Memorandum Opinion by Justice Kelly, 03-26-00009-CV, January 29, 2026.
On appeal from the 425th Judicial District Court of Williamson County, Texas.
Synopsis
The Third Court of Appeals granted the appellants’ unopposed motion to dismiss their appeal pursuant to Texas Rule of Appellate Procedure 42.1(a). This dismissal reflects the court’s standard practice of allowing parties to voluntarily terminate appellate proceedings when a resolution has been reached or the appeal is no longer desired.
Relevance to Family Law
In the landscape of Texas family law, interlocutory appeals are frequently utilized to challenge temporary orders, receiverships, or turnover orders in complex property disputes. This case illustrates the procedural mechanism under TRAP 42.1(a) that allows practitioners to “clean up” the appellate record following a successful mid-appeal mediation or settlement. For family litigators, mastering the voluntary dismissal process is essential to ensuring that a settlement reached at the kitchen table or in a mediator’s office is properly reflected in the appellate court’s docket, preventing the issuance of an unwanted opinion that could complicate the trial court’s final decree.
Case Summary
Fact Summary
The appellants, Stoughton OPCO, LLC and several related entities, sought appellate review of an order from the 425th Judicial District Court of Williamson County in a dispute involving Austin Business Finance, LLC. While the appeal was pending, the appellants determined that they no longer wished to pursue the challenge. Consequently, they filed an unopposed motion with the Third Court of Appeals requesting a voluntary dismissal of the case. The record indicates no opposition from the appellee, suggesting a consensus between the parties regarding the cessation of the appeal.
Issues Decided
The primary issue was whether the appellants satisfied the procedural requirements for a voluntary dismissal of their appeal under the Texas Rules of Appellate Procedure.
Rules Applied
The court applied Texas Rule of Appellate Procedure 42.1(a). This rule provides that an appellate court may dismiss an appeal on the motion of the appellant or by agreement of the parties. It serves as the primary vehicle for disposing of appeals that have been settled or abandoned before the court reaches a decision on the merits.
Application
The application of the law in this instance was straightforward and procedural. The court observed that the appellants had formally moved for dismissal and that the motion was unopposed. Under the narrative of TRAP 42.1(a), when an appellant chooses to withdraw their challenge and no other party is seeking affirmative relief that would be prejudiced by the dismissal, the court generally defers to the parties’ desire to end the litigation. The court found no procedural bars to the request and proceeded to terminate its jurisdiction over the matter.
Holding
The court granted the appellants’ motion and dismissed the appeal in its entirety.
The court’s decision was based strictly on the appellants’ voluntary request and the lack of opposition, consistent with the directive of TRAP 42.1(a), effectively returning the parties to the trial court level without an appellate mandate on the merits.
Practical Application
For the family law practitioner, this case serves as a reminder of the strategic timing required when settling cases with active appeals. When a settlement is reached, the filing of an unopposed motion under TRAP 42.1(a) should be a high-priority task. If the parties have reached a specific agreement regarding the taxation of costs (e.g., each party bearing their own), that agreement must be explicitly stated in the motion to override the default rule that costs are taxed against the appellant. Furthermore, in cases involving the protection of a minor’s interest or a sensitive property division, ensuring a clean dismissal prevents the risk of an appellate court issuing a memorandum opinion that might contain unfavorable dicta or publicize private financial details.
Checklists
Executing a Voluntary Dismissal
- Verify Opposition: Confirm with opposing counsel that the motion is truly unopposed to ensure expedited handling by the Clerk’s office.
- Address Costs: Explicitly state in the motion how appellate costs should be allocated (TRAP 42.1(d)).
- Draft the Motion: Cite TRAP 42.1(a)(1) if moving as the appellant, or 42.1(a)(2) if the dismissal is pursuant to a formal agreement.
- Check for Cross-Appeals: Ensure that a dismissal of your appeal does not inadvertently leave a cross-appeal pending.
Settlement Integration
- Rule 11 Consistency: Ensure the Rule 11 agreement or MSA specifically mandates the filing of the TRAP 42.1 motion within a specific timeframe.
- Stay vs. Dismissal: Determine if the appeal should be stayed pending the trial court’s entry of a final order or dismissed immediately to save on filing fees and administrative costs.
Citation
Stoughton OPCO, LLC v. Austin Business Finance, LLC, No. 03-26-00009-CV (Tex. App.—Austin Jan. 29, 2026, no pet.) (mem. op.).
Full Opinion
Family Law Crossover
The procedural simplicity of this ruling belies its strategic utility in “weaponizing” a settlement. In a high-conflict divorce, an appellant may use the threat of a pending appeal to force a settlement on more favorable terms. Once those terms are secured in a signed Mediated Settlement Agreement (MSA), the TRAP 42.1(a) motion becomes the final “release” of the appellate leverage. Conversely, if an appellee realizes the appellate court is likely to reverse a favorable trial court ruling (such as an overbroad protective order or an erroneous characterization of separate property), they may be more inclined to settle the case quickly and join in a 42.1(a) motion to prevent the creation of binding adverse precedent that could affect the final property division. This case confirms that the Third Court remains a willing partner in the voluntary resolution of disputes, providing a clear path for parties to exit the appellate process once their strategic objectives are met through negotiation.
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