Eric D. Burns v. EMD Supply Inc., James A.White In His Official Capacity as CEO of EMD Supply

Court of Appeals of Texas·Decided April 11, 2024·No. 01-22-00929-CV·Published

Opinion

Opinion issued April 11, 2024

In The

Court of Appeals

For The

First District of Texas

In eight issues, Burns argues the trial court erred because (1)-(2) the trial court’s acts or admissions in an earlier lawsuit constituted conspiracy, bias, and lack of competence; (3) the trial court had probable cause to believe Appellees EMD Supply Inc. and James A. White violated the DTPA; (4) the trial court’s failure to hear Burns’ motion for jury trial violated the Texas Constitution; (5) other acts by the trial court violated the Texas Constitution; (6) the trial court abused its discretion in its application of the DTPA’s two-year statute of limitations; (7) the district court trial judge’s failure to recuse himself violated the Texas Rules of Civil Procedure; and (8) the laws of fraud, fraudulent concealment, and fraudulent inducement apply.

We affirm the trial court’s judgment.

Background

This is the second lawsuit brought by Appellant Eric D. Burns in connection with a purported contract between him and Appellees EMD Supply, Inc. and James A. White involving a patent for a “Home Communicator.” Both lawsuits were dismissed under Rule 91a of the Texas Rules of Civil Procedure. Burns appeals from the dismissal of his claims in the second lawsuit.1

1 It appears Burns also seeks to appeal certain rulings from the first lawsuit, but his challenges to that lawsuit were already appealed and decided adversely to Burns in Burns v. White, No. 14-20-00646-CV, 2022 WL 2311621, at *1 (Tex. App.—

Houston [14th Dist.] June 28, 2022, no pet.) (mem. op.). Any issues related to the first lawsuit are thus not properly before us.

A. The First Lawsuit2 In 2019, Burns sued White for breach of contract, alleging White entered into a Letter of Intent to “build a functional prototype or financially fund a working prototype” (“the First Lawsuit”). The Letter of Intent stated:

LETTER OF INTENT

(Preliminary Agreement)

James A. White, CEO

EMD Supply, Inc. located at 909 Industrial Blvd., Sugar Land, TX 77478 has considerable interest in a concept created by Eric Burns of iBurns, Inc. 391 Highway 90 E. Sealy, TX and its creation “The Home Communicator”, (i.e. Home Communication) to fund a prototype which is functional. Upon availability of the prototype, EMD Supply, Inc. agrees to begin negotiations for licensing and distribution of the product per an agreed upon amount per unit with Eric Burns, Inventor A.K.A. iBurns, Inc.

White and Burns both signed the Letter of Intent, which was not dated. According to Burns’ Original Petition, White told Burns after signing the Letter of Intent “not to speak or discuss this with anyone. [Consequently, Burns was] [m]issing out on other business deals.” Burns alleged that as of January 17, 2018, the prototype for his invention had not been built or funded and White had “stopped all communications with [Burns] for no apparent reason.”

2 The First Lawsuit was styled Eric D. Burns v. James A. White, No. 19-DCV-

268373, In the 268th District Court of Fort Bend County, Texas.

White moved for dismissal of Burns’ breach of contract claim under Rule 91a of the Texas Rules of Civil Procedure. White asserted Burns’ claim had no basis in law because the Letter of Intent lacked essential terms, it was indefinite, and it did not indicate there had been a meeting of the minds. White also argued the claim against him failed because White was not a party to the Letter of Intent in his individual capacity. See Burns v. White, No. 14-20-00646-CV, 2022 WL 2311621, at *1 (Tex. App.—Houston [14th Dist.] June 28, 2022, no pet.) (mem. op.) (“Burns I”). The trial court granted White’s Rule 91a motion and dismissed Burns’ breach of contract claim. Id. at *2. Burns appealed the dismissal of his claim to the Fourteenth Court of Appeals, arguing (1) the trial court erred by being “bias[ed] against the law,” (2) he received ineffective assistance of counsel, and (3) the trial court erred in granting White’s motion to dismiss. Id. at *1. The Fourteenth Court of Appeals affirmed the trial court’s dismissal. Id.

