Brian Doyle and NDemand, Inc. v. Jay R. Teske

CourtCourt of Appeals of Texas
DecidedMarch 31, 2011
Docket12-09-00359-CV
StatusPublished

This text of Brian Doyle and NDemand, Inc. v. Jay R. Teske (Brian Doyle and NDemand, Inc. v. Jay R. Teske) 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
Brian Doyle and NDemand, Inc. v. Jay R. Teske, (Tex. Ct. App. 2011).

Opinion

NO. 12-09-00359-CV

IN THE COURT OF APPEALS         

TWELFTH COURT OF APPEALS DISTRICT

TYLER, TEXAS

BRIAN SCOTT DOYLE and

NDEMAND, INC.,                                            §                  APPEAL FROM THE 273RD

APPELLANTS

V.                                                                       §                   JUDICIAL DISTRICT COURT

JAY R. TESKE,

APPELLEE                                                      §                   SHELBY COUNTY, TEXAS


MEMORANDUM OPINION

            Brian Scott Doyle and NDemand, Inc. appeal the trial court’s judgment in favor of Jay R. Teske in Teske’s suit for damages arising out of a business relationship between him and Doyle.  Doyle and NDemand, Inc. raise fourteen issues on appeal.  We affirm in part and reverse and render in part.

Background

            Doyle and Teske decided to start a computer business together.  Doyle, who had previously worked on computers, agreed to provide the labor, and Teske, who had previously made money, agreed to provide the capital.  They discussed several different names for the business before agreeing on NDemand Technologies, Inc.

            In January 2000, after they had agreed on the name of the business, Teske wrote a check for $25,000.00 made payable to Doyle to fund NDemand Technologies.  However, neither Doyle nor Teske ever incorporated NDemand Technologies.  Instead, Doyle simply deposited Teske’s check into Doyle’s personal account.  When he filed his personal tax return for the year, Doyle claimed the $25,000.00 as income.  Teske also helped Doyle obtain a credit card for NDemand Technologies by serving as guarantor for the card.  Although the credit card was for the business, Doyle used the credit card to purchase items that were not business related.

            After about two years, NDemand Technologies was failing.  Doyle decided that he should start another business, one focused on bringing internet to rural areas.  Doyle called the new business NDemand, Inc.  He lobbied Teske to invest in the new business, but Teske declined.  Thus, Doyle began NDemand, Inc. with new investors.  Around the same time, NDemand Technologies ceased operations completely.

            At the time NDemand Technologies failed, the business credit card had a sizeable balance.  Doyle did not have the funds to pay the credit card debt so Teske, as guarantor, was required to make the payments.  Teske learned of the credit card debt sometime in December 2002, made his first payment on the debt in January 2003, and finally paid off the credit card in August 2004.  After paying off the card, Teske asked for detailed billing.  Approximately two weeks after his request, the bank provided him with the past billing, and Teske learned that Doyle had used the credit card for personal purchases.  Sometime later, Teske also learned that Doyle never set up a corporation for NDemand Technologies.

            Believing that Doyle’s actions were wrong and had cost him money, Teske sued Doyle and NDemand, Inc. in January 2007 for fraud, breach of fiduciary duty, Blue Sky violations, and fraud in stock transactions.  After a bench trial, the trial court awarded Teske a judgment against Doyle and NDemand, Inc.   This appeal followed.

Findings of Fact and Conclusions of Law

            In their initial brief, Doyle and NDemand, Inc. stated that the trial court failed to provide findings of fact and conclusions of law even though two requests for findings and conclusions had been made.  Doyle and NDemand, Inc. did not, in their initial brief, seek relief based on this inaction of the trial court.  However, in their reply brief, without listing it as a separate issue, Doyle and NDemand, Inc. assert that the trial court committed reversible error by failing to provide findings of fact and conclusions of law.

