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Southwestern Bell Media, Inc. v. Lyles
825 S.W.2d 488
Tex. App.
1992
Check Treatment

*1 488 defendant,

adjudication contradictory positions in that title rest a taken in the same plaintiff proceeding; when the fails to establish his own play only it is called into in a Franzetti, Devitt, Franzetti v. title. action. Estate subsequent S.W.2d 195, 1939, (Tex.Civ.App. 198-99 601, 1988, (Tex.App. S.W.2d — Austin — Amarillo ref’d). writ denied). estoppel writ is Judicial not estab any lished the absence evidence that The trial court held that did Wells averment, estoppel on which a claim of prove the chain of title on which he based, is was made the course of other relied. In the of a statement of absence judicial proceedings. Balaban, facts, presume we must sufficient evidence at 778. was introduced to the trial court’s findings of fact and conclusions of law. There is no indication the record be- Ward, 157; 111 S.W.2d at Men’s Wear statements, fore us that the sworn house, Thus, 682 S.W.2d at 430. the effect judicial which Wells his claim of es- bases having of Wells failed to establish own toppel, were received into evidence title, defendant, Maxey, was to as vest a proceeding they during or that were made Having with title to Block 9. failed to Thus, prior judicial proceeding. a Wells title, his own establish Wells cannot now requisite has failed to establish the ele- appeal. Hejl, complain 343 S.W.2d at judicial estoppel. ments of 226. point third of error is overruled. Wells’ point Wells’ first of error is overruled. judgment is affirmed. estoppel 5. Judicial error, point

In his third Wells Maxey

asserts that “swore himself out of argument

court.” The crux of his is that

Maxey estopped claiming is judicially from property in his name. Wells contends interroga

that an affidavit and answers to tories, special exceptions referred to in MEDIA, BELL SOUTHWESTERN summary judgment a motion filed INC., Appellant, Wells, judi constitute sufficient evidence of estoppel. Apparently, argues cial Wells v.

these sworn statements indicate that Max- LYLES, Appellee. Vernon P. ey “family that his is the asserted owner of No. 01-90-00848-CV. the Collins Tract Addition.” Because a trespass try brought title suit must be Texas, Appeals of Court of interest, party the real Wells con (1st Dist.). Houston Maxey, having tends that asserted that his family party is the real in interest with 1992. Feb. respect judicially to Block is now es- Rehearing Denied March

topped maintaining proper a claim in trespass try disagree. title. We judicial the doctrine of

Under

estoppel, party estopped merely by having alleged

fact or admitted in his prior proceeding in a under

pleadings,

oath, position contrary to the assertion Knox, Long v.

sought made. Bala (1956);

Tex. Balaban, (Tex.

ban v.

App. writ ref’d [1st Dist.] — Houston n.r.e.). estoppel apply Judicial does

disputed advertising, account for old mis- representing application money, its excluding his advertisements from the Pages. 1988 Yellow 25, 1990, trial, May after a bench On signed judgment, supported by court law, findings of fact and conclusions of granting parties. judge relief to both damages awarded to Southwestern Bell on that, its collection suit after a credit to contract, Lyles for amounted to breach of *4 $21,000. judgment The court also entered $100,000 in favor of for on his DTPA $20,000 judge counterclaim. awarded attorney’s in fees to and Southwestern Bell $25,000 attorney’s pro- in fees to and attorney’s vided for a scaled award of fees awards, appeal. offsetting After pay the court ordered Southwestern Bell to $78,395.91. We affirm. eight points Southwestern Bell raises points through In error. one four it con- in failing tends that the trial court erred Lyles’ hold that counterclaim was barred applicable statute In of limitations. five, point questions Bell Southwestern legal sufficiency both the and factual support finding the evidence to the court’s Associates, P.C., Wells, Wells & D. Brent alleged misrepre- that Southwestern Bell’s Houston, McElvaney, Deborah Heaton for producing sentation was cause of appellant. Lyles’ damages. chal- Points six and seven Kinser, Kovich, James G. Michael P. lenge the trial court’s of DTPA dam- award Dubose, Houston, Kevin appellee. for ages Lyles’ expert and the admission of testimony damage point on the In issue. TREVATHAN, C.J., Before and eight, Southwestern Bell in the claims error O’CONNOR, DUGGAN and JJ. attorney’s court’s award of fees. against Lyles, Bell’s suit Southwestern OPINION July grounded in filed its DUGGAN, agree- claim that Justice. breached two directory advertising ments for in the 1986 Media, Inc., Bell Southwestern sued Ver- Pages by failing pay and 1987 Yellow Lyles, non Bonding owner of Freedom Bail Alternatively, for the ads. Southwestern Company, seeking alleg- to collect balances $59,830.59 sought damages, includ- edly advertising purchased by Lyles due on ing accounts, interest, the balance on the Pages. Lyles the 1986 and 1987 Yellow costs, attorney’s fees on the basis of asserting counterclaimed that Southwest- quantum meruit. ern Bell had breached its contracts with him Deceptive April general and had violated the Trade In amended (DTPA)1 counterclaim, Practices-Consumer Act ac- denial to add a the basis for cepting money (1) contract, payment intended as for which was two-fold: breach of advertising, applying money negligence, arising new to a and/or fraud from (Ver- 1987). seq. 17.41 § et non 1. Tex.Bus. & Com.Code Ann. ceptive practices provide Bell’s failure to ad- trade actionable under

