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Truly v. Austin
744 S.W.2d 934
Tex.
1988
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*1 Co., (Tex.1984), or under right from IPC. and its own to contribution statute, comparative negligence trial, Although Barkley appear did at Ann. 33.001 et Civ.Prac. & Rem.Code though as it had. the case was submitted (Vernon 1987), seq. could not create jury tried to a found The case was which plaintiff’s by purchasing one entire Purina in both negligent IPC liable precisely is cause of action. This what jury products liability. The negligence and present in the argues Purina it has done against Purina apportioned 70% case, right to define its although it chooses damages, Regarding IPC. and 30% under the settlement to reimbursement however, jury answered “0” when right of direct action rather as a money necessary of asked the amount right than a contribution. of reasonably compensate Barkley for the general As a cause of action rule a by the chick- damages caused contaminated public assigned, contrary be but it is judgment, en In its the trial court feed. permit right policy tortfeasor as de- aligned Purina as and IPC purchase plain- of action from a a cause judgment rendered that the fendant and injury tortfeasor tiff whose contrib- nothing. take Purina Jinkins, Purina could uted. Under settle appealed, arguing the record Purina that of only proportionate its share Barkley matter of as a established law preserve right could not to contribution damages in of sustained the amount had by taking assignment Barkley’s of an $319,987.17. agreed, appeals The court of cause of action. judgment of the trial court reversed Appeals judgment of of the Court judgment “Barkley re- and rendered reversed and $95,996.16, representing cover from IPC nothing. Purina take $319,987.15....” 30% name, Purina does not mention but was

probably intended for its benefit because recognized earlier Pu-

the court of assignee Barkley’s cause

rina to be the also because was the action and Purina

only party perfected appeal judgment.

the trial court’s appeal

Throughout this Purina has con- assignee Barkley’s

tended that it is deciding

cause of action. Without whether agreement actually accom-

the settlement

plished purpose, this we will assume that Barkley and Purina intended this result. Petitioner, TRULY, Jack D. assumed, the reduces to

With this fact ease v. settling joint tort- single issue. Can right to feasor reimbursement AUSTIN, al., Respondents. et James D. non-settling joint from a or contribution No. C-6087. by taking assignment tortfeasor cause of plaintiff’s common action? Supreme Court Jinkins, Corp. In Beech Aircraft 17, 1988. Feb. (Tex.1987),this held that a March 1988. Rehearing Denied propor- could settle its tortfeasor plaintiff’s a common cause tionate share of settling We said that a defend- action. at not have a to contribution

ant did law, Duncan v.

common Cessna Aircraft

Seale, Stover, Coffield, Bis- Gatlin Bisbey, petitioner. bey, Jasper, Blair A. Golden, Gray, Jas- Golden Joe Bob Tucker, per, Orgain, Gary Bell and Neale Beaumont, Reger, respondents. SPEARS, judg- The court of Justice. reversed court, holding ment of trial recov- The issue in this case is whether a ery meruit is not allowed when express contract breached covering there is an contract theory nevertheless recover under subject matter of the suit. The entire Petitioner Jack meruit. cause was remanded to the trial court with specified as in a performed certain services limiting Truly’s recovery instructions He later breach- *3 Truly plead prove that which could and agreement by refusing joint ed the under the written contract. personal liability ven- to assume Truly brought ture suit Re- debts. rule, general plaintiff As a Clark, spondents James Austin and Gearld seeks to recover the reasonable value of venturers, he co-joint for the services supplied services rendered or materials will agreement. rendered to the permitted quantum in be to recover meruit verdict, trial jury Based on a the express when there is no contract Truly. judgment in favor of covering those services or materials. court of reversed that Pipeline Black Lake Construc Union instructions. and remanded the cause with (Tex.1976); Co., Inc., 80, 538 86 tion S.W.2d affirm the 721 S.W.2d 913 We States, Inc., 384 v. Southwest Woodard appeals. of the court of 674, S.W.2d 675 1975, purchased of land Austin a tract Austin, agreement by Truly, ture executed Austin, Clark, Jasper, Truly and specifically unambiguously and Clark and agreed develop shopping center later to “supervise the provided Truly would on the tract. The three men entered into a development” shop the construction and form a written to pleadings, Truly ping center. his own purpose acquiring, developing, for the the quantum limited his meruit claim to financing acquisition develop- and the and agreed services he to render under the agreement provided ment of land. The the agreement. express con (1) Austin would sell the tract to the subject Truly’s tract covered the matter venture; (2) “ar- Austin and Clark would claim, Truly to recover and is not entitled range financing of the construction and general quantum meruit. under the rule of development” shopping of the center con- venture; (3) templated by Truly recovery are instances There when paid supervise would construction and be quantum permitted despite the meruit is $2,000 months; per twenty-four month for express of an contract that cov existence ownership and interest of each First, subject ers the matter of the claim. Austin, Truly, would be and 40% 30% quantum is allowed to Clark. 30% performed an partially Truly signing agreement, but, After re- express contract de because personal liability breach, on the prevented fused fendant’s project. financing completing the contract. Coon v. resolved, dispute (Tex.Civ. When the could not Schoeneman, be 476 439 n.r.e.); Austin and Clark terminated their relation- 1972, App. ref’d Better writ — Dallas ship Truly. Truly sued his with Lara, (Tex.Civ.App.— 565 v. De S.W.2d319 he venturers for the value of the services 1978, writ). Truly’s San Antonio claim contract, seeking to rendered under the type quantum does not fit within this of contract and breach because, contrary Truly’s conten trial, Truly At abandoned meruit theories. tion, Truly it was Plaintiff who breached proceeded claim and his breach of contract jury solely on meruit. The agree $215,000 into an damages entered