Doyle and NDemand, Inc.’s reply brief may address any matter in Teske’s brief, but a reply brief is not intended to allow parties to raise new issues.  See Tex. R. App. P. 38.3; Campbell v. Stucki, 220 S.W.3d 562, 570 (Tex. App.–Tyler 2007, no pet.).  Therefore, this argument is not properly before this court.  See Campbell, 220 S.W.3d at 570.

Even if we consider Doyle and NDemand, Inc.’s argument, the outcome does not change.  Rule 296 authorizes any party in a nonjury trial to request written findings of fact and conclusions of law.  Tex. R. Civ. P. 296.  The request shall be filed within twenty days after the judgment is signed and served on all other parties in accordance with Rule 21a.  Id.  The trial court shall file its findings of fact and conclusions of law within twenty days of a timely filed request.  Tex. R. Civ. P. 297.  If the trial court fails to so file findings of fact and conclusions of law, “the party making the request shall, within thirty days after filing the original request, file with the clerk . . . a ‘Notice of Past Due Findings of Fact and Conclusions of Law’ which shall be immediately called to the attention of the court by the clerk.”  Id.  If a party fails to file a Rule 297 reminder, the party waives any complaint regarding the trial court’s failure to file findings of fact and conclusions of law.  Alpert v. Crain, Caton & James, P.C., 178 S.W.3d 398, 410 (Tex. App.–Houston [1st Dist.] 2005, pet. denied).  The scheme is a sensible one in that, if the judge does not comply with the initial request, “the more rigorous procedure of Rule 297 will ensure that the court is in a timely fashion fully apprised of the request and the party’s continuing interest in having it honored.”  Cherne Indus., Inc. v. Magallanes, 763 S.W.2d 768, 772 (Tex. 1989).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

AutoZone, Inc. v. Reyes
272 S.W.3d 588 (Texas Supreme Court, 2008)
Graham Mortgage Corp. v. Hall
307 S.W.3d 472 (Court of Appeals of Texas, 2010)
BMC Software Belgium, NV v. Marchand
83 S.W.3d 789 (Texas Supreme Court, 2002)
Daniel v. Falcon Interest Realty Corp.
190 S.W.3d 177 (Court of Appeals of Texas, 2005)
Meyer v. Cathey
167 S.W.3d 327 (Texas Supreme Court, 2005)
Alpert v. Crain, Caton & James, P.C.
178 S.W.3d 398 (Court of Appeals of Texas, 2005)
Latch v. Gratty, Inc.
107 S.W.3d 543 (Texas Supreme Court, 2003)
Vortt Exploration Co., Inc. v. Chevron USA, Inc.
787 S.W.2d 942 (Texas Supreme Court, 1990)
Catalina v. Blasdel
881 S.W.2d 295 (Texas Supreme Court, 1994)
Westech Engineering, Inc. v. Clearwater Constructors, Inc.
835 S.W.2d 190 (Court of Appeals of Texas, 1992)
Croucher v. Croucher
660 S.W.2d 55 (Texas Supreme Court, 1983)
Harris v. Rowe
593 S.W.2d 303 (Texas Supreme Court, 1979)
Continental Coffee Products Co. v. Cazarez
937 S.W.2d 444 (Texas Supreme Court, 1997)
Durban v. Guajardo
79 S.W.3d 198 (Court of Appeals of Texas, 2002)
Campbell v. Stucki
220 S.W.3d 562 (Court of Appeals of Texas, 2007)
Insurance Co. of North America v. Morris
981 S.W.2d 667 (Texas Supreme Court, 1998)
In the Interest of W.E.R.
669 S.W.2d 716 (Texas Supreme Court, 1984)
Toles v. Toles
113 S.W.3d 899 (Court of Appeals of Texas, 2003)
City of Keller v. Wilson
168 S.W.3d 802 (Texas Supreme Court, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
Brian Doyle and NDemand, Inc. v. Jay R. Teske, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brian-doyle-and-ndemand-inc-v-jay-r-teske-texapp-2011.