Southwestern DTPA; vertising agreed as in the 1986 and services Pages, (2) violations of the Yellow (3)Lyles reasonably could not have dis- arising DTPA Bell’s deceptive practices these trade covered alleged misrepresentations 8, 1988, which, therefore, several prior May Lyles, particularly misrepresentation began its was the date limitations to run on obtaining ostensibly deposit his counterclaim. directory advertising for the 1988 Yellow the counterclaim The court concluded that Pages, applying deposit to the balance timely filed. accounts, 1986 and 1987 and ex- Southwestern Bell contends the trial

cluding his from the 1988 advertisement court erred as a matter of law directory. sought Lyles also mental an- holding. Specifically, Southwestern Bell guish damages exemplary damages. claims there is no evidence to year Southwestern Bell asserted the two apply two-year court’s failure to trial the DTPA statute of limitations as a bar to limitations; statute of evidence provides act as counterclaim. The follows conclusively application established the part: in relevant limitations; legally and that the evidence *5 factually support

Section 17.565. and insufficient the application discovery of the rule. subchap- brought All actions under this years ter must commenced within two plea in discovery The rule is a false, after the date on which the mis- confession and avoidance. v. Woods Wil leading, deceptive practice Mercer, Inc., 515, or act or oc- liam M. 769 S.W.2d (Tex.1988). words, years curred or within two after the con- In other assertion of sumer or in the exercise of discovered the rule does not involve claim that the diligence reasonable should have discov- the statute of limita suit is not barred false, Instead, plaintiff pleads mislead- the who the ered the occurrence of the tions. practice. discovery effectively admits that limi ing, deceptive or act or rule apply except for some cir tations would (Ver- 17.565 § Ann. Tex.Bus. & Com.Code cumstance, inability to discover the mis Supp.1991). non did, representation sooner than he which parties agreed alleged All the mis- tolling of justifies the court the statute representations, any, if were made on De- 517; Woods, 769 S.W.2d at limitations. 9, 1987, date tendered cember the 642, Maverick, 760 S.W.2d 644-45 Willis v. accepted and the Southwestern (Tex.1988). Lyles’ counterclaim filed some check. provides discovery rule date, 16, April 28 months after that runs from the the statute of limitations However, applying discovery 1990. the or, plaintiff in the exer date the discovered rule, the trial court found that the counter- diligence, should have cise of reasonable Spe- limitations. claim was not barred injury the suf the nature of discovered cifically, following the the trial court found Willis, at 646. Under fered. 760 S.W.2d facts: DTPA, begins of limitations the the statute (1) On December deceptive practice act or to run when the misrepresentations Bell made a series of concealed, or, deception if occurs the concerning the of status plaintiff, in the exercise of rea when the existing ability account and obtain diligence, should have discovered sonable advertising in the 1988 Yellow future misrepresentation the occurrence of the Pages; Woods, complaint. made the basis of the 517; Wills, (2) v. misrepresen- the nature of the 769 S.W.2d at Black Given no long-standing (Tex.App. the commercial tations and S.W.2d — Dallas writ). imposes duty on the relationship Southwestern Bell The rule between diligence to misrepresentations plaintiff reasonable Lyles, the to exercise negligence or false, misleading, the facts of the and de- discover amounted to Willis, 1990, writ). omission. 760 S.W.2d at 646. The If any there is [14th Dist.] plaintiff probative date the discovered or should support have evidence of force in misrepresentation ques finding, discovered the is a challenge the no evidence must Willis, 647; Zieben, tion of fact. at S.W.2d be overruled. 786 S.W.2d at 799. Black, 758 at challenge sufficiency 816.2 A to the factual requires the evidence us to consider the that, agree appellant We with for the but support evidence contrary both application trial court’s discovery challenged finding. may set aside We rule, Lyles’ counterclaim would have been finding only if the evidence so is weak by the statute of barred limitations as a finding against great or the is so simple matter of A law. mathematical cal- weight preponderance of the evidence conclusively expira- culation establishes clearly wrong unjust. as to be Garza statutorily two-year tion of the mandated Alviar, (Tex.1965); v. period limitations to be December Zieben, 786 S.W.2d at 799. Therefore, propriety Furthermore, trial, in a bench application court’s discovery of the rule is court, fact-finder, trial as judge is the sole the threshold issue before us. If the dis credibility may of the witnesses. He covery properly applied, rule was then the take into consideration all the facts and court’s failure to hold the claim was time surrounding circumstances connection If, proper. barred was also on the other testimony with the of each witness and hand, contends, as Southwestern Bell there accept reject part or all any or of that was no or evidence insufficient evidence to testimony. Valencia, 895; 765 S.W.2d at application discovery Electro-Hydraulics Corp. Special v. rule, the apply court’s failure to the statute Equip. Inc., Eng’rs, 386-87 of limitations would be error. Accordingly, *6 ( Tex.Civ.App. 1967, writ ref’d legal we consider the and factual sufficien — Waco n.r.e.). cy of the support evidence to the trial finding Lyles court’s that reasonably could Lyles testified that he did realize that not have discovered misrepresentations the his being advertisement was excluded from 8,May before 1988. 8, 1988, the directory May 1988 until 7 or when he was told that the book was closed appellate standard of review Thus, and his ad was not included. the applied to a trial court’s findings of fact is trial court Lyles, had to decide whether applied the same as that jury’s to a verdict. diligence, the exercise of should reasonable Theatres, Inc., See Brown v. Frontier 369 have known prior about his exclusion to (Tex.1963); 301 Valencia v. that date. Garza, 765 S.W.2d 896 (Tex.App. — San 1989, writ). Antonio A no Lyles evidence chal testified that on December lenge requires us to only review the evi he met representatives with two sales of dence and reasonable inferences from the purposes Southwestern Bell for the of re- evidence that finding, tend to solving problems the continuing the he had had disregarding all evidence and inferences to past Pages advertising with Yellow the contrary. City assuring Davis v. Anto place directory. San in the 1988 nio, (Tex.1988); Merrell, 752 S.W.2d 522 long Jim a time business associate Brown, 301; Platt, 369 S.W.2d at Lyles Zieben v. and advisor of who attended that (Tex.App. observer, 799 meeting Lyles as an that testified — Houston discovery rejected Successful assertion of the rule does businesses had been on the basis of depend upon plaintiffs any magic the use of unfavorable information received from Credit phrases Willis, testimony. Services); words or in his or her See Bureau see also 760 S.W.2d at Rinkle, (Tex. 1976) Kelley v. (plaintiff partition ‘believed” a suit was (plaintiff Black, knowledge" prohibited agreement); testified that he had "no under the August filing (the placed until of one creditor’s of an unfa S.W.2d at 814-15 burden on a defen him, report against though vorable credit by application discovery even dant of the rule is less previous April he had injustice denying received notice the onerous than the relief to May applications victims). “unknowing” that his for credit with several reps. accompanied He Bechner to meeting with someone his sales pleased

