Butler v. Wright Way Spraying Service

743 S.W.2d 304, 1987 Tex. App. LEXIS 9255, 1987 WL 35002
CourtCourt of Appeals of Texas
DecidedNovember 25, 1987
DocketNo. 04-86-00434-CV
StatusPublished

This text of 743 S.W.2d 304 (Butler v. Wright Way Spraying Service) 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
Butler v. Wright Way Spraying Service, 743 S.W.2d 304, 1987 Tex. App. LEXIS 9255, 1987 WL 35002 (Tex. Ct. App. 1987).

Opinion

ON APPELLANT’S MOTION FOR REHEARING.

CHAPA, Justice.

The opinion of this Court dated September 16, 1987, is withdrawn and this opinion is substituted.

Wright Way Spraying Service sued Jack C. Butler on a sworn account to recover payments for crop spraying services rendered and chemicals supplied from July 1980 through August 1981. Butler counterclaimed alleging a usurious interest charge. After trial, judgment was entered in favor of Wright Way, and Butler appealed to this Court urging error in the denial of his counterclaim for usury. This Court reversed the judgment of the trial court, finding that usury was conclusively established and rendering in part that Butler was entitled to certain penalties for usury under TEX.REV.CIV.STAT.ANN. art. 5069-1.06 (Vernon Supp.1984). This Court further remanded the cause in part for a determination of reasonable attorney’s fees to be awarded to Butler. Butler v. Wright Way Spraying Service, 683 S.W.2d 823 (Tex.App.—San Antonio 1984), rev’d per curiam, 690 S.W.2d 897 (Tex.1985). Wright Way subsequently appealed to the Supreme Court of Texas which affirmed the holding of this Court of Appeals that usury was established as a matter of law [305]*305from August 1980 to June 1981, but reversed the judgment of this Court of Appeals and remanded the cause to the trial court for a determination for the period after June 1981 of:

1) whether there was an agreement between the parties for an interest rate to be charged; and
2) whether the interest rate charged was more than twice the rate allowed by law.

Wright Way Spraying Service v. Butler, 690 S.W.2d 897 (Tex.1985) (per curiam).1

On remand, the trial court found “that there was an agreement between the parties for an interest rate to be charged and that the interest rate was not usurious.” Butler appeals without findings of fact and conclusions of law.

Initially, Butler contends that there was no evidence of an agreement by the parties to charge a rate of interest. The standard of review here is stated by the Supreme Court of Texas:

In deciding a ‘no evidence’ point, which is a question of law, we consider only that evidence and reasonable inferences therefrom which viewed in its most favorable light supports the jury finding and we must reject all evidence or reasonable inferences to the contrary. McClure v. Allied Stores of Texas, Inc., 608 S.W.2d 901, 904 (Tex.1980); East Texas Theatres, Inc. v. Rutledge, 453 S.W.2d 466, 467 (Tex.1970); Garza v. Alviar, 395 S.W.2d 821, 823 (Tex.1965).

Glover v. Texas General Indemnity Company, 619 S.W.2d 400, 401 (Tex.1981). We see no reason why this same standard should not apply to a case involving a trial court’s findings as well.

