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E-Learning LLC v. AT & T Corp.
517 S.W.3d 849
Tex. App.
2017
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Background

  • BDG (E-Learning LLC, Grant Business Development Group, Roger and Judith Grant) alleges it performed work on AT&T’s IAS training project in 2013 after interactions with AT&T project manager Analisa Bishop and submitted a $158,000 proposal; AT&T refused payment claiming no contract or approval.
  • BDG relied on prior "Bishop projects" and a course of dealing in which BDG claims Bishop handled approvals and directed work; BDG began and partially completed work after submitting the proposal.
  • BDG sued for breach of contract (implied), quantum meruit, breach of fiduciary duty, negligent misrepresentation, fraud and fraud by nondisclosure; AT&T moved for traditional and no-evidence summary judgment.
  • The trial court sustained AT&T’s objections excluding Grant’s affidavit, a Training Material and Service Agreement, and BDG’s interrogatory answers, then granted AT&T summary judgment and denied BDG’s motions for new trial.
  • On appeal BDG challenged the evidentiary exclusions and the grant of summary judgment on each claim; the court reviewed sham-affidavit principles, rules on use of discovery responses, and no‑evidence and traditional summary judgment standards.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Admissibility of Grant’s affidavit Affidavit consistent with deposition; not a sham Affidavit contradicts deposition on material points; sham affidavit Excluded — affidavit materially contradicted deposition without explanation; trial court did not abuse discretion
Exclusion of Training Material & Service Agreement Document relevant to agreement and course of dealing Document irrelevant and unsigned Excluded — plaintiff failed to challenge all objection bases on appeal; complaint waived
Exclusion of BDG’s interrogatory answers Answers show factual issues on contract and reliance Discovery responses are self-serving and inadmissible to raise issues for the responding party Excluded — party cannot use its own interrogatory answers to create fact issues
Breach of contract (implied) Course of dealing and proposal show acceptance/mutual assent No evidence of acceptance; Grant admitted AT&T never agreed to accept proposal Summary judgment for AT&T affirmed — no-evidence on acceptance; traditional SJ also satisfied by deposition testimony negating acceptance
Quantum meruit BDG performed valuable services and AT&T accepted them; expected compensation No evidence BDG provided valuable services or that AT&T accepted them Summary judgment for AT&T affirmed — cited evidence insufficient to show valuable services/acceptance
Breach of fiduciary duty Bishop’s conduct created fiduciary relationship with BDG Relationship was arms-length; no special trust apart from the contract Summary judgment for AT&T affirmed — no evidence of pre-existing informal fiduciary relationship
Negligent misrepresentation BDG relied on AT&T/Bishop representations to its detriment No evidence of justifiable reliance Summary judgment for AT&T affirmed — reliance element unsupported (reliance evidence excluded)
Fraud by nondisclosure AT&T failed to disclose material facts (e.g., lack of approval, Bishop’s authority) No evidence of failure to disclose material facts or duty to disclose Summary judgment for AT&T affirmed — emails and record did not raise fact issue on nondisclosure

Key Cases Cited

  • Owens-Corning Fiberglas Corp. v. Malone, 972 S.W.2d 35 (Tex. 1998) (abuse-of-discretion standard for evidentiary rulings on summary judgment evidence)
  • Cire v. Cummings, 134 S.W.3d 835 (Tex. 2004) (abuse-of-discretion review scope)
  • First State Bank of Mesquite v. Bellinger & Dewolf, LLP, 342 S.W.3d 142 (Tex. App.-El Paso 2011) (sham affidavit doctrine applied where affidavit contradicted deposition)
  • Cantu v. Peacher, 53 S.W.3d 5 (Tex. App.-San Antonio 2001) (distinguishing variations on a theme from material contradictions between deposition and affidavit)
  • Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844 (Tex. 2009) (summary judgment review — view evidence favoring nonmovant)
  • Frost Nat’l Bank v. Fernandez, 315 S.W.3d 494 (Tex. 2010) (defendant may conclusively negate an essential element to obtain summary judgment)
  • Heldenfels Bros., Inc. v. City of Corpus Christi, 832 S.W.2d 39 (Tex. 1992) (elements of quantum meruit)
  • McCamish, Martin, Brown & Loeffler v. F.E. Appling Interests, 991 S.W.2d 787 (Tex. 1999) (elements of negligent misrepresentation)
  • Schlumberger Tech. Corp. v. Swanson, 959 S.W.2d 171 (Tex. 1997) (arms-length transactions do not create fiduciary duties)
  • Meyer v. Cathey, 167 S.W.3d 327 (Tex. 2005) (informal fiduciary relationship must exist apart from the agreement)
Read the full case

Case Details

Case Name: E-Learning LLC v. AT & T Corp.
Court Name: Court of Appeals of Texas
Date Published: Mar 1, 2017
Citation: 517 S.W.3d 849
Docket Number: No. 04-16-00291-CV
Court Abbreviation: Tex. App.