 1981). The trial court refused the nonsuit, in part because
the judge believed the plaintiff “filed the motion for non-suit in bad faith.” Id. The
Texas Supreme Court granted mandamus relief. Id. at 496. The duration and expense
of litigation did not provide a basis for denying the nonsuit there. So too here.
Malachite’s argument that the nonsuit was taken to avoid an unfavorable
ruling fares no better. A plaintiff’s motive for nonsuiting could have consequences.
For example, nonsuiting to avoid an unfavorable ruling may, upon defendant’s
motion, result in attorney’s fees being awarded to the defendant as the “prevailing
9
party” if there is an applicable attorney’s fee statute or contractual provision. See
Epps, 351 S.W.3d at 864 (defendant is not prevailing party for fee purposes when
plaintiff nonsuits claim without prejudice “unless the court determines, on the
defendant’s motion, that the plaintiff took the nonsuit in order to avoid an
unfavorable judgment”). And a nonsuit does not affect a pending request for
sanctions, attorney’s fees, or costs. See TEX. R. CIV. P. 162; see also Dargin v. Noble
Drilling Servs., Inc., 725 S.W.3d 749, 754–55 (Tex. App.—Houston [14th Dist.]
2025, no pet.) (suggesting that bad faith conduct in filing a nonsuit may be
sanctionable under Chapter 10 of the Civil Practice and Remedies Code).1 But such
potential consequences did not make this nonsuit ineffective or authorize the trial
court to deny the nonsuit. Our sister court recently rejected a similar argument,
explaining: “[W]e do not find[] any authority permitting a trial court to wholly
disregard a plaintiff’s nonsuit on the basis that it was taken to avoid an unfavorable
judgment,” and “[r]egardless of his motivation, [plaintiff’s] nonsuit was effective”
at the moment of filing. Birnbaum, 735 S.W.3d at 915.
1
Two of our sister courts have held that a trial court may, on a defendant’s motion
and as a sanction under Chapter 10 of the Civil Practice and Remedies Code, convert
a nonsuit without prejudice to a nonsuit with prejudice when the plaintiff filed the
nonsuit in bad faith to avoid an unfavorable ruling. DGF Holdings, Ltd. v. Air Clinic
Air Conditioning & Heating, Inc., No. 05-23-01262-CV, 2025 WL 1558886, at *3
(Tex. App.—Dallas June 2, 2025, pet. denied); Cox v. Vanderburg, No. 06-20-
00078-CV, 2021 WL 4055487, at *1 (Tex. App.—Texarkana Sept. 7, 2021, pet.
denied). That issue is not before us.
10
Additionally, the possibility that the Estate might refile its claim was not a
basis for denying the nonsuit. A nonsuit without prejudice ordinarily permits the
plaintiff to refile subject to applicable limitations and other defenses. See Epps, 351
S.W.3d at 869 & n.8. Whether a later filed action would be timely, proper, or
supported by sufficient evidence was not before the trial court when it considered
nonsuit. Those questions could be addressed in any later proceeding.
b. Rule 163’s prejudice standard also did not provide a basis to
deny the nonsuit in this case.
Malachite also argued that Rule 163 supported refusal of the nonsuit.
Malachite said that the nonsuit would prevent it from being heard on and prejudice
its counterclaim and cross-claims. It argued those claims depended on an adverse
disposition of the Estate’s title claims, without which Malachite’s damages would
not be “fixed.” But this record does not support a finding of prejudice.
As set forth above, Rule 163 provides a limited qualification to Rule 162:
When it will not prejudice another party, the plaintiff may dismiss his
suit as to one or more of several parties who were served with process,
or who have answered, but no such dismissal shall in any case, be
allowed as to a principal obligor, except in the cases provided for by
statute.
TEX. R. CIV. P. 163.
