Austin v. Truly

721 S.W.2d 913, 1986 Tex. App. LEXIS 9159
CourtCourt of Appeals of Texas
DecidedNovember 20, 1986
Docket09-85-145 CV
StatusPublished
Cited by13 cases

This text of 721 S.W.2d 913 (Austin v. Truly) 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
Austin v. Truly, 721 S.W.2d 913, 1986 Tex. App. LEXIS 9159 (Tex. Ct. App. 1986).

Opinions

OPINION

BROOKSHIRE, Justice.

This appeal results from an action brought by the Appellee, Truly, on claims based on breach of contract and on the [915]*915alternate theory of quantum meruit. The Appellants pleaded counterclaims against the Appellee alleging the breach of a contract as well as violation of duty. The trial was to the jury. The Special Issues were 10 in number. The verdict was rendered against the Appellants for the amount of $215,480.00 based largely on quantum me-ruit damages. An additional attorney’s fee was awarded to the Appellee.

The Appellants argue 52 points of error. We perceive that a number of these points of error may be grouped.

This juried litigation arose out of a written document entitled “Agreement to Enter Into a Joint Venture Agreement’. The joint venture agreement signed and approved by each of the three parties was dated January 22,1982. The business relationship, or the joint venture, between the Appellee and the Appellants, existed for no more than 8 months. The joint venture was to have developed the “Crossroads Shopping Center” in Jasper. Austin had owned the real estate involved and had, for a number of years, endeavored to develop this project. The Appellants argue that the phase of the shopping center development, giving rise to this lawsuit, had a duration of about 8 partial months, beginning November, 1981 through June, 1982. Appellants further basically contend that this 8 months duration of time was actually interposed in between the beginning of the development by James Austin and a firm called McFaddin-Kendrick and the completion of the development of the shopping center by a new joint venture that was formed after the Appellee’s departure.

A tract of land was purchased by Austin in 1975. This tract was the site of the proposed shopping center. The property was eventually paid out sometime in 1981. Austin had not attempted to develop a shopping center before this one.

In the early part of 1981, Mr. Gilliam, who was employed by McFaddin-Kendrick, began to work on this shopping center. A part of the tract was sold to the Safeway Grocery firm. McFaddin-Kendrick agreed to develop a small shopping center after the sale to Safeway. A plot was developed along with certain preliminary plans. Negotiations with prospective tenants transpired. One of the key actors, Mr. Kendrick, died suddenly. Then McFaddin-Ken-drick was unwilling or unable to continue the development project while Kendrick’s estate was being probated. Later, Austin regained title to the tract by foreclosure. Austin met Truly through an employee of Safeway. Clark later became a third investor.

Because we deem the “Agreement to Enter Into A Joint Venture Agreement” of paramount importance, we set it out in full:

“AGREEMENT TO ENTER INTO A JOINT VENTURE AGREEMENT
“This Agreement is entered into on the undersigned date by Jim Austin, Gearld Clark and Jack Truly.
“WHEREAS the Parties to this Agreement desire to acquire, own, hold for investment, construct improvements on, develope [sic], subdivide, maintain, operate, finance the acquisition, operation, development, and improvement of, sell or lease that certain real property situated in Jasper County, Texas, owned by Jim Austin, situated on U.S. Highway 96, south of its intersection with U.S. Highway 190, and lying contiguous to real property being developed as a Safeway Supermarket on the southwest corner of the intersection of U.S. Highway 190 and U.S. Highway 96; and
“WHEREAS the Parties believe that it is in their best interest to accomplish the above-stated purpose through formation of, and participation in, a Joint Venture; and
“WHEREAS, the Parties desire to reach agreement on several of the terms and conditions governing their Joint Venture;
“IT IS THEREFORE MUTUALLY AGREED AS FOLLOWS:
“The Parties will enter into a Joint Venture Agreement to accomplish the purpose stated above.
[916]*916“The ownership interests of the parties, including their right to participate in the profits thereof, unless otherwise stated herein, shall be as follows: Jack Truly, 40%; Jim Austin, 30%; Gearld Clark, 30%.
“Jim Austin shall sell real property, valued at $547,000.00 to the Joint Venture.
“Jim Austin and Gearld Clark shall arrange financing of the construction and development contemplated by the Joint Venture, in a minimum of $2,500,-000.00 at an interest rate of floating prime.
“The Joint Venture shall have an interest in the real property beginning January 1, 1982.
“Jack Truly shall supervise the construction and development and shall receive from the Joint Venture the sum of $2,000.00 per month, beginning January 1, 1982, and continuing through December 31, 1983, for a total draw of $24,-000.00.
“The Parties agree that after January 1, 1983 the Joint Venture may be sold, or the Joint Venture may sell all of its assets. In no event shall the selling price be less than $3,000,000.00. If any one or two of the parties refuse to accept a bona fide offer to buy the assets of the Joint Venture at or above the stated selling price, the remaining party or parties shall be able to complete the sale as authorized agent or agents of the Joint Venture. The proportion of sale proceeds due to each non-accepting party shall be promptly remitted to him by the accepting party or parties.
“During the years 1982 and 1983 Jim Austin and Gearld Clark shall receive 80% of the depreciation tax benefits of the Joint Venture. Jack Truly shall receive the remaining 20% of the depreciation tax benefits for the stated term. The Joint Venture shall use an accelerated depreciation schedule which permits the greatest depreciation during the stated term.
“SIGNED, and APPROVED as to content, this 22 day of Jan f.l, 1982.
“/S/ Jim Austin JIM AUSTIN
“/S/ Gearld Clark GEARLD CLARK
“/S/ J.D. Truly JACK TRULY”

It is important to note that the parties to the agreement desired to do several things, including acquiring, holding for investment, developing, maintaining, operating, and financing the acquisition of certain real property to develop a shopping center. Of paramount importance is the sentence “[t]he Parties will enter into a Joint Venture Agreement to accomplish the purpose stated above.” Jack Truly was to receive 40% of the interest in the project, as well as the right to participate in the profits thereof at the same 40% and, indeed, the Joint Venture “shall have an interest in the real property beginning January 1, 1982. Jack Truly shall supervise the construction and development and shall receive from the Joint Venture the' sum of $2,000.00 per month, beginning January 1,1982, and continuing through December 31, 1983, for a total draw of $24,000.00.”

A dispute arose over the liability for the proposed development loan. It is clear that the breach of the written joint venture agreement occurred when Mr.

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Austin v. Truly
721 S.W.2d 913 (Court of Appeals of Texas, 1986)

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Bluebook (online)
721 S.W.2d 913, 1986 Tex. App. LEXIS 9159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/austin-v-truly-texapp-1986.