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Taylor-Made Hose, Inc. v. Wilkerson
21 S.W.3d 484
Tex. App.
2000
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*1 recovery attained. [Cita- tionate principle applies This HOSE,

tions omitted.] TAYLOR-MADE here. INC., Appellant, Because no controverts the fees necessity reasonableness and of proven by attorneys, Itz’s if understand we Lynne WILKERSON, Appellee. argument correctly, we

Wal-Mart’s are No. 04-97-01025-CV. the amount of fees left decided whether by the jury assessed unreasonable as Texas, Appeals Court of of comparison matter of law amount Antonio. San of for damages recovered Itz. Itz total sum of recovered April $232,330.18 plus interest. post-judgment by jury The amount found attor $122,058.75.

neys’ Among fees was other

factors, jury expressly instructed “the consider amount involved and “the general, rea

results obtained.” fees, attorney’s of the recov

sonableness ...

ery by which is authorized statute question of fact for the [trier fact].” 19, 21

Bocquet Herring, fees of less jury attorneys’ assessed recovered, Itz damages

than half the but not dispositive.

that factor alone is We in light consider entire record

should charge and the com- factors experiences lawyers

mon knowledge and judges.

We have the record of the two reviewed disagree with Wal-Mart’s

week trial simple is a sexual “[t]his

assessment Nothing suggests

harassment case.” necessity or

want of reasonableness attorneys

work Itz’s performed attorneys’ assessed

the amount fees holding no basis for jury. We find aas

attorneys’ disproportionate fees award $232,330.18 Itz

matter of law the recov- attorneys’ hold the

ered. We therefore supported by legally

fees award

factually evidence. sufficient error, we affirm

Finding no reversible judgment.

the trial court

Randy David Gathany, Rogers, W. Law Antonio, Offices of Dave Rogers, San for appellant. Saldana, Jones,

Judith Ramsey Kurth & Andrews, Antonio, for appellee. San HARDBERGER, Sitting: PHIL Chief Justice, RICKHOFF, Justice, TOM Justice, LÓPEZ, ALMA L. CATHERINE STONE, Justice, GREEN, PAUL W. Justice, DUNCAN, Justice, SARAH B. ANGELINI, KAREN Justice. granted Taylor-Made Hose’s motion ON MOTION FOR RECONSID- banc, en with- reconsideration and we now ERATION EN BANC panel opinions, draw the reverse the trial Opinion DUNCAN, by: B. SARAH and remand the judgment, cause Justice. for further proceedings consistent with *3 opinion. Hose, Taylor-Made appeals Inc. tri- al judgment against court’s it in BackgRound and Procedural Factual against Lynne Wilkerson,

its collection suit guarantor Transit, for North American Transit, applied North American Inc. submission, original panel Taylor-Made Hose, On af- Inc. for a credit ac- judgment. firmed the trial upon applica- Howev- count. The form which the er, majority reproduced of members of this court tion was made below full: proceeding, Taylor-Made Hose filed a

After North American Transit failed to “Lynn bankruptcy against and filed a sworn account suit Wilker- its account son, for, correspondence certain Guarantor and the credit agreement, “ap- stated alleged Inc.” which Wilkerson peared] copy a true to be and correct special request that “at the instance and my application signed capaci- Defendant sold and [it] delivered Defen- ty as Vice-President of American North buyer, dant as course regular Transit, Inc.” business, wares, goods, and merchan-

