Courtland Building Company, Inc. v. Lozajo Investments, LLC, D/B/A ND2NO Network, Lozajo Management, LLC, and Lori Hagee, Individually
CourtTexas Court of Appeals, 4th District (San Antonio)
Date FiledNovember 10, 2026
Docket04-25-00075-CV
StatusPublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
Fourth Court of Appeals
San Antonio, Texas
OPINION
No. 04-25-00075-CV
COURTLAND BUILDING COMPANY, INC.,
Appellant
v.
LOZAJO INVESTMENTS, LLC, d/b/a ND2NO Network, Lozajo Management, LLC, and
Lori Hagee, Individually,
Appellees
From the 451st Judicial District Court, Kendall County, Texas
Trial Court No. 18-612
Honorable Kirsten Cohoon, Judge Presiding
Opinion by: Rebeca C. Martinez, Chief Justice
Concurring and Dissenting Opinion by: Velia J. Meza, Justice
Sitting: Rebeca C. Martinez, Chief Justice
H. Todd McCray, Justice 1
Velia J. Meza, Justice
Delivered and Filed: November 10, 2026
AFFIRMED
Appellant Courtland Building Company, Inc. appeals from the trial court’s orders denying
its motion to retain and dismissing without prejudice for want of prosecution claims it had asserted
against appellees Lozajo Investments, LLC doing business as ND2NO Network, Lozajo
1
Justice H. Todd McCray concurs in judgment only.
04-25-00075-CV
Management, LLC, and Lori Hagee. In two issues, Courtland argues the trial court abused its
discretion in denying: (1) its motion to retain because it diligently prosecuted its claims; and (2)
its motion to reinstate without holding a hearing. We affirm.
I. BACKGROUND
According to Courtland’s original petition, on November 14, 2014, ND2NO Network, an
entity affiliated with Hagee, leased real property from Courtland. Four years later, on November
14, 2018, Courtland sued appellees for their alleged failure to comply with the written lease
agreement, including failing to make payments owed under it. Appellees answered with a general
denial, and they asserted several affirmative defenses, including laches and accord and satisfaction.
After the initial pleadings, the clerk’s record contains counterclaims and a third-party petition filed
by Hagee and answers related to these counterclaims and third-party petition. These filings
occurred in 2019 and 2020. In August 2022, Courtland moved to compel written discovery. Next,
Hagee was deposed on February 15, 2023.
After Hagee’s deposition, the next filing in the clerk’s record is on September 12, 2024,
wherein the trial court issued a sua sponte “Notice of Dismissal Docket.” The notice provides in
relevant part:
THIS CASE WILL NOT BE MAINTAINED ON THE DOCKET UNLESS:
(1) At least seven (7) days prior to the dismissal hearing, a written motion is
filed with the District Clerk setting out specific facts showing good cause for
maintaining the case on the docket, with a copy of such motion being furnished to
each opposing counsel or pro se party. Oral hearing will be conducted on all timely
filed Motions to Retain, on the date and time set out above. NO MOTIONS TO
RETAIN WILL BE CONSIDERED BY THE COURT WITHOUT AN ORAL
HEARING, OR:
(2) At least seven (7) days prior to the dismissal hearing, a written docket
control order with a trial setting date, approved by all attorneys or pro se parties is
submitted and signed by the Court.
-2-
04-25-00075-CV
On October 15, 2024, Courtland filed a motion to retain, which provides, in its entirety, the
following:
I.
This is a meritorious case that deserves to be retained on the Court’s docket. This
case is set for dismissal on October 28, 2024.
II.
The Court should not dismiss the Plaintiff’s lawsuit against the Defendants, because
there is good cause to maintain it on the Court’s docket. See TEX. R. CIV. P.
165a(1).
