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Robert Tyson, Carl and Kathy Taylor, Linda and Ron Tetrick, Jim and Nancy Wescott, and Paul and Ruthe Wilson v. Demar Boren and Lorena Yates
04-14-00824-CV
| Tex. App. | Feb 24, 2015
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Background:

  • Plaintiffs were elderly lifetime-lease residents of a Texas senior community (originally "Las Aves Retreat," later "El Viaje"); they paid lump-sum sums and low annual fees and alleged reliance on managers and Freeman, an attorney/owner
  • Plaintiffs sued individual managers (Boren and Yeates), Freeman, and related entities for DTPA violations, common-law and statutory fraud, fraudulent inducement, negligent misrepresentation, negligence, and gross negligence after their leases were rejected in bankruptcy and recharacterized as tenancies at will
  • Bankruptcy court held the lifetime leases unenforceable; Plaintiffs received termination notices and alleged loss of life savings and other damages
  • At the district-court summary-judgment hearing, defendants moved to exclude Plaintiffs’ summary-judgment evidence as unauthenticated and sought summary judgment; the court ruled to exclude Plaintiffs’ evidence
  • The district court granted summary judgment to the individual defendants, severed the individual-defendant claims, and denied Plaintiffs’ motion for rehearing and opportunity to cure

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
1. Exclusion of plaintiffs’ summary-judgment evidence Boyd: evidence (deposition excerpts, bankruptcy transcript, attorney letter) was admissible; exclusion was legal error Mosty: excerpts and documents were unauthenticated and thus inadmissible Trial court excluded Plaintiffs’ evidence (leading to dismissal of opposition)
2. Summary judgment granted before discovery complete Boyd: summary judgment was premature; Freeman’s deposition and other discovery were critical Defs: argued discovery was adequate and motion ripe Trial court granted summary judgment to individual defendants despite Plaintiffs’ contention discovery was incomplete
3. Denial of motion for opportunity to remedy / rehearing Boyd: court should have allowed cure/rehearing (TRCP 166a(f)); McConathy squarely allows use of deposition excerpts Defs: maintained prior rulings and objections Trial court denied Plaintiffs’ motion for rehearing and opportunity to amend evidence
4. Severance of individual-defendant claims Boyd: severance was improper and prejudicial because individual claims were interwoven with corporate claims and would impose financial hardship on Plaintiffs Defs: sought severance (procedural tactic to permit immediate appeals) Trial court granted severance of individual defendants, making those judgments immediately appealable

Key Cases Cited

  • McConathy v. McConathy, 869 S.W.2d 341 (Tex. 1994) (Supreme Court held certain deposition excerpts may be considered despite prior contrary authority on authentication)
  • Dubois v. Harris County, 866 S.W.2d 787 (Tex. App. 1993) (court relied on this pre-McConathy authority to challenge admissibility of deposition excerpts)
  • Perry v. Houston Indep. Sch. Dist., 902 S.W.2d 544 (Tex. App. 1995) (nonmovant may use movant’s own discovery responses against the movant)
  • Leyendecker & Assocs. v. Wechter, 683 S.W.2d 369 (Tex. 1984) (corporate agents can be personally liable for tortious acts committed in scope of employment)
  • Kingston v. Helm, 82 S.W.3d 755 (Tex. App. 2002) (discusses agent liability and related principles)
  • Castleberry v. Branscum, 721 S.W.2d 270 (Tex. 1986) (standards on veil-piercing and when corporate form does not shield individual liability)
  • State Dep’t of Highways & Pub. Transp. v. Cotner, 845 S.W.2d 818 (Tex. 1993) (severance standard: when claims are separable and whether severance furthers administration of justice)
Read the full case

Case Details

Case Name: Robert Tyson, Carl and Kathy Taylor, Linda and Ron Tetrick, Jim and Nancy Wescott, and Paul and Ruthe Wilson v. Demar Boren and Lorena Yates
Court Name: Court of Appeals of Texas
Date Published: Feb 24, 2015
Docket Number: 04-14-00824-CV
Court Abbreviation: Tex. App.