Community Initiatives, Inc. v. Chase Bank of Texas

153 S.W.3d 270, 2004 Tex. App. LEXIS 11716, 2004 WL 2965861
CourtCourt of Appeals of Texas
DecidedDecember 23, 2004
Docket08-02-00527-CV
StatusPublished
Cited by70 cases

This text of 153 S.W.3d 270 (Community Initiatives, Inc. v. Chase Bank of Texas) 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
Community Initiatives, Inc. v. Chase Bank of Texas, 153 S.W.3d 270, 2004 Tex. App. LEXIS 11716, 2004 WL 2965861 (Tex. Ct. App. 2004).

Opinion

OPINION

SUSAN LARSEN, Justice.

Community Initiatives, Inc. brings this appeal from a no-evidence summary judgment. We affirm.

Factual and ProcedüRal Background

In 1998, Raymond Caballero formed Count Me In, Inc. (CMI) with the purpose of increasing voter participation. CMI later changed its name to Community Initiatives, Inc. (Cl). Also in 1998, Mary Hull Caballero and Texas Senator Eliot Shap-leigh conceived of an organization called Community Scholars (CS) that would enlist students to research public policy issues. After CMI changed its name to Cl, Cl became an umbrella organization that encompassed both the CMI program and the CS program.

The CS program was well funded; the CMI program was not. Therefore, a Cl board member, Richard Fleager, began discussions with Wesley Jurey, the president of the Greater El Paso Chamber of Commerce, attempting to persuade the Chamber to assist in fund-raising for CMI. Although the parties disagree about the nature and extent of the commitment the Chamber made to CMI, it is undisputed that on June 7, 1999, the Chamber sent a letter and pledge form to its members, soliciting donations for CMI. The pledge form stated that CMI was a project of Cl and requested that contributions be remitted to CI.

On June 15 and June 18, 1999, CS students interviewed representatives of Wells Fargo and Chase Bank regarding their banking practices. 1 On June 23, 1999, a CS student sent written questions to Bank of America. The students’ questions were designed to reveal how the banks’ business, charitable, and lending practices affected the local economy. Years earlier, Raymond Caballero had asked similar questions of local banks and had encouraged local institutions to consider the banks’ answers in deciding where to make their deposits.

A1 Martinez-Fonts was the chairman and CEO of Chase. On or about June 18, 1999, having received the Chamber’s fund-raising letter and having been advised of the CS students’ questions, Martinez-Fonts called Jurey. Noting that the pledge form requested that contributions *276 be remitted to Cl, Martinez-Fonts asked Jurey about the connection among Cl, CMI, and CS. He told Jurey that he would be inclined to contribute to CMI, but he did not want his contribution to go to CS.

Jurey called Fleager to get the answers to Martinez-Fonts’s questions. According to Fleager, Jurey also asked him whether Cl was investigating banks. Fleager was not sure how to respond to the funding questions. He knew that funds donated to CMI were kept separate from funds donated to, CS, but he also knew that there was an outstanding loan from CS to CMI. It was therefore possible that funds donated to CMI could end up with CS if CMI used the funds to repay the loan.

Fleager does not recall whether he informed Jurey that CMI and CS funds were kept separate. According to Jurey, Fleager called him back the next day and told him that any funds donated to CMI would be used only for CMI, but that the CS and CMI accounts were not segregated. Jurey conveyed this information to Martinez-Fonts. Jurey also called David Graham to advise him of his conversations with Fleager and Martinez-Fonts. Graham was the Chamber’s chairman of the board and also president of the El Paso branch of Bank of America. Graham suggested that they convene a meeting of the Chamber’s personnel committee to discuss the issues raised by these conversations.

In the meantime, Martinez-Fonts spoke with Graham and Nathan Christian about the questions being asked by the CS students. Christian was the regional manager of Wells Fargo. Martinez-Fonts also discussed the CS students with Rick Ybar-ra, a Chase employee who also served on Cl’s board. Based on Martinez-Fonts’s notes dated June 22, 1999, it appears that Ybarra told Martinez-Fonts that CMI and CS “keep books separate by internal ledgers.”

Fleager discussed the questions posed by Jurey with Raymond Caballero. Upon learning that CS was researching the banks’ practices, Fleager became concerned that the research could hamper Cl’s ability to raise money for CMI from the banks. Fleager then called Stuart Schwartz, Cl’s president. According to Schwartz, Fleager advised him that there was a “problem” with the Chamber’s fund-raising efforts. Fleager and Schwartz thought the problem could be solved by separating CS and CMI. Fleager discussed the possible separation with Jurey, who suggested that CMI could become part of the Chamber Foundation. On or about June 22, 1999, Fleager, Schwartz, and Ju-rey met to discuss the specifics of moving CMI to the Chamber Foundation.

That afternoon, the Chamber’s personnel committee met. The personnel committee included Graham, as chairman of the board, and Christian, as immediate past chairman of the board. Fleager and Martinez-Fonts, who was chairman of the Chamber Foundation, were also present. The plan to move CMI to the Chamber Foundation was discussed at the meeting. According to Fleager, Martinez-Fonts stated that his concern was that he did not want to make a donation to CMI and later find out that the money actually went to CS. Fleager assured him that CMI and CS kept their funds separate, but he also mentioned the loan from CS to CMI.

Also at the meeting, Jurey presented the committee with two proposed letters, dated June 22, 1999. One of the letters was drafted in contemplation of CMI becoming part of the Chamber Foundation and advised Chamber members of that fact. The other letter advised members that the Chamber had just learned that CMI and CS were both programs of Cl and that CS had been “investigating area banks.” The letter stated, “It is also our *277 understanding that funds have been ‘loaned’ between the programs,” that “we cannot assure you that your funds will be used exclusively for ‘Count Me In,’ and that the Chamber has withdrawn its endorsement of the program....” Jurey faxed a copy of this letter to Martinez-Fonts before the meeting. Martinez-Fonts testified that he told Jurey he did not think the Chamber should send the letter. It is undisputed that neither letter was sent to Chamber members. After the personnel committee meeting, the Chamber took no more action regarding Cl, CMI, or CS. The Chamber did not withdraw the letter that it had already sent, but it also did not assist CMI with any more fund-raising efforts.

The day after the personnel committee meeting, Cl’s board held an emergency meeting and voted to transfer CMI to the Chamber Foundation. Soon afterwards, several members of the board, including Schwartz and Fleager, resigned. Schwartz and Fleager resigned because Raymond Caballero made it clear that he did not approve of the board’s decision to transfer CMI to the Chamber Foundation. A week later, the remaining board members reversed their previous votes and decided not to transfer CMI to the Chamber Foundation.

In 2000, CS became a separate nonprofit corporation. CMI remains with Cl, but it has no staff and only a skeletal board of directors.

Cl brought this suit, asserting several causes of action against Chase, Wells Fargo, Bank of America, Martinez-Fonts, Christian, and Graham. The defendants all filed no-evidence summary judgment motions, which were granted by the trial court.

Appropriateness op No-Evidence Summary Judgment

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Bluebook (online)
153 S.W.3d 270, 2004 Tex. App. LEXIS 11716, 2004 WL 2965861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/community-initiatives-inc-v-chase-bank-of-texas-texapp-2004.