The Plaintiff and Defendant agreed to take the deposition of Lori Hagee and began
her deposition. However during the deposition it was suspended, as Lori Hagee
asserted she was only prepared to be deposed in her individual capacity and not as
a corporate representative of the Defendant. The parties have since been unable to
reschedule the deposition of the corporate representative of the Defendant.
Accordingly, Plaintiff asks the court to retain the case, so that the deposition of the
corporate representative can be taken, issue a Docket control order and set the
matter for trial.
Based upon the above and foregoing, Plaintiff moves this Court to retain its docket,
to allow time for Plaintiff to complete the Deposition and prepare the case for trial.
WHEREFORE, PREMISES CONSIDERED, the Plaintiff hereby prays that this
case be retained on the Court’s docket, new DCO entered to include setting the case
for trial, and for such other and further relief, at law and in equity, to which it may
be entitled.
Courtland attached no exhibits to its motion to retain.
On the morning of the October 28, 2024 dismissal hearing, Hagee filed a written response
to Courtland’s motion to retain. Hagee acknowledged that a deposition of her in her individual
capacity was taken, but she asserted that Courtland had not properly noticed her as a corporate
representative. See TEX. R. CIV. P. 199.2(b)(1) (“If an organization is named as the witness, the
notice must describe with reasonable particularity the matters on which examination is
requested.”). Hagee’s response argued that Courtland’s motion to retain “offers no proof of having
-3-
04-25-00075-CV
made any effort to” reschedule the deposition of a corporate representative of any of the corporate
defendants.
On October 28, 2024, the trial court signed two orders. First, the trial court signed an order
denying Courtland’s motion to retain that provides it considered “the pleadings on file and any
arguments of counsel.” Second, the trial court signed an order of dismissal that dismissed
Courtland’s claims without prejudice.
On November 26, 2024, Courtland filed a single document that contained a motion to
reconsider its motion to retain, motion to reinstate case, and motion for new trial. Regarding
Hagee’s deposition, Courtland asserted that “unexpectedly in the course of taking Ms. Hagee’s
deposition, counsel for the [appellees] objected to completing the same in all her capacities, which
meant that counsel for [appellant] had to start the process all over again.” 2 Courtland argued that
its failure to prosecute was not intentional or the result of conscious indifference, but rather due to
excusable neglect stemming from accidents or mistakes. Courtland asserted three additional
excuses for its delay. First, Courtland emphasized that over the course of the litigation, appellees
had changed counsel three times. 3 Second, Courtland pointed to three Houston-area weather
events: (a) a hard freeze in January and February 2024; (b) a “Derecho” storm in May 2024; and
(c) Hurricane Beryl, which struck on July 8, 2024. Third, Courtland noted that, between January
2023 and October 2024, its counsel had 135 actual trial settings “many of which were tried.”
Courtland’s filing concluded by praying that “upon a hearing of these motions that the relief
requested herein be granted, the dismissal against it be set aside, a new trial ordered, and for such
2
Courtland made no reference to appellees’ contention that it had failed to follow Texas Rule of Civil Procedure
199.2(b)(1).
3
We note that, according to filings in the clerk’s record, appellees’ current counsel has represented appellees since at
least August 15, 2022.
-4-
04-25-00075-CV
other and further relief to which the Plaintiff is entitled.” Courtland’s filing was not accompanied
by a fiat or proposed order setting hearing.
Courtland’s motion to reinstate was overruled by operation of law on Monday, January 13,
2025. 4 See TEX. R. CIV. P. 165a(3) (“In the event for any reason a motion for reinstatement is not
decided by signed written order within seventy-five days after the judgment is signed, or, . . . the
motion shall be deemed overruled by operation of law.”). On January 17, 2025, Courtland filed a
request for oral hearing with the trial court. No hearing was held. Courtland timely filed a notice
of appeal.