dise, performed the services shown Taylor-Made Hose responded A],” Exhibit [the invoices attached as credit agreement itself established Wilker- [Taylor- “Defendant indebted to affidavit, liability. supporting son’s $22,790.56, Made in the total Hose] sum Taylor-Made Hose it alleged extended systematic according to such accounts con- credit to North Transit “based *4 tained in Exhibit.” such personal guarantee Lynne of Wilkerson. If Ms. had not Wilkerson been answered, liability denying Wilkerson willing to guarantee then capacity in which sued. she was Wilk- the company willing would not have been erson executing guaranty further denied a Taylor-Made extend the credit.” in her capacity alleged individual supported response with the affidavit of every “each and item in the account is not Taylor, Don of Taylor- President and CEO just true, just and all and lawful off- Hose, copy applica- Made a sets, payments and credits have not been tion, copy petition, together a of its with allowed.” pled Wilkerson other defenses invoices, copy the attached and a of Wilk- well, including as that the debt had been object- erson’s After answers. Wilkerson discharged bankruptcy, failure of con- ed to supporting Hose’s sideration, mistake, payment, material al- proof, it filed amended an affidavit. Wilk- contract, teration of the the absence of a objected well, erson to this affidavit but contract, ambiguity. sup- Wilkerson there is indication in record ported her amended answer with her affi- objections. trial any court ruled on of her davit. Ultimately, trial granted Wilker- Several after answering, months Wilker- motion, son’s stating ground without a son filed a summary motion for judgment its ruling, take-nothing and rendered a pursuant 166a, to Rule Tex.R. Civ. P. In judgment against Taylor-Made Hose. motion, her Taylor- Wilkerson alleged

Made Hose had “no that: evidence AND STANDARD SCOPE REVIEW OF (1) agreement this is a guaranty; indeed adequate “After for discov time (2) Lynne signed Wilkerson her ery, party presenting a summary without capacity; individual judgment may for summary evidence move

(3) judgment ground Lynne that there is no Wilkerson hable indi- any debt; [specified] evidence of or more vidually for one essen tial elements of a claim or defense on (4) Hose, Taylor Made clearly Inc. knew the adverse have would dealing corporation, that it with a burden proof trial.” Tex.R. P. Civ. not an individual.” 166a(i). grant “The court must [trial] 166a(i). P. Tex.R. Crv. Wilkerson also respondent produces motion unless alleged there was no of a contract evidence summary judgment raising gen evidence against individually enforceable her be- uine issue of material fact.” Id. cause no writing there was her and, in her capacity in any appeal, summary On we review a event, discharged had been Corporativos, debt de novo. Valores Co., Inc., North bankruptcy. American Transit’s S.A. de v. McLane C.V. supported Wilkerson her motion her S.W.2d Antonio — San denied). affidavit, copies to which were attached Accordingly, we will uphold summary judgment a traditional ous and the court will construe [it] if the judgment record es matter of law.” Id. at A contract is a genuine tablishes absence of issue of meaning un ambiguous only “when its fact, and the movant is entitled to material reasonably certain and doubtful it is judgment on a set ground forth susceptible meaning.” more than one uphold And the motion. Id. we will Id. only if the summary judgment no-evidence As stated summary judgment record reveals no evi affidavit, Lynne attached Wilkerson “(a) i.e., element, challenged dence of “personally agreefd] invoices absence of to the complete [as any ... on amount re cost of collection (b) element]; challenged the court unpaid maining days” after North of law or evidence from barred rules open Tay account with American Transit’s giving weight evidence offered This is not in lor-Made Hose. element]; (c) prove challenged [the respect ambiguous. By agreeing prove challenged [the evidence offered “personally pay” ... scintilla; is no more than a mere element] account, delinquent Transit’s (d) the establishes conclusive [or] made herself liable for the cor ly opposite [challenged of the ele *5 poration’s debt. See Tex. Bus. & Com.Code Calvert, “No Robert W. Evi ment].” ” ” 3.402(b) (Vernon § Supp.1998); Aus Ann. dence Evidence “Insufficient Hardwoods, Berghe, v. tin Inc. Vanden 361, Error, 38 Tex. L.Rev. Points 362-63 320, Paso 917 323 S.W.2d (1960). deciding In whether — El 1995, denied); v. Na writ Eubank First raises a genuine record issue judgment Bellville, 130, S.W.2d tional Bank 814 fact, view as true all material we 1991, no (Tex.App. Corpus 133-34 Christi Valores, respondent. 945 favorable — writ); Bryan, v. Co. at 162. S.W.2d Petrofina 484, (Tex.Civ.App. 486-87 — El Discussion 1975, writ); Marx, 600; 43 Paso S.W. at v. H. Banks Ware accord Owens William Taylor-Made argues Hose (5th Cir.) houses, 689, F.2d 693 202 application “unambiguously credit estab denied, law), (applying Texas cert. 346 U.S. a personal guaran to be lishes Wilkerson (1953). 74 S.Ct. 98 L.Ed. 341 And Taylor- tor of North American’s debt to personally Wilkerson would remain liable agree. Made.” We corpora if the on the debt even signature A party’s renders liability discharged were bank tion’s for the debt of another individually hable Hardwoods, 917 Austin S.W.2d ruptcy. instrument, on “[i]f as a matter law 324-25. The trial court thus erred face, person sign that of the clearly granting Wilkerson’s motion ’n, ing Luling Co-op. Marx Ass 17 it.” judgment. (1897, Tex.Civ.App. 43 S.W. ref'd).1 presents “a inquiry This Conclusion question of law for court decide application attached looking light at the as a whole in Because the contract present when the Wilkerson’s affidavit establishes she of the circumstances Coker, Tran- for North American liable contract entered.” Coker Hose, Taylor-Made and this “If the sit’s debt law, is, as a matter of unaffected liability that it can instrument is so worded written discharge Transit’s legal be a certain or definite mean given erred bankruptcy, grant- the trial court ambigu interpretation, then it is or binding this court. Tex- Although therefore not application for a writ of error (9th ed.1997). Marx, of Form pre-1927 it is a decision was refused in as Rules mg summary judg- Wilkerson’s motion for bank and other business references. However, ment. Taylor-Made because At one-page application, the bottom of the cross-motion, Hose did not file a we are is at the center of this unable to render dispute its favor. stated:

We therefore reverse trial With the below I accept the judgment and remand the fur- cause for AND Mowing TERMS CONDITIONS proceedings opin- ther consistent with this of a Credit Account: ... ion. I, personally agree in- voices and cost of collection including, Dissenting opinion by: ALMA L. fees, but not limited to agency collection LÓPEZ, Justice, joined by PHIL costs, attorney’s and reasonable HARDBERGER, Chief Justice. fees on remaining unpaid amount days. after 90 Dissenting opinion without by: STONE,

CATHERINE Justice. Lynne OFFICER’S NAME: TITLE: Vice-President LÓPEZ, Justice, dissenting. SIGNATURE OF OFFICER:_/s/ stroke, In a strikingly bold majority Lynne Wilkerson DATE: 7-21-94

greatly expands the law of guaranty to Taylor-Made that, alleges any poorly-worded favor attempt by a basis of this credit “guar- entity business to hold employee antee,” it extended credit to North Ameri- officer of a customer business and, can from December 1995 liable for credit extended to company. through January delivered merchan- years After holding contrary, $22,790.56. totaling dise April law in Texas now suddenly has swung “Lynn Wilkerson, sued *6 [sic] favoring from obligor, to favoring the Transit, as Guarantor for North American obligee. Inc.”1 Taylor-Made appeals Hose a take-noth- (1) Wilkerson a filed verified denial that ing judgment based on a no-evidence mo- she was not liable in capacity in which tion for summary judgment Wilkerson (2) sued, she had been and denied the pursuant filed to Texas Rule of Civil Pro- (a) account because she did not execute 166a(i). cedure majority The opinion of any guaranty in capacity her individual August 1998 affirmed the trial court’s (b) just offsets, and that all and lawful judgment. banc, rehearing On en the ma- payments and credits had not al- been jority reverses the no-evidence summary pled lowed. She further that this debt had judgment favoring goes Wilkerson and fur- been in discharged bankruptcy and other ther to find that she is personally liable for defenses not relevant to appeal. this the debt of her employer. former I re- spectfully dissent. In October Wilkerson filed mo- tion summary judgment for under the new Background