was be authority to meeting. who the address his com- The number one had the December expect- After Merrell plaints. meeting, meeting the Lyles’ reason for that was past Lyles’ complaints mis- ed that about Pages Yellow ad. The second reason copy takes in his and the credits he behind, ad falling Lyles’ that account sought charges for for those ads would be shape past serious on due amounts. Robin- expressly Merrell understood resolved. priorities order these son reversed the $5,000 deposit Lyles’ payment abe testimony. Robinson did not recall later he meeting, the Prior to 1988 book. presence meeting. at Merrell’s Lyles' hope discussed Lyles’ complaints responded to Robinson past his inten- resolving problems past by stating that about errors his ads $5,000 deposit for the 1988 tion to make adjustment in Lyles would entitled to an book. However, billing. negotiate he did not Bechner, representative for Eric sales Instead, adjustment at he that time. Pages, Yellow testified Southwestern Bell investigate agreed problem and con- that first contacted when he was he year. Rob- tact after first given his account to handle he inson testified that when told Pages. Lyles a ma- He considered Yellow possibly going account was be acceler- sign peo- jor job It was his advertiser. $5,000 ated, Lyles’ pay offered to ple advertising. took with up for Bechner Bechner, past due Like Robinson account. meeting indicating him to the contract incorrectly remembered the amount of de- Pages copy Lyles’ Yellow ads and a current $28,000.” When linquency to be “around Although ad. Bechner testified his 1987 day later or the next Robinson learned Lyles’ that he also went to see about collec- actually had been acceler- account tion, that, meeting, prior to the he stated ated, he he did not because contact billing he no information from obtained too concerned about it” at “wasn’t department regard delinquent Lyles’ time. Bechner account. While testified that, on contends Southwestern also $30,000,” or owed “around strength of its written communications Bell’s records indicated the he or have known Lyles, knew should $65,584.24. on the account to be balance 8,May *7 misrepresentations long before the also stated that he was unaware Bechner contention, In its South- 1988. Lyles’ previous his dissatisfaction with an dated points Bell invoice Lyles complaints at western expressed ads until his 4, Lyles’ pay- meeting, agreed January that indicated $5000 the but December 9 get applied past to his due them and touch investigate back ment been year. balance; indicating first of the How- the advertising with him after the an form ever, Lyles again. out;” Bechner contacted form never “zeroed and two ad had been letters, 43 and February dated collection Lyles also he told Bechner stated that 1, stating Lyles’ that account March Lyles’ keep was there to account he adver- seriously delinquent and his future being accelerated. He was unaware tising privileges had cancelled. been already accelerated account had been meeting. after until a week or so Robin- Lyles that Bechner and testified they would investi- him that son assured Robinson, manager for Joe sales South- issued gate complaints, he would be Bell, his he has crew western testified that outstanding on adjustments credits people who for representatives contact in- representatives Those same Page advertising. In balance. selling of Yellow worry disregard and him not 1987, Bechner was one of structed Eric December had, who, Lyles, according by representative hand onto the 3. address is written However, billing February disregard state- Lyles the form is person, 4 form letter. told entirely (See the salutation filled out omits ex- to receive. he continue ments would "Dear_” signed only It is so as to read hibits.) Bechner, by handwriting the same a different generated computer billing about the him Lyles called with this information that getting They he on his would be account. realized that his advertisement would be also assured him that excluded from the directory. he would have no problem getting his advertisement into the evidence, hearing After all the the trial Pages directory. receipt 1988 Yellow The court determined that could not rea- Southwestern Bell issued to sonably misrepresenta- have discovered by check was filled out hand to indi- $5000 8,May tions Southwestern Bell before payment cate that for the received “directory appearance” described as the findings A trial court’s of fact “Houston” directory “publication with a dignity jury have the same force and as a However, date” of receipt “9/88.” also and, supported verdict when some com contained a check mark in a box labelled petent evidence, will be disturbed on “past payment.” due Lyles argues appeal. Spiller Woodard, v. 809 S.W.2d ambiguity created a fact issue for the 624, (Tex.App. [1st Dist.] — Houston court, finder, as fact to resolve. 1991, writ); Johnson, no Paul v. 11, also testified on that December 338, (Tex.Civ.App. — Houston consultant, Combes, he hired a Paul dism’d). writ judge, The trial as to do the art work for his 1988 advertise- fact, trier of may draw reasonable inferenc ment and to negotiations conduct further evidence, es from the findings with Southwestern Bell on his behalf. fact, supported by when some evidence of Combes informed Southwestern Bell that value, probative may disregarded not be he handling would be the art work for the appeal they unless contrary are so to the 1988 book. Combes testified that South- overwhelming weight of the evidence as to representatives western Bell him assured manifestly wrong. Ray v. Farmers’ bring prior could account current Bank, (Tex. State 576 S.W.2d and that placed his ad would be in the 1988 1979); Pizzitola v. County Galveston Cen directory. Appraisal Dist., tral (Tex.App. 1991, no January [1st In Dist.] Southwestern Bell — Houston writ); Ellis, Leasing IFG v.Co. offered adjustment Combes a $2000 (Tex.App. 565-66 Lyles’ outstanding [14th account balance and — Houston 1988, writ). The trial court’s find again, Dist.] in February Southwestern Bell ing supported by sufficient evidence and percent offered a adjustment 7.5 will not appeal. be disturbed on through meeting, Combes. At that believ- ing they making were progress in the upon finding, Based its the trial court negotiations, gave Combes advertising properly applied discovery rule to toll copy for the 1988book to the Southwestern running of the statute of limitations on representative. representative The did Lyles’ 8,1988. May counterclaim until *8 copy. not refuse the counterclaim, April 6, 1990, was, filed therefore, timely. appellant’s We overrule 1988, April As late as Southwestern Bell points first four of error. percent offered a 20 adjustment Lyles’ past Lyles rejected due account. the offer fifth, sixth, In its and seventh April letter dated 20. Southwestern error, points of Southwestern Bell com Bell, by May 5, 1988, return letter dated plains of the trial court’s award of DTPA percent stated that the 20 adjustment was damages Lyles apiount $100,- in the its final offer and that continued 000. Southwestern Bell contends that the rejection would indicate impasse an in ne- legally factually evidence is and insuffi gotiations. Upon receipt letter, of that prove “producing cient a cause nexus” repre- Combes called Southwestern Bell’s alleged misrepresentations between its and sentative and was told for the five); first time Lyles’ damages (point that the court that the entries Pages for the 1988 admitting Lyles’ Yellow “expert” erred testimo had Lyles been sealed and had ny been locked damages (point on the amount his only six); out of the book. It was when Combes Lyles’ testimony and that when 496 excluded, expert

