Exel Transportation Services, Inc. v. Aim High Logistics Services, LLC

323 S.W.3d 224, 2010 WL 2365845
CourtCourt of Appeals of Texas
DecidedAugust 19, 2010
Docket05-09-00154-CV
StatusPublished
Cited by13 cases

This text of 323 S.W.3d 224 (Exel Transportation Services, Inc. v. Aim High Logistics Services, LLC) 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
Exel Transportation Services, Inc. v. Aim High Logistics Services, LLC, 323 S.W.3d 224, 2010 WL 2365845 (Tex. Ct. App. 2010).

Opinion

OPINION

Opinion By Justice LANG.

Appellee Aim High Logistics Services, LLC (“Aim High”) sued appellants Exel Transportation Services, Inc. (“Exel”), Rick Sipkoi (“Sipkoi”), and Sip-Code Logistics, Inc. (“Sip-Code”) (collectively, “appellants”) for breach of contract and tortious interference with a contract. Following a jury trial, Aim High was awarded $367,500 in damages and $300,000 in attorney’s fees against Exel and $232,500 in damages against Sipkoi and Sip-Code.

In issues common to all appellants, they contend (1) the evidence is legally and *226 factually insufficient to support the jury’s damage award and, alternatively, (2) the trial court erred by awarding Aim High a “double recovery.” Additionally, Exel asserts (1) the evidence is legally and factually insufficient to support the jury’s finding that Exel breached a contract with Aim High and (2) the trial court erred by combining four theories of contractual breach into a single liability question and a single damages question. Finally, in addition to the common issues described above, Sipkoi and Sip-Code argue (1) the trial court erred in entering a judgment against them for tortious interference with a contract because they were privileged to compete for customer accounts and entitled to rely on Exel’s decision in any dispute and because the evidence was legally insufficient to support the jury’s finding that certain documents at issue constituted a contract, and (2) the evidence was legally and factually insufficient to support the jury’s finding that Sipkoi, individually, tor-tiously interfered with an agreement between Aim High and Exel.

Based on the analysis below, we conclude the evidence is legally insufficient to support the jury’s damage award. We reverse the trial court’s award of damages and attorney’s fees to Aim High and render judgment that Aim High take nothing on its claims.

I. FACTUAL AND PROCEDURAL BACKGROUND

Exel is a “third-party logistics company” that “acts as a transportation department” for other companies. Sipkoi was a regional vice president of Exel until he left Exel in the fall of 2006. Then, Sipkoi formed Sip-Code, which, like Aim High, operates as a transportation logistics independent contractor of Exel.

Representatives of Exel and Aim High signed a “Sales and Independent Contractor Operations Agreement” (the “sales agreement”), which was nonexclusive as to both parties. Pursuant to the sales agreement, Exel engaged Aim High to perform sales and service functions on behalf of Exel. Such services were to include, but were not limited to, “invoicing, assistance in collection of freight charges, fleet management, customer service and tracing, warehousing, arranging for transportation, routing of freight, logistics consulting, and supply chain management.” Aim High was to “promptly invoice the customer for all shipments” and “direct customers to make all payments directly to [Exel],” which would collect all amounts paid on such invoices and remit “sales commissions” and “operations commissions” to Aim High in accordance with specified terms of the agreement. Further, the sales agreement provided that “[b]efore calling on any customer, [Aim High] shall first obtain account clearance from management of [Exel] including confirmation that the customer has not already been assigned to or cleared for another Independent Contractor or sales representative of [Exel].” The record shows an identical agreement was entered into by representatives of Exel and Sip-Code.

According to the record, an “important” aspect of Exel’s dealings with its independent contractors like Aim High and Sip-Code was to “protect the agents with their relationships” with customers and prevent “one agent undercutting another agent from a price standpoint and from anything to confuse the customer.” Accordingly, in addition to provisions in its sales agreement, Exel initiated “account clearance” procedures and policies that generally provided a means to avoid any such “undercutting” and resolve disputes. These policies and procedures were set out in two documents that were separate from the sales agreement and were entitled “Ac *227 count Clearance Procedure” (the “account procedure”) and “Account Clearance Policy” (the “account policy”)- The account procedure specified steps to be followed respecting account clearance and stated, “Also attached is the Account Clearance Policy, which each salesperson has signed and is on file at ETS Dallas.” The account policy provided in relevant part that “[b]e-fore a sales call is made on any shipper, the salesperson must contact the account clearance staff in Dallas to determine if the shipper is an existing customer.” Further, sections three and four of the account policy provided

3. Upon refusal by an existing salesperson to grant clearance, the potential salesperson may appeal to corporate for clearance. Conflicts will generally be resolved using the following guidelines:
i. If the existing salesperson is not moving freight and potential salesperson has a contact but no current business, the potential salesperson will not be allowed to contact an account for 90 days from the date' of the last correspondence or until existing salesperson authorizes contact, which ever comes first.
ii. If the potential salesperson has a proven track record of significant business with the shipper under another company, they may be given 60 days to bring the business to [Exel],
iii. If an existing [Exel] salesperson has lost the business or the business has become inexplicably dormant, they will be granted 60 days to recover the business before the potential salesperson is given authorization by corporate.
4. In all instances of conflict, corporate management will, after consideration of all facts and circumstances, have final say in resolving the conflict and his decision must be honored. Salespeople who do not follow this policy are subject to disciplinary actions to be determined by Corporate management.

In its third amended original petition, the live petition at the time of trial, Aim High asserted claims for breach of contract and fraudulent inducement 1 against Exel and for tortious interference with contract against Sipkoi and Sip-Code. Aim High alleged in relevant part that “[d]espite [Aim High’s] outstanding performance during its time as a contractor with Defendant Exel, Defendant Exel has chosen to play favorites and has allowed at least one of its other agents, Defendant Sipkoi, a former corporate Exel employee, and Sipkoi’s agency, Sip-Code, to circumvent the [account policy and account procedure] altogether and steal [Aim High’s] customers.” Specifically, Aim High asserted that Exel, Sipkoi, and Sip-Code had “taken the Yamaha account away from [Aim High]” without first clearing the account as required by the sales agreement and account policy. Further, Aim High alleged Exel had ignored the requirements of section three of the account policy as to the Funai, Del Monte, and Electrolux accounts, on which Aim High was the “existing salesperson,” and authorized other Exel agents to develop that business.

In relevant part, Exel denied breach of any contract with Aim High.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

in Re: Jeremiah Parks
Court of Appeals of Texas, 2020
Barton v. Resort Development Latin America, Inc.
413 S.W.3d 232 (Court of Appeals of Texas, 2013)
Sharifi v. Steen Automotive, LLC
370 S.W.3d 126 (Court of Appeals of Texas, 2012)
Examination Management Services, Inc. v. Kersh Risk Management, Inc.
367 S.W.3d 835 (Court of Appeals of Texas, 2012)
Wells Fargo Bank Northwest, N.A. v. RPK Capital XVI, L.L.C.
360 S.W.3d 691 (Court of Appeals of Texas, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
323 S.W.3d 224, 2010 WL 2365845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exel-transportation-services-inc-v-aim-high-logistics-services-llc-texapp-2010.