Because the Estate sought to dismiss all its claims against Malachite while
leaving its claims against other defendants pending, Rule 163 applies. See id.; C/S
Sols., Inc., 274 S.W.3d at 306. But Rule 163 does not blanketly prevent all nonsuits
11
of claims against one defendant; it asks whether there will be “prejudice” to another
party. “Prejudice” is a well known concept—and it has been part of Rule 163’s
history since its statutory predecessor of 1879.2 Around that period, “prejudice”
meant “[m]ischief; hurt; damage; injury.” Prejudice, WEBSTER’S DICTIONARY 1828,
https://webstersdictionary1828.com/Dictionary/Prejudice.3 Modern definitions are
similar. See, e.g., Prejudice, MERRIAM-WEBSTER.COM DICTIONARY,
https://www.merriam-webster.com/dictionary/prejudice (defining “prejudice” as
“injury or damage resulting from some judgment or action of another in disregard of
one’s rights,” “especially : detriment to one’s legal rights or claims”).
The pertinent inquiry is whether the nonsuit would prejudice (i.e., injure)
another party’s legal rights. See Womack v. Berry, 291 S.W.2d 677, 683–84 (Tex.
1956); see also Keesey v. Old, 17 S.W. 928, 929 (Tex. 1891) (upholding dismissal
2
See 1879 Revised Statutes, 16th Leg., R.S., Title 29, ch. 7, art. 1259, 1879 TEX.
REV. CIV. STAT. 201:
Art. 1259. The court may permit the plaintiff to discontinue his suit as to one
or more of several defendants who may have been served with process, or
who may have answered when such discontinuance would not operate to the
prejudice of the other defendants; but no such discontinuance shall in any
case be allowed as to a principal obligor, except in the cases provided for in
article 1257.
(Emphasis added).
3
See State v. Loe, 692 S.W.3d 215, 245 n.13 (Tex. 2024) (Blacklock, J., concurring)
(looking to 1828 Webster’s Dictionary as informative of meaning of language used
in 1876 Texas Constitution).
12
of one co-defendant under Rule 163’s predecessor because it was not shown how
defendants would be prejudiced by dismissal or that “injury will result”).
i. Affirmative claims by Malachite.
Malachite first argues that recognizing the Estate’s nonsuit would prejudice it
because it would lose the opportunity to be heard on its counterclaim against the
Estate and its cross-claims against the Scheffler defendants. That contention rests on
an incorrect premise.
As set forth above, Rule 162 confirms that a plaintiff’s nonsuit does not
extinguish an adverse party’s pending claim for affirmative relief; that claim remains
pending. See TEX. R. CIV. P. 162; CTL/Thompson Tex., 390 S.W.3d at 300; Epps,
351 S.W.3d at 868; Villafani, 251 S.W.3d at 469; Millard, 800 S.W.2d at 840–42.
As our sister court recently explained:
[T]he mere existence of a defendant’s pending claim for affirmative
relief at the time a plaintiff files a notice of nonsuit does not remove the
plaintiff’s ability to nonsuit its own claims. Instead, the nonsuit is
effective only as to the plaintiff’s claims (but does not extinguish the
defendant’s outstanding claims for affirmative relief).
Birnbaum, 735 S.W.3d at 915 (emphasis in original) (citations omitted). The trial
court would retain jurisdiction over remaining affirmative claims. Albert, 354
S.W.3d at 375; see also Tex. Mut. Ins. Co. v. Ledbetter, 251 S.W.3d 31, 38 (Tex.
2008) (“While the plaintiffs were entitled to nonsuit their own affirmative claims,”
plaintiffs’ nonsuit could not extinguish intervenor’s claim for affirmative relief).
13
That an affirmative claim survives does not necessarily foreclose a showing
of prejudice. But it does defeat the contention that recognizing a nonsuit would itself
always eliminate the opportunity to be heard on counterclaims and cross-claims.
Womack is instructive here concerning Rule 163 and surviving affirmative
claims. See 291 S.W.2d at 683–84. In Womack, the Texas Supreme Court addressed
the existence of other claims in a lawsuit with multiple defendants in which the
plaintiff sought to nonsuit its claims against one party. Id. at 679–80. Specifically,
the plaintiff nonsuited his claims against one beneficiary, Michael; Michael had
pending affirmative claims against the plaintiff and a cross-action against a bank (the
bank also had a cross-action involving Michael and other parties). Id. at 680–81. The
Court considered Rule 163 and concluded that, “Michael will be fully protected, and
the parties other than relator will not be adversely affected by such dismissal.” Id. at
683. “The dismissal of [plaintiff’s] suit against Michael does not affect the latter’s
right to be heard on his claims for affirmative relief.” Id.