properly opin- furnishing is no tion that it was simultaneously there and, later, prof- Lyles directly through ion to the amount of both establish future seven). above, by Lyles (point agent its his claimed Combes. As recounted Lyles and Combes both testified that damages In order to under recover continually Bell Southwestern assured A, Lyles prove the DTP had the burden to adjustments that would them be made and false, that Southwestern Bell committed given credits on the account. testi- misleading, deceptive or which a acts were Bell fied that Southwestern had acknowl- damages him. producing cause actual edged along adjustment some all that Texaco, Inc., v. 713 MacDonald S.W.2d appropriate balance the er- because of 203, 1986, (Tex.App. Corpus Christi — directory rors in the 1986 and 1987 adver- writ); no 17.46 § Tex.Bus. & Com.Code Ann. 9, 1987, During the tisements. December (Vernon 1987). Producing cause ef is “an meeting company’s representatives told ficient, cause, exciting, contributing or they keep that were there “to [the sequence, produces which in a natural being in- accelerated” and account] injuries damages complained or of.” disregard billing him to structed notices Garza, Rourke v. 530 S.W.2d that continue to be to him. would mailed (Tex.1975). Bell also con Southwestern challenge Bell its Southwestern bases producing there no cause tends that can be posses- that had in contention Lyles’ testimony regarding nexus because sion, misrepresentations at the time the profits resulting lost the amount made, documentary proof were demonstrat- from the exclusion of his Yellow ing alleged representations by Pages merely “perfunc advertisement was representatives were true. company’s not In tory, speculative, conclusory.” or Specifically, Bell Southwestern refers profits, party recover must der to lost directory computer-generated two advertis- produce sufficient evidence to enable ing by Lyles invoices received October finder to the net amount of fact determine 1987, stating that his ac- December certainty. with Max the loss reasonable count had been accelerated his credit Co., Royal Inc. Drilling v. Oil vill-Glasco advertising privileges re- been (Tex. Corp., and Gas 800 S.W.2d addition, In Bell scinded.4 Southwestern denied); App. Corpus Christi writ Lyles’ $5,000 receipt claims that — Inc., Beach, v. Frank B. Hall Co.& payment money him on put notice (Tex.App. Corpus Christi account, being applied past to his due — n.r.e.); Popkowsi ref’d v. Grani writ not to a reservation of the 1988 space za, (Tex.App book. Bell reasons that Southwestern . —Hous writ). ton It is Dist.] Lyles’ alleged [1st knowledge of these facts necessary profits subject lost superseded any misrepre- “intervened and exact calculation. v. Southwestern White sentation.” (Tex. Co., 260, 262 Tel. Bell analysis In its the information avail- 1983). misrepre- able at time sentations, however, profits, In recover order to lost prof- party history must either a acknowledge does the other informa- show Appellant known stated should have does not state the substance of the ern Bell *9 to, $5,000 alleged payment possibly have misrepresentations could not it refers but we the representation deposit space in book presume a the 1988 them to include the served as already invoices payment he had received the the was collected from because directory. stating place had been accelerated. a for his ad in the 1988 account reserve position Appellant apparently concludes that the invoices It is Southwestern Bell’s represent put knowledge superior to that of its own were on notice that sufficient meet invoking present the policy its were at December atives who assuring Lyles require payment ing, person, that acceleration for ad- full in advance future in According vertising past paid. are to Southwestern when due balances not had not occurred. Bell, ("Your disregarded assur advertising their privileges have and have should credit rescinded.”) argument, In ances. been oral Southwest- judge trial inad- itability summary or the actual of future the ruled to be existence missible_ profits from can be contracts which lost O’Dell was none- able certainty. (1) calculated with reasonable Al recollect approximately: theless to Assoc., & Loop lied Bank West v. C.B.D. participants of at 16 the number dance (Tex.App. 54-55 728 S.W.2d he use while was without the conventions — Houston n.r.e.); writ ref 'd South Dist.] (2) [1st typewriter, engrav- trophy Owen, Battery Corp. v. 131 Tex. west ing actually sales made at these conven- (1938). While 115 S.W.2d 1098-99 (3) tions, engraving sim- and sales at solely may rely finder not on the the fact previous ilar conventions held the opinion party, subjective of an interested year_ subjective We find this testi- permit recovery profits Texas cases for lost O’Dell, standing alone, legally mony of upon business routinely kept reliance an con- insufficient award of is, upon of a records—that an evaluation sequential damages profits. for lost profitability business’s decreased based recoverable, profits To lost must be be facts, upon objective figures, data. Al certainty.” proved “reasonable with 55; Loop, at lied Bank West Controlling proper disposition as to Trophies, Automark Texas v. Discount complete is the appeal this absence from (Tex.App. — Dallas facts, objective figures, record 1984, writ). no data without which ... it cannot be applica- The Automark case illustrates required degree with the ascertained this Trophies tion of rule. Discount sued trophy engraving O’Dell’s certainty that profits special for lost a Automark when operation would ... have continued to be typewriter manufactured Automark profitable trophy typewriter had the Trophies personaliz- used Discount failed to function. Two critical determi- malfunctioned, ing trophies cost- allegedly missing: (1) in the nants are nowhere ing Trophies significant Discount lose a objective