Creative Thinking Sources, Inc. v. Creative Thinking, Inc.

74 S.W.3d 504, 2002 WL 484903
CourtCourt of Appeals of Texas
DecidedMay 2, 2002
Docket13-00-744-CV
StatusPublished
Cited by39 cases

This text of 74 S.W.3d 504 (Creative Thinking Sources, Inc. v. Creative Thinking, Inc.) 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
Creative Thinking Sources, Inc. v. Creative Thinking, Inc., 74 S.W.3d 504, 2002 WL 484903 (Tex. Ct. App. 2002).

Opinion

OPINION

VALDEZ, Chief Justice.

This is the second appeal of a take-nothing summary judgment in a case involving allegations of breach of fiduciary duty, breach of contract, and fraud. We reverse and remand.

I.

Background

Bill Watson formed Creative Thinking, Inc., appellee, to create and sell software applications for banks and financial institutions. Watson asked his sister, Barbara Koch, to draft the instructions and manuals for his software programs. At his behest, Koch formed her own corporation, Creative Thinking Sources, Inc., appellant, to handle her portion of the venture. The business created by the two companies was successful; however, after some period of time, Watson and Koch’s relationship deteriorated due to disagreements about the financial arrangements between the two companies. Appellant then sued ap-pellee for, inter alia, declaratory judgment, breach of fiduciary duty, and various theories of liability premised on the existence of a partnership between the two entities.

The trial court granted a take-nothing summary judgment in favor of appellee. On appeal, this Court affirmed the sum *509 mary judgment in part, and reversed and remanded appellant’s remaining claims. See Creative Thinking Sources, Inc. v. Creative Thinking, Inc., No. 13-98-00059-CV, 1999 Tex.App. LEXIS 5835 (Corpus Christi Aug. 5, 1999, no pet.)(not designated for publication). In its opinion, the Court found that, applying Nebraska law, there was not a partnership between the entities:

We conclude that the trial court correctly granted summary judgment on the partnership claims. We overrule CTS’s first seven issues on appeal. ⅝ ⅜ ⅜ ⅜ #
[Bjeeause CTS’s claims for declaratory judgment and breach of duty arising from a confidential or informal fiduciary relationship were alleged in the alternative and yet not addressed in CT’s motion, the trial court erred in disposing of those claims. We sustain CTS’s eighth issue.
The remaining issues concerning alternate claims are not dispositive and we do not address them. See Tex.R.App. P. 47.1.
We REVERSE the judgment of the trial court on CTS’s claims for declaratory judgment, and breach of duty arising from a confidential or informal fiduciary relationship, and REMAND for trial on those claims. We affirm the remainder of the judgment against CTS on its claims based on the existence of a partnership with CT.

1999 Tex.App. LEXIS 5835, *11-12. The Court thus affirmed the judgment against appellant on its claims premised on the existence of a partnership with appellee. The Court reversed the judgment of the trial court on appellant’s claims for declaratory judgment and breach of duty arising from a confidential or informal fiduciary relationship, and remanded for trial on those claims. See id.

Following remand, the appellee filed a “Motion to Confirm Remaining Causes of Action.” According to the brief filed in support of this motion:

It is Defendant’s position that since the Court of Appeals decision is now the law of this case, the only issues remaining for further proceedings are (1) Plaintiffs claim for declaratory judgment, and (2) Plaintiffs claim for breach of a confidential or informal fiduciary relationship. Plaintiff may not re-allege any other causes of action that were stated in the Fourth Amended Petition, or which are in any way related to the partnership or fraud claims that were dismissed.

The trial court granted appellee’s motion, and ordered that “the causes of action remaining before the Court are Plaintiffs suit for declaratory judgment and breach of informal fiduciary duty.” Appellant then filed a Fifth Amended Petition adding new causes of action not based on the existence of a partnership, such as breach of contract and fraud. Appellee moved to strike this amended petition on grounds of res judicata and law of the case, and, after hearing, the trial court “confirmed” its earlier order delineating the two causes of action remaining, and granted appellee’s motion to strike Plaintiffs Fifth Amended Petition. The trial court also granted a second take-nothing summary judgment against appellant on its two remaining claims. This appeal ensued.

Appellant raises fourteen issues on appeal: (1) did the trial court abuse its discretion in limiting the claims on remand, striking the plaintiffs pleadings, and in refusing to grant leave to amend the petition, which amendment sought to allege new theories, claims, and causes of action; (2) upon partial remand of a case, does the plaintiff have a right freely to amend his pleadings to include facts, claims, or causes *510 of action neither pleaded in a prior phase of the case or addressed on appeal; (3) does “law of the case” essentially foreclose the plaintiff from alleging new claims, causes of action, or theories of recovery not part of an earlier phase of litigation and not addressed on appeal; (4) does “law of the case” include a doctrine of “bar” or “merger” which bars the plaintiff upon remand from alleging facts, claims, causes of action, or theories of the case that could have been brought in the first trial, but were not, and were not treated by the court of appeals in its disposition of the first judgment; (5) did the defendant negate by conclusive evidence the existence of a confidential agreement; (6) is there some evidence of a confidential relationship so as to raise an issue of fact and preclude summary judgment; (7) did the defendant negate by conclusive evidence any claims to declaratory relief; (8) is there some evidence of a claim warranting declaratory relief; (9) did the trial court err in overruling the plaintiffs objections to the defendant’s affidavit that the statements were conclusory; (10) is there some evidence of breach of contract; (11) is there some evidence of conversion; (12) is there some evidence of fraud; (13) did the trial court err in overruling the plaintiffs special exceptions to the defendant’s motion for summary judgment; and (14) did the trial court abuse its discretion in overruling the plaintiffs motion for continuance on the defendant’s “no evidence” motion for summary judgment.

II.

Law of the Case, Res Judicata, and New Causes of Action

Appellant’s issues one through four and eleven through thirteen concern the amendment of pleadings. Essentially, appellant contends that the trial court erred in refusing to allow it to amend its pleadings following remand from this Court. In response, appellee argues that appellant’s attempts to assert other claims were barred by this Court’s opinion, res judica-ta, collateral estoppel, and law of the case.

As an initial matter, we must determine which forum’s law to apply. The contract underlying the dispute between the parties recites that it is to be construed in accordance with Nebraska law, and the trial court so ordered. Appellant does not challenge the application of Nebraska law. Nevertheless, Texas law will govern procedural matters brought in Texas courts, even when applying another jurisdiction’s substantive law. See State of Cal. v. Copus, 158 Tex.

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Cite This Page — Counsel Stack

Bluebook (online)
74 S.W.3d 504, 2002 WL 484903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/creative-thinking-sources-inc-v-creative-thinking-inc-texapp-2002.