In re Equity One Franchisors, LLC

Summary

The Ninth Court of Appeals of Texas at Beaumont conditionally granted mandamus relief in part in a dispute involving temporary restraining orders, contractual forum-selection clauses, and restrictive covenants arising from insurance-franchise agreements. Equity One Franchisors, LLC challenged the trial court’s refusal to dismiss or transfer the matter to Missouri and its issuance and extension of an ex parte temporary restraining order. The opinion addresses the enforceability of the forum-selection provisions and the trial court’s handling of the temporary-relief proceedings.

Holdings

1. The Franchise Agreement and the 2019 and 2025 Consent Agreements contain mandatory, enforceable forum-selection clauses requiring disputes brought by the franchisee or arising under the agreements to be heard in Missouri.
2. The Movants failed to carry their heavy burden to show that enforcement of the Missouri forum-selection clauses would be unreasonable or unjust, contravene a strong public policy of Texas, or make Missouri seriously inconvenient for trial.
3. The trial court abused its discretion by denying Equity One's motion to dismiss as to John Dishon, Kristy Dishon, and Dishon Insurance Agency LLC, but Equity One did not establish an abuse of discretion as to Nicole Brown, Rachelle Allen, and Dishon Insurance Group LLC.
4. Because the trial court abused its discretion by refusing to dismiss the claims of parties bound by the forum-selection clauses, it also abused its discretion by extending the temporary restraining order as to those parties before granting the dismissal.

Questions Presented

1. Whether the trial court clearly abused its discretion by denying Equity One's motion to dismiss based on the contractual forum-selection clauses.
2. Whether the forum-selection clauses applied to the dispute and required litigation in Missouri.
3. Whether the Movants clearly showed that enforcing the forum-selection clauses would be unreasonable or unjust, contrary to Texas public policy, or seriously inconvenient for trial.
4. Whether the trial court abused its discretion by extending the temporary restraining order before granting the motion to dismiss as to parties bound by the forum-selection clauses.
5. Whether Equity One lacked an adequate remedy by appeal.

Disposition

writ_granted