Chico Auto Parts & Service, Inc. v. Crockett

512 S.W.3d 560, 2017 WL 192907, 2017 Tex. App. LEXIS 373
CourtCourt of Appeals of Texas
DecidedJanuary 18, 2017
DocketNo. 08-15-00021-CV
StatusPublished
Cited by13 cases

This text of 512 S.W.3d 560 (Chico Auto Parts & Service, Inc. v. Crockett) 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
Chico Auto Parts & Service, Inc. v. Crockett, 512 S.W.3d 560, 2017 WL 192907, 2017 Tex. App. LEXIS 373 (Tex. Ct. App. 2017).

Opinion

OPINION

ANN CRAWFORD McCLURE, Chief Justice

Chico Auto Parts & Service, Inc. appeals from an order granting summary judg[566]*566ment in favor of Craig Crockett on its claims for breach of contract, quantum me-ruit, and fraud, in which Chico sought to be reimbursed for cleaning up a well site. Chico contends the trial court erred in granting Crockett’s motion for traditional summary judgment, because Crockett failed to meet his initial burden to negate an essential element on each of its three causes of action. Chico also contends the trial court abused its discretion in denying its motion for a continuance, because it was entitled to conduct additional discovery prior to the summary judgment hearing. We affirm.1

BACKGROUND

Chico is a corporation that provides, among other things, hazardous material remediation services. Crockett is the managing member of Black Strata, a Limited Liability Company, which was the operator of an oil well known as the Maxey I Well, located in Tarrant County. After Black Strata had completed drilling the Well in May 2011, the Texas Railroad Commission received a complaint alleging that “produced” water was leaking from the Well into a drilling pit at the well site. After an inspection confirmed the leak, the Railroad Commission notified Black Strata, as the operator of the Well, to remediate the drilling pit by July 25, 2011.

There is no dispute that Chico performed the remediation services on the Well. There is a dispute, however, concerning exactly who contracted with Chico for its remediation services. The record is barren of any written agreement or any written correspondence between the parties leading up to Chico’s performance of the remediation services. The record does contain an invoice dated July 27, 2011, seeking $63,415.55 in compensation, which Chico sent to Montcrest Energy Inc., one of the part-owners of the oil and gas interests in the Well. At the time, Crockett was the president and CEO of Montcrest, as well as a part-owner in the oil and gas interests in the Well.

The record also contains two checks for $10,000 each, dated October and December 2011, which were written to Chico on Black Strata’s bank account, presumably in response to the invoice. Chico apparently received no additional payments from either Montcrest or Black Strata, and on April 12, 2012, Chico’s attorney sent a demand letter to Crockett, as the managing member of Black Strata, demanding that Black Strata remit the remaining balance of $43,415.55 or face a possible lawsuit.

The First Lawsuit

In May 2012, Chico sued Montcrest for breach of contract and quantum meruit, seeking the remaining amounts owed to Chico for its services. Chico alleged that it had responded to a request from an unidentified individual or entity to perform the work, but never elaborated on the circumstances surrounding the request. No discovery was conducted in that lawsuit, and on January 11, 2012, the trial court entered an agreed judgment against Mont-crest for $43,415.55, plus attorney’s fees. Shortly thereafter, Montcrest filed for bankruptcy without making any payments to Chico under the agreed judgment. It appears that Crockett then resigned as president and CEO of Montcrest. In 2013, Chico filed a claim against Montcrest in bankruptcy court based on the agreed judgment. The record does not show whether that claim has been resolved.

[567]*567The Current Lawsuit

In December 2013, Chico filed the current lawsuit, naming Black Strata and Crockett as defendants, together with Mary Maxey, who owns a fee simple interest in the land on which the Well is located as well as a royalty interest in the Well’s production. Chico raised the same claims that it did in its first lawsuit for breach of contract and quantum meruit, alleging that all three defendants were jointly and severally liable with Montcrest on those claims. Chico also raised a new claim for fraud against Black Strata and Crockett. Chico alleged Black Strata and Crockett misrepresented to Chico that Montcrest was the operator of the Well and failed to disclose that Black Strata was the “permitted operator” of the well, and claimed that it “relied on said representations to its detriment in its billing process by invoicing Montcrest Energy, Inc. for the clean up as ordered by the [Railroad Commission].”

The Motion for Summary Judgment

Black Strata and Crockett (collectively “Defendants”) filed a joint motion for traditional summary judgment on all of Chi-co’s claims. They contended Chico was barred from bringing the current lawsuit, based on the affirmative defenses of res judicata, collateral estoppel, and judicial estoppel, in light of Chico’s first lawsuit and judgment against Montcrest seeking recovery for the same services and same debt. Defendants also argued Chico had made judicial admissions in the first lawsuit, as well as in bankruptcy court, acknowledging that Montcrest was the entity responsible for paying the debt owed to Chico for its services.

With regard to Chico’s claims for breach of contract and quantum meruit, Defendants also contended the evidence demonstrated that any agreement to perform cleanup services was with Montcrest, and that Chico had no evidence that either Black Strata or Crockett had agreed to pay Chico for its services. Defendants pointed out that before it sued them, Chico had treated Montcrest as the contracting party, sending Montcrest invoices, naming Montcrest in the first lawsuit, and filing a claim against Montcrest in bankruptcy court. With regard to the fraud claim, Defendants asserted that Chico’s factual allegations, even if accepted as true, would not support a finding of fraud. Crockett argued that he could not be held personally liable on Chico’s claims, because any actions he had taken were made in his capacity as the managing member of Black Strata, an LLC, thereby shielding him from liability under the Texas Business Organizations Code.

In response, Chico contended Montcrest, Black Strata, and Crockett (as well as Maxey) could all be held jointly and severally liable for the debt owed to Chico, because they were all responsible parties for the cleanup ordered by the Railroad Commission, as either owners or operators of the Well. Chico argued that because of the joint and several liability, it had “the option of proceeding to judgment against any one defendant separately or against all of the defendants in one suit.” Chico also contended that because it been “falsely told” that Montcrest was the “true” operator or owner of the Well, and because the “true operator and other owners were not disclosed to Chico” before it filed its lawsuit against Montcrest, the doctrines of collateral estoppel and res judicata should not be applied to bar it from suing Black Strata and Crockett.

In reply, Defendants pointed out that Chico had addressed only one issue in its response — whether Chico’s lawsuit against Montcrest barred it from filing the current lawsuit — and had failed to address whether Defendants had entered into any agree-[568]*568merit with Chico, whether the fraud claim was valid, and whether Crockett could be held personally liable for actions taken on behalf of Black Strata as its managing member.

Three days before the summary judgment hearing, Chico filed a motion for a continuance, claiming that it had not been given sufficient time to conduct discovery in order to adequately respond to the motion.

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Cite This Page — Counsel Stack

Bluebook (online)
512 S.W.3d 560, 2017 WL 192907, 2017 Tex. App. LEXIS 373, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chico-auto-parts-service-inc-v-crockett-texapp-2017.