record documentation is there O’Dell, of convention amount business. typewriter’s prior malfunc- of Discount Trophies, owner testified tioning had an established business] [the both as business owner and a busi- as (2) profitability track no- record expert. ness The Dallas specifically court objective record is there where pointed out expert testimony that O’Dell’s profit documentation that ... a net only concerned his loss of income sales type- been would have obtained had the profits. rather than loss of net There- writer not malfunctioned.5 As a conse- fore, only testimony profits on lost quence, possible it is from the record O’Dell, non-expert came from business meaningful to make correlation be- owner. profitability tween the loss of business’s The court non-expert reviewed the testi- type- nonoperational to the attributable mony concerning O’Dell’s for lost claim writer. profits following: and determined the (citations omitted). 681 S.W.2d at non-expert testimony All O’Dell’s con- analysis upon Based of the evidence cerning damages given person- it, before court the record the Dallas Despite unaided al and recollection. judgment trial court’s de- reformed the request by O’Dell’s timely Automark for profits. for lost lete the award pertinent despite business an records and at 831. by O’Dell records admission that such Automark, available, In to the situation contrast appeared O’Dell at trial were objective us objective the record contains other before with business data facts, hand-prepared itemizing figures, and data from summary than a which losses, engraving profits lost can ascer- potential sales which amount of court, reversing, point testimony, non-expert In connection with Southwestern Bell’s as seven, opinion, "objective of error addressed later in our absence of documenta- focuses on the *10 opinion here that mentions we note while the expert opinion. the absence of tion” not on part testimony of received that this O’Dell’s was daily by nine- Lyles piled employees his over a certainty. tained with reasonable keep daily The data employees year period. testified that his established records, daily reports, by on the sources generated called amount of revenue South- reports been of These have gen- their business. Pages Bell’s Yellow and that western opened in 1981 kept since he his business upon by sources.7 Based erated other and 1990. kept and were for data, Lyles’ possible it to calculate was computer records of the presented certainty profits loss of with reasonable reports daily contained in the information exclusion from attributable his profits his showing percentage of that point of error five. directory. We overrule by Bell generated was his Southwestern Pages advertising “issue each Yellow complains Bell next Southwestern years 1985-1989. These year”6 for the in that the trial court abused its discretion Lyles’ figures supported by were further testimony allowing Lyles give expert own introduction of Southwestern Bell’s timely designated Lyles had because stating that seven promotional information expert himself as an answers to South Page generated are out of 10 Yellow calls interrogatories. Bell’s The record western ads, by type of ad was display that the trial court sustained indicates presented evi- denied 1988. also objection any expert Bell’s from resulted his dence of revenue that testimony by Lyles, but Southwestern Pages down Yellow business broken the testi contends that the court allowed is, year,” period of time that “issue that mony anyway. Specifically, it characteriz particular corresponds to the life $133,- Lyles’ that sustained testimony es he upon the de- Pages issue. Based Yellow conclusory testimony damages as 000 in office, routinely by his kept records tailed hypothetical scenario and con based on a he Lyles testified that suffered a total loss Lyles could not offer cludes that because $133,000 from of his exclusion because of his opinion as to the total amount Pages. the 1988 Yellow support loss, is no evidence to there profits must Evidence establish $100,000 profits. in lost court’s award speculative. or South be uncertain analysis conjunction upon our Based Battery Corp., 115 S.W.2d at 1098. west five, agree. do not point of error we with profits must based An award of lost facts, or from upon objective figures, data properly The trial court allowed profits can be which the amount the lost present evidence of facts within Lyles to degree of a reasonable ascertained with knowledge of his own busi personal Trav certainty v. and exactness. Verette objective documentation and The ness. Co., 569-70 elers Indent. sufficient presented data was ref’d (Tex.App. Antonio writ that sus court’s conclusion — San the trial n.r.e.). $100,000 damages amount of in the tained testimony Lyles’ profits. If lost by Lyles presented consist- The evidence amounted total economic loss facts, objective figures, and data ed of harmless it was nevertheless improper, could deter- the trial court have which case, appellate jury In a non error. profits with reasonable Lyles’ mined lost sitting judge, the trial presumes court proof type The certainty and exactness. finder, disregarded any improperly as fact documentary evi- by Lyles included offered Garcia, 767 Blanco v. com- admitted evidence. containing summaries data dence September period complains Lyles’ between and includes 6. Southwestern Bell also directory. It damages figures were of the 1989 court’s award the issuance 1988 and 1988-89, damages Therefore, year. his claim for while there overlaps the calendar of his exclusion from the suffered virtue discrepancy. exhibits, only. A review of book however, fig- otherwise. 1988-89 indicates over- presented that his evidence also year” correspond the "issue of the 1988 ures directory. many matter how expenses fixed no head were year began September The issue he wrote. bonds out, Pages came when the 1988 Yellow

