Bank of Texas, N.A. v. Clint M. Glenny, II
2013 Tex. App. LEXIS 7423
| Tex. App. | 2013Background
- In 2008 Lantrip obtained a $1.9 million loan secured by a deed of trust to build a Dallas house.
- Lantrip’s loan application relied on income/assets verifications, including a Ravkind verification indicating Lantrip held two trust accounts totaling about $1.2 million.
- Two Letters on Glenny’s letterhead purportedly verified Lantrip’s employment and trust accounts; they stated Lantrip’s business status and access to trust funds.
- There is conflicting evidence about who prepared and signed the Letters; Glenny denied signing and claimed a paralegal did, while Kim Wiley claimed she signed Glenny’s name with his approval.
- Bank of Texas sued Glenny for negligent misrepresentation about Lantrip’s finances; the trial court granted summary judgment for Glenny; the Bank appeals asserting genuine issues of material fact and reversible error.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Scope of employment and signing authority | Bank argues letters were within Glenny’s employees’ scope | Glenny contends letters signed outside scope and not authorized | Genuine issues of material fact on scope; summary judgment incorrect |
| Economic loss rule applicability | Bank asserts rule does not bar negligent misrepresentation between strangers | Glenny contends economic loss rule bars recovery | Rule does not bar under these circumstances; issues remain material fact相关 |
| Justifiable reliance | Bank shows reliance by Normile on the Letters | Glenny shows no independent basis for reliance and no red flags | Genuine issues of material fact on justifiable reliance; summary judgment improper |
Key Cases Cited
- GTE S. & N. W. Co. v. Bruce, 998 S.W.2d 605 (Tex. 1999) (employer liable for employee torts in scope of employment)
- Minyard Food Stores, Inc. v. Goodman, 80 S.W.3d 573 (Tex. 2002) (scope of employment and general authority standards)
- Goodyear Tire & Rubber Co. v. Mayes, 236 S.W.3d 754 (Tex. 2007) (scope of employment standard aligns with general authority)
- G.T. Mgmt., Inc. v. Gonzalez, 106 S.W.3d 880 (Tex. App.—Dallas 2003) (employer liability for acts within general authority even if contrary to orders)
- Hedley Feedlot, Inc. v. Weatherly Trust, 855 S.W.2d 826 (Tex. App.—Amarillo 1993) (employer liability for employee acts within general authority)
- Campbell v. Hamilton, 632 S.W.2d 633 (Tex. App.—Dallas 1982) (employer liability for fraud-based misrepresentations by employees in scope of duty)
- Sharyland Water Supply Corp. v. City of Alton, 354 S.W.3d 407 (Tex. 2011) (economic loss rule between contractual strangers not absolute)
- Grant Thornton LLP v. Prospect High Income Fund, 314 S.W.3d 913 (Tex. 2010) (justifiable reliance; factors for disputed reliance)