Aztec Systems, Inc. and Glendon Todd Capital, LLC v. Nick Prevett

CourtCourt of Appeals of Texas
DecidedMarch 29, 2019
Docket05-18-00183-CV
StatusPublished

This text of Aztec Systems, Inc. and Glendon Todd Capital, LLC v. Nick Prevett (Aztec Systems, Inc. and Glendon Todd Capital, LLC v. Nick Prevett) 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
Aztec Systems, Inc. and Glendon Todd Capital, LLC v. Nick Prevett, (Tex. Ct. App. 2019).

Opinion

Affirm in part; Reverse and Render in part; Opinion Filed March 29, 2019.

In The Court of Appeals Fifth District of Texas at Dallas No. 05-18-00183-CV

AZTEC SYSTEMS, INC. AND GLENDONTODD CAPITAL, LLC, Appellants V. NICK PREVETT, Appellee

On Appeal from the 44th Judicial District Court Dallas County, Texas Trial Court Cause No. DC-15-13630

MEMORANDUM OPINION Before Justices Myers, Osborne, and Nowell Opinion by Justice Osborne After a jury trial, the trial court rendered judgment for appellee Nick Prevett on his claim

for breach of contract against appellant Aztec Systems, Inc. The trial court also rendered judgment

against appellant glendonTodd Capital, LLC, based on the jury’s finding that glendonTodd was

engaged in a joint enterprise with Aztec. Aztec and glendonTodd appeal, arguing that the evidence

was legally and factually insufficient to support the jury’s findings, and that the trial court erred

by overruling their motion for directed verdict, objections to the charge, motion for judgment

notwithstanding the verdict, and motion for new trial. We conclude the evidence is legally and

factually sufficient to support the jury’s findings against Aztec, but not against glendonTodd.

Accordingly, we affirm the trial court’s judgment in part, and reverse and render in part. BACKGROUND

Aztec sells and implements information technology packages and provides hosting services

for businesses. Aztec hired Prevett in July 2013. Prevett had experience working with “NAV”

software for businesses, one of the products Aztec sells. Prevett’s duties for Aztec included selling

products and consulting with clients. His salary was $85,000 annually plus commissions. For the

first few months of his employment, Prevett’s responsibilities were in sales. But when Aztec

decided to implement the NAV system for its own internal use, Prevett began spending

approximately half of his time working on the implementation. David Boone joined Aztec in

October 2014 as its chief executive officer, and became Prevett’s direct supervisor.

Prevett is a citizen of the United Kingdom. At the time he was hired by Aztec, Prevett was

living and working in the United States under an H1B visa that was due to expire on February 21,

2015. Prevett and Aztec agreed that Aztec would sponsor Prevett to obtain a green card after his

visa expired so that Prevett could continue his employment with Aztec.

Prevett’s visa expired on February 21, 2015. He stopped working at Aztec’s offices.

According to Boone, he and Prevett “had discussed [Prevett’s] role as a contractor and how he

would continue and how possibly he could make money while he was not an employee.” Prevett

testified that he became a consultant to Aztec, working on a contract basis. According to Prevett,

his duties did not change. He worked on the NAV implementation and visited clients. But Boone

testified that his discussion with Prevett was limited to the possibility that Previtt could be paid a

commission if he brought new business in to the company and could be reimbursed for his

expenses incurred on sales calls.

Aztec did not pay Prevett for his services or reimburse his expenses after February 21,

2015. Prevett sued Aztec and glendonTodd for breach of contract, seeking $33,825.33 for services

provided and $8,267.06 in “unreimbursed out of pocket expenses incurred.” In the alternative,

–2– Prevett alleged a cause of action in quantum meruit for the value of his services. Prevett also

alleged that Aztec and glendonTodd “were acting as a joint enterprise at all relevant times.” The

case proceeded to trial before a jury in July, 2017.

The jury found:

(1) Prevett and Aztec agreed that Prevett would provide consulting services in exchange for reasonable compensation after February 21, 2015 (Question 1 of the jury charge);

(2) Aztec failed to comply with that agreement (Question 2);

(3) Prevett “perform[ed] compensable work” for Aztec “for which he was not compensated” (Question 3);

(4) the sums of $33,825.33 for services rendered and $8,267.06 for expenses would fairly and reasonably compensate Prevett for his damages resulting from Aztec’s failure to comply (Question 4);

(5) the reasonable value of Prevett’s compensable work at the time and place it was performed was $33,825.33 (Question 5); and

(6) Aztec and glendonTodd were engaged in a joint enterprise “[w]ith regard to services provided” by Prevett “and the failure to pay for those services.” (Question 6)

The trial court overruled Aztec’s and glendonTodd’s motion for judgment notwithstanding

the verdict and rendered judgment for Prevett on the amounts found by the jury plus attorney’s

fees found by the court, interest, and costs. The court denied Aztec’s and glendonTodd’s motion

for reconsideration or for new trial. This appeal followed.

In five of their six issues, Aztec and glendonTodd challenge the legal and factual

sufficiency of the evidence to support the jury’s answers to Questions 1, 2, 4, 5, and 6 of the charge.

In each issue, Aztec and glendonTodd also contend the trial court erred by overruling their

objections to the charge; by submitting each question to the jury; by overruling their motions for

directed verdict, judgment notwithstanding the verdict, and new trial; and by granting judgment in

Prevett’s favor. In their remaining issue, Aztec and glendonTodd challenge the trial court’s award

of attorney’s fees on the ground that Prevett was not entitled to judgment on his underlying breach

of contract and quantum meruit claims. –3– STANDARDS OF REVIEW

When a party attacks the legal sufficiency of the evidence to support an adverse finding on

which it did not have the burden of proof at trial, it must demonstrate there is no evidence to

support the adverse finding. Exxon Corp. v. Emerald Oil & Gas Co., L.C., 348 S.W.3d 194, 215

(Tex. 2011); Croucher v. Croucher, 660 S.W.2d 55, 58 (Tex. 1983). In determining whether the

evidence is legally sufficient to support a finding, we consider the evidence in the light most

favorable to the judgment and indulge every reasonable inference that would support it. City of

Keller v. Wilson, 168 S.W.3d 802, 822 (Tex. 2005). We must credit favorable evidence if a

reasonable factfinder could and disregard contrary evidence unless a reasonable factfinder could

not. Id. at 807, 827. “The final test for legal sufficiency must always be whether the evidence at

trial would enable reasonable and fair-minded people to reach the verdict under review.” Id. at

827.

A complaint that the evidence is legally insufficient will be sustained when: (a) there is a

complete absence of evidence of a vital fact; (b) the court is barred by rules of law or of evidence

from giving weight to the only evidence offered to prove a vital fact; (c) the evidence offered to

prove a vital fact is no more than a mere scintilla; or (d) the evidence establishes conclusively the

opposite of the vital fact. See id. at 810; King Ranch, Inc. v. Chapman, 118 S.W.3d 742, 751 (Tex.

2003). “Anything more than a scintilla of evidence is legally sufficient to support the finding.”

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