Background
ARH Pellicano, LLC appealed a judgment from the 41st District Court in El Paso County, Texas. The underlying case was originally filed as trial court number 2021DCV4383 and was later severed and reassigned as case number 2025DCV1958. The trial court issued an order on October 18, 2024, which became final after the trial court entered a severance order on April 29, 2025.
During the appellate process, the parties notified the court that they had reached a settlement and jointly moved to vacate the trial court’s judgment and remand the case for entry of judgment in accordance with their agreement.
The Court’s Holding
The Texas Court of Appeals, Eighth District, granted the parties’ joint motion to vacate. The court set aside the trial court’s October 18, 2024 order without regard to the merits and remanded the case to the trial court.
The remand directs the trial court to enter judgment in accordance with the parties’ settlement agreement. This action was taken pursuant to Texas Rule of Appellate Procedure 42.1(a)(2)(B), which governs vacation of judgment in settled cases on appeal.
Key Takeaways
- The parties reached settlement during the appellate process, resulting in vacation of the trial court judgment.
- The appellate court vacated the October 18, 2024 order without addressing the merits of the appeal.
- The case was remanded solely to allow the trial court to enter judgment memorializing the settlement agreement.
- Texas appellate procedure permits this streamlined resolution when parties settle during appeal.
Why It Matters
This decision illustrates the procedural mechanism for resolving appeals through settlement. When parties reach agreement after a trial court judgment but during appeal, Texas rules allow the appellate court to vacate the original judgment and remand for entry of settlement judgment, ensuring the parties’ negotiated resolution is properly reflected in the trial court record.
Such outcomes are common in appellate practice and allow parties to avoid the time and expense of full appellate review when they have resolved their differences through negotiation.