Anthony Pools v. Charles & David, Inc.

797 S.W.2d 666, 1990 Tex. App. LEXIS 2032, 1990 WL 113875
CourtCourt of Appeals of Texas
DecidedAugust 9, 1990
DocketA14-88-01015-CV
StatusPublished
Cited by16 cases

This text of 797 S.W.2d 666 (Anthony Pools v. Charles & David, Inc.) 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 Pools v. Charles & David, Inc., 797 S.W.2d 666, 1990 Tex. App. LEXIS 2032, 1990 WL 113875 (Tex. Ct. App. 1990).

Opinion

OPINION

JUNELL, Justice.

This is an appeal from a judgment on a jury verdict which found appellant had tor-tiously interfered with certain of appellee’s contractual rights. Appellant brings six points of error alleging: (1) appellant was privileged to act as it did; (2) no evidence to support the jury findings; (3) insufficient evidence to support the jury findings; (4) improperly admitted evidence; (5) improper award of punitive damages; and (6) jury misconduct in the form of a quotient verdict. We reverse and remand.

The undisputed facts are: Appellee is a Texas corporation owned one-half by each of two brothers, Charles Davidoff and David Davidoff. The corporation was formed in early 1982 for the sole purpose of acquiring certain assets of appellant, including five retail sales and service centers which sold “after-market” swimming pool equipment, repair parts, chemicals and supplies, and the nonexclusive right to use appellant’s name as an authorized dealer of appellant, Anthony Pools (“Anthony”) [which characterized itself as the world’s largest builder of swimming pools]. Appel-lee operated the purchased business for two years under the name of “Dolphin Pool Care Centers” during which time Anthony referred business to Dolphin from a customer base consisting of purchasers of new Anthony pools who required pool “start-up” and owners whose pool warranties had lapsed. In 1984, the Davidoffs sought a buyer for Dolphin so that they might retire. They began negotiations for the sale of the business to an interested buyer, Lex Webernick. During negotiations, Charles & David obtained the written approval of Anthony to have Webernick become an authorized dealer at all the Dolphin retail and service locations. The sale was never consummated.

At issue was whether a valid contract existed between Charles & David and Web-ernick, and whether appellant Anthony tor-tiously interfered with any such existing purchase and sale contract. While Charles & David, Inc. sued Anthony 1 on several different theories of recovery, only the question of tortious interference with an existing contract went to the jury. Appellant’s points of error are mainly concerned with the sufficiency of the evidence to support the jury findings on that single theory.

Generally, there must be a valid contract in order to maintain an action for tortious interference with an existing contract. Specifically, four elements must be established:

(1) a contract existed;
(2) willful and intentional interference by the defendant; 2
(3) the intentional act was a proximate cause of the plaintiff’s damages; and
(4) actual damages 3 or loss occurred.

Bellefonte Underwriters Ins. Co. v. Brown, 663 S.W.2d 562, 573 (Tex.App.—Houston [14th Dist.] 1983), rev’d on other grounds, 704 S.W.2d 742 (Tex.1986); Walner v. Baskin-Robbins Ice Cream Co., 514 F.Supp. 1028 (N.D.Tex.1981).

*669 We find the following sources of evidence in the record:

1. Live testimony at trial by:
a. Charles Davidoff, one of the two shareholders of appellee.
b. Frank Shaw, appellee’s attorney who participated in drawing up documents related to the potential sale of the business,.
c. Joseph Wentzell, the attorney who acted for the prospective buyer in the potential transaction.
d. Neva “Dusty” Snelling, an employee of the prospective buyer, Webernick.
e. Floyd Carden, Anthony’s general manager for the Houston area.
2. The prospective buyer’s deposition taken on August 19, 1987, (read into the record).
3. The prospective buyer’s affidavit dated May 4, 1985, attached to his August 19, 1987 deposition, (recited below).

We have reviewed each of the above and find the following relevant evidence reached the jury:

CHARLES DAVIDOFF’S TESTIMONY

The Davidoffs decided in 1984 to sell the business. Charles immediately informed Anthony’s Houston representative, Floyd Carden, who saw no problems with their decision. In June, 1984, a prospective buyer showed serious interest in purchasing. The prospective buyer, Webernick, brought his banker on two occasions to look at the Dolphin facilities and to examine the business records. Later, Webernick interviewed all the Dolphin store managers and brought his secretary to collect more financial information. In August 1984, Charles and Webernick met with Floyd Carden. Webernick learned at that meeting he would not have any problems in becoming an Anthony dealer if he bought the business of Charles & David. Assisted by counsel, Webernick made a written offer to the Davidoffs. The price in the offer was unsatisfactory to the Davidoff brothers. The price then was negotiated upward to a level which was finally agreed upon by handshake. The agreed price was the resale inventory on the closing date, to be valued at cost, plus $400,000 for all other tangible and intangible property. The parties each engaged a lawyer to draft the necessary documents to complete a purchase and sale.

While formal documents were being prepared by the attorneys, Webernick moved into the offices of Charles & David, using them as his mailing address. He brought his secretary with him and began to conduct his existing business from the Dolphin location. He stored his own fixtures and inventory in a warehouse on the rear of the Dolphin premises, met with the landlord of at least one Dolphin retail location to negotiate the lease, and hired a general manager for Dolphin. Charles knew of nothing which would prevent the transaction from closing. After Anthony’s written approval of Webernick as a successor to Charles & David, Inc., it only would have been necessary to take an inventory of merchandise on hand, price it, sign documents, and transfer money. The closing was set for October 18, 1984, at the earliest and October 31 at the latest. 4

Charles became concerned in mid-October 1984, when Floyd Carden announced that Anthony’s California headquarters intended to make a geographic split of the Houston market into two parts, north and south, with the east/west line to be drawn at Interstate Highway 10 which intersects the city. The problem presented by this announcement was that one of the more profitable Dolphin stores to be sold was located north of I — 10 in the “FM 1960 area”. Charles testified that Carden told him that the 1960 Dolphin store would have to be sold to another dealer selected by Anthony to serve the north zone. Failure to sell the FM1960 store to that competing dealer would result in no further Anthony customer referrals to Charles & David, or Webernick, at that store.

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Cite This Page — Counsel Stack

Bluebook (online)
797 S.W.2d 666, 1990 Tex. App. LEXIS 2032, 1990 WL 113875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anthony-pools-v-charles-david-inc-texapp-1990.