Alan Reuber Chevrolet, Inc. v. Grady Chevrolet, Ltd.

287 S.W.3d 877, 2009 Tex. App. LEXIS 4077, 2009 WL 1591631
CourtCourt of Appeals of Texas
DecidedJune 9, 2009
Docket05-08-00107-CV
StatusPublished
Cited by81 cases

This text of 287 S.W.3d 877 (Alan Reuber Chevrolet, Inc. v. Grady Chevrolet, Ltd.) 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
Alan Reuber Chevrolet, Inc. v. Grady Chevrolet, Ltd., 287 S.W.3d 877, 2009 Tex. App. LEXIS 4077, 2009 WL 1591631 (Tex. Ct. App. 2009).

Opinion

OPINION

Opinion by

Justice MOSELEY.

In this appeal, we decide whether: (1) Alan Reuber Chevrolet, Inc. (ARCI) is entitled to recover attorney’s fees as the successful party to Grady Chevrolet, Ltd.’s breach of contract claim, despite pleading and procedure issues; and (2) the evidence supports the findings on the damages awarded to Grady Chevrolet on its conversion claim. Because we answer both of those questions in the affirmative, we reverse the trial court’s revised final judgment to the extent it denies ARCI’s claim for attorney’s fees and remand this case to the trial court for further proceedings on that claim. In all other respects, we affirm the revised final judgment.

I. FACTUAL BACKGROUND

Jerry Grady was the president of Grady Chevrolet Company, which operated a Chevrolet dealership in Greenville, Texas. Alan Reuber was the president of ARCI and AMTJ, Inc. In September 2001, Grady and Reuber, as corporate officers, signed a Dealership Asset Sale and Purchase Agreement whereby AMTJ, Inc. agreed to buy Grady Chevrolet’s assets under the terms and conditions in the agreement.

Four provisions of the agreement are relevant to the issues presented on appeal. First, AMTJ, Inc. agreed to buy fixed assets at a price calculated on their fair market value as appraised. Second, AMTJ, Inc. also agreed to buy all the “non-obsolete current, unused, new and returnable Chevrolet factory parts and accessories” on hand when the sale closed. These parts were to be inventoried and valued at the net cost to Grady Chevrolet as set forth in the most recent Chevrolet price book, less any discounts or rebates reflected on the parts invoices.' Third, AMTJ, Inc. agreed to purchase “all non-Chevrolet factory parts and accessories” on hand at the time of closing at fair market value, but if the parties could not agree on their fair market value, they would not be subject to the agreement. *881 Fourth, the agreement provided (in section 17) the following regarding attorney’s fees and costs:

In the event of any litigation between the Parties hereto to enforce any provisions or rights hereunder, the unsuccessful Party to such litigation shall pay to the successful Party therein all costs and expenses expressly including, but not limited to, reasonable attorney’s fees ..., which ... attorney’s fees shall be included in and as part of any judgment rendered in such litigation.

The fixed assets were appraised by Travis R. Fralicks, who submitted an appraisal to both parties. The parts were inventoried and valued by Leighton Railsback; he referred to a nonreturnable part as a “nonconforming” part. 1 As relevant here, he valued the nonreturnable parts at just under $60,000. Before the closing, AMTJ, Inc. assigned its rights and obligations under the agreement to ARCI. The sale closed November 13, 2001, with the sale price based on the appraisals and inventories.

Four days after the closing, Grady mistakenly opened an envelope from Fralicks to Reuber; the envelope contained another appraisal — at higher values — of the fixed assets involved in the sale. Attached to the second appraisal was a handwritten note from Fralicks to Reuber: “Alan: This info for your use only.” Grady believed the second appraisal was evidence that he received less at the closing than he should have received. Additionally, Grady was unsuccessful in obtaining the nonreturnable parts, which had been excepted from the sale, from ARCI.

II. PROCEDURAL BACKGROUND

Grady Chevrolet filed suit against ARCI and others. In its third amended original petition, Grady Chevrolet asserted, among other claims, claims for breach of contract and conversion. As part of its breach of contract claim, Grady Chevrolet alleged ARCI failed to pay the true market value of the fixed assets and failed to allow Grady Chevrolet to retrieve the nonreturnable parts. Grady Chevrolet alleged it was entitled to recover its reasonable and necessary attorney’s fees pursuant to section 17 of the agreement and civil practice and remedies code chapter 38.

In its conversion claim, Grady Chevrolet alleged the nonreturnable parts remained the property of Grady Chevrolet, and that despite numerous efforts to make arrangements to take possession of those parts, ARCI refused to allow Grady Chevrolet to do so and thus converted the nonreturnable parts. Grady Chevrolet alleged those parts were worth $60,000, and that as a result of the conversion it suffered damages of approximately $100,000, representing the cost of the parts plus the lost profits it would have realized had on the sale of those parts.

In its first amended original answer, filed after Grady Chevrolet filed its third amended petition, ARCI generally denied Grady Chevrolet’s allegations. Although the pleading did not specifically request attorney’s fees under section 17 of the agreement, it did include a prayer for attorney’s fees. Grady Chevrolet did not file a special exception to this pleading.

The case was tried before the court. In opening statements, counsel for ARCI as *882 serted, among other things, that if it prevailed on the breach of contract claim, it would be entitled to attorney’s fees under the agreement. During trial, Grady Chevrolet abandoned all claims except its breach of contract and conversion claims (against AMTJ, Inc. and ARCI) and its fraud and civil conspiracy claims (against AMTJ, Inc., ARCI, Reuber, and Fralicks). 2

After the parties rested and closed, the trial court stated that final arguments would be submitted in writing, including arguments concerning the recovery of attorney’s fees. The trial court also stated that after it ruled on liability issues, the parties could submit affidavits on attorney’s fees if attorney’s fees were awarded. Both sides filed a “Closing Arguments and Trial Brief’ directed to their theories of recovery, the evidence, and recovery of attorney’s fees. In its rebuttal to Grady Chevrolet’s closing argument, ARCI argued Grady Chevrolet had failed to prove its contractual claims against ARCI, and thus was an “unsuccessful party” under section 17 of the agreement and responsible for ARCI’s attorney’s fees. ARCI also argued that its first amended original answer gave Grady Chevrolet fair notice of its claim for attorney’s fees, and, if not, it requested leave to file a trial amendment.

Subsequently, the trial court sent the parties a letter (the September 10, 2007 letter) “addressing] the findings on the various causes of action Defendant by Defendant.” Pertinent to this appeal, the trial court found in favor of ARCI on Grady Chevrolet’s breach of contract claim and in favor of Grady Chevrolet on its conversion claim. The trial court also said that, although ARCI and the other defendants prevailed on the breach of contract claim and were the “successful parties,” there were no specific pleadings requesting attorney’s fees by any defendant. Further, it said that ARCI’s request for attorney’s fees in the prayer alone, not in the body of the answer, was “insufficient and too unspecific” to be the basis of an award of attorney’s fees under the agreement. Therefore, the court would not award attorney’s fees to any defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
287 S.W.3d 877, 2009 Tex. App. LEXIS 4077, 2009 WL 1591631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alan-reuber-chevrolet-inc-v-grady-chevrolet-ltd-texapp-2009.