499 896, (Tex.App. Corpus by expert making S.W.2d be referred to Christi — 1989, writ). presumption, opinion.” no That com Id. bined with the fact that the trial court agree highly While that such techni- we awarded a different amount from that projections cal as those involved in the by Lyles, claimed indicates that the court might case re- County Management well rely did not on the challenged testimony in quire expert testimony, dowe not consider awarding damages. We overrule Lyles’ profits nearly claim for lost so point Southwestern Bell’s sixth of error. speculative. Lyles technical or had rou- tinely maintained business records for nine error, In point its seventh years, fairly simple from it which was a Southwestern Bell claims there is no certainty task to calculate with reasonable or, alternatively, evidence insufficient evi requirement his lost revenue. The of an support dence to the trial court’s award expert under the facts of the County damages. DTPA The gist complaint of this case is not Management applicable to produce expert opin is that failed to Lyles’ situation. support ion to profits. his claim of lost Relying County Management, Inc. v. Furthermore, expert opinion while Butler, (Tex.App.— 650 S.W.2d may prove up evidence be offered to dism’d), Austin writ profits, amount of lost in the absence of expert testimony contends that is re issues, highly technical the cases do not quired to enterprise’s establish business require expert’s opinion an an profits. loss of revenues or profits. generally award of lost See Pace Jackson, Corp. v. 155 Tex. 284 S.W.2d The County Management case involved (1955); Loop, Allied Bank West profits an action for resulting lost 55; Harper Bldg. Sys. S.W.2d at v. gas breach of a contract to sell oil and Co., (Tex.Civ. Upjohn 564 S.W.2d plaintiffs leases. The maintained that the n.r.e.); App. writ ref’d defendant’s — Beaumont pre- breach of the sale contract Barry, Barbier v. timely vented their drilling of a well and 1961, writ). (Tex.Civ.App. As they ultimately — Dallas damages suffered noted, previously expert the absence of tes the form profits of lost from the sale of the issue, timony profits although on the lost gas oil and produc- which would have been court, by specifi mentioned the Automark by ed the lost well. The trial court award- cally was held the court not to be con ed profits. million in lost $6 The Austin trolling. Texas, Automark court held plaintiffs that the had failed to point at 829-30. We overrule of error sev establish with sufficient certainty en. damages amount of the claimed from the Acknowledging defendant’s breach. eighth point Southwestern Bell’s of er- “proof involving wells, of loss undrilled lost ror, awarding trial that the court erred leases, are, royalties very their na- fees, attorneys’ upon its based ture, show,” difficult to suggest- the court prove earlier claim that failed to ed a establishing method for such dam- DTPA counterclaim as a matter of law. ages. 650 at 889-90. To meet his claim, disposition Because of our of that we proof situation, burden of plain- eight. point need not address of error produce tiff qualified expert “should who judgment The trial court’s gives opinion probability ... an as to the his counterclaim is affirmed. obtaining production and the extent production question.” such on the land O’CONNOR, J., dissents. added). (emphasis S.W.2d at 89Ó continued, produc- court “Such matters as O’CONNOR, Justice, dissenting. costs, geological trends, proration, tion quality kind and of the oil and countless This the statute of limita- case involves items, applicable, discovery other where also the De- should tions and the rule under

