Court of Civil Appeals of Texas, 2025

In Re Silver Star Properties REIT, Inc.; Silver Star CRE, LLC; Silver Star CRE II, LLC; And Silver Star Delray, LLC v. the State of Texas

In Re Silver Star Properties REIT, Inc.; Silver Star CRE, LLC; Silver Star CRE II, LLC; And Silver Star Delray, LLC v. the State of Texas
Court of Civil Appeals of Texas · Decided August 18, 2025

In Re Silver Star Properties REIT, Inc.; Silver Star CRE, LLC; Silver Star CRE II, LLC; And Silver Star Delray, LLC v. the State of Texas

Opinion

ACCEPTED 15-25-00136-CV FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS 8/18/2025 12:00 AM No. 15-25-00136-CV CHRISTOPHER A. PRINE CLERK FILED IN ________________________________ 15th COURT OF APPEALS AUSTIN, TEXAS 8/18/2025 12:00:00 AM In the Court of Appeals for the CHRISTOPHER A. PRINE Clerk Fifteenth Judicial District ________________________________ In re: Silver Star Properties REIT, Inc., et al., Relators Original Proceeding from the Texas Business Court, Eighth Division, Fort Worth, Texas, Cause No. 25-BC08B-0016 Hon. Brian Stagner, Judge Presiding

RELATORS’ REPLY IN SUPPORT OF MOTION FOR EMERGENCY STAY

Relators file this Reply in support of their Motion for Emergency Stay of the proceedings below.

First, a court without subject-matter jurisdiction can only issue void orders or judgments. See, e.g., In re Panchakarla, 602 S.W.3d 536, 539 (Tex. 2020) (orig. proceeding) (“If a trial court issues an order beyond its jurisdiction…such an order is void ab initio”). Thus, regardless of whether the Temporary Injunction hearing scheduled for August 20, 2025, would otherwise go forward, the stay Relators request is still necessary to prevent the Eighth Division from taking other action that may potentially result in void orders or judgments. That gives this Court a less rushed timeline to determine a question extremely important to the jurisprudence of this State in an area of new and rapidly-expanding law – whether the Eighth Division actually has jurisdiction – and provide proper guidance to this and other Texas Business Courts likely to face this situation in the future. Relators disclosed the Temporary Injunction hearing as the next event likely to occur in the Eighth Division, so the Court would know it did not have to decide the Motion for Stay the same day it was filed – a decision on Monday or Tuesday would give the parties time to stand down if needed.

Second, Relators did not see the need initially to drag this Court “down in the weeds” of the injunctive relief itself, since Relators are not asking the Court to rule on those merits. However, the Opposition of the Real Parties in Interest grossly omits key facts that have occurred since the August 4, 2025, TRO was entered. The result is a distortion the Opposition then uses to impugn Relators’ (and their counsel’s) integrity, and so Relators will address them briefly here.

As demonstrated by the Declaration of Walter L. Taylor, 1 lead counsel for Relators, the 48th Judicial District Court of Tarrant County signed and entered the August 4, 2025, Temporary Restraining Order at 4:35 p.m. Appendix 4. The TRO expressly requires all funds “currently” in three specifically designated accounts, plus any rent collections received in such accounts thereafter, to be released to the

Exhibit 1 to this Reply.

Silver Star Relators to pay operational expenses (up to a cap of $1.5 million). At or near the time Judge Taylor signed the TRO, Silver Star’s Chief Financial Officer – Lou T. Fox, III, reviewed all three accounts and determined that at the time the TRO was signed the accounts held roughly $740,000. Approximately $129,000 in rent collections reached the account over the next two days.

On Tuesday, August 5, 2025, Relators learned roughly $507,000 had disappeared from their accounts – to which only they and the Real Parties in Interest had access. In an afternoon Microsoft Teams call Wednesday, August 6, 2025, the purpose of which to discuss the mechanism for releasing funds under the TRO, Mr. Lee Hart of Nelson Mullens (at the time merely a partner of lead counsel Jacob Sparks, now admitted pro hac vice in the Eighth Division) expressly denied orally that the Real Parties in Interest had made any such withdrawal. The following day, however, he admitted in an E-mail the withdrawal had occurred and promised the Real Parties in Interest would return the funds by August 7, 2025 (they didn’t). See Exhibit 2. Accordingly, Relators made a disbursement request of $869,000 under the TRO. Exhibit 3.

