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

Court of Appeals of Texas·Decided March 23, 2023·No. 13-21-00342-CV·Published

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).

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.

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.”

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 phrase disposing of the entire case, the order is final, and the failure to actually dispose of all claims and parties renders the order erroneous but not interlocutory.” In re Guardianship of Jones, 629 S.W.3d 921, 924 (Tex. 2021) (per curiam). An order is not final merely because it is entitled final or because it uses the word final within. Farm Bureau Cnty. Mut. Ins. v. Rogers, 455 S.W.3d 161, 163 (Tex. 2015) (per curiam). Rather, there must be some other clear indication that the trial court intended the order to completely dispose of the case. Id.

Free access — add to your briefcase to read the full text and ask questions with AI

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

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) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Brooks v. Northglen Ass'n
141 S.W.3d 158 (Texas Supreme Court, 2004)
Texas a & M University System v. Koseoglu
233 S.W.3d 835 (Texas Supreme Court, 2007)
Texas Commerce Bank, N.A. v. Grizzle Ex Rel. Grizzle
96 S.W.3d 240 (Texas Supreme Court, 2002)
Coleman Cattle Co., Inc. v. Carpentier
10 S.W.3d 430 (Court of Appeals of Texas, 2000)
Laidlaw Waste Systems (Dallas), Inc. v. City of Wilmer
904 S.W.2d 656 (Texas Supreme Court, 1995)
City of Houston v. Clear Creek Basin Authority
589 S.W.2d 671 (Texas Supreme Court, 1979)
Spoljaric v. Percival Tours, Inc.
708 S.W.2d 432 (Texas Supreme Court, 1986)
CHCA East Houston, L.P. v. Henderson
99 S.W.3d 630 (Court of Appeals of Texas, 2003)
Provident Life & Accident Insurance Co. v. Knott
128 S.W.3d 211 (Texas Supreme Court, 2003)
Penhollow Custom Homes, LLC v. Kim
320 S.W.3d 366 (Court of Appeals of Texas, 2010)
Arlington In. Sch. Dist. v. Tex. Atty. Gen.
37 S.W.3d 152 (Court of Appeals of Texas, 2001)
T.O. Stanley Boot Co. v. Bank of El Paso
847 S.W.2d 218 (Texas Supreme Court, 1993)
Lucas v. Texas Industries, Inc.
696 S.W.2d 372 (Texas Supreme Court, 1984)
Oliver v. Rogers
976 S.W.2d 792 (Court of Appeals of Texas, 1998)
Farm Bureau County Mutual Insurance Company v. Cristil Rogers
455 S.W.3d 161 (Texas Supreme Court, 2015)
TecLogistics, Inc. and Josephine Treurnie v. Dresser-Rand Group, Inc.
527 S.W.3d 589 (Court of Appeals of Texas, 2017)
Richard Nugent and CAO, Inc. v. the Estate of Janie Baker Ellickson
543 S.W.3d 243 (Court of Appeals of Texas, 2018)
in Re Paul & Cynthia Elizondo and Eagle Fabricators, Inc.
544 S.W.3d 824 (Texas Supreme Court, 2018)
Lujan v. Navistar, Inc.
555 S.W.3d 79 (Texas Supreme Court, 2018)