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Mayfield v. Ivey12/15/1999
e Emmons v. Purser, 973 S.W.2d 696, 700-701 (Tex. App._Austin 1998, no pet.). Further, the fact that Girards disclosed the alcohol abuse allegation in settlement negotiations does not evidence bad faith.
Finally, the trial court found that Girards persisted in the allegations after the discovery. The record indicates the discovery ended in December 1995. On January 31, 1996, Girards amended the pleading to exclude the groundless allegations. The delay in amending does not indicate bad faith. See Thomas v. Capital Sec. Servs., Inc., 836 F.2d 866, 875 (5th Cir. 1988) (interpreting federal civil procedure Rule 11 and listing factors to be considered whether reasonable inquiry into the facts has been made, including whether "the extent to which development of the factual circumstances underlying the claim requires discovery").
Therefore, having found no evidence in the record supporting the claim of either bad faith or harassment, we hold the trial court abused its discretion in ordering Rule 13 sanctions against Girards, and sustain the Mayfields' and Girards's second point of error.
CONCLUSION
Having sustained the first point of error as it relates to the actual fraud cause of action, we reverse the trial court's judgment as to that issue and remand it to the trial court for further proceedings. Having sustained the second point of error, we reverse the trial court's order of sanctions and render judgment that Ivey take nothing.
BARBARA ROSENBERG, JUSTICE, ASSIGNED
Do Not Publish
Tex. R. App. P. 47
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