On August 7, 2025, Mr. Hart revealed that not only had Real Parties in Interest removed the $507,000, they had actually paid it to third parties, and it would now “take a couple of days” to get it back. Although roughly $407,000 of the $869,000 did hit Silver Star’s account on August 7, 2025, the balance was not received until August 11, 2025 – a week after the TRO covering funds “currently” in the account was signed. In short, Relators’ initial prioritization was based on the good faith belief they would have $869,000 in rent collections for urgent operational expenses.

Relators understandably waited to make sure the Real Parties were actually going to return the roughly $507,000 taken after the TRO was signed, to ensure Relators would not have to re-prioritize a smaller amount. The TRO requires Relators to report payments made for operational expenses within five (5) days, so the remainder of expenses were accounted for today. Exhibit 4. 2 Finally, with respect to the issue of conferring, when the undersigned notified Real Parties’ lead counsel of the filing of the Petition for Writ of Mandamus yesterday and that an emergency motion for stay was coming, he received neither a reply nor a bounce-back E-mail indicating Mr. Sparks was out of the office. When the undersigned replied this morning in the same thread, he left the E-mail thread open so that if Mr. Sparks replied he would see it immediately. Seeing no reply, the undersigned filed the Emergency Motion this morning. Unfortunately, after filing the Emergency Motion and closing the E-mail thread, the undersigned did see after the fact that a bounce back had been received – just not in the same E-mail thread.

In his Declaration, Mr. Taylor makes clear he does not impugn the personal integrity of Mr. Brent Buyse, who signed the Affidavit in support of the Real Parties’ Opposition that omits these key facts. To the best of Mr. Taylor’s recollection, Mr. Buyse was not present in the meetings described above, nor does he appear to have been copied on the E-mails attached.

Even so, the point is moot because Relators had notice under TRAP 52(10) the motion was coming, and they were able to file an Opposition twenty-four (24) hours later, to which the Court has access before deciding the issue. Thus, the conference on whether they were agreed or opposed is moot. Relators request the stay pending this Court’s ruling on jurisdiction.

Respectfully submitted,

Walter L. Taylor State Bar No. 19727030 [email protected] TAYLOR LAW FIRM 6630 Colleyville Blvd, Suite 200 Colleyville, Texas 76034 Tel: (817) 770-4343 Tel: (512) 474-6600 Fax: (512) 474-6700 ATTORNEY FOR RELATORS CERTIFICATE OF SERVICE I hereby certify by my signature above that a true and correct copy of the foregoing document has this day been served via certified mail, return receipt requested, electronic service, facsimile or hand delivery in open court, upon the Real Parties in Interest and Respondent on this 16th day of August, 2025: Jacob Sparks Email: [email protected] Brent T. Buyse Email: [email protected] Xenna Davis Email: [email protected] NELSON MULLINS RILEY &SCARBOROUGH, LLP

Hon. Brian Stagner Judge Presiding Texas Business Court Eighth Division 1515 Commerce Street, Ste. 170 Fort Worth, TX 76102 [email protected]

EXHIBIT 1 No. 15-25-00136-CV ________________________________ In the Court of Appeals for the Fifteenth Judicial District ________________________________ In re: Silver Star Properties REIT, Inc., et al., Relators Original Proceeding from the Texas Business Court, Eighth Division, Fort Worth, Texas, Cause No. 25-BC08B-0016 Hon. Brian Stagner, Judge Presiding

DECLARATION OF WALTER L. TAYLOR

“My name is Walter L. Taylor, my date of birth is June 9, 1964. I am over the age of 18 years and am fully competent to make this declaration. My law firm’s address is 6630 Colleyville Blvd., Ste. 200, Colleyville, Texas 76034, USA. I am an attorney at Taylor Law Firm. I serve as counsel for Relators Silver Star Properties REIT, Inc., Silver Star CRE, LLC, Silver Star CRE II, LLC, and Silver Star Delray, LLC, in the above-captioned case. I declare under the penalty of perjury that the following is true and correct.

As shown in Appendix 4 to the Petition for Writ of Mandamus, the 48th Judicial District Court of Tarrant County signed and entered the August 4, 2025, Temporary Restraining Order at 4:35 p.m. Appendix 4. The TRO expressly requires all funds “currently” in three specifically designated accounts, plus any rent collections received in such accounts thereafter, to be released to the Silver Star Relators to pay operational expenses (up to a cap of $1.5 million). At or near the time Judge Taylor signed the TRO, Silver Star’s Chief Financial Officer – Lou T.

Fox, III, reviewed all three accounts and determined that at the time the TRO was signed the accounts held roughly $740,000. Approximately $129,000 in rent collections reached the account over the next two days.

