Richard Owen Taylor v. Medtox Diagnostic, Inc., Medtox Scientific, Inc., and Medtox Laboratories, Inc.
06-17-00032-CV
| Tex. App. | Oct 26, 2017Background
- Richard Owen Taylor, serving a 40-year sentence, tested positive for opiates on a prison-administered Sure-Screen drug test in November 2011; TDCJ disciplined him and forfeited good-time credit.
- Taylor exhausted administrative remedies and sued Medtox entities (manufacturer/distributor of the Sure-Screen device) alleging negligence, fraudulent nondisclosure, and fraudulent misrepresentation about the device’s accuracy and SAMHSA compliance.
- Medtox moved for traditional and no-evidence summary judgment addressing only Taylor’s negligence theories; the motion did not expressly challenge the fraud and misrepresentation claims.
- The trial court granted summary judgment for Medtox on all claims and ordered Taylor take nothing; Taylor appealed only the denial as to his fraud-by-nondisclosure and fraudulent misrepresentation claims (he waived contesting the negligence rulings).
- The court analyzed whether granting summary judgment on claims not covered by the motion was harmless under the limited exception when omitted causes are precluded as a matter of law, focusing on whether Taylor could recover on the unaddressed fraud claims given his pleadings and the summary-judgment record.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trial court erred by granting summary judgment on Taylor’s fraud-by-nondisclosure claim when Medtox’s motion targeted only negligence | Taylor: Medtox did not challenge fraud claims; court may not grant summary judgment on unraised grounds | Medtox: Even if not raised, the negligence showing negates recovery or the fraud claims are precluded as a matter of law | Court: No reversible error because Taylor’s own pleadings (judicial admissions) preclude reliance/inducement needed for nondisclosure; error was harmless |
| Whether trial court erred by granting summary judgment on fraudulent misrepresentation claim though not challenged in motion | Taylor: Misrepresentation claims remain; negligence motion didn’t address them | Medtox: Taylor cannot recover on misrepresentation because he did not purchase or receive the product or rely on package inserts | Court: Taylor could not have relied on the package insert (he never had it); thus he cannot recover and the summary-judgment error was harmless |
| Whether omitted causes can be affirmed when not argued in motion for summary judgment | Taylor: Rule 166a(c) prohibits granting on unasserted grounds | Medtox: Exception—if a ground proved/disproved in motion precludes omitted claims as a matter of law, affirmance is allowed | Court: Applies the narrow exception; affirmation permitted only because elements common to omitted claims made recovery impossible given Taylor’s pleadings |
| Whether Taylor’s pleadings operate as judicial admissions defeating his fraud claims | Taylor: Facts alleged were for all counts; still disputes fraud claims | Medtox: Pleadings admit no contractual relationship and that Sure-Screen is not sold over the counter—these admissions defeat reliance/inducement elements | Court: Treats those allegations as judicial admissions; they conclusively establish that Taylor could not have relied on the product literature, defeating fraud claims |
Key Cases Cited
- Nall v. Plunkett, 404 S.W.3d 552 (Tex. 2013) (summary-judgment grant reviewed de novo)
- KCM Fin. LLC v. Bradshaw, 457 S.W.3d 70 (Tex. 2015) (defendant in traditional motion must conclusively negate an element of plaintiff’s claim)
- G & H Towing Co. v. Magee, 347 S.W.3d 293 (Tex. 2011) (general rule: summary judgment reversible if granted on unraised claims, but narrow harmlessness exception exists)
- Withrow v. State Farm Lloyds, 990 S.W.2d 432 (Tex. App.—Texarkana 1999) (affirming summary judgment when omitted cause precluded as a matter of law)
- Wilson v. Davis, 305 S.W.3d 57 (Tex. App.—Houston [1st Dist.] 2009) (narrow fit required to apply exception for unaddressed claims)
- T.O. Stanley Boot Co. v. Bank of El Paso, 847 S.W.2d 218 (Tex. 1992) (elements of fraudulent misrepresentation)
- Formosa Plastics Corp. USA v. Presidio Eng’rs & Contractors, Inc., 960 S.W.2d 41 (Tex. 1998) (measures of damages for common-law fraud)