Factual and Procedural no-evidence judgment rule. See Taylor-Made 166a(i) (eff. 1997). Hose impose per- seeks to P. Sept. Tex.R. Civ. liability sonal on motion, Wilkerson for a debt in- In this Wilkerson asserted that curred as a application result of an Taylor-Made for Hose had no evidence that (1) credit on (2) behalf of North American Tran- guaranty, this was a that sit, Inc. The application provid- credit form Wilkerson capaci- her individual (3) by -Taylor-Made ed required general ty, that individually Wilkerson is liable on and, (4) information the business and any addition, asked for for of this debt Although guaran- guarantor. Wilkerson is named as a petition tions that she is a The style plaintiff's original petition, merely tor in the describes the debt of North American petition allega- any itself does not contain 9, 1997, knew it deal- trial court Taylor Made Hose that was On October Taylor-Made Hose ing corporation, granted with a not an individual. a continuance it permit to file an amended affidavit response to Taylor-Made Hose filed a by Taylor. Taylor-Made Hose amended summary judgment the motion for Taylor filed with at- affidavit presi- it attached affidavit tached invoices and CEO, Taylor Taylor. dent and Don Mr. filed on October 1997. Wilkerson stated: objections written to the amended affida- 17, 1997 vit on October 16. On October My company extended credit to North argument trial grant- court heard Transit, Inc., based favor of ed Wilker- guarantee Lynne Wilkerson. timely son. filed a motion willing If Ms. had not been appeal. for new trial and a notice of The personal guarantee then motion new trial was heard and denied company willing would not have been January on anticipated extend the credit.... [W]e Lynne person-

that Wilkerson would be Standard Review responsible ally for these invoices. previously, As this Moore v. court stated unveri- Taylor-Made Hose attached also Corporation, K Mart copies application, the credit fied Antonio writ de — San invoices, petition and the re- original nied): “A summary judgment no-evidence maining pleadings file at time. verdict,” essentially pretrial directed legal sufficiency we apply the same reply response Wilkerson’s reviewing sum standard no-evidence objections as- separately-filed evidentiary mary judgment apply reviewing as we Taylor’s that Don affidavit was not serted review directed verdict. We the evidence incorporated into the re- by reference respon light most favorable to the and, therefore, consid- sponse could not be against sum dent whom no-evidence Further, proof. affidavit made ered rendered, mary judgment disregard exhibit, nor reference attached contrary evidence and inferences. appli- did affidavit state point “A no evidence will sustained be copy cation was of that a true correct *7 (a) complete a when is absence there objected that document. Wilkerson also (b) fact, of a the court evidence vital Taylor prove the failed to that she affidavit or from by law evidence barred rules of in individual signed any had document weight only offered giving capacity. Lastly, Wilkerson asserted (c) fact, of prove a to vital the evidence response the attached the fail invoices prove than a vital fact no more fered prove owing due and for more a debt (d) scintilla, a mere the evidence conclu Wilkerson,2 by or that all days than 90 sively opposite the of the vital establishes to a precedent conditions suit on a sworn Pharmaceuticals, fact.” See Merrell Dow met. of these account had been None (Tex.1997), Havner, 706, Inc. v. 711 953 S.W.2d summary in proper were attachments denied, 1119, 118 rt. 523 U.S. S.Ct. ce form. further ob- judgment evidence She (1998). 1799, 140L.Ed.2d 939 jected specificity all the 166a(i) Moreover, in- Taylor concerning affidavit “[t]he Rule states constituting grant self- parties tent of must the motion [for produces respondent an serving judgment] interested unless statements controvertible, gen- a raising readily were con- not fact.” of material Under inadmissable uine issue hearsay, tained were rule, fact is to our a counterpart federal conclusions. n.2, supra. 2. See guaranteed signing only by