On Tuesday, August 5, 2025, however, Relators learned roughly $507,000 had disappeared from their accounts – to which, upon information and belief, only they and the Real Parties in Interest had access. Wednesday afternoon, August 6, 2025, in a Microsoft Teams video call to discuss the mechanism for releasing funds

Declaration of Walter L. Taylor, p. 1 under the TRO, I asked counsel for the Real Parties in Interest to explain the withdrawal. Mr. Lee Hart of Nelson Mullens (a partner of lead counsel Jacob Sparks, now admitted pro hac vice in the Eighth Division) initially denied that the Real Parties in Interest had made any such withdrawal. The following day, however, Mr. Hart admitted in an E-mail the withdrawal had occurred and promised that the Real Parties in Interest would return the funds by August 7, 2025. See Exhibit 2.

Accordingly, Relators made a disbursement request of $869,000 under the TRO.

On August 7, 2025, Mr. Hart revealed that not only had Real Parties in Interest removed the $507,000, they had actually paid it to third parties, and it would now “take a couple of days” to get it back. Although roughly $407,000 of the $869,000 was returned account on August 7, 2025, the balance was not received until August 11, 2025 – a week after the TRO covering funds “currently” in the account was signed. Without my having to reveal privileged information, it should be clear from these facts that Relators’ initial prioritization of operational expenses was based on their good faith belief they would have $869,000 in rent collections for urgent operational expenses. Finding themselves roughly $507,000 short, it would certainly be understandable if Relators waited to make sure the Real Parties in Interest were actually going to return the approximately $507,000 taken by the Real Parties in Interest, to ensure Relators would not have to re-prioritize a smaller amount. The TRO requires Relators to report payments made for operational expenses within five (5) days, so the remainder of expenses were accounted for today. Exhibit 3. 1 This report was sent shortly after Real Parties in Interest filed their Opposition claiming bad faith on the part of Relators.

With respect to the issue of conferring on the Motion for Emergency Stay, when I notified Real Parties’ lead counsel of the filing of the Petition for Writ of Mandamus yesterday and that an emergency motion for stay was coming, I received neither a reply nor a bounce-back E-mail indicating Mr. Sparks was out of the office.

When I inquired about opposition this morning in the same E-mail thread, I left the E-mail thread open so that if Mr. Sparks replied I would see it immediately. Seeing no reply, I filed the Emergency Motion this morning. Unfortunately, after filing the Emergency Motion and closing the E-mail thread, I did see after the fact that a bounce back had been received – just not in the same E-mail thread I’d kept open.