awarded pur- $70,000 for the attorney’s fees. ment to form a building or construc shop meruit have involved developing a financing pose of cases, plaintiffs In these contracts. pleadings tion He conceded ping center. the reason to recover respective have been allowed forth the set damages less value of services parties. As able obligations and interests of See, City e.g., defendant. venturer, suffered subject to was Connor, 35, Sherman v. Hack partners. apply to same rules that Stewart, City Ingleside v. (1895); Johnson, (Tex. ney v. n.r.e.). (Tex.Civ.App. Corpus ref’d Civ.App. Paso writ — — El n.r.e.). Central jointly severally Christi venturer quan to recover and obli the contractor’s venture debts liable 6132b, acceptance and tum meruit is the owner’s gations. Tex.Rev.Civ.Stat.Ann. art. Further, arising as a direct (Vernon 1970). of the benefits each retention 15 partial perform contractor’s obligation to share result of the assumes the venturer Building Contracts according share ance. 10 Tex.Jur.3d losses to his *4 18(l)(a). light at 292 Id. profits. of the § § provisions, agree with the court these we significantly Truly’s claim is differ law, that, Truly’s as a matter of appeals quantum ent the meruit claims made from financing of sign to the note for the refusal First, the in the construction cases. project constituted a joint the venture pro breaching in these cases contractors contrast, contract. Defend breach of and materials for the direct vided labor ants Austin and Clark neither breached the Truly, by property owners. benefit prevented Truly per contract nor contrast, rendering not services was for obligations. forming his contractual Instead, defendants, the Austin Clark. Therefore, Truly is not entitled to recover agreement, the venture theory quantum meruit. under this performed his services for the ven he meruit, quantum

Recovery quantum meruit is ture. To recover that his efforts were permitted plaintiff par sometimes a must show person sought to be tially performs is undertaken contract that for enough merely show nature. Colbert v. Dallas charged; it is not unilateral Dallas, Bank the defendant. Joint Stock Land 129 that his efforts benefitted Baptist Hospital Memorial Bashara (partial System, performance by sell of contract broker to Harrell, Benson v. estate); services for the Truly

real to enhance the success (Tex.Civ.App ture in an effort 2d 620 Worth . —Fort he n.r.e.) project in which (partial performance by profitability of a minerals). ownership Truly thus attorney to recover fee title to held a 40% interests cases, his own financial In these the unilateral contract im acted to benefit of his venturers. posed legal obligation plaintiff, no on the as well as those thus, plaintiff, and the did not breach cases, Second, in the construction Perillo, Con contract. See Calamari & tangible product of val- defendant retains 1-10, (1977). Truly’s tracts at 17-18 case, Austin and Clark were ue. In this type quantum meruit claim does not fit this Truly tangible after left with no benefit Truly entered into a because breached the bilateral contract in which he incurred personal Truly refused to When liability legal obligation personal to assume debt, inhe effect voluntarily joint venture debt. He very relationship that his ser- destroyed the refusing sign by breached the contract Truly’s designed to benefit. vices were development note. precipitated failure of breach way alleviated in no permitted project, fact only Texas cases that have Truly pre- quantum by supervisory services recover in viously performed. Truly, by expectations permeate his own ac- able and values that tions, caused the value of services business Accordingly, transactions. we evaporate. Truly may hold that Petitioner not recover quantum meruit. Truly

If had a meruit claim for services, the value of his it have would of the court of been itself for affirmed. performed.