The record reflects testimony from Ronnie Wright and Judy Maixner (previously Judy Wright) that Butler had a delinquent account and a bad past pay record with Wright Way; that as a result of this, Wright Way was forced to make a loan with the bank paying interest at the rate of approximately 20% per year; that in June 1981, this was made known to Butler, who continued to request products and services from Wright Way; that because Butler was unable to pay until the crop came in, he agreed orally to pay Wright Way interest at the same rate Wright Way was paying to the bank on the loan; that Butler thereafter failed or refused to execute the subsequent written agreement mailed to him; and that although the oral agreement justified an interest rate of approximately 20% per year, Butler was only charged 18%, as were all other customers of Wright Way. Conflicting evidence was elicited at the hearing as to the amount of the interest charged, but we are required to view the evidence in the most favorable light in support of the judgment. Glover v. Texas General Indemnity Company, 619 S.W.2d 400, 401 (Tex.1981). Considering the evidence and reasonable inferences therefrom which in the most favorable light supports the judgment, we hold that the finding of an agreement between the parties for an interest rate to be charged is supported by the record. In so holding, we note that Butler’s reliance on Moody v. Main Bank of Houston, 667 S.W.2d 613 (Tex.App.— Houston [1st Dist.] 1984, writ ref’d n.r.e.) is misplaced. Moody involved a similar agreement to charge interest “at the same interest rate charged by other banks.” The court there held that this was “an oral agreement as to a specific, determinable [306]*306rate of interest [and] the transaction is governed by art. 5069-1.02. See Preston Farm & Ranch Supply, Inc. v. Bio-Zyme Enterprises, 625 S.W.2d 295 (Tex.1981).” Moody v. Main Bank of Houston, 667 S.W.2d at 619. Moody, therefore, supports the contention of Wright Way. Accordingly, the initial point is rejected.

The remaining points of error pertain to the trial court’s second finding “that the interest rate charged was not usurious.” In so doing after finding an agreement, the trial court either embraced Wright Way’s contention that 12 U.S.C. § 86a preempted the state usury statute or found that the interest rate charged was 10% or less, the maximum interest permitted by state law where an agreement is made.

The “law of the case” doctrine is that principle under which questions of law decided on appeal to a court of last resort will govern the case throughout its subsequent stages. Trevino v. Turcotte, 564 S.W.2d 682, 685 (Tex.1978). By narrowing the issues in successive stages of the litigation, the law of the case doctrine is intended to achieve uniformity of decision as well as judicial economy and efficiency. Hudson v. Wakefield, 711 S.W.2d 628, 630 (Tex.1986), citing, Dessommes v. Dessommes, 543 S.W.2d 165, 169 (Tex.Civ.App.—Texarkana 1976, writ ref'd n.r.e.). When the Supreme Court of Texas remands a case and limits a subsequent trial to a particular issue, the trial court is restricted to a determination of that issue. Thus, in a subsequent appeal, instructions given to a trial court in the former appeal will be adhered to and enforced. Hudson v. Wakefield, 711 S.W.2d 628, 630 (Tex.1986).

The federal preemption statute, 12 U.S.C.

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Related

Hudson v. Wakefield
711 S.W.2d 628 (Texas Supreme Court, 1986)
Glover v. Texas General Indemnity Co.
619 S.W.2d 400 (Texas Supreme Court, 1981)
In Re King's Estate
244 S.W.2d 660 (Texas Supreme Court, 1951)
Moody v. Main Bank of Houston
667 S.W.2d 613 (Court of Appeals of Texas, 1984)
Butler v. Wright Way Spraying Service
683 S.W.2d 823 (Court of Appeals of Texas, 1984)
Preston Farm & Ranch Supply, Inc. v. Bio-Zyme Enterprises
625 S.W.2d 295 (Texas Supreme Court, 1981)
Wright Way Spraying Service v. Butler
690 S.W.2d 897 (Texas Supreme Court, 1985)
Trevino v. Turcotte
564 S.W.2d 682 (Texas Supreme Court, 1978)
Garza v. Alviar
395 S.W.2d 821 (Texas Supreme Court, 1965)
Dessommes v. Dessommes
543 S.W.2d 165 (Court of Appeals of Texas, 1976)
McClure v. Allied Stores of Texas, Inc.
608 S.W.2d 901 (Texas Supreme Court, 1980)
East Texas Theatres, Inc. v. Rutledge
453 S.W.2d 466 (Texas Supreme Court, 1970)

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Bluebook (online)
743 S.W.2d 304, 1987 Tex. App. LEXIS 9255, 1987 WL 35002, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butler-v-wright-way-spraying-service-texapp-1987.