Psalm 9:1 Wells Family, LLC v. Michael D. Cour and 183 Ranch Corporation D/B/A Equicare
09-19-00459-CV
Tex. App.Mar 10, 2022Background
- In Nov. 2017 Michael Cour signed a $12,000 promissory note for “short-term financing of Equicare improvements”; the note identifies the "Borrower" as "Michael Cour" and Cour’s signature contains no officer or corporate-capacity notation.
- Equicare is a trade name used by 183 Ranch Corporation, and the loan proceeds were used on property owned by 183 Ranch.
- An amendment to the note (executed at Psalm’s request) likewise identifies the Borrower as "Michael Cour" and was signed by Cour individually.
- Psalm sued Cour and 183 Ranch after sending a demand letter; Cour later signed an agreed partial judgment resolving Psalm’s claim against him but reserving any claim against 183 Ranch.
- At trial the court conducted a bench proceeding on Psalm’s remaining claim against 183 Ranch; Psalm presented testimony (Mathew Wells) claiming an expectation that Cour could bind 183 Ranch but produced no evidence Cour signed in a representative capacity.
- The trial court found the note unambiguous, held only Cour liable, rendered a take-nothing judgment against 183 Ranch, and this appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1. Did the trial court lack power to dismiss Psalm’s claim sua sponte? | Trial court dismissed without a dispositive motion; plaintiff deprived of jury trial. | Court adjudicated on the merits after Psalm invited a bench proceeding and presented evidence; no sua sponte dismissal. | Overruled — not a sua sponte dismissal; Psalm invited bench trial; invited-error and preservation rules apply. |
| 2. Is 183 Ranch jointly liable on the note though only Cour signed? | Evidence supports a fact issue that Cour signed in dual (individual + president) capacity, making 183 Ranch liable. | Note unambiguously names only "Michael Cour" as Borrower; no written modification making 183 Ranch a party. | Overruled — note unambiguous; only Cour is obligor; court will not insert language to make 183 Ranch a borrower. |
| 3. Was the note ambiguous (allowing extrinsic/parol evidence to show representative signing)? | Note ambiguous; extrinsic evidence should be admitted to show intent and dual signing capacity. | Note and amendment unambiguously name Cour; parol evidence barred; no written agreement to modify. | Overruled — court found the note unambiguous; parol evidence inapplicable; no error in excluding additional extrinsic relief. |
Key Cases Cited
- Sundown Energy LP v. HJSA No. 3, Ltd., P’ship, 622 S.W.3d 884 (Tex. 2021) (contract construction is a legal question reviewed de novo).
- Barrow-Shaver Res. Co. v. Carrizo Oil & Gas, Inc., 590 S.W.3d 471 (Tex. 2019) (parol evidence rule bars evidence that contradicts or adds to an unambiguous written agreement).
- Tittizer v. Union Gas Corp., 171 S.W.3d 857 (Tex. 2005) (invited-error doctrine bars complaining about a procedure the party requested).
- Fortis Benefits v. Cantu, 234 S.W.3d 642 (Tex. 2007) (courts will not rewrite clear contract terms by inserting language not agreed to).
- Tex. v. Rideaux, 838 S.W.2d 340 (Tex. App.—Houston [1st Dist.] 1992, no writ) (bench adjudication on the merits is not the same as a sua sponte dismissal).