The Fourteenth Court of Appeals held Burns’ first issue was “unsupported by the record, inadequately briefed, incomplete, and multifarious.” Id. at *4. The court held Burns’ ineffective assistance of counsel argument lacked merit because a party does not have “a constitutional right to effective assistance of counsel in litigation involving a breach of contract.” Id. And as it concerned his third issue, the court held the trial court properly dismissed Burns’ claims under Rule 91a because the Letter of Intent did not create a binding contract. Id. at *6. The court

held the Letter of Intent “lack[ed] essential terms, such as the price, the specific performance promised, and the timing of said performance.” Id. It concluded the Letter of Intent “failed[ed] for indefiniteness because [there were] no essential terms providing how [a court] would enforce each of the parties’ rights.” Id. The court continued, “[T]his letter of intent was no more than an indefinite indication of interest in negotiating toward a contract in the future. As the trial court concluded, the letter of intent does not demonstrate that the parties actually intended to be contractually bound.” Id. Further, the court held the Letter of Intent’s reference to creation of a functional prototype “was a condition precedent to the parties’ formation of a binding contract.” Id. at *7. B. The Second Lawsuit On July 11, 2022, less than two weeks after the Fourteenth Court of Appeals issued its opinion in the First Lawsuit, Burns filed another lawsuit involving the same issues, this time against EMD Supply, Inc. and White in his capacity as CEO of EMD Supply, Inc. (the “Second Lawsuit”). Burns asserted a claim for “breach of verbal contract” based on an alleged oral agreement between the parties and a claim for “deceptive trade practices” claiming he was misled into believing he had executed a binding contract. We construe the latter as a claim for violations of the DTPA.

In the background section of his petition, Burns alleged that White, in his

capacity as EMD’s chief executive officer, offered Burns “$30,000.00 in services and 15% to 20% of royalties from the production and commercial sale of [Burns’] invention.”3 Burns alleged he obtained a patent on his invention and that EMD “agreed to produce a fully functional prototype of [Burns’] invention [] prior to the patent’s expiration date” of August 18, 2017. Burns alleged EMD “failed to produce a functional prototype before the expiration date of [his] patent” and that said failure “constituted a breach of the oral contract agreement.”

In support of his contract claim, Burns alleged that White orally offered him $30,000 in services, a percentage amount of commercial sales, and to produce a functional prototype of his invention before the expiration of his patent. He alleged he orally accepted the offer and that as such, there was a meeting of the minds. Burns alleged both parties “orally consented to the material and essential terms,” there was consideration when White “exchanged an oral agreement to produce a functional prototype along with the letter of intent for [Burns’] intellectual property,” and White delivered the Letter of Intent to Burns and Burns delivered the intellectual property to White. Burns alleged, “The parties mutually agreed that the terms of the oral agreement were binding; and concluded with a handshake to seal the deal.”

3 The petition does not describe the purported invention but states it is called “The Home Communicator.”

In support of his DTPA claim, Burns alleged that White

either misrepresented facts to mislead Plaintiff into believing that a binding oral contract existed between them; or, entered into an oral contract agreement with the Plaintiff with no intentions of keeping the oral contract portion of the agreement. That Plaintiff relied on Defendant’s promise is obvious.

EMD and White filed a general denial asserting several affirmative defenses.

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Eric D. Burns v. EMD Supply Inc., James A.White In His Official Capacity as CEO of EMD Supply, (Tex. Ct. App. 2024).

Eric D. Burns v. EMD Supply Inc., James A.White In His Official Capacity as CEO of EMD Supply (Eric D. Burns v. EMD Supply Inc., James A.White In His Official Capacity as CEO of EMD Supply) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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