II. DISCUSSION
A. Standard of Review
Trial courts are generally granted considerable discretion in managing their dockets. In re
Conner, 458 S.W.3d 532, 534 (Tex. 2015) (orig. proceeding) (per curiam). A plaintiff must
prosecute her suit with reasonable diligence or the trial court may dismiss it for want of
prosecution. Id. We review a trial court’s decision to dismiss a case for want of prosecution and
failure to reinstate the case under an abuse of discretion standard. MacGregor v. Rich, 941 S.W.2d
74, 75 (Tex. 1997) (per curiam). A trial court abuses its discretion when it acts without reference
to any guiding rules and principles such that its ruling was arbitrary or unreasonable. In re Newkirk
Logistics, Inc., 718 S.W.3d 240, 246 (Tex. 2025) (orig. proceeding) (per curiam).
We note that the appellate record contains no reporter’s record from the October 28, 2024
dismissal hearing. 5 The party who complains on appeal that a trial court abused its discretion has
4
The seventy-fifth day fell on Saturday, January 11, 2025. Thus, the period was extended to the following Monday.
See TEX. R. CIV. P. 4 (“The last day of the period so computed is to be included, unless it is a Saturday, Sunday, or
legal holiday, in which event the period runs until the end of the next day which is not a Saturday, Sunday, or legal
holiday.”).
5
In a notification of late record, the court reporter stated that, “[u]pon review of my files, I found that there was no
record taken down for the hearing being requested.”
-5-
04-25-00075-CV
the burden “to bring forth a record showing such abuse.” McGilvray v. Graceland Logistics, LLC,
No. 07-23-00364-CV, 2024 WL 3614747, at *2 (Tex. App.—Amarillo Jul. 31, 2024, pet. denied)
(mem. op.) (quoting Simon v. York Crane & Rigging Co., Inc., 739 S.W.2d 793, 795 (Tex. 1987)).
“Without a reporter’s record, an appellate court cannot know what evidence, if any, was presented
to the trial court at the [dismissal] hearing.” McGilvray, 2024 WL 3614747, at *2. “Absent a
record showing an abuse of discretion, we must presume that the evidence before the trial court
was adequate to support its decision.” Id. (citing Herrera v. Rivera, 281 S.W.3d 1, 6–7 (Tex.
App.—El Paso 2005, no pet.); Allen v. Bentley Labs., Inc., 538 S.W.2d 857, 861 (Tex. Civ. App.—
San Antonio 1976, writ ref’d n.r.e.)).
B. Motion to Retain
In Courtland’s first issue, it complains that the trial court abused its discretion in denying
its motion to retain. Appellees generally argue that Courtland’s failure to take any action in the
case in the eighteen months between Hagee’s deposition and the trial court’s dismissal notice
evidences a lack of diligence.
1. Applicable Law
A trial court may dismiss a cause for want of prosecution for three reasons: (1) failure to
appear; (2) failure to comply with the Texas Supreme Court time standards; and (3) pursuant to a
trial court’s inherent power. See TEX. R. CIV. P. 165a(1), (2), (4); TEX. R. JUD. ADMIN. 6.1(b)(1);
Villarreal v. San Antonio Truck & Equip., 994 S.W.2d 628, 630 (Tex. 1999) (“[T]he common law
vests the trial court with the inherent power to dismiss independently of the rules of procedure
when a plaintiff fails to prosecute his or her case with due diligence.”). Before a trial court may
dismiss a case for want of prosecution under either Rule 165a or its inherent authority, it must
provide a party with notice and an opportunity to be heard. Villarreal, 994 S.W.2d at 630.
-6-
04-25-00075-CV
“In determining whether a party has demonstrated a lack of diligence in prosecuting a
claim, a trial court may consider the entire history of the case, including the length of time the case
was on file, the extent of activity in the case, whether a trial setting was requested, and the existence
of reasonable excuses for delay.” Scoville v. Shaffer, 9 S.W.3d 201, 204 (Tex. App.—San Antonio
1999, no pet.). “No single factor is dispositive, and a belated trial setting or stated readiness to
proceed to trial does not conclusively establish diligence.” Id.
