Agreed Venue in a Major Transaction--Not So Fast
The Dallas Court of Appeals recently held that the major transaction exception to the prohibition on venue agreements only applies if the value of the transaction is contained in the agreement itself. In this original proceeding, the parties entered into a settlement agreement involving real estate in which the parties agreed that venue of any dispute would be in Dallas County. Plaintiff brought suit in Dallas County, the defendant moved to transfer to the county in which the property was located. The plaintiff argued that venue in Dallas County was proper under section 15.020 of the Texas Civil Practice and Remedies Code because the transaction involved consideration of more than $1,000,000. The Court disagreed and held that in order for section 15.020 to apply, the "agreement must contain the agregated stated value of the consideration." Because the settlement agreement did not contain the amount, the trial court abused its discretion by denying the defendant's motion to transfer to the county of mandatory venue. As a result, the Court granted the defendant's petition for writ of mandamus. The Court of Appeals decision in In re Togs Energy, Inc. can be found at this link.
