406 S.W.3d 609
Tex. App.2013Background
- J.B. Grand Canyon Dairy, L.P. conveyed a dairy to Jeff Whalen in 2007; Whalen operated it as JW Grand Canyon Dairy, LLC before completion.
- Whalen and J.B. executed a lease allowing operation of the dairy prior to purchase completion.
- Protocol Technologies, Inc. supplied cattle feed to Whalen; Whalen opened a Protocol credit account in May 2007 and paid through February 2008, then fell into arrears.
- Whalen issued a check for $8,211.22 in April 2008 to bring the account current, but payment was stopped; debt rose to $20,272.93 by Whalen’s bankruptcy.
- Protocol sued J.B. for the unpaid feed, alleging J.B. was liable due to Whalen’s control and use of the dairy name, and possible de facto partnership or agency.
- Trial court granted summary judgment for J.B. on Protocol’s equitable claims, while denying Protocol’s initial MSJ; on reconsideration, the court affirmed for J.B. on all issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether denial of Protocol's initial MSJ was proper | Protocol argues the court erred in not granting MSJ after the first hearing. | J.B. contends the grounds were not properly raised in writing and the order was correct. | Issue overruled; interlocutory denial cannot be reviewed on appeal. |
| Whether express contract bars quantum meruit and unjust enrichment | Protocol asserts no valid express contract existed to bar equitable claims. | J.B. asserts open-account/credit relationship constitutes an express contract precluding relief. | Issue sustained; express contract exists through open-account arrangement, barring equitable claims. |
| Whether Protocol proved agency/partnership/de facto partnership with Whalen | Protocol asserts de facto partnership/joint venture and agency by control and shared operations. | J.B. presented written disclaims of agency/partnership and evidence Whalen controlled operations. | Issue overruled; no agency or partnership; contracts disclaimed such relationship; no genuine fact issue raised. |
Key Cases Cited
- San Antonio Masonry & Tool Supply, Inc. v. Epstein & Sons International, Inc., 281 S.W.3d 441 (Tex. App.—San Antonio 2005) (open accounts can create an express contract barring quantum meruit)
- Ingram v. Deere, 288 S.W.3d 886 (Tex. 2009) (joint venture factors; no single factor controls formation)
- A & S Electrical Contractors, Inc. v. Fischer, 622 S.W.2d 601 (Tex. App.—Tyler 1981) (absence of genuine agency/partnership evidence; landlord-tenant relation insufficient for agency)
- Gaines v. Kelly, 235 S.W.3d 179 (Tex. 2007) (apparent authority must be based on principal's acts; communications to third party insufficient)
- Heldenfels Bros., Inc. v. City of Corpus Christi, 832 S.W.2d 39 (Tex. 1992) (elements of quantum meruit and unjust enrichment; implied contract theories)
