Acadian Geophysical Services, Inc. v. Cameron

119 S.W.3d 290, 2003 Tex. App. LEXIS 6004, 2003 WL 21666113
CourtCourt of Appeals of Texas
DecidedJuly 9, 2003
Docket10-01-025-CV
StatusPublished
Cited by8 cases

This text of 119 S.W.3d 290 (Acadian Geophysical Services, Inc. v. Cameron) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acadian Geophysical Services, Inc. v. Cameron, 119 S.W.3d 290, 2003 Tex. App. LEXIS 6004, 2003 WL 21666113 (Tex. Ct. App. 2003).

Opinions

OPINION

DAVID L. RICHARDS, Justice (Assigned).

This is an appeal from a jury verdict awarding appellees: Jack Cameron, Charles Murrell, Richard Leger, Ray Gui-dry, Kenneth Freeman, Russell Lyons, Thomas W. Phillips, George Arnold Pee, Douglas E. Phillips, Terry Amis, and Nicky Blakeney (“the employees”) damages against Acadian Geophysical Services, Inc. (“Acadian”), a seismic services corporation, for its breach of an employee profit-sharing agreement.1

The employees filed suit against Acadi-an, its corporate officers, and Petroleum Geo-Services, ASA (“PGS”), on the grounds Acadian breached employment agreements between the employees and Acadian’s president, Blaine LeBlanc, under which each employee was entitled to 3 1/2% of the proceeds from Acadian’s 1998 acquisition by PGS. The jury found in favor of the employees and awarded them damages for Acadian’s breach.

Appellant presents six issues on appeal. We will affirm.

The Authority of Acadian’s President

Acadian presents the following question in issue one: “As a matter of law, can Acadian’s president bind Acadian to giving the plaintiffs almost 40% of the proceeds that Acadian shareholders received from the sale or merger of Acadian when (1) Acadian itself would never receive these proceeds, (2) there is no evidence that the president had actual authority to take such extraordinary action, and (3) there was no evidence that Acadian did anything to hold the president out as having apparent authority to make such an extraordinary commitment or that any of the plaintiffs investigated the scope of his authority?”

In determining “no-evidence” issues, we are to consider only the evidence and inferences that tend to support the finding and disregard all evidence and inferences [294]*294to the contrary. Bradford v. Vento, 48 S.W.3d 749, 754 (Tex.2001); Contl. Coffee Prods. Co. v. Cazarez, 937 S.W.2d 444, 450 (Tex.1996); In re King’s Est., 150 Tex. 662, 244 S.W.2d 660, 661 (1951). Anything more than a scintilla of evidence is legally sufficient to support the finding. Cazarez, 937 S.W.2d at 450; Leitch v. Hornsby, 935 S.W.2d 114, 118 (Tex.1996).

“No-evidence” issues may only be sustained when the record discloses one of the following: (1) a complete absence of evidence of a vital fact; (2) the court is barred by rules of law or evidence from giving weight to the only evidence offered to prove a vital fact; (3) the evidence offered to prove a vital fact is no more than a mere scintilla of evidence; or (4) the evidence establishes conclusively the opposite of a vital fact. Uniroyal Goodrich Tire Co. v. Martinez, 977 S.W.2d 328, 334 (Tex.1998) (citing Robert W. Calvert, “No Evidence” and “Insufficient Evidence” Points of Error, 38 Tex. L. Rev. 361, 362-63 (1960)). There is some evidence when the proof supplies a reasonable basis on which reasonable minds may reach different conclusions about the existence of the vital fact. Orozco v. Sander, 824 S.W.2d 555, 556 (Tex.1992).

We begin with a review of Acadian’s corporate history. Acadian is a Louisiana seismic services corporation that is registered to do business in Texas. It was incorporated in January of 1997 by a group of three men2 experienced in the seismic industry. Each of those men became shareholders and officers.3 One of the three, Blaine LeBlanc became Acadi-an’s president. 100,000 shares of stock were authorized under the articles of incorporation: 32,500 shares were issued to the stockholders, leaving 67,500 shares for future issuance. Blaine LeBlanc met with Terry Amis, Nicky Blakeney, Ray Guidry, Charles Murrell and George Pee, all of whom had experience in the field, in an attempt to recruit them to join Acadian as employees. LeBlanc told them that if they came to work for Acadian, they would each receive 3 1/2% of the profit if the company ever went public or was sold, and that another 3 1/2% was being held for Ricky Leger, another possible recruit who was not present at the meeting. LeBlanc told them that 25% of the company’s stock would be set aside to cover the portion promised to the group. Later Doug Phillips, Tom Phillips, Ricky Leger, Kenneth Freeman, Russell Lyons and Jack Cameron also joined Acadian under the same agreement.

The record also reflects a shareholder’s resolution providing that all actions taken by LeBlanc “shall be deemed actions taken by the shareholders of this Corporation with like effect as if such actions were taken by the shareholders themselves” and that Acadian would indemnify him for any actions he took on behalf of the corporation.

The employees agreed to work for the company and, believing they would share in any sale of the company, provided services to Acadian during its initial startup period for which they were not paid a salary. Subsequently a large Norwegian oil exploration services corporation, “PGS” expressed interest in acquiring Acadian through a stock swap merger. The employees presented evidence that an Acadi-an in-house attorney, Eddie Guidry, subsequently falsely drafted a new corporate history for Acadian in 1998 which reflected among other things, a false set of board minutes reflecting that Guidry and Jim [295]*295McGhee, Acadian’s chief financial officer were shareholders as of February 1, 1997. They also presented evidence that Guidry prepared new stock certificates falsely suggesting that all Acadian stock had been issued as of February 1, 1997. No stock was reserved for the employees. At the same time, Acadian sought to ensure that the PGS merger would go through by obtaining agreements with key Acadian employees that they would continue their employment. Employees Blakeney, Freeman and Phillips were asked to sign written employment agreements which again referred to a “profit-sharing” plan and were told that they would profit handsomely if the merger went through.

The merger closed in Houston on July 15, 1998. PGS paid $52,000,000 for Acadi-an, paying off $17,000,000 of debt and trading $35,000,000 of PGS stock for the stock of Acadian. Under the terms of the merger agreement the PGS stock was not available for ninety days. When the stock was released after that period its value had fallen to approximately $21,000,000. Aca-dian was merged as a wholly owned PGS subsidiary and all of Acadian’s former officers and employees remained with the company under its new structure. In the months following the merger, the officers told the employees that they would receive their shares of the company and in the fall of 1998 the Acadian officers began contacting individual employees to tell them how much they received.

Each employee was told to keep the amount of his shares confidential because they were not all receiving the same amounts. Seven of the eleven employees received as little as 600 and as many as 8,000 shares of PGS stock in late 1998. Others received nothing.

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