The dismissal of [plaintiff’s] suit as to Michael does not eliminate the
latter as a party defendant to such cross-action, and hence does not
deprive the court of jurisdiction to determine, in connection with
[plaintiff’s] suit, the related questions raised by the bank.
Id. at 684. That is, the mere existence of a counterclaim or cross-claim did not itself
require continued prosecution of the plaintiff’s claims. Id. at 683–84.
That principle applies here. The Estate’s notice sought to dismiss only the
Estate’s claims against Malachite. It did not purport to dismiss any counterclaim or
14
cross-claim belonging to Malachite.4 If Malachite asserted a claim for affirmative
relief,5 that claim survived the Estate’s nonsuit. The Estate would remain a defendant
to such a claim even after its own claims against Malachite had been dismissed. See,
e.g., Millard, 800 S.W.2d at 840–42 (retaining defendant’s counterclaim for
declaratory judgment after plaintiff nonsuited its claims).
So too if Malachite filed independent cross-claims for affirmative relief
against the Scheffler defendants. The Estate’s nonsuit would not prevent those
claims from proceeding. See Womack, 291 S.W.2d at 683–84.
4
The pleadings through which Malachite asserted its counterclaim and cross-claims
are not included in the appellate record in this severed action. Assuming Malachite
asserted claims for affirmative relief, the nonsuit did not extinguish those claims.
5
Not all defensive claims are claims for affirmative relief. A defensive pleading
constitutes a claim for affirmative relief when it alleges an independent cause of
action on which the defendant could recover benefits, compensation, or relief even
if the plaintiff abandoned its cause of action or failed to establish it. Millard, 800
S.W.2d at 841; Gen. Land Office of State of Tex. v. OXY U.S.A., Inc., 789 S.W.2d
569, 570 (Tex. 1990). For example, a defendant’s counterclaim for a declaratory
judgment seeking resolution of continuing issues was a claim for affirmative relief
that survived a plaintiff’s nonsuit. See, e.g., Millard, 800 S.W.2d at 840–42; see also
Gaskamp v. WSP USA, Inc., 596 S.W.3d 457, 468–69 (Tex. App.—Houston [1st
Dist.] 2020, pet. dism’d). By contrast, a defendant does not seek affirmative relief
by claims that merely defend or resist the plaintiff’s cause of action. Millard, 800
S.W.2d at 841; OXY U.S.A., Inc., 789 S.W.2d at 570; Le, 112 S.W.3d at 634–35.
For example, a co-defendant’s cross-claims for offset, credit, indemnity, or
contribution were purely defensive and did not qualify as claims for affirmative
relief and did not survive a plaintiff’s nonsuit. See, e.g., Le, 112 S.W.3d at 634–35.
15
The Estate’s nonsuit would not have deprived Malachite of the right to be
heard on its own independent claims for affirmative relief. See, e.g., Millard, 800
S.W.2d at 840–42; Womack, 291 S.W.2d at 683–84.
ii. Prejudice.
Malachite also argued generally—and the trial court agreed—that it would be
prejudiced by the nonsuit. On this record, neither the text of Rule 163 nor the caselaw
applying it support that position.
The Rule says: “When it will not prejudice another party, the plaintiff may
dismiss his suit as to one or more of several parties who were served with process,
or who have answered . . . .” TEX. R. CIV. P. 163. That is, so long as the nonsuit will
not prejudice (injure) a party, then one may nonsuit his own claims.
This record does not show prejudice. The Estate need not be forced to continue
prosecuting its title claims against Malachite for Malachite to be able to protect its
rights. As explained, to the extent that Malachite has affirmative claims against the
Estate or others (including the Scheffler defendants), those claims remain pending.
To the extent another party has claims against Malachite, those claims would also
continue. Moreover, to the extent there is a claim as to which Malachite is interested
and presently not included, Malachite could seek to intervene to protect its rights.