“material” if it affects the outcome of application. the suit under the law. See id. 323. The exact governing See Lobby, Liberty appeared Anderson U.S. this feat language accomplishing (1986). line, 106 S.Ct. 91 L.Ed.2d 202 immediately above the Such a can be determination made corporation, undersigned stated: “If a law, reliance on the substantive payment of this guarantees those facts the substantive identified capacity.” Id. account in his individual law can material. Id. A be considered Key words the Austin Hardwoods cred “genuine” material fact is if the evidence is application missing Tay it from that are jury such that a could find the reasonable lor-Made Hose’s credit are the nonmoving fact in favor party. of the Id. “guaranty” capaci words and “individual token, By the same if the evidence is not Moreover, ty.” sentence unambigu significantly probative, the fact issue is not corporation ously distinguishes the from Id.; genuine. also Lampasas see guarantor. also Eubank v. See First Center, Inc., Spring 988 S.W.2d Bellville, National Bank (Tex.App.-Houston [14th Dist.] no 130, (Tex.App.-Corpus Christi writ). writ)(language guaranty agreement borrower, creditor, clearly established

Discussion guarantor, in personal capacity). his Appellant single point raises a of error Appellant support also seeks &Gulf whether, law, as to as a matter of Buchanan, upheld Basco which Co. v. a signature of a corporate following officer corporate trial court a finding that officer the language on corporation’s credit signed was not liable when he his name application, “I agree all a “guaranty agreement” without indicating invoices and costs of collection ... on capacity. his title or amount remaining unpaid days,” after 90 S.W.2d 655 [1st Dist.] — Houston personal sufficient to guaranty constitute n.r.e.). During writ refd a bench corporation’s debts. trial, the court had declared document It is well single provision settled that no ambiguous testimony to ex admitted instrument, alone, in an given taken will be plain ambiguity. manager The office Rather, controlling provisions effect. for Gulf & that he Brasco testified under must be considered with reference to the stood Buchanan indi to have his Coker, whole instrument. Coker v. See 650 vidual capacity. Id. at He also stat addition, S.W.2d 391 ed that policy it was Gulf & Brasco’s guarantor occupies position a favored grant personal guaran without the law requires this court to con Although tee. Id. at 659. & Brasco Gulf strictly strue a guaranty favor of the statement, requested financial guarantor. McKnight v. Virginia *8 Buchanan provide did not one and the Co., (Tex. 428, Mirror 463 S.W.2d 430 opened account apparently solely was 1971). corporate the basis of credit and that

In arguing quoted language years. the is credit was extended for six Id. accountable, sufficient signer to hold the Buchanan he testified that in his appellant corporate relies on a case from the El capacity Paso and did not intend to Appeals bearing Court of remarkably corpo simi bind himself the Hardwoods, lar facts. See Austin Inc. v. rate account. Id. the basis of this On (Tex. Vanden trial Berghe, conflicting testimony, 917 S.W.2d 320 the court found denied). App. 1995, in signed only corporate Paso writ In Buchanan had his — El Hardwoods, capacity Austin the court found that a not liable for multi-purpose clearly credit The case not application ev debt. Id. does corporate application personally support position idenced a lend appellant’s here 492 so, however, In clearly signed doing obligated