500 in Act.1 he would not be the 1988 ceptive Trade Practices-Consumer discover book 1988, 8, party may ignore May merely a that The issue is whether a until but he did he in the that informs him that he has not understand would be written notice Yellow majority can; Pages he I that date. says The no contract.

say he cannot. authority Lyles party’s cites no a that rights against understanding of his is the Bell filed suit founda-

Southwestern discovery question rule. The is July agree- in of two tion Lyles for breach directory party’s understanding rights. the the advertising for in the 1986 not ments Lyles Pages. Initially, question Rather the is when did dis- Lyles and 1987 Yellow cover, denial, or he general April a 20 when should have discovered filed but (in the the had exercise reasonable care and dil- months after suit been filed and trial, igence), the facts that his Lyles month his established one before amended for, among DTPA cause of action? answer to add counterclaims for things, other a suit violations of the Lyles misrep- 1. When did discover theory of Lyle’s DTPA. his DTPA suit resentation? representa- Bell’s was that Southwestern part discovery The first of test tives, $5,000 obtaining deposit, a him told requires Lyles rule us to determine when deposit apply would toward 1988 his advertisement not in the discovered was applying advertisement. Instead of the de- Pages. majority The 1988 Yellow states posit advertisement, Southwest- Lyles he not that testified that did realize applied ern Bell it on balance being his advertisement was excluded from Lyles argued at 1986 and 1987 accounts. 8, 1988, directory May or the 1988 until the trial court here Southwestern Pages he told the Yellow when was gave it Bell him to understand that would his was not was closed and ad included.3 advertising apply reserve his Lyles not If did realize advertisement Thus, yellow pages. Lyles for the 1988 May until 7 or it not was excluded is contends, Bell applied when Southwestern Bell did not tell him because Southwestern deposit 1987 accounts of commu- much earlier. Here is a review get Lyles not into the 1988 was able to Lyles Bell nications from Southwestern book, Bell’s on De- Southwestern actions meet- after the critical December 9, 1987, deception amounted to a cember ing: he had a DTPA which cause action. Lyles 2-4-88 received contract challenge Lyles does not the date of the “zeroed- Southwestern Bell was brief, misrepresentation. In his initial out,” Lyles no and showed that states, however, that he did not un- advertising. 34. Exhibit misrepresentation it derstand that was a certified letter 2-4-88 received (that his not be in the advertisement would telling him from Southwestern 8, 1988, book) May until which advertising. Ex- he would have two-year within the statute of limitation. 35. hibit agreed trial with on the court notice from a final discovery and found that the coun- 3-1-88 received issue delinquent ac- Bell that terclaim not barred limitations.2 fully accelerated and that does he not count had not maintain that did been 17.565, finding following of fact made the 1.Tex.Bus. & Com.Code states: 2. The court § discovery: Lyles could not have on issue brought subchapter under All actions this deceptive reasonably these trade discovered years within must commenced two after represents May practices prior which false, misleading, or the date on which the began run the date that limitations practice deceptive act or occurred or within DTPA counterclaim. years tow after the consumer discovered or in pleadings, Lyles did contends that he In his diligence the exercise reasonable should discover that his advertisement false, have the occurrence of the discovered (Tr. published. it was until after the 1988 book misleading deceptive practice. or act or 542.) test, disqualified majority’s from future under the most would he was adver- Even Lyles, by testimony, admitted hold that tisement. Exhibit 36. advertising he had no in the 1988 he knew reproduced 35 and 36 are Exhibits 4, 1988, February and limitations book *13 appendix opinion. to this began to run on that date. majority dismisses all three notices sup- testamentary Other evidence that ground representatives on the that the Lyles Bell’s claim that ports Southwestern Lyles from Southwestern Bell told at the 7,May