Double Ace, Inc. v. Pope

190 S.W.3d 18, 2005 Tex. App. LEXIS 4923, 2005 WL 1498645
CourtCourt of Appeals of Texas
DecidedJune 24, 2005
Docket07-04-0029-CV
StatusPublished
Cited by31 cases

This text of 190 S.W.3d 18 (Double Ace, Inc. v. Pope) 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
Double Ace, Inc. v. Pope, 190 S.W.3d 18, 2005 Tex. App. LEXIS 4923, 2005 WL 1498645 (Tex. Ct. App. 2005).

Opinion

OPINION

DON H. REAVIS, Justice.

Presenting 13 issues, Double Ace, Inc. appeals the judgment following a jury trial, denying it any relief on its claims for damages and awarding Bennie Dale Pope and Michael Deardorff damages and attorney’s fees sought by their counterclaims against Double Ace, Inc. Aso, presenting 15 issues, Ayssa Womack, Matthew Pope, and Donna Pope challenge the judgment denying them any recovery on their claims for damages and awarding Bennie Dale Pope and Michael Deardorff damages on their counterclaims. Based on the rationale herein, we affirm in part and reverse and remand in part.

While married to Donna Pope, Bennie was engaged in farming operations. M-ter consultation with an attorney, Bennie and Donna decided to organize a corporation to be operated under Bennie’s management, in conjunction with Bennie’s farming operations. Donna agreed that Bennie would manage Double Ace as its General Manager but that the stock of the corporation would be held by Donna as trustee for their minor children, Matthew Pope and Ayssa Pope (Womack). At the first meeting of the Board of Directors of Double Ace on October 10, 1991, Bennie was elected General Manager and Donna was elected President and Secretary/Treasurer. Aso, 500 shares of stock were issued to Donna as custodian and natural guardian for each minor child, making a total issue of 1000 shares. Thereafter, the Corporation commenced its farming operations under Bennie’s management. In 1997, Deardorff was elected as President and Director to assist Bennie. At that time, Donna signed corporate minutes and stock a certificate transferring 500 shares of stock to Dear-dorff. Other enabling documentation was signed by Donna. Athough Double Ace prospered, Bennie’s personal farming operations were not successful and he was forced to file bankruptcy in 2000. The bankruptcy action was followed by Bennie and Donna’s divorce in 2002.

Before we address the contested issues, we first note two portions of the judgment which are not challenged by any party. Among other things, the judgment of the trial court declared that Double Ace owned the machinery and equipment described on exhibits attached to the judgment. In addition, the judgment decreed that all stock issued by Double Ace was issued to be held in trust for the benefit of Ayssa Pope *23 Womack and Matthew Pope and that they are now the beneficial owners of the stock. Because no party presents any assignment of error or challenge to these declarations, those two portions of the judgment will be affirmed.

Because the multiple parties present common and diverse claims and counterclaims by broad pleadings and 28 issues with numerous sub-issues, before addressing the action in the trial court and the issues, we first outline the claims in broad form.

CLAIMS
Double Ace v. Bennie. Asserted (1) breach of contract, (2) fraud, civil conspiracy, breach of fiduciary duty and conversion, (8) declaratory judgment regarding ownership of transferred stock and property, (4) action for accounting, (5) action to recover on sworn account for monies withdrawn from the corporation’s bank account, and (6) conspiracy with Otis Pope;
Double Ace v. Deardorff. Asserted (1) fraud, civil conspiracy, and conversion, (2) declaratory judgment regarding ownership of transferred stock and property, (3) action for accounting, (4) action to recover on sworn account for monies withdrawn from the corporation’s bank account;
Bennie
(1) Bennie was the General Manager of Double Ace;
(2) Double Ace failed to comply with the agreement;
Alyssa and Matthew v. Bennie and Deardorff. Alyssa and Matthew joined the suit in their individual capacities for the only purpose of establishing their sole ownership in the stock of Double Ace;
COUNTERCLAIMS
Bennie v. Double Ace, Alyssa, Matthew, and Donna. 1 Alleged (1) wrongful termination, (2) promissory estoppel, (3) quasi estoppel, (4) unjust enrichment, and (5) quantum meruit.
Deardorff v. Double Ace. Alleged a cause of action for indemnity.
Deardorff v. Alyssa, Matthew, and Donna. Alleged (1) fraud, (2) conversion, and (3) civil conspiracy.
Deardorff v. Alyssa and Matthew. Alleged a cause of action for theft.

Upon the close of the evidence, contending there was no evidence to support the submission of the elements of any questions to the jury regarding the claims of Double Ace against Bennie, Bennie’s counsel moved for instructed verdict. 2 Also, counsel for Deardorff adopted Bennie’s argument and moved for instructed verdict on the same grounds. After granting Bennie and Deardorff s motions for instructed verdict, and completion of the charge conference, the trial court submitted the charge to the jury. By its verdict, the jury found: 3

Deardorff
(7) Donna part of conspiracy;
(8) Matthew part of conspiracy;
*24 (3) Donna, Matthew and Alyssa part of conspiracy that caused damages;
(4) Bennie relied on the agreement to his detriment;
(5) Damages of $160,000;
(6) Awarded attorney’s fees for a total of $48,000 through Supreme Court.

Based on the instructed verdicts and jury findings, the trial court rendered judgment that

• Double Ace take nothing against Bennie and Deardorff;
• Bennie recover his damages of $160,000, plus interest and attorney’s fees from Double Ace, Matthew Pope, Alyssa Womack, and Donna Pope, jointly and severally;
• Deardorff recover his damages of $11,000 plus interest and attorney’s fees from Double Ace, Matthew Pope, Alyssa Womack, and Donna Pope, jointly and severally;
• Declared Double Ace to be the owner of the machinery and equipment described in exhibits attached to judgment; and
(9) Alyssa part of conspiracy;
(10) Damages of $5000 past and $5000 future;
(11) Finding of malice;
(12) $1,000 exemplary damages;
(13) Became a Director in 1997;
(14) Became President in 1997;
(15) Made a party because he had been a Director/Officer;
(20) Awarded attorney’s fees for a total of $66,000 through the Supreme Court.
• Decreed that all Double Ace stock was issued to be held in trust for Alyssa Pope Womack and Matthew Pope, and that they are the beneficial owners of the stock.

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Bluebook (online)
190 S.W.3d 18, 2005 Tex. App. LEXIS 4923, 2005 WL 1498645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/double-ace-inc-v-pope-texapp-2005.