FOX v. CROWGEY

2015 OK CIV APP 23, 346 P.3d 425, 2014 Okla. Civ. App. LEXIS 109, 2014 WL 8499855
CourtCourt of Civil Appeals of Oklahoma
DecidedOctober 24, 2014
Docket111,761
StatusPublished
Cited by5 cases

This text of 2015 OK CIV APP 23 (FOX v. CROWGEY) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FOX v. CROWGEY, 2015 OK CIV APP 23, 346 P.3d 425, 2014 Okla. Civ. App. LEXIS 109, 2014 WL 8499855 (Okla. Ct. App. 2014).

Opinion

JOHN F. FISCHER, Presiding Judge.

{ 1 Plaintiff/Appellant Don Fox individually and d/b/a Big Giant Warehouse appeals the decision of the district court following a six day jury trial finding in his favor but awarding zero dollars in damages. We affirm finding competent evidence in the ree-ord to support the jury's verdiet and finding no prejudicial error in the district court's instructions to the jury.

BACKGROUND

2 Don Fox is the owner and operator of Big Giant Warehouse. Big Giant Warehouse was a warehouse and retail store dealing in surplus goods. Tim Fox, one of Don's sons, began working at Big Giant Warehouse after graduating from high school. Tim began working for his father at Big Giant Warehouse when he was approximately 15 years old, but he essentially grew up in the warehouse. Tim became a full-time employee in approximately 1999. He began performing any type of work necessary from sweeping floors and cleaning restrooms to stocking shelves and driving forklifts. Tim later was responsible for recruiting new buyers and suppliers for Big Giant Warehouse, as well as servicing and maintaining its current buyers and suppliers. In 1999, Tim left his employment at Big Giant Warehouse after having a disagreement with Don. Upon his departure, Tim opened his own business, Fox Wholesale, apparently with Don's blessing, dealing in wholesale sales of surplus goods. Tim returned to work at Big Giant Warehouse after a couple of months and continued his employment with Big Giant Warehouse until September 2005 following another disagreement with Don. Upon his second departure from Big Giant Warehouse, Tim operated Fox Wholesale in direct competition with Big Giant.

13 Don filed suit against Stan Crowgey, K.IL.N.E. Ministries and KLN.E. Services (collectively KINE) in September 2006 asserting causes of action for misappropriation of confidential customer data, unfair competition, fraudulent inducement, conversion, fraudulent concealment and intentional interference with business relations. In separate litigation, Don filed suit against Tim in August 2007 alleging similar causes of action. Tim filed a motion to dismiss Don's original petition, which was sustained by the district court on November 30, 2007. Don was granted leave to amend. In his amended petition filed in December 2007, Don alleged causes of action against Tim for misappropriation of confidential customer information, unfair competition, breach of fiduciary responsibility, fraudulent concealment, conversion and intentional interference with business relations. Don sought to establish in both cases that Tim and Crowgey had conspired to divert business from Big Giant Warehouse to Fox Wholesale and KINE while both were employed at Big Giant Warehouse and continuing after both left employment with Big Giant. Don also asserted that Tim and Crowgey converted pallets owned by Big Giant Warehouse and sold the same for a profit. Don further accused Tim of misappropriation in taking Big Giant Warehouse's customer list and Thomas Food Industry Registry. Tim counterclaimed against Don for intentional interference with business relations, misrepresentation and defamation. Tim's claims against Don were based upon Don's alleged promise in 1999 to sell Big Giant Warehouse to Tim and his brother Tom. Tim asserted that he returned to Big Giant in 1999 based upon these promises by Don. Tim further alleged multiple customers refused to do business with Fox Wholesale in 2005, because Don was reporting to customers that Tim was a "thief and a liar."

T4 In July 2010, Don's actions against Tim, Crowgey and KINE were consolidated by the district court. Crowgey and KINE failed to defend the action. Tim sought summary adjudication as to Don's claims. On June 19, 2012, the district court entered summary judgment in favor of Tim on Don's claims for fraud and punitive damages, but denied Tim's motion as to Don's claims for tortious interference with business relations and conversion. On June 29, 2012, the district court sustained Tim's motion to bifurcate the trial, and the action proceeded to *428 trial as to Don d/b/a Big Giant Warehouse versus Tim d/b/a Fox Wholesale At the pretrial conference, Don sought to reserve the right to reassert his claims for fraud and punitive damages at trial in the event the evidence at trial supported such claims. Don listed additional claims for breach of fiduciary duty, deceit, faithless servant and misappropriation of confidential data/information, which were struck by the district court. Don reserved the right to reassert such claims in the event the evidence at trial supported such claims.

1 5 The matter was tried to a jury over six days. Don offered a great number of exhibits and witnesses to describe the side deals Tim was allegedly involved in on behalf of Fox Wholesale while employed by Big Giant Warehouse, which Don claimed harmed the business. Tim did not deny that he was involved in such deals for Fox Wholesale, but instead described the circumstances surrounding each sale, and in many instances, Don's agreement to allow Tim to pursue such sales. Tim testified that Don frequently mentioned his desire to sell Big Giant Warehouse. Don admitted that after Tim returned to the business in 1999, he repeatedly mentioned his plans to sell Big Giant Warehouse to someone other than his sons. In relation to the decline in Big Giant Warehouse's sales, evidence was introduced regarding Don's earlier lawsuit against Experi-an in relation to false eredit reporting, which Don claimed harmed his business relationships.

¶ 6 Don testified that he was harmed by Tim's actions because "[Tim] was spending his time on his deals and not on my deals, yes." (Transeript of Jury Trial, Vol. 4, October 18, 2012, p. 286). Don admitted that he refused to do business directly with Crowgey or KINE. Don confirmed that he had not spoken with a single customer that refused to do business with Big Giant Warehouse because of something Tim did. Don admitted that his expert witness, Kenneth Klingen-berg, had been retained in his lawsuit against Experian, wherein Mr. Klingenberg estimated in 2010 that Experian had damaged Big Giant Warehouse to the tune of $4,200,000.

T7 Mr. Klingenberg offered his expert opinion on the amount of damages Big Giant Warehouse had sustained as the result of Tim's deals on behalf of Fox Wholesale. Mr. Klingenberg estimated the damages to Big Giant Warehouse caused by Tim totaled approximately $1,742,710 to $1,822,929. Mr. Klingenberg opined in this case that the Ex-perian matter was not a cause of the decreased profits at Big Giant Warehouse. Mr. Klingenberg confirmed that he was not asked and in fact did not determine whether Tim diverted any business deals from Big Giant Warehouse for himself, but instead was only asked to determine lost profits.

18 Mr. Klingenberg admitted he did not consider any of the deposition testimony offered by Don in rendering his opinion. One assumption Mr. Klingenberg made in forming his opinion was that the gross revenue for Big Giant Warehouse remained consistent with previous years. Mr. Klingenberg did not take into consideration that Don was looking to sell Big Giant Warehouse from 2000 to 2005, because he was not made aware of that fact. Mr. Klingenberg was also not informed of the testimony by Bob Herriott that Big Giant Warehouse employees were told to reduce inventory to sell out. As part of his valuation of damages, Mr. Klingenberg was not asked to identify any customers that Big Giant Warehouse lost due to the actions of Tim.

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FOX v. CROWGEY
346 P.3d 425 (Court of Civil Appeals of Oklahoma, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
2015 OK CIV APP 23, 346 P.3d 425, 2014 Okla. Civ. App. LEXIS 109, 2014 WL 8499855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fox-v-crowgey-oklacivapp-2014.