earlier than was had notice much meeting ignore any 1987 to December agent testimony Lyles the of and his generated billings.” if “computer Even Lyles Combes. Both testified hired Lyles’ testimony representative a of that to, among things, get Combes other him Bell made that statement is Lyles into the 1988 book. hired Combes (Southwestern disputes to be believed 9, 1987, meeting, the December after it), Lyles ignore any “computer could in thus both knew that he was not the 1988 generated billings,” give Lyles that did not meeting. book after that Combes also tes- permission ignore to the contract that payment tified that he knew the was applied delinquent he had no 1988 advertisement and showed to the 1986 and 1987 telling him accounts. two letters he had no 1988 advertisement. The contract and the two my opinion, Lyles put In on notice was “computer generated” neither

letters were February by the 1988 letter that he had “billings.” nor book, advertising in the the 1988 began statute of limitation to run on that To discount the effect February of the date, applied date. If we we would 1988, letter, majority relegates the it to a delayed long filing Lyles hold that too being footnote and criticizes it for a form his counterclaim. majority acknowledges letter. The that the should have discovered When Bechner, signed by letter was the same misrepresentation? the who, representative according Lyles, disregard told him any computer gener- February if 4 “zeroed out” Even the contract, letter, billing might February ated statements he 4 receive. the and the 1 notice to actually ignore If Bechner March letter were not sufficient told book, Lyles that he was not the 1988 we computer statements, generated billing a Lyles, in the exercise must then ask when telling letter from Bechner him he no diligence, of reasonable should have discov- longer any advertisement cer- would in the 1988 If ered that he was not book? tainly undo the effect of the earlier oral put Lyles those three documents did not statement. actual notice that he had no advertisement addition, Lyles In testified he “thor- was book, in the should he have 1988 when oughly 4, 1988, February shocked” the he had no advertisement discovered that letter. If thoroughly shocked 1988 book? letter, certainly the it in- was because it part discovery test in the The second longer him formed he no had an advertise- requires determine rule us to when ment in the 1988 book. elaborated he not in the should have discovered was interpretation on his in his letter Pages. M. 1988 Yellow v. William Woods testimony at trial: (Tex. Mercer, Inc., 769 S.W.2d says, your I took it to mean it what 1988). question, To we must answer paid advertising ’88 is taken out of the prudent person apply reasonably the stan book, you going and that are now to have person who seek the dard: When did your past pay due amounts that is not discovery enough benefit of the rule have reflected, that our amount books him, reasonably to lead as a information giving you any that we’re not credit or prudent person, inquiry to make an adjustments, and thanks for the five discovery wrong? would lead to the going in purposes, party’s thousand. You’re not the book Id. For limitations facts, conditions, knowledge or circum eight years. after or nine ably prudent person inquiry to make an cause a reasonable stances which would is, law, equiv status of person inquiry make about the the advertisement knowledge applying Instead of alent actual the cause book. test, Peek, person majori- reasonably prudent action. Borderlon v. See (Tex.1988)(limitations ty in medical takes at face value statement that case). malpractice he did not understand advertisement Pages May in the Yellow until contract, February If 4 “zeroed out” reasonably failing apply 1988. In letter, February and the March test, prudent person majority errs. (which I notice be- letter were actual were), part point, I sustain this and reverse they lieve the second would under *14 test, Bell. they a reason- and render favor of Southwestern would have caused

Case Details

Case Name: Southwestern Bell Media, Inc. v. Lyles
Court Name: Court of Appeals of Texas
Date Published: Feb 6, 1992
Citation: 825 S.W.2d 488
Docket Number: 01-90-00848-CV
Court Abbreviation: Tex. App.
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