Bernard Peters and Elaine Peters Pruncutz v. Kerry Quinney

CourtCourt of Appeals of Texas
DecidedDecember 20, 2001
Docket03-01-00043-CV
StatusPublished

This text of Bernard Peters and Elaine Peters Pruncutz v. Kerry Quinney (Bernard Peters and Elaine Peters Pruncutz v. Kerry Quinney) 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
Bernard Peters and Elaine Peters Pruncutz v. Kerry Quinney, (Tex. Ct. App. 2001).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN




NO. 03-01-00043-CV

Bernard Peters and Elaine Peters Pruncutz, Appellants


v.



Kerry Quinney, Appellee



FROM THE DISTRICT COURT OF LEE COUNTY, 335TH JUDICIAL DISTRICT

NO. 10,405, HONORABLE H .R. TOWSLEE, JUDGE PRESIDING

Appellee Kerry Quinney sued appellants (1) Bernard Peters and Elaine Peters Pruncutz for fraud, violations of the Texas Debt Collection Practices Act, and breach of contract. The case was tried to a jury, and the jury found in Quinney's favor on all claims. Quinney was awarded $26,548 in damages, plus interest and attorney's fees. Appellants appeal from this judgment. We will affirm.

BACKGROUND

The dispute between the parties began in October 1992 when Quinney approached Bernard Peters for a loan. Quinney needed $4,000 to pay his income tax. Having previously done business with Peters, Quinney asked Peters for the $4,000, and Peters obliged. The check was drawn from Comanche Hills' account, a company owned by Peters. As a sign of his good faith, Quinney handed Peters the title to his 1989 Lincoln Town Car to hold until Quinney could repay the loan.

When Quinney approached Peters for the loan, he informed Peters of how he intended to obtain the funds to repay the loan. Quinney had a written contract to buy two oil wells from WCS Petroleum. Quinney intended to salvage the two wells and sell them to Jimmy Luecke, who had already agreed to purchase them. Peters was in the oil business, and he and Luecke were partners; Peters was familiar with the type of transaction described by Quinney. Thus, Peters and Quinney agreed that Quinney would repay the loan after he had purchased and resold the two wells. Quinney estimated that the oil well transaction would occur by January 1, 1993, and he would be able to repay the loan by then.

Unfortunately, WCS was unable to acquire all of the outstanding royalty interests in the wells, and Quinney's purchase of the wells was delayed. Quinney ultimately sued WCS to resolve the issue. Consequently, Quinney was unable to repay the loan as quickly as he had represented to Peters. According to testimony at trial, Peters was kept fully abreast of the developments.

Several months after the loan to Quinney, Quinney and Peters met to discuss the loan. Peters asked Quinney to sign the back of the title to his Town Car, and Quinney complied. However, Quinney advised Peters that the signature on the back of the title alone was not intended to pass the title to Peters and that other paperwork would be needed.

It appears that Peters became weary waiting for repayment of the loan and decided to call the loan due. Because Quinney had not repaid the loan but had signed the back of the title to his car, Peters arranged for a tow truck to arrive at Quinney's house and pick up the car. Quinney, however, would not allow his car to be towed.

Then, on April 26, 1993, Peters sought the advice of the county attorney, Steven Keng. Peters explained the terms of the loan and informed Keng that he wished to file criminal charges against Quinney for theft of the Town Car that Peters thought rightfully belonged to him. Keng advised Peters that the matter may be civil rather than criminal and that the better course of action may be to seek a civil judgment. He also informed Peters that if he filed criminal charges against Quinney, he risked being sued. Keng offered Peters the opportunity to present the charges to a grand jury to see if the jury would indict Quinney; this process would insulate Peters from liability if the charges were not substantiated against Quinney. However, the grand jury was not scheduled to meet for another several weeks, and Peters was unwilling to wait.

Peters left Keng's office and sought a justice of the peace to file a criminal complaint. Peters found Justice of the Peace Paul Fischer and related his story to Judge Fischer. Judge Fischer was also concerned that the matter may be civil rather than criminal. He telephoned Keng to seek his advice. Keng confirmed that Peters's allegations may be more appropriate for a civil suit instead of a criminal complaint. Keng nevertheless advised Judge Fischer to accept Peters's criminal complaint. Peters therefore swore out a complaint, claiming that the Lincoln Town Car rightfully belonged to him.

Based on Peters's sworn complaint, Quinney was arrested on April 26 in front of his parents' house and in the presence of his minor children. Quinney spent the night in jail and was released the following morning. The charges against Quinney were later presented to a grand jury, and the grand jury no-billed him.

On August 23, Peters filed a civil lawsuit (cause no. 268) against Quinney. Following a bench trial, the judge rendered judgment in favor of Peters in the amount of $4,040. Quinney has not satisfied this judgment.

On July 13, 1994, Quinney filed a lawsuit against Peters, alleging false imprisonment, malicious prosecution, and slander. He later amended his pleadings to add claims for intentional infliction of emotional distress, violations of the Texas Debt Collection Practices Act, and fraud. (2) After the filing of the lawsuit, Peters died. Peters's widow, Elaine Peters Pruncutz, (3) was substituted in place of Peters pursuant to a writ of scire facias. See Tex. R. Civ. P. 152. Pruncutz filed a motion for summary judgment. The trial court granted the motion, concluding that the malicious prosecution and slander claims were barred by limitations.

The trial court ordered the parties to mediate the remaining claims before they were set for trial. Following a half day mediation, a document dated April 23, 1999, entitled "Settlement Agreement," was executed and signed by all parties. The agreement included several pertinent handwritten provisions, by which the parties agreed to the following:



3a. Excuse judgment cause #268; Peters v. Quinney



3b. Peters will pay Quinney $17,500.00 by May 30, 1999, if able.



3c. Lee County will not oppose expunction of Quinney's arrest. (4)



4c. The Discovery currently due 1 wk from today shall not be due now until May 30, 1999.



Quinney understood the terms "if able" in paragraph 3b to mean that if Pruncutz could negotiate a pasture lease that netted her $17,500 by the due date, she would pay Quinney that amount, and the matter would be settled. As the due date approached, Quinney's counsel, Gregory Morrison, contacted Pruncutz's attorney, Martin Placke, to determine whether Pruncutz was able to secure a pasture lease. Placke advised Morrison that Pruncutz had elected not to settle the case. Quinney later learned that Placke had approached Luecke and secured an agreement to renew his pasture lease with Pruncutz. (5) Luecke had agreed to a prepaid pasture lease for $17,500 for a term of eight years, (6) but Pruncutz would not agree to the extension of the lease. Soon after Quinney learned of Pruncutz's decision not to settle the case, Quinney added a breach of contract claim against Pruncutz.

The parties proceeded to jury trial on July 24, 2000.

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