2. Analysis
In this case, suit was filed in 2018, and parties were added and counterclaims asserted
through 2020. The clerk’s record reflects a lull in activity coinciding with the COVID-19
pandemic and then a discovery dispute in August 2022. However, after Hagee’s deposition on
February 15, 2023, the case saw no activity for eighteen months.
On appeal, Courtland raises several excuses for the inactivity since Hagee’s deposition, but
its motion to retain only referenced — in a conclusory fashion and without any supporting evidence
— difficulties in rescheduling Hagee’s deposition. The trial court did not abuse its discretion for
failing to consider excuses that were absent from Courtland’s motion to retain. See In re Harvest
Communities of Houston, Inc., 88 S.W.3d 343, 349 (Tex. App.—San Antonio 2002, no pet.) (orig.
proceeding) (“We can only consider the record that was before the trial court at the time of the
hearing in determining whether the trial court’s ruling was in accordance with the guiding rules
and principles . . . .”). Moreover, without a reporter’s record, we cannot ascertain whether these
excuses — and any related evidence — were orally presented to the trial court. See McGilvray,
2024 WL 3614747, at *2. Accordingly, the trial court did not abuse its discretion in concluding
that Courtland failed to diligently prosecute its claims. See Scoville, 9 S.W.3d at 204.
Courtland’s first issue is overruled.
-7-
04-25-00075-CV
C. Hearing on Motion to Reinstate
In Courtland’s second issue, it argues the trial court abused its discretion in failing to set a
hearing on its motion to reinstate. Appellees contend Courtland waived the hearing requirement
by failing to properly and timely request a hearing.
1. Applicable Law & Analysis
Texas Rule of Civil Procedure 165a(3) provides that “[t]he clerk shall deliver a copy of the
motion to the judge, who shall set a hearing on the motion as soon as practicable. The court shall
notify all parties or their attorneys of record of the date, time and place of the hearing.” TEX. R.
CIV. P. 165a(3) (emphasis added). Courtland argues that the trial court abused its discretion under
Rule 165a(3)’s mandatory provision and the holding in Thordson v. City of Houston, 815 S.W.2d
550 (Tex. 1991) (per curiam), wherein the Texas Supreme Court held that “it was not within the
discretion of the trial court to fail to hold an oral hearing on the motion to reinstate.”
Appellees argue Courtland waived its complaint by failing to properly request a hearing.
Appellees reference the trial court’s local rules requiring that every motion include a certificate of
conference, stating that counsel has conferred with the opposing party and whether the parties
could agree on a date for submission or hearing. See 451st (Tex.) DIST. CT. LOC. R. III(B)(d)
(Kendall County). This local rule also requires that, when filing any motion that requires a setting
by the trial court, a formal request for oral hearing or submission “must be filed with the pleading
. . . .” Id. Appellees highlight that Courtland did not file a request for oral hearing with its motion
to reinstate on November 26, 2024, as the local rules require, but instead filed it over seven weeks
later, on January 17, 2025. Appellees reference our opinion in Rainbow Home Health, Inc. v.
Schmidt, 76 S.W.3d 53, 57 (Tex. App.—San Antonio 2002, pet. denied), wherein we held:
A review of the record reflects that the preamble to Appellants’ motion specifically
states Appellants “move[ ] for reinstatement of their claims pursuant to Rule 165a
-8-
04-25-00075-CV
of the Texas Rules of Civil Procedure, move[ ] for a hearing on said motion and
file[ ] this brief in support of said motion . . . .” (Emphasis added). However, there
is no evidence in the record that Appellants filed a fiat, sent a letter, or made some
other communication to the trial court in which they requested a hearing on the
motion. As such, there was no mechanism by which to call to the trial court’s
attention the need for a hearing. Under these circumstances, we conclude that the
trial court did not err in failing to conduct a hearing on Appellants’ motion for
reinstatement.