where we are Wilkerson application capacity vice-presi objective in her as give effect to intent of application pro parties expressed apparent not dent. The does even as in sign writing. Exploration, for Westwind vide blank one to See 378, ’n, capacity. It 696 requests another v. Homestate Sav. Ass S.W.2d (Tex.1985); at provides signature. Praeger, an “officer’s” 721 for 382 S.W.2d To for agreement review the credit What the & Basco decision does Gulf purpose true giving effect to the out, however, in point appellant urges parties agreement, intention of both rehearing, although its motion for is that at agreement. we must look the entire parties have argued both that the Basco, The & 707 at S.W.2d Gulf at issue both sides have unambiguous, is body in case of the credit this presented evidence itself seeks information on the business impliedly ambigui the issue of raises and, in particular, seeks bank references ty. ambiguous is a Whether document is corporate entity, for for the not 657; v. question of law. See id. at Tuthill signs application. officer who Unlike Co., 614 Southwestern Public Service guaranty agreement reviewed Aus- 205, (Tex.Civ.App. — Amarillo Hardwoods, clearly tin which was intended n.r.e.). 1981, Moreover, writ ref'd where used multi-purpose as a form that could be ambiguity is raised for the first time on corporations, partnerships, for or individu- is a appeal, construction of contract tai- applicants, Taylor-Made’s al form is Praeger law for question of the court. See for entities. applicant lored business Wilson, (Tex.App.- 721 S.W.2d type entity applying, and can check the n.r.e.); Fort Worth writ ref'd Com “corporation” is this case the blank after munity Parts Replacement Dev. Ser. v. officers, checked. The names of Mfg., (Tex.App.-Hous 679 S.W.2d bank, of the and other credit references writ): ton v. Con [1st Dist.] Sale corporation provided required. are No (Tex.Civ. Corp., tran 486 S.W.2d is offi- requested credit information n.r.e.). App.-Dallas ref'd An Only application. cer who is to simply be ambiguous instrument requested. title her inter parties disagree cause over its (Delaware) beyond itself to Looking Co. the document pretation. See Sun Oil surrounding its execu- 626 S.W.2d the circumstances Madeley, tion, 600-01, we case, Praeger, neither that the see 721 S.W.2d this claimed summary judgment be evidence.3 ambiguous while turn key concerning am Appellant Appellant’s raises fore the trial court. a cor- intent of bind biguity for the first time its motion Therefore, capacity may porate con officer the court rehearing. through affidavit a matter law. See was offered the amended strue the contract as specifically and Praeger, Taylor.4 of Don 721 S.W.2d at 600. past, has a sum- addition 3. As noted in [objection: hearsay, mary ex- costs of collection.” judgment in contract case where conclusion, legal inadmissible conclusion and general- trinsic evidence been admitted is has Rule, However, and un- of the Best Evidence undisputed violation ly extrinsic improper. opinion]. substantiated may ambiguity mat- resolve the as a Acker, Taylor ter of See Winslow v. Made law. "As and CEO President *9 1989, 322, Hose, (Tex.App.-San writ 325 Antonio the relied I am aware of criteria denied). corporation extending credit upon by in this buyers to such controvertible], readily [objection: Inc.” not attached ... is a true and 4. "The document "My agreement company extended credit to North copy of where- accurate Transit, Inc., upon per- personally pay based the Lynne agrees to in Wilkerson Hose, guarantee If Lynne Wilkerson.... Taylor Made Inc. to sonal all invoices from

