Foust v. Estate of Walters

21 S.W.3d 495, 2000 Tex. App. LEXIS 2358, 2000 WL 373977
CourtCourt of Appeals of Texas
DecidedApril 12, 2000
Docket04-98-00639-CV
StatusPublished
Cited by47 cases

This text of 21 S.W.3d 495 (Foust v. Estate of Walters) 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
Foust v. Estate of Walters, 21 S.W.3d 495, 2000 Tex. App. LEXIS 2358, 2000 WL 373977 (Tex. Ct. App. 2000).

Opinion

ON MOTION FOR REHEARING OF RUSSELL L. LINDEMAN D/B/A RUSTY’S FLYING SERVICE

Opinion by:

ALMA L. LÓPEZ, Justice.

This court’s opinion and judgment dated February 2, 2000 are withdrawn, and this opinion and judgment are substituted. Russell L. Lindeman’s motion for rehearing is denied. We substitute this opinion in response to modify language characterizing Lindeman’s argument about to limitations. Our original opinion remains the same in all other respects.

This is a negligent application of herbicide case raising issues of misnomer, limitations, settlement credit, prejudgment interest tolling during settlement negotiations, expert testimony, lost income, preemption, independent contractors, and the gate-keeping responsibilities of the trial court. For the reasons stated in this opinion, we affirm in part and reverse and render in part the judgment of the trial court.

Factual BACKGROUND

Four McDaniel family members who farmed together in the Valley moved part of their farming operation to Brackettville in 1985. Traditionally, they farmed various tracts under various informal partnership arrangements. They also formed a corporation, McDaniel Farms, Inc., to purchase a tract near Brackettville. The proceeds and expenses from their farming operations in this area flowed through the corporate bank account. Otherwise, the corporation served as the “d/b/a” for the McDaniel shareholders who operated informally in all contractual matters. The officers and shareholders did not hold annual meetings or keep up a corporate minute book.

In 1994, they planted cotton in this area and formed another informal partnership, with landowner Foust, to lease his land and plant cotton. Some of these cotton crops were allegedly damaged due to her *500 bicide drift when a neighboring farmer named Roland Walters purchased Weedar 64 (containing the active ingredient 2,4D) and hired Russell Lindeman, d/b/a Rusty’s Flying Service, to apply the chemical spray to his milo fields. A Lindeman representative inspected the crop and advised the McDaniels and Foust to grow out the crop and report the results for purposes of determining their losses, which they did.

The five individual farmers sued Linde-man, the Walters Estate, and Helena Chemical Corporation for lost income resulting from the damage caused to their crops. Helena Chemical was non-suited. The defendants filed special exceptions to the McDaniel parties, complaining they were vaguely described and lacked standing to sue. The trial court sustained the special exceptions, and plaintiffs filed a Third Amended Original Pleading which substituted McDaniel Farms, Inc. for the four McDaniel individual plaintiffs. After a five-day jury trial, the jury found Walters 30% negligent and Lindeman 70% negligent, and returned a verdict in favor of plaintiffs, awarding damages to Foust and McDaniel Farms in the amounts of $81,488.00 and $162,976.00 respectively.

The court took into consideration various post-verdict motions, ruled that the McDaniel Farms claims were barred by the two-year statute of limitations, and reduced Foust’s award by $14,000.00, representing the value of a settlement credit from Helena Chemical, for judgment of $67,488.00. The court also found that open settlement offers tolled the running of prejudgment interest from December 11, 1996 to November 3, 1997. All sides appealed.

I.

Appellants Foust and McDaniel Farms raise five issues concerning limitations, settlement credits, prejudgment interest in the judgment notwithstanding the verdict, and that Foust should be allowed to recover damages on behalf of all plaintiffs.

Limitations

Appellants Foust and McDaniel assert that the trial court erred in ruling that the McDaniel Farms claims were barred by the two-year statute of limitations. 1 They argue that their Third Amended Original Petition was filed as a result of the trial court’s ruling striking the *501 McDaniel claims for lack of standing. Ap-pellees characterize the third amended pleading as “a voluntary non-suit” of the individual McDaniels which rendered moot the order sustaining the special exceptions which issued fifteen days later. The trial court, however, sustained the special exception in open court.

Appellees also argue that appellants waived this issue because they were required to respond to their affirmative defense, but failed to plead avoidance of limitations, prove, and obtain a jury finding in support of this pleading. See Wise v. Anderson, 163 Tex. 608, 359 S.W.2d 876, 880 (1962); Wright v. Gifford-Hill & Co., Inc., 736 S.W.2d 828, 834 (Tex.App.-Waco 1987, writ ref'd n.r.e.). Under the circumstances presented here, we find no waiver.

Appellees also argue that because appellants named a new party, McDaniel Farms, Inc., the relation-back doctrine does not apply. See Koch Oil Co. v. Wilber, 895 S.W.2d 854, 863 (Tex.App.-Beaumont 1995, writ denied); Leeds v. Cooley, 702 S.W.2d 213 (Tex.App.-Houston [1st Dist.] 1985, writ ref'd n.r.e.). The Code provides:

If a filed pleading relates to a cause of action, cross action, counterclaim, or defense that is not subject to a plea of limitation when the pleading is filed, a subsequent amendment or supplement to the pleading that changes the facts or grounds of liability or defense is not subject to a plea of limitation unless the amendment or supplement is wholly based on a new, distinct, or different transaction or occurrence.

Tex. Otv. PRAC. & Rem.Code § 16.068 (Vernon 1997). Neither of the cases cited by Lindeman lend support to his thesis here, however. The Wilber case was a class action where plaintiffs attempted to add additional mineral interest owners after limitations had run. These were simply additional, new parties. In Leeds, plaintiffs sought to add additional defendants who had done nothing to create a situation whereby the discovery rule might be invoked.

The application of Section 16.068 to a situation where the plaintiff was misnamed has never been that harsh. Misnomer cases are analyzed by asking the following questions: (1) Would a judgment under the original pleading bar recovery under the amended pleading? (2) Would the same evidence support both of the pleadings? (3) Is the measure of damages the same in both pleadings? (4) Are the allegations of each pleading subject to the same defenses? See Phoenix Lumber Co. v. Houston Water Co., 94 Tex. 456, 61 S.W. 707, 709 (1901). When a party is misnamed, but no one has been misled or disadvantaged by the error in pleading, the relation-back doctrine operates to preserve the claim against a bar of limitations. See Dougherty v. Gifford, 826 S.W.2d 668, 677 (Tex.App.-Texarkana 1992, no writ); Palmer v. Enserch Corp., 728 S.W.2d 431, 434 (Tex.App.-Austin 1987, writ ref'd n.r.e.). If the nature of the suit against the defendants remains unchanged, the substitution of parties-plaintiff does not constitute a new suit. See Vaughn Bldg. Corp. v. Austin Co.,

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Bluebook (online)
21 S.W.3d 495, 2000 Tex. App. LEXIS 2358, 2000 WL 373977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foust-v-estate-of-walters-texapp-2000.