See TEX. R. CIV. P. 60; State v. Roberson, 409 S.W.2d 872, 875 (Tex. App.—Tyler
1966, no writ) (where plaintiff sued multiple defendants but dismissed all but one,
16
the dismissed-defendant “became a stranger to the litigation. But this did not prevent
him from later intervening in the suit, which he did”); Ledbetter, 251 S.W.3d at 36
(rules have no deadline for intervention). The nonsuit of the Estate’s claims against
Malachite did not prevent Malachite from participating in its own litigation
concerning the Scheffler defendants.
On this record, the nonsuit would not have increased Malachite’s substantive
liability, eliminated a statutory defense or credit, or deprived Malachite of an
opportunity to litigate a claim belonging to it. Malachite did not lose a legal right
merely because the Estate no longer wished to prosecute its own claims.
Nor does the record show prejudice on the basis of Malachite’s assertion that
its damages would not be “fixed.” Malachite seems to be arguing that dismissal of
the Estate’s claim against Malachite (seeking title) would leave Malachite unable to
establish the damage amount Malachite could recover from the Scheffler defendants.
But Malachite offers no reason why such damages would have to be established in
the Estate’s lawsuit against Malachite—as opposed to in a lawsuit between
Malachite and the Scheffler defendants (or otherwise). And if Malachite wants a
ruling on its title dispute with the Estate (as to damages or otherwise), even if the
Estate nonsuits its claims, Malachite is free to seek a declaratory judgment on it.
Finally, our conclusion is not changed by Malachite’s arguments about
possible res judicata or issue-preclusion effects of the Estate’s continued litigation
17
against the Scheffler defendants. Res judicata operates to bar claims that were or
could have been raised in a prior proceeding between the same parties. See Joachim,
315 S.W.3d at 862. Issue preclusion requires, among other things, that the party
against whom preclusion is asserted was “a party or in privity with a party in the first
action.” Sysco Food Servs., Inc. v. Trapnell, 890 S.W.2d 796, 801–02 (Tex. 1994).
Even if we were to assume that, through privity with the Scheffler defendants,
Malachite’s rights could be affected by a judgment between the Estate and the
Scheffler defendants, that is not changed by whether or not the Estate’s claims
against Malachite proceed. Malachite’s argument blurs the line between its dispute
against the Estate, on the one hand, and the Estate’s claims against the Scheffler
defendants, on the other.
The question Malachite seems to raise is whether Malachite has a means of
protecting its interests by participating in the Estate-Scheffler dispute. But
Malachite’s participation in that litigation does not depend on keeping the Estate’s
claims against it alive. As discussed, if Malachite pleaded counterclaims or
cross-claims seeking affirmative relief (including claims against the Scheffler
defendants), it remained a party to the case for purposes of those claims. See Millard,
800 S.W.2d at 840–42; Womack, 291 S.W.2d at 684. Malachite may continue with
(or bring) the claims it chooses, subject to ordinary legal requirements. And as noted,
to the extent that Malachite otherwise seeks to participate in the dispute between the
18
Estate and the Scheffler defendants, the Estate’s nonsuit of its claims against
Malachite does not preclude Malachite from doing so. See Roberson, 409 S.W.2d at
875. The nonsuit of the Estate’s claims against Malachite here did not prejudice
Malachite.
The record does not show prejudice under Rule 163. The trial court erred in
refusing the nonsuit. We sustain the Estate’s first issue.
* * *
The Estate timely filed its notice of nonsuit before trial and before the trial
court rendered summary judgment for Malachite. See TEX. R. CIV. P. 162; Epps, 351
S.W.3d at 868; Villafani, 251 S.W.3d at 468–69; Birnbaum, 735 S.W.3d at 914. The
trial court lacked a legally sufficient basis for refusing to recognize the nonsuit.
Accordingly, the nonsuit became effective as to the Estate’s claims against
Malachite when filed. Albert, 354 S.W.3d at 375; Joachim, 315 S.W.3d at 862–63.
The merits of the Estate’s nonsuited claims against Malachite were therefore
moot when the trial court later attempted to rule on them on summary judgment. See
Albert, 354 S.W.3d at 375; Joachim, 315 S.W.3d at 862–63.
19
CONCLUSION
We reverse the trial court’s order granting summary judgment in favor of
Malachite and remand this case for further proceedings consistent with this opinion.
Jennifer Caughey
Justice
Panel consists of Justices Caughey, Morgan, and Dokupil.
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