West v. Proctor
353 S.W.3d 558
Tex. App.2011Background
- West and Hamilton had a long-standing fiduciary relationship; Hamilton brokered a salt-water lease on West’s property and sought a substantial fee.
- Disagreement existed over Hamilton’s compensation—West believed 15% of the first royalty; Hamilton believed 1/3 of all royalties.
- West signed the Panhandle Brine salt-water lease on November 17, 1999, trusting Hamilton; she did not read the contract at signing.
- The lease provided Hamilton a 1/3 share of monthly royalties, contrary to West’s understanding of a one-time 15% of the first royalty payment.
- West learned of the contract terms and discovered potential fiduciary breaches years later, filing suit in May 2006 after discovery.
- The trial court granted summary judgment on limitations; the Amarillo Court of Appeals reversed on some related issues and ultimately affirmed the trial court’s judgment unfavorable to West.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Limitations accrual and discovery rule applicability | West argues discovery rule defers accrual; fraudulent concealment and discovery rule support delay | Proctor contends discovery rule does not apply or was waived; limitations bar suits | The court held limitations barred; discovery rule not supported for timely accrual (discovery rule not proven) |
| Proctor's individual liability capacity | West asserts Proctor liable individually due to failure to deny capacity | Proctor lacked evidence for individual liability; no verified denial of capacity | Proctor not liable in her individual capacity; no evidentiary basis for such submission |
Key Cases Cited
- S.V. v. R.V., 933 S.W.2d 1 (Tex. 1996) (legal injury rule and discovery rule concepts discussed)
- Advent Trust Co. v. Hyder, 12 S.W.3d 534 (Tex.App.-San Antonio 1999) (discovery rule; deferred accrual)
- Wright v. Greenberg, 2 S.W.3d 666 (Tex.App.-Houston 14th Dist. 1999) (fraudulent concealment elements; discovery rule)
- Willis v. Maverick, 760 S.W.2d 642 (Tex. 1988) (fiduciary relationship; undiscoverable misconduct)
- S.V. v. R.V., 933 S.W.2d 1 (Tex. 1996) ((duplicate reference for context))
- Hudson v. Wakefield, 711 S.W.2d 628 (Tex. 1986) (law of case and discovery burden distinctions)
- Murphy v. Campbell, 964 S.W.2d 265 (Tex. 1997) (accrual and discovery rule principles)
- City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (standard for legal sufficiency review; discovery rule context)
- Cropper v. Caterpillar Tractor Co., 754 S.W.2d 646 (Tex. 1988) (great weight standard; sufficiency review)
- Canal Ins. Co. v. Hopkins, 238 S.W.3d 549 (Tex. App.-Tyler 2007) (affirmative defenses; burden of proof on limitations)
