Anthony Leo Sheridan and CCS Asset Management, Inc. v. Kelli D. Williams, Michael Richardson, and Scoutview Sports

CourtCourt of Appeals of Texas
DecidedMarch 23, 2023
Docket13-21-00342-CV
StatusPublished

This text of Anthony Leo Sheridan and CCS Asset Management, Inc. v. Kelli D. Williams, Michael Richardson, and Scoutview Sports (Anthony Leo Sheridan and CCS Asset Management, Inc. v. Kelli D. Williams, Michael Richardson, and Scoutview Sports) 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
Anthony Leo Sheridan and CCS Asset Management, Inc. v. Kelli D. Williams, Michael Richardson, and Scoutview Sports, (Tex. Ct. App. 2023).

Opinion

NUMBER 13-21-00342-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

ANTHONY LEO SHERIDAN AND CCS ASSET MANAGEMENT, INC., Appellants,

v.

KELLI D. WILLIAMS, MICHAEL RICHARDSON, AND SCOUTVIEW SPORTS, Appellees.

On appeal from the 26th District Court of Williamson County, Texas.

MEMORANDUM OPINION Before Justices Benavides, Longoria, and Tijerina Memorandum Opinion by Justice Benavides

This case stems from a dispute over a real estate transaction and involves claims

for breach of contract, statutory fraud, and an alter ego theory of liability. After granting

appellees, Kelli D. Williams, Michael Richardson, and ScoutsView Sports’s (ScoutsView) motion for partial summary judgment, the trial court signed an order awarding damages.

By four issues that we have reordered, appellants Anthony Leo Sheridan and CCS Asset

Management, Inc. (CCS) claim: (1) the underlying order is not a final and appealable

order; (2) a genuine issue of material fact precluded summary judgment on the statutory

fraud claim; (3) summary judgment on the breach of contract claim was improper because

an “Advisory Committee” was a necessary party; and (4) Sheridan could not be held

individually liable because alter ego was not adequately shown. We affirm in part and

reverse and remand in part.

I. BACKGROUND1

In 2016, Williams, Richardson, and ScoutsView discussed Williams’s interest in

investing in ScoutsView. At the time, Williams owned a residential property (the Property)

that had been in her family for several decades. Williams, Richardson, and ScoutsView

agreed to leverage the Property as collateral to secure funding for Williams to invest in

ScoutsView.

Around September of that same year, Richardson, on behalf of ScoutsView, and

Williams spoke to Sheridan about brokering a loan to facilitate Williams’s investment in

ScoutsView. According to the pleadings, Sheridan is a broker, and the Vice President of

CCS. A “Corporate Partnership Agreement” was executed between CCS and

ScoutsView. Sheridan signed on behalf of CCS, and Richardson signed on behalf of

ScoutsView. Williams was not a signatory to the contract.

1 This appeal was transferred to this Court from the Third Court of Appeals in Austin by order of the Texas Supreme Court. See TEX. GOV’T CODE ANN. § 73.001 (granting the supreme court the authority to transfer cases from one court of appeals to another at any time that there is “good cause” for the transfer). 2 The stated purpose of the Corporate Partnership Agreement was to use the

Property as collateral to secure funding for the parties to invest in ScoutsView. According

to the Corporate Partnership Agreement, Williams would first use the Property as

collateral to net approximately $80,000, which Williams would use to invest in

ScoutsView. The Corporate Partnership Agreement provided that a second note would

be executed, and CCS would invest a minimum of “50% or $47,500” in ScoutsView. It

further set forth that an “Advisory Partnership” would be formed, and that partnership

would have “the full, exclusive and absolute right, power and authority to manage and

control the [p]artnership and the property, assets[,] and business thereof.” The

partnership would also approve work and construction on the Property. Williams was

listed as a member of this partnership, but Sheridan was not. Notably, the Corporate

Partnership Agreement also provided that “CCS . . . SHALL ALLOW [ScoutsView] TO

PURCHASE [the Property] FROM CCS . . . AT ANY TIME.”

It is undisputed that in August of 2017, CCS and Sheridan sold the Property without

notifying Williams, Richardson, or ScoutsView. That same month, Williams, Richardson,

and ScoutsView filed suit against Sheridan and CCS for common law fraud.2 After filing

multiple amended petitions, Williams, Richardson, and ScoutsView finally filed a third

amended petition, and their live pleading in this case, on August 30, 2018, asserting

causes of action against Sheridan and CCS for common law fraud, statutory fraud, and

breach of contract. They also asserted that Sheridan was the alter ego of CCS.

2 A co-defendant, Kensington Peavy, LLC, was added to the case in September of 2017, but was later severed out in September of 2018. Kensington Peavy, LLC, was allegedly the party to whom CCS and Sheridan sold the Property. It is not a party to this appeal. 3 On May 29, 2019, Williams, Richardson, and ScoutsView filed a partial motion for

summary judgment seeking judgment as a matter of law solely on their breach of contract

and statutory fraud claims. Attached to the motion were affidavits from Williams and

Richardson, deemed admissions by Sheridan and CCS, the Corporate Partnership

Agreement, and an affidavit from plaintiffs’ counsel concerning the deemed admissions.

Sheridan and CCS filed their summary judgment response on July 17, 2019.

Attached to their response was a deed of trust concerning the Property, a contract

between Williams and CCS, and affidavits by Sheridan and Robert E. Turner, who

claimed to have observed the execution of the Corporate Partnership Agreement.

Williams, Richardson, and ScoutsView objected to CCS and Sheridan’s summary

judgment response on the basis that it included unsworn factual assertions. They also

objected to two paragraphs of Sheridan’s affidavit on the basis that those paragraphs

contained statements that were “self-serving,” “irrelevant,” and “factually incorrect.”

Lastly, Williams, Richardson, and ScoutsView objected to the entire affidavit of Turner on

the basis that it was “irrelevant” and “contains . . . hearsay.”

On November 25, 2019, the trial court sustained the objections to Sheridan and

CCS’s summary judgment evidence in a written order and granted summary judgment on

“all claims asserted” by Williams, Richardson, and ScoutsView. A final order was signed

on June 22, 2021, which determined the appropriate amount of damages. In the order,

the court stated that “[b]y this order, the court disposes of the issues of appropriate

damages and with the court’s November 25, 2019 order, all issues in the case are now

resolved.”

4 CCS and Sheridan filed a motion for new trial that was overruled by operation of

law. This appeal followed.

II. JURISDICTION

As a preliminary matter, Sheridan and CCS argue that we lack jurisdiction over this

appeal because there is no final, appealable order.

A. Standard of Review & Applicable Law

In general, unless a statute provides otherwise, we lack jurisdiction over

interlocutory orders. Tex. A & M Univ. Sys. v. Koseoglu, 233 S.W.3d 835, 840 (Tex. 2007).

There are two different ways a judgment issued without a conventional trial can be final

for purposes of appeal: (1) if the judgment clearly and unequivocally states that it finally

disposes of all claims and parties, even if it does not actually do so; or (2) if the judgment

actually disposes of every pending claim and party. Bella Palma, LLC v. Young, 601

S.W.3d 799, 801 (Tex. 2020) (per curiam).

For a judgment’s language to clearly and unequivocally express finality, there is

no magic language requirement. Id. “If the order contains a ‘clear and unequivocal’ finality

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Anthony Leo Sheridan and CCS Asset Management, Inc. v. Kelli D. Williams, Michael Richardson, and Scoutview Sports, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anthony-leo-sheridan-and-ccs-asset-management-inc-v-kelli-d-williams-texapp-2023.