Khiem H. Trinh v. Central River Healthcare Group, P.L.L.C. and Loann T. Trinh
03-19-00393-CV
Tex. App.Jun 9, 2021Background
- Central River Healthcare Group (CRHG) founded 2003; siblings Khiem H. Trinh (plaintiff) and Loann T. Trinh (defendant) were managers; relationship deteriorated by 2010 and suit filed in 2015 alleging breach of contract and breach of fiduciary duty among other claims.
- Trial evidence included testimony from Khiem, Loann, and their father (deposition), plus texts, emails, and business/tax records indicating profit allocations (generally 95% to Loann, 5% to Khiem; one year 50/50) and significant monetary contributions by family members.
- Key dispute 1: whether Loann and CRHG agreed to pay Khiem an annual salary (~$110–$120k) — some testimony and a deposition suggested a proposal; Loann denied any agreement and explained deposition testimony may have been suggestion-affected.
- Key dispute 2: whether Loann complied with fiduciary duties to Khiem — Khiem argued Loann benefited while he bore tax burdens and contributed funds; Loann pointed to evidence that Khiem relinquished interest in the business and that tax allocations were based on returns prepared with his participation.
- The jury answered No to Question 1 (no salary agreement) and Yes to Question 4 (Loann complied with fiduciary duty); the trial court rendered a take-nothing judgment and this appeal challenges the factual sufficiency of those findings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of an agreement to pay Khiem an annual salary | Testimony (deposition, father, sister) that Loann proposed ~$110–$120k | Loann denied any agreement, deposition memory refreshed by suggestion, proposal ≠ mutual agreement; witnesses impeached | Jury’s finding of no agreement affirmed — evidence not against great weight of the evidence |
| Whether Loann complied with fiduciary duty to Khiem | Loann benefited while Khiem contributed money and paid tax on profits, receiving nothing in return | No proof Loann “required” tax allocations; Khiem participated in tax filings; evidence that Khiem forfeited ownership/management interests | Jury’s finding that Loann complied affirmed — supporting evidence not so weak as to make verdict manifestly unjust |
Key Cases Cited
- Ortiz v. Jones, 917 S.W.2d 770 (Tex. 1996) (factual-sufficiency review requires weighing all evidence)
- Golden Eagle Archery, Inc. v. Jackson, 116 S.W.3d 757 (Tex. 2003) (jury is sole judge of witness credibility and evidence weight)
- Dow Chem. Co. v. Francis, 46 S.W.3d 237 (Tex. 2001) (plaintiff must show adverse jury finding is against great weight and preponderance to prevail on factual-sufficiency challenge)
- McAllen Hosps., L.P. v. Lopez, 576 S.W.3d 389 (Tex. 2019) (proposal alone does not establish mutual agreement required for contract)
- Cain v. Bain, 709 S.W.2d 175 (Tex. 1986) (verdict will not be set aside unless contrary to overwhelming evidence)
- Osterberg v. Peca, 12 S.W.3d 31 (Tex. 2000) (jury charge governs sufficiency review when no party objects)
- City of Austin v. Chandler, 428 S.W.3d 398 (Tex. App.—Austin 2014) (standard when verdict rests on a party’s burden: evidence so weak that verdict is clearly wrong and manifestly unjust)
- Ellis Cnty. State Bank v. Keever, 888 S.W.2d 790 (Tex. 1994) (appellate court need not detail sufficiency when affirming jury verdict)