493 objection if strenuously objected writing preserve to all state- on an to error ments to an intent to tending implicit establish court’s find ruling guar- hold See, Julian, Wilkerson liable as e.g., ings. Blum v. 977 antor. no Although the record contains 819, (Tex.App S.W.2d 823 Worth . —Fort ruling objections written to order writ) 1998, (granting summary judg no plaintiffs response amended affidavit in to implies overruling ment of non-movant’s the motion judgment, affidavit). objections to effect of the The court’s of a granting summary judgment implicit ruling court’s is that objections creates an that inference presented Hose has no evidence on the Tex.R.App. were sustained.5 See P. to genuine issue of intent raise a issue of 33.1(a)(2)(A); Salinas v. 948 Rafati, material fact. Because is a no-evi this 286, (Tex.1997); Yu, S.W.2d 288 Frazier ruling, if dence the trial “court is barred 607,'610 987 (Tex.App.-Fort S.W.2d Worth of law from giving rules or evidence denied). 1999,writ prove weight to an evidence 2(A) Subsection is a revi substantive element, summary judgment essential 33.1(a)’s sion predecessor, to Rule Rule Tex.R.App. 166a(i) proper.” See P. & 52. This addition relaxes re the former Havner, cmt.; 953 S.W.2d at quirement express of an ruling, and Furthermore, Taylor-Made Hose has consistent case holding law that an right complain waived about appellate presume can court the trial ruling on judgment sustained overruled a motion or evidence. ‘Where has been held objection an in certain circumstances. holding be inadmissible and that has not Salinas, (finding 948 S.W.2d at 288 challenged appeal, been on this court can that granting of motion to “au disregard not consider excluded evidence.” See tomatically” denied motion for Frazier, 610; Ingl 987 S.W.2d at also see verdict); on Acord v. Motors General Co., 702, ish Prudential Ins. (Tex.1984) Corp., 669 114 S.W.2d 706 [1st Dist.] objection (presuming charge was over — Houston denied); writ Rhodes v. Bank ruled trial court because did not alter ob Interfirst Worth, N.A., Fort 719 265 S.W.2d jection to language); John Hill Cayce, Jr. writ); (Tex.App.-Fort Worth Tal al., et Appeals Practicing Civil Texas: (Tex.Civ. Hogg, bott v. 889 Under the Rules Appellate New Proce dism’d). Baylor App.-Amarillo The dure, L. Rev. n. 10 (1997) of a party’s intent is the 33.1(a)(2)(A)); (discussing new Rule unchallenged stating affidavit of Wilkerson Significant Features the New Texas sign that she did not the document in an Procedure, Rules Appellate Guide Appellate capacity, guarantee she did not New Rules of Texas PROCE (State debt, and did DURE Bar of not intend enter into Appellate Texas Section) (stating sepa such when she com signed, “[a] pleted rate required, order is not as the on behalf of the long ruling corporation. employee record otherwise shows that As an and vice- made”). Thus, instances, president of the company, some she was autho longer rul get express obligate need no an company rized to the ex willing Lynne Ms. not anticipated Wilkerson had been this matter and we personal guarantee company then the responsible would be willing would not have been extend [objection: readily not for such invoices.” controvertible, controvertible, [objection: readily credit.” conclusion, legal hearsay]. conclusion, legal hearsay, unsubstantiated opinion]. Appellant would have rule construed personal guarantee, my "Based supporting differently, but cites no law company provided product amounts contention. basis of indicated on the invoices made the *10 “clearly estab simply language7 credit.6 This tained tension of borrower, the support by Segundo a as the finding lished] does this court creditor, undersigned” liable the Bank and “the as personally that Wilkerson is for as corporation’s corpo guarantor, personal capacity in his and not debt on the basis of Eubank v. application. Segundo representative.” rate credit as a Bellville, 814 First National Bank of agreements strictly must be Guaranty (Tex.App.-Corpus Christi S.W.2d against construed and construed the draft writ). Furthermore, the second no Bank, Thompson er. v. Preston State two ary obligor guaranty executed the (Tex.App.-Dallas 5.W.2d days the of the for the after due date note n.r.e.). ref 'd Under the circumstances an purpose obtaining of extension. here, presented I find the language would Likewise, “I, ...” the of personally, agree pay guaranty to followed officer, clearly by the of a American establishes signature Petrofina capacity, in her intent: signed only official insuffi to the cient bind Wilkerson for you other gasoline To induce to sell and corporation. of Not the debt the petroleum products McMurry to Oil missing as (herein- document clear indicators such Pecos, Texas, Company, of line the “guarantee” signature and for I Principal), as the after referred to surety in her capacity, individual you payment of hereby guarantee competent judg no but there is may such sum or sums now due and as Tay ment of the intent of alleged time,.... any agree at I covenant and Hose to extend credit lor-Made jointly Principal with and sever- that by guaranteed event debt was someone ally responsible I shall be liable and corporate representative. other than a may all sums that you and shall" Principal. by due be due become This to establish case is nowhere close Texas v. type as a of law of Co. matter of Petrofina (Tex.Civ.App.- liability Bryan, Eubank v. First National found writ). Bellville, clearly Adding El one’s cor Bank denom Paso where of porate signature to a Guaranty Agreement” president inated con status “Loan them, undersigned, re- was a and each of 6. There is no evidence that Wilkerson or owner of the business for spectively, shareholder and inure to the benefit shall successors, Creditor, whom credit was extended or would have represen- legal said any manner from transac- benefitted in assigns. tatives and tion. undersigned, at Signed and Sealed of, Bellville, day this October 27th Texas Guaranty Agreement executed Loan stated, secondary Lindsey, obligor, per- [signature] Lindsey Eubank part: tinent Secretary-Treasurer [handwritten] Segundo enable For Value Received and to Corp., Individually Segundo [handwritten] Sinton, Texas, Corp. des- hereinafter evidence from a bank There was additional "Debtor,” credit, ignated obtain from that representative who stated he time, Bank of time to of First National emphasized prior execution Eubank Bellville, hereby request we said Creditor guaranty signing in that Eubank was of the Debtor such as said extend to said capacity, and that he hand- his hereby may proper, and deem we Creditor printed "Individually” the word below severally guarantee the and jointly and full docu- signature line Eubank before maturity, prompt payment to Creditor however, this, thereafter, disputed Eubank and times and also at the ment. at all provided, dealing clearly-worded time indebtedness, liabilities, hereinafter court here obligations spoke Un- guaranty for itself. every circumstances, and kind of said Debtor to said nature the court found der the Creditor.... capacities Eubank's in which binding upon the guaranty This shall be Eubank, 814 appeared were immaterial. See severally, undersigned jointly at 132-34. heirs, assigns legal representatives *11 ing ergo on such must still be clearly-worded obligations something owed. “guarantee” “jointly Taylor to be ... and several Again, because the affidavit was nothing ly liable” added material to this objec essentially by Wilkerson’s gutted obligation. Cases where courts have found tions, Taylor-Made has not met its obli corporate guaran after a designation gation to come forward sufficient evi signature merely descriptio per tor’s to be dence to withstand a directed verdict. guarantee sonae involved strongly-worded puts The majority’s opinion risk the agreements. construed corporate estates of officers and case, however, majority in the instant employees the State of across Texas. cry putting is a far from offi company Hard-working loyal employ- personally guaran cer on notice that she routinely ees authorized who are teeing a corporate debt. applications in the course of busi- Finally, reviewing when a summary company, ness on behalf of can now judgment granted grounds, on general easily personally guarantee- be lured into appeals court whether any considers theo employer the debts of their no matter ries set forth in will support the motion weakly-worded despite how the fact v. judgment. See Harwell State the document they signing solely are Co., Farm Mut. Auto. Ins. 896 S.W.2d in their capacity. official the trial When judgment rests more than one inde defense,