whose benefit the services were Having terminated the KILGARLIN, J., concurring joined by breach, Truly impose personal seeks to own PHILLIPS, C.J., RAY, J. on Austin and Clark for repeatedly argued venture debt. KILGARLIN, Justice, concurring. that because the I concur in the court’s personal liability did expressly impose because Jack did not error debt, he on him for was not by seeking accounting, I which consider required obligation. to assume proper recoup to be the method for him to Ironically, impose personal he seeks to now to which he claims he is entitled. liability on Austin and Clark for such a Clearly, quantum is not the despite being express provi- debt there vehicle. imposing obligation sion on them. was involved venture. A Recovery partner venture is the nature of a equity. It is based well-settled that a Cole, ship. Brown v. 155 Tex. *5 party seeking equitable remedy must do 704, (1956); Holcombe v. 291 709 S.W.2d equity and come to court with hands. clean Lorino, 446, 455, 307, 124 Tex. 79 S.W.2d Co., City Wink v. Amusement of Griffith (1935). Consequently, 310-11 a 40, 695, (1936); 129 Tex. 100 S.W.2d 702 generally governed by ture is the rules Texas, Breaux v. Allied Bank partners. Thompson v. Dun applicable 599, (Tex.App. 2d 604 [14th — Houston can, 904, (Tex.Comm’n App. 44 S.W.2d 907 1985, n.r.e.). justify writ ref’d To Dist.] 1932, judgm’t adopted). See also J. Crane meruit, recovery Bromberg Crane and Bromberg, & A. must not that he show has rendered a Partnership (1968); 35 H. Reuschlein & § value, partial performance of but must also Handbook on the Law of Gregory, W. unjustly show that the defendant has been (1979); Agency Partnership and 266 47 § unjust enriched and the would be (1986). Tex.Jur.3d, Joint Ventures § 4 ly penalized permit if the defendant were when a venture partial ted to retain the benefits of the issue, silent on an this court will turn to the performance paying anything without See Park Partnership Act. Texas Uniform Corbin, Corbin on Con return. 5A A. 668, Corp. Byrd, v. Cities 534 S.W.2d 672 (1964). tracts § 1122 Equity support does not refusing sign development loan in this ren- case. note and several dered services to benefit debt, Truly for this breached large ownership which he held a agreement. Tex.Rev.Civ. agree- He then breached the 1970). 6132b, (Vernon art. 15 Stat.Ann. § ment, terminating accounting appropri A suit for an is the precipitating project. the failure of the remedy partner or ate venturer impose personal now seeks to liabili- part who has breached the venture or ty on his to an venturers v. Dob See Dobson nership agreement. imposes which he contends son, (Tex.Civ.App. 594 177 Truly, by on himself. his S.W.2d —Hous conduct, 1980, n.r.e.) (part course of has violated the reason- ton [1st Dist.]

939 excluding Phillips, v. 894 the other members him from Lane nership); 509 S.W.2d participation in the accrued assets. 1974, ref’d (Tex.Civ.App. writ — Beaumont also Tex.Rev. n.r.e.) (joint venture). See Ventures Am.Jur.2d, (1969). 38 Joint 46 § (Vernon 6132b, art. 22 Civ.Stat.Ann. Tex.Jur.3d, also 47 Joint Ventures See 1970). quan agree I with the court that 11§ remedy a suitable tum meruit relief not non-breaching ven- The interests by a failed sought venturer who has protected by procedure. this turers are also perform obligations under the his breaching venturer is not entitled See, e.g., v. White Id. accruing after his assets default. Lemley, (Mo.1959); Pem- 328 S.W.2d 694 important, breaching More venturer Co., 237 Realty berton Ladue Const. v. & accounting, pay, must in an for the dam- (1944).1 Dobson,

Mo.App. 766 Fur S.W.2d by his ages caused misconduct. ther, at 181. The Dobson materially breaching venturer Fisher, v. from Fisher damages 352 Mass. quoted not under the contract. (1967): “A partner 227 N.E.2d Josephthal, 122 Mise. See Schnitzer rights not in the does lose accrued affd, 16-17, (1923), 202 N.Y.S. by profits of a firm reason breaches (1924) (“As App.Div. 202 N.Y.S. 952 articles, not partnership whether or damages claim to case faith, although of course committed bad contract, must breach of [the claimant] charges subject to for all unex- he will be performance of show his own substantial accounting.” in the final cused breaches omitted]). essential conditions” [citations however, accounting, seeking not accounting partner- suit for an to do has failed ship protection against forfei- affords some reason, For I concur with the so. this Truly. parties ture to such as at the court. decision arrived partnership Breach or in the agreement does result forfeiture RAY, J., PHILLIPS, C.J., join partner’s inter- venturer’s or concurring opinion. in this Lane, Dobson, 181-82; est.2 at Hillman, 898-99. See also at *6 Excluding or Misconduct as Basis for Effecting

Expelling a Partner: Commer- Securing Custody cial Divorce

Business, 78 Nw.U.L.Rev. 542 n. 57 commentary says: One In the of the ESTATE OF Matter GLOVER, Deceased. to be conducted Grace undertaking, parties to the and the fail- No. C-7120. completely perform ure of Supreme Court of part fully does ac- not forfeit his quired Notwithstanding de- Feb. 1988. omissions, each inter- faults and has an preserved assets been est as have by a

or accumulated. default justify

member of venture will ably policy reformed, S.W. Tex. 1. The some discusses lands). disfavoring procure (agency reasons mineral this context. course, obtain a different result would court, however, 2. Of incorrectly asserts contains permitting Texas cases Dobson, 181. have 594 S.W.2d at forfeiture clause. building contracts. involved or construction See, Rand, e.g., Cotton

Case Details

Case Name: Truly v. Austin
Court Name: Texas Supreme Court
Date Published: Feb 17, 1988
Citation: 744 S.W.2d 934
Docket Number: C-6087
Court Abbreviation: Tex.
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