Bergholtz v. Southwestern Bell Yellow Pages, Inc.

324 S.W.3d 195, 2010 Tex. App. LEXIS 3573, 2010 WL 1896413
CourtCourt of Appeals of Texas
DecidedMay 12, 2010
Docket08-08-00275-CV
StatusPublished
Cited by7 cases

This text of 324 S.W.3d 195 (Bergholtz v. Southwestern Bell Yellow Pages, 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
Bergholtz v. Southwestern Bell Yellow Pages, Inc., 324 S.W.3d 195, 2010 Tex. App. LEXIS 3573, 2010 WL 1896413 (Tex. Ct. App. 2010).

Opinion

OPINION

DAVID WELLINGTON CHEW, Chief Justice.

Appellant, Dana Bergholtz, appeals the trial court’s judgment based on its exclusion of testimony by his expert witness and by Appellant himself with respect to lost profits. On appeal, Mr. Bergholtz argues the trial court erred in excluding both testimonies, and that these errors were not harmless. We will affirm.

.Mr. Bergholtz owned and operated a business in El Paso that sold wireless service and accessories beginning in 1997. In 2001, he opened another location in El Paso, which was engaged in the same business. In February 2002, Mr. Bergholtz entered into a contract with Southwestern Bell to advertise in its 2002-2003 Yellow Pages directory. According to him, the advertisement in the 2002-2003 directory *197 contained many mistakes regarding his business, including phone numbers, locations, and service providers. He refused to pay the fee for this particular advertisement. Mr. Bergholtz sold his business in late 2003.

In early 2003, Southwestern Bell brought suit against Mr. Bergholtz based on sworn account, breach of contract, and quantum meruit to collect an unpaid debt related to his advertisement in its 2002-2003 Yellow Pages directory. Mr. Ber-gholtz first filed counterclaims against Southwestern Bell based on breach of contract and negligence. He then filed an amended counterclaim citing claims under the Texas Deceptive Trade Practices Act (“DTPA”). He sought reasonable attorney’s fees, as well as lost profits, which he claimed resulted from the erroneous information in the advertisement.

In February 2008, Southwestern Bell filed a motion for summary judgment arguing: (1) Mr. Bergholtz had no cause of action for breach of contract because the parties’ agreement contemplated the alleged errors in the advertisement, and the limitation of liability clause in the contract limited his damages to the amount paid; (2) Mr. Bergholtz had no cause of action for negligence or for a violation of the DTPA because of the economic loss rule; and (3) the statutes of limitation governing Mr. Bergholtz’s negligence and DTPA claims barred those claims. In his response, Mr. Bergholtz agreed with the company’s motion for partial summary judgment as to the negligence cause of action, but argued the DTPA claim was still viable. He further argued that the limitation of liability clause in the contract for the 2002-2003 Yellow Pages advertisement was unenforceable due to a lack of agreement between the parties and inconspicuous nature of the clause’s terms.

In March 2008, the trial court granted partial summary judgment in favor of Southwestern Bell. The court ordered Mr. Bergholtz to take nothing on his counterclaims of negligence and DTPA violations.

Prior to trial, Southwestern Bell filed a motion to exclude Mr. Dunbar’s expert testimony on the amount of lost profits Mr. Bergholtz suffered as a result of the alleged errors in the 2002-2003 Yellow Pages advertisement. At the conclusion of the hearing on this motion, the court did exclude Mr. Dunbar’s testimony on lost profits because, he found that the testimony had an excessive analytical gap, and both the underlying method and data used were flawed.

At trial, Mr. Bergholtz presented evidence in the form of an offer of proof with respect to his business’s lost profits, which he claimed resulted from the erroneous information in the Yellow Pages advertisement. At the conclusion of this hearing, the court held Mr. Bergholtz lacked competency to testify on lost profits, and it excluded his testimony on that issue.

The court subsequently directed a verdict in favor of Southwestern Bell in connection with Mr. Bergholtz’s breach of contract counterclaim. When the case was submitted to the jury on Southwestern Bell’s breach of contract claim and Mr. Bergholtz’s material breach of contract affirmative defense, the jury returned a verdict and found the company’s material breach of contract excused Mr. Bergholtz’s failure to pay for advertising. As a result, the trial court rendered a take nothing judgment.

In his two issues, Mr. Bergholtz contends the trial court erred in sustaining Southwestern Bell’s motion to exclude the testimony of witnesses, both expert and non-expert.

*198 We review a trial court’s ruling on the admissibility of evidence for an abuse of discretion. Owens-Corning Fiberglas Corp. v. Malone, 972 S.W.2d 35, 43 (Tex.1998). The test for abuse of discretion is whether the trial court acted without reference to any guiding rules or principles, or whether the act was arbitrary and unreasonable. E.I. du Pont de Nemours & Co., Inc. v. Robinson, 923 S.W.2d 549, 558 (Tex.1995); Downer v. Aquamarine Operators, Inc., 701 S.W.2d 238, 241-42 (Tex.1985). We will uphold the court’s ruling if there is any legitimate basis for the ruling. Malone, 972 S.W.2d at 43.

We review a trial court’s exclusion of expert testimony for an abuse of discretion. See Kelly v. State, 824 S.W.2d 568, 574 (Tex.Crim.App.1992). We cannot conclude that a court abused its discretion if, in the same circumstances, it would have ruled differently, or if the court committed a mere error in judgment. See Robinson, 923 S.W.2d at 558.

However, pursuant to Texas Rule of Appellate Procedure 44.1, a trial court’s error of law is reversible only if it caused harm. See Tex.R.App.P. 44.1. We cannot reverse a judgment unless the error probably caused the rendition of an improper judgment or probably prevented the appellant from properly presenting the case on appeal. See Tex.R.App.P. 44.1.

In Issue One, Mr. Bergholtz contends the trial court abused its discretion by excluding the testimony of his expert witness, Mr. John Dunbar, on lost profits. Mr. Bergholtz argues that Mr. Dunbar’s testimony met all the qualifications to constitute reliable testimony. He contends Mr. Dunbar “proved to be reliable because he was reasonably certain regarding his calculation of lost profits and his opinion was predicated upon factual data derived from the previous operation of the business.” Mr. Bergholtz further claims that Mr. Dunbar used net income in his calculation of lost profits, explained his calculation in arriving at a forecast for lost profits, and that Southwestern Bell was unable to establish the unreliability of Mr. Dunbar’s testimony.

In Issue Two, Mr. Bergholtz argues the trial court abused its discretion by excluding his own testimony on lost profits because it determined he was not competent to testify on the issue. He claims the court erred because as the business owner, he was competent to testify on lost profits based on his personal knowledge. He also claims that at trial, he showed his calculations regarding lost profits, established his tracking of business customers, and testified about his business’s ultimate sales price, as well as its value prior to publication of the 2002-2003 Yellow Pages advertisement.

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324 S.W.3d 195, 2010 Tex. App. LEXIS 3573, 2010 WL 1896413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bergholtz-v-southwestern-bell-yellow-pages-inc-texapp-2010.