pendent ground or aggrieved assign must to each ground, error will affirmed be

ground complaint to which no is made. Bailey Rogers,

See 1982, writ); no Hudson — Austin Markets, Super v. Buddie’s Farms, Charles FOUST and McDaniel (Tex.Civ.App. 147-48 — Fort Inc., Appellants/Appellees, 1972, writ). no In Worth addition to the alleged issue concerning guarantee, Wilkerson also asserted there is no WALTERS, ESTATE OF Roland De evidence that an enforceable contract was ceased, by through its Co-Inde formed between Hose and Executors, pendent Corey Walters

Wilkerson, Indeed, individually. there is Walters, Rolinda Walters Farms d/b/a no evidence of a signature Rusty’s and Russell L. Lindeman d/b/a capacity before the court. Flying Service, Appellees/Appellants. 3.402(b)(1) § Tex. Bus. & Com.Code (Vernon (where No. 04-98-00639-CV. Supp.1999) signature shows unambiguously that the Texas, Appeals Court of represented person, made on behalf of rep San Antonio. liable). Taylor-Made resentative not did respond with evidence below or chal April lenge any grounds appeal. of these reply rehearing, Taylor-Made brief on argues obligation that it had respond

in order to defeat a no-evidence motion issue,”

other than to the fact “raise Taylor’s

rests on Don affidavit that credit

was extended and shifts to the bank then

ruptcy supplied through Wilker summary judgment, argu

son’s motion for

Case Details

Case Name: Taylor-Made Hose, Inc. v. Wilkerson
Court Name: Court of Appeals of Texas
Date Published: Apr 12, 2000
Citation: 21 S.W.3d 484
Docket Number: 04-97-01025-CV
Court Abbreviation: Tex. App.
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