Id. (internal citation omitted; emphasis in original).
In this case, as in Schmidt, Courtland mentioned a hearing in its motion to reinstate. In
contravention of the trial court’s local rules, Courtland failed to contemporaneously file a fiat,
letter, or other communication to the trial court requesting a hearing on its motion. Moreover,
Courtland waited until after its motion was overruled by operation of law to file a proposed order
setting hearing. In the context of a motion for new trial that requires the presentation of evidence,
a trial court does not abuse its discretion when the movant fails to call its motion for new trial to
the trial court’s attention through a request for hearing and instead allows it to be overruled by
operation of law. H & H Wrecker v. Koctar, No. 14-15-00311-CV, 2016 WL 3634258, at *2 (Tex.
App.—Houston [14th Dist.] Jul. 7, 2016, no pet.) (mem. op.); see also Weiss v. JPMorgan Chase
Bank, N.A., No. 05-06-00940-CV, 2007 WL 2069627, at *4 (Tex. App.—Dallas Jul. 20, 2007, pet.
denied) (mem. op.) (“In summary, the trial court acted within its discretion because Weiss did not
set his motion for new trial for hearing before the motion was overruled by operation of law, and
did not demonstrate diligence in attempting to do so.”). The holdings in Koctar and Weiss are
persuasive. Thus, we expand our holding in Schmidt to provide that a trial court does not abuse
its discretion by failing to hold a hearing on a motion to reinstate where a movant does not call its
motion to reinstate to the trial court’s attention through a request for hearing filed before it is
overruled by operation of law. Accord Schmidt, 76 S.W.3d at 57, with Koctar, No. 14-15-00311-
CV, 2016 WL 3634258, at *2; Weiss, 2007 WL 2069627, at *4. Accordingly, the trial court did
-9-
04-25-00075-CV
not abuse its discretion when Courtland failed to call its motion to reinstate to the trial court’s
attention through a request for hearing and instead allowed it to be overruled by operation of law.
2. New Complaint
We have analyzed the properly presented portion of Courtland’s second issue. In the
interest of thoroughness, we note the portion of Courtland’s second issue that it made in only its
reply brief. Courtland’s opening brief asserts that “the Trial Court refused to schedule a hearing
on the Motion to Reinstate despite multiple attempts for the same by Appellant’s counsel in the
form of phone calls to the Court Clerk.” In response, appellees aptly emphasize that Courtland’s
brief provided no record citation for its assertion. See TEX. R. APP. P. 38.1(i) (“The brief must
contain a clear and concise argument for the contentions made, with appropriate citations to
authorities and to the record.”). Appellees argue that “Courtland does not state in its brief any
dates on which any such calls were placed, to whom appellant spoke, or what the person(s) said to
appellant’s counsel.” Appellees further argue “[i]f a hearing was not set due to appellant’s
counsel’s failure to comply with the local rules for doing so, then there was a waiver of the hearing
requirement, not a refusal by the trial court to comply with it.” In Courtland’s reply brief, it argues
— for the first time — that staff for its counsel emailed court staff on January 3 and 7, 2025.
Courtland attached to its reply brief emails between a legal assistant for Courtland’s counsel and
an “administrative specialist” at the trial court. Notably, appellees’ counsel is not copied on these
emails, and the emails are not included in the appellate record.
Courtland’s belated reference to the January 3 and 7, 2025 emails, if true, and its reliance
on them that are not in the appellate record and where appellee’s counsel was not copied raises a
new issue, which we decline to address. See Lopez v. Montemayor, 131 S.W.3d 54, 61 (Tex.
- 10 -
04-25-00075-CV
App.—San Antonio 2003, pet. denied) (“A reply brief is not intended to allow an appellant to raise
new issues.”).
Courtland’s second issue is overruled.
III. CONCLUSION
We affirm the trial court’s order of dismissal for want of prosecution.
Rebeca C. Martinez, Chief Justice
- 11 -