Conover v. Jackson

710 S.W.2d 621, 1986 Tex. App. LEXIS 12401
CourtCourt of Appeals of Texas
DecidedMarch 20, 1986
DocketNo. 13-85-163-CV
StatusPublished
Cited by2 cases

This text of 710 S.W.2d 621 (Conover v. Jackson) 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
Conover v. Jackson, 710 S.W.2d 621, 1986 Tex. App. LEXIS 12401 (Tex. Ct. App. 1986).

Opinion

OPINION

NYE, Chief Justice.

Appellee, Abel A. Jackson, sued appellant, Jerry Conover, alleging that appellant had failed to pay him more than $50,000.00 due under a written agreement dissolving the partnership of the two men. Appellant Conover urged several affirmative defenses to this agreement at trial and asserted a counterclaim for money due, but the jury found favorably to plaintiff (appellee) on all issues.

Appellant challenges the factual sufficiency of the evidence to support the jury’s findings on four special issues. He also challenges the actions of the trial court in refusing to submit an instruction to the jury on the date the partnership began and in refusing to grant him a new trial based on newly discovered evidence. We affirm.

By points of error one through four, appellant contends that the jury’s findings on special issues four, six, eight, and ten are “contrary to the overwhelming weight of the evidence.” These special issues submitted to the jury appellant’s defensive theories that the partnership began in October 1979 rather than January 1, 1981 (issue four); that appellee made misrepresentations to appellant to induce him to sign the dissolution agreement (issue six); that ap-pellee breached his fiduciary duty to appellant (issue eight); and that appellee wrongfully diverted partnership funds to his own use (issue ten).

In considering a “no evidence” or “insufficient evidence” point of error, we will follow the well-established test set forth in Dyson v. Olin Corp., 692 S.W.2d 456 (Tex.1985); Glover v. Texas General Indemnity Co., 619 S.W.2d 400 (Tex.1981); Garza v. Alviar, 395 S.W.2d 821 (Tex.1965); Allied Finance Co. v. Garza, 626 S.W.2d 120 (Tex.App.—Corpus Christi 1981, writ ref’d n.r.e.); CALVERT, No Evidence and Insufficient Evidence Points of Error, 38 Tex.L.Rev. 361 (1960). Because appellant had the burden of proof on these fact issues at trial, appellant must frame his points of error to assert that the jury’s findings are against the great weight and preponderance of the evidence. Croucher v. Croucher, 660 S.W.2d 55, 58 (Tex.1983); Conrad v. Orellana, 661 S.W.2d 309, 313 (Tex.App.—Corpus Christi 1983, no writ). We must then review all of the evidence to determine if the jury finding is so against the great weight and preponderance of the evidence that it is manifestly unjust. Pool v. Ford Motor Co., 29 Tex.Sup.Ct.J. 204, 208 (February 15, 1986); In re King’s Estate, 150 Tex. 662, 244 S.W.2d 660, 661 (1951); Houston Lighting & Power Co. v. Sue, 644 S.W.2d 835,-840 (Tex.App.—Corpus Christi 1983, writ ref’d n.r.e.).

The evidence at trial supports the disputed jury findings. In regard to the date on which the partnership began, the agreement dissolving the partnership itself recites January 1, 1981, as the beginning date. In addition, appellee and the partnership’s accountant, David Davila, C.P.A., testified that the partnership began on January 1,198Í. Appellant, on the other hand, introduced evidence that the partnership existed since October 1979 through the testimony of Gary Toothaker, a bank officer. Toothaker testified that the parties opened an account in the name of Tiempo Testing & Lease Service using two thousand dol[623]*623lars from a savings account of appellant’s. He also made loans to that business in 1979 and 1980, with both Conover and Jackson signing notes on those loans. He was told it was a partnership by the two men. Mr. Toothaker later testified, though, that the relationship “was not a full-time venture on Jerry’s (Conover’s) part as I remember it, and later it became one.” He “imagined” that somewhere around 1981 was the date it became a full partnership. Both appellant Conover and his accountant, Larry Rose, testified that the partnership began in October 1979. However, appellant did not sign a partnership tax return for 1979 or 1980.

To dispute the testimony favorable to appellant, appellee Jackson and accountant Davila testified that appellee was allowing appellant to begin buying into Tiempo by opening the bank account in 1979. The two thousand dollar deposit by appellant, according to appellee, was to help appellant build equity in the business. There was no evidence that appellant shared in profits before 1981 or that an agreement to share profits existed, although appellant claimed in this suit he was due some of the income of Tiempo for that period. Evidence that, prior to January 1, 1981, the parties had formed “an association of two or more persons to carry on as co-owners a business for profit” is seriously lacking. See State v. Houston Lighting & Power Co., 609 S.W.2d 263, 267 (Tex.Civ.App.—Corpus Christi 1980, writ ref’d n.r.e.); TEX.REV. CIV.STAT.ANN. art. 6132b, § 6(1) (Vernon 1970).

Viewing all of the evidence on this issue as a whole, we cannot say that the jury’s refusal to find that the partnership began in October 1979 was manifestly unjust. Competent evidence was given to support the contentions of both parties. It is the jury’s province to determine the credibility of the witnesses and the weight to be given their testimony. Leyva v. Pacheco, 358 S.W.2d 547, 549 (Tex.1962); Miles v. Royal Indemnity Co., 589 S.W.2d 725, 728 (Tex.Civ.App.—Corpus Christi 1979, writ ref’d n.r.e.).

The jury also found, contrary to appellant’s position, that appellee did not make false representations to appellant to induce appellant to sign the dissolution agreement; that appellee did not breach his fiduciary duty as a partner; and that he did not wrongfully divert partnership funds to his personal use.

During the existence of the partnership known as Tiempo Testing & Lease Service, there also operated out of the same office Jerry’s Rental and Specialty Company, apparently solely owned by appellant, and G & A Oilfield Services, owned by appellee and his wife. The fact that the two contestants in this suit owned three businesses that operated in the same office space, all involved in the oilfield service industry, obviously created a good deal of difficulty for Tiempo’s accountant, for the jury, and apparently for the parties themselves. Ap-pellee testified at trial that Tiempo’s employees were used to do work for both G & A and Jerry’s Rental. However, both companies would send out invoices for their work in the name of either G & A or Jerry’s Rental. Later, some sort of attempt to reimburse Tiempo for the use of Tiempo employees was made by G & A and Jerry’s Rental.

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Cite This Page — Counsel Stack

Bluebook (online)
710 S.W.2d 621, 1986 Tex. App. LEXIS 12401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conover-v-jackson-texapp-1986.