Walter L. Taylor /s/ Walter L. Taylor I want to make clear it is not my intention to impugn the personal integrity of Mr. Brent Buyse, who signed the Affidavit in support of the Real Parties’ Opposition omitting these key facts. My recollection is that Mr. Buyse was not present in the meetings described above, nor does he appear to have been copied on any of the E-mails attached. ^_E_CE>ÿEGfÿHI S709,ÿeÿ]XHÿJbtÿO84=94Aÿ†6.ÿ 0123ÿ516278ÿ931627821 8   127  ÿÿ ÿ!"#ÿ$ %&&ÿ'()*ÿ+,--./01234-,56478,,945.:67; <-=>ÿ@8AÿB>ÿCDCEÿ02ÿFGCFÿHI J6Gÿ<0,2ÿJ0K,61ÿ+20K,61,0LM917=ML3A709,.:67;>ÿN68ÿO6Pÿ+,M6P359,Q-152011-92.:67; R:GÿS-10,=ÿT0==6:Uÿ+A-10,=359,Q-152011-92.:67;>ÿV0:6WÿXY01U5ÿ+Z0:6W.5Y01U534-,56478,,945.:67;>ÿR/-52-1ÿS18=[945U9 +:/-52-1359,Q-152011-92.:67; <0,2> ÿ <-\Q-ÿZ852ÿ5Y6U-4ÿL92/ÿ]-4-M92ÿX21--2.ÿÿJ/95ÿL92/=10L0,ÿL05ÿ58YY65-=ÿ26ÿ/0YY-4ÿ64ÿI64=0KÿW82ÿ=9=ÿ462 0:280,,KÿY16:-55ÿ8429,ÿJ8-5=0K>ÿ^_E.ÿÿ<-ÿ=6ÿ462ÿ0A1--ÿL92/ÿK681ÿ:/010:2-19[02964ÿ6Mÿ2/-ÿM0:25ÿ61ÿ2/-ÿ1-58,2 W-,6Lÿ04=ÿ1-5-1Q-ÿ19A/25ÿ64ÿ2/02ÿ̀94:,8=94A>ÿW82ÿ462ÿ,9792-=ÿ26>ÿ2/-ÿ942-4=-=ÿ5:6Y-ÿ6Mÿ2/-ÿ61=-1ÿWKÿ2/-ÿR6812 04=ÿ2/-ÿ0:280,ÿ297-ÿ6Mÿ925ÿ-MM-:29Q-4-55a.ÿÿJ/02ÿ462L92/5204=94A>ÿ94ÿA66=ÿM092/ÿ-MM612ÿ26ÿ:67Y,KÿL92/ÿL/02ÿ2/- 61=-1ÿ-Q-4280,,Kÿ509=>ÿL-ÿ/0Q-ÿ945218:2-=ÿ2/-ÿ5-1Q9:-1ÿ26ÿ1-Q-15-ÿ2/-ÿL92/=10L0,>ÿ04=ÿK68\,,ÿW-ÿ0W,-ÿ26ÿ5-- 2/65-ÿM84=5ÿ94ÿ2/-ÿ0::6842ÿ567-297-ÿ2676116Lÿ761494A. ÿ b-A01=94Aÿ2/-ÿ29794Aÿ6Mÿ2/-ÿL91->ÿ2/-ÿW04Uÿ/05ÿ462ÿL91-=ÿ26ÿ2/-ÿc052ÿ<-52ÿ]04Uÿ0::6842ÿ94ÿK681ÿ1-d8-52 ,-22-1ÿW-M61->ÿ04=ÿL-\1-ÿ26,=ÿ92ÿL9,,ÿ20U-ÿCefÿ=0K5ÿ26ÿ5-2ÿ8Yÿ0ÿ4-LÿW04Uÿ0::6842.ÿÿ<-ÿ:04ÿ-92/-1ÿ945218:2ÿ2/-7 A6ÿM61L01=ÿL92/ÿ2/02ÿ4-LÿW04Uÿ0::6842>ÿ61ÿL-ÿ:04ÿ85-ÿ2/-ÿW04Uÿ0::6842ÿ2/02ÿ]-4-M92ÿX21--2ÿ/05ÿ/952619:0,,K 85-=ÿL/-4ÿ=95W81594AÿM84=5>ÿL/9:/ÿL9,,ÿA-2ÿK68ÿ764-KÿM052-1.ÿÿN-2ÿ85ÿU46LÿL/9:/ÿ6Y2964ÿK68ÿ:/665-. ÿ N-- ghijklmÿklokÿpqmmlrs t4ÿ<-=>ÿ@8AÿB>ÿCDCEÿ02ÿfGfFuHIÿN68ÿO6Pÿ+vwxyz{|v}~{€~|€‚ƒx„;ÿL162-G ghijklmÿklokÿpqmmlrs

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Hí Automated Certificate of eService This automated certificate of service was created by the efiling system.

The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules.

Walter Taylor on behalf of Walter Taylor Bar No. 19727030 [email protected] Envelope ID: 104466128 Filing Code Description: Other Document Filing Description: 2025.08.16 Reply in Support of Motion for Emergency Stay Status as of 8/18/2025 7:15 AM CST Case Contacts Name BarNumber Email TimestampSubmitted Status Walter Taylor [email protected] 8/16/2025 7:47:30 AM SENT Walter Taylor [email protected] 8/16/2025 7:47:30 AM SENT Walter Taylor [email protected] 8/16/2025 7:47:30 AM SENT Walter Taylor [email protected] 8/16/2025 7:47:30 AM SENT Jacob Sparks [email protected] 8/16/2025 7:47:30 AM SENT Jacob Sparks [email protected] 8/16/2025 7:47:30 AM SENT Jacob Sparks [email protected] 8/16/2025 7:47:30 AM SENT Brent Buyse [email protected] 8/16/2025 7:47:30 AM SENT Brent Buyse [email protected] 8/16/2025 7:47:30 AM SENT Brent Buyse [email protected] 8/16/2025 7:47:30 AM SENT Xenna Davis [email protected] 8/16/2025 7:47:30 AM SENT Xenna Davis [email protected] 8/16/2025 7:47:30 AM SENT Xenna Davis [email protected] 8/16/2025 7:47:30 AM SENT Brian Stagner [email protected] 8/16/2025 7:47:30 AM SENT Jessica Cannon [email protected] 8/16/2025 7:47:30 AM SENT Mary Versfelt [email protected] 8/16/2025 7:47:30 AM SENT

Case-law data current through December 31, 2025. Source: CourtListener bulk data.