Ed Vanegas, Jimmy D. Halman, Sam Armstrong, Alex Carbajal, Roger Farrington, Curtis Huff, and Tito Betancur v. American Energy Services, Niewoehner Partnership, L.P., RCH/HSJ/CCM/MCP I, L.P., Autry Stephens, John Carnett, Brack Blackwood, and Dennie Martin

CourtCourt of Appeals of Texas
DecidedMay 10, 2007
Docket11-06-00118-CV
StatusPublished

This text of Ed Vanegas, Jimmy D. Halman, Sam Armstrong, Alex Carbajal, Roger Farrington, Curtis Huff, and Tito Betancur v. American Energy Services, Niewoehner Partnership, L.P., RCH/HSJ/CCM/MCP I, L.P., Autry Stephens, John Carnett, Brack Blackwood, and Dennie Martin (Ed Vanegas, Jimmy D. Halman, Sam Armstrong, Alex Carbajal, Roger Farrington, Curtis Huff, and Tito Betancur v. American Energy Services, Niewoehner Partnership, L.P., RCH/HSJ/CCM/MCP I, L.P., Autry Stephens, John Carnett, Brack Blackwood, and Dennie Martin) 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
Ed Vanegas, Jimmy D. Halman, Sam Armstrong, Alex Carbajal, Roger Farrington, Curtis Huff, and Tito Betancur v. American Energy Services, Niewoehner Partnership, L.P., RCH/HSJ/CCM/MCP I, L.P., Autry Stephens, John Carnett, Brack Blackwood, and Dennie Martin, (Tex. Ct. App. 2007).

Opinion

Opinion filed May 10, 2007

Opinion filed May 10, 2007

                                                                        In The

    Eleventh Court of Appeals

                                                                   __________

                                                          No. 11-06-00118-CV

               ED VANEGAS, JIMMY D. HALMAN, SAM ARMSTRONG,

              ALEX CARBAJAL, ROGER FARRINGTON, CURTIS HUFF,

                                  AND TITO BETANCUR, Appellants

                                                             V.

                      AMERICAN ENERGY SERVICES, NIEWOEHNER

                     PARTNERSHIP, L.P., RCH/HSJ/CCM/MCP I, L.P.,

                        AUTRY STEPHENS, JOHN CARNETT, BRACK

                      BLACKWOOD, AND DENNIE MARTIN, Appellees

                                         On Appeal from the 385th District Court

                                                        Midland County, Texas

                                                Trial Court Cause No. CV-43,929

                                                                   O P I N I O N


Ed Vanegas, Jimmy D. Halman, Sam Armstrong, Alex Carbajal, Roger Farrington, Curtis Huff, and Tito Betancur (appellants) brought this action against American Energy Services (AES) and its former shareholders, Niewoehner Partnership, L.P., RCH/HSJ/CCM/MCP I, L.P., Autry Stephens, John Carnett, Brack Blackwood, and Dennie Martin (appellees).  Appellants were at-will employees of AES.  Appellants alleged that AES breached an agreement to pay them 5% of the proceeds received in the event of a sale or merger of AES.  Appellees filed motions for summary judgment asserting that AES=s alleged promise to pay appellants 5% of the proceeds in the event of a sale or merger was illusory because it depended on the continued employment of at-will employees.  Based on the premise that AES=s alleged promise was illusory, appellees moved for summary judgment on the ground that no enforceable contract existed.  The trial court granted appellees= motions for summary judgment.  We affirm.  AES=s alleged promise was illusory.  Performance of an act called for in an illusory promise cannot create a binding unilateral contract.                          Background

AES went into business in 1996.  Appellants alleged in their petition that they were hired by AES in 1996.  The record shows that appellants were at-will employees of AES.  Appellants alleged that, in 1997, AES, by and through its authorized agent or agents, made the following promise to them:  A[I]n the event of sale or merger of [AES], [appellants] would receive 5% of the value received for such shares or sale of assets.@  Appellants also alleged that AES made the promise as an inducement for them to continue employment with AES.  Appellants further alleged that, after AES merged with AES Acquisition, Inc. in 2001, AES failed to pay them any proceeds from the merger.  Therefore, appellants claimed that AES breached its agreement to pay them 5% of the proceeds from any sale or merger.

Appellants sought to recover damages from appellee AES under a breach of contract theory.  Appellants alleged that the appellee shareholders were individually liable for the damages because the shareholders had Aeffectively denuded the corporation of assets.@

Appellees filed traditional motions for summary judgment asserting that AES=s alleged agreement was unenforceable for two reasons.  First, appellees asserted that, because AES=s alleged promise to appellants depended on the continued employment of appellants, who were at-will employees, the alleged promise was illusory and did not provide the consideration necessary for a binding contract.  Second, appellees asserted that the alleged agreement failed to comply with the statute of frauds.


In response, appellants asserted that a binding unilateral contract existed.  Appellants argued that their performance of the action requested by AES in its promise B appellants= continued employment with AES until the merger in 2001 B supplied the consideration necessary to support AES=s promise to pay them 5% of the proceeds from any sale or merger.  Thus, appellants asserted that appellees= Aarguably illusory promise was accepted by [their] performance and became enforceable as a unilateral contract.@  Appellants also argued that the alleged agreement did not violate the statute of frauds because it could have been performed within one year.

The trial court granted summary judgment to appellees.  The trial court did not specify the ground or grounds relied on for its ruling.

                                                                 Issues Presented

Appellants present two issues for review.  In their first issue, appellants assert that the trial court erred in granting summary judgment because they accepted AES=s promise of a 5% incentive bonus by performance, thereby creating a binding unilateral contract. 

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Ed Vanegas, Jimmy D. Halman, Sam Armstrong, Alex Carbajal, Roger Farrington, Curtis Huff, and Tito Betancur v. American Energy Services, Niewoehner Partnership, L.P., RCH/HSJ/CCM/MCP I, L.P., Autry Stephens, John Carnett, Brack Blackwood, and Dennie Martin, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ed-vanegas-jimmy-d-halman-sam-armstrong-alex-carbajal-roger-texapp-2007.