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In re Southwestern Bell Telephone Company6/29/2000
As amended August 22, 2000
On Petition for Writ of Mandamus
In this mandamus proceeding, we decide whether a trial judge may set aside a venue transfer order one year after signing the order because one of several defendants declared bankruptcy . We hold that the trial judge did not have jurisdiction to set aside the venue transfer order and conditionally grant the writ.
In 1995, Donald Salch was killed in a car accident in Conway County, Arkansas. Dorothy Salch, Donald's mother, was named administratrix of her son's will. Salch sued a number of defendants, including Southwestern Bell and Builders Transport, in Refugio County, Texas, for her son's wrongful death. On January 26, 1998, Builders Transport moved to transfer venue to Dallas County because venue was proper there, or alternatively, because it was a more convenient forum. On March 23, 1998, Southwestern Bell moved to transfer venue to Bexar County or to Dallas County because venue was proper in those counties and was improper in Refugio County. Southwestern Bell also requested, alternatively, that the court grant Builders Transport's motion to transfer venue to Dallas County on forum non conveniens grounds.
After moving to transfer venue, but before the court ruled, Builders Transport filed for bankruptcy in Georgia. The trial judge signed an order on July 15, 1998, transferring the entire case to Dallas County. Neither the court, the attorneys, nor the parties took any further action until one year later. On July 27, 1999, Salch filed a Motion to Set Aside Void Transfer Order and a Motion to Deny Venue Transfer. The Refugio County judge granted Salch's motions and set aside the 1998 venue transfer order. Thereafter, the trial court severed Salch's case against Builders Transport, and it is not a party to this proceeding.
Southwestern Bell filed a petition for writ of mandamus in the court of appeals asserting that the venue transfer order was valid in part and was effective to transfer the case against Southwestern Bell to Dallas County even if the order was ineffective for Builders Transport. The court of appeals held that the venue transfer order was void because of the Bankruptcy Code's automatic stay which went into effect when Builders Transport filed for bankruptcy. Thus, it held that the venue transfer order was ineffective to transfer the case against Southwestern Bell to Dallas County. The court reasoned that, in this case, the trial court intended to transfer the entire case to Dallas and it would not imply a severance absent some indication that the trial court intended one. Accordingly, the court denied the petition for writ of mandamus. 6 S.W.3d 753. Southwestern Bell then filed a petition for writ of mandamus in this Court.
The trial court's 1998 venue transfer order purported to transfer both defendants, Southwestern Bell and Builders Transport. Because Builders Transport filed for bankruptcy before the order was signed, we must first decide whether the venue transfer order was effective to transfer Southwestern Bell. Salch argues that the Bankruptcy Code's automatic stay provision, which abates any judicial proceeding against a debtor, makes the order void in its entirety. Salch also asserts that Southwestern Bell's motion to transfer venue was dependent on Builders Transport's motion and that the court cannot imply a severance in this case. We disagree.
When a defendant files a bankruptcy petition, an automatic stay goes into effect and abates any judicial proceeding against that party. See 11 U.S.C. ยง 362(a). However, the stay only operates against the debtor, and does not operate against non-debtors or even co-debtors, co- tortfeasers, or co-defe
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