George P. Bane, Inc. v. Joe Ballard

CourtCourt of Appeals of Texas
DecidedMarch 22, 2021
Docket05-19-01459-CV
StatusPublished

This text of George P. Bane, Inc. v. Joe Ballard (George P. Bane, Inc. v. Joe Ballard) 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
George P. Bane, Inc. v. Joe Ballard, (Tex. Ct. App. 2021).

Opinion

Affirm and Opinion Filed March 22, 2021

In The Court of Appeals Fifth District of Texas at Dallas No. 05-19-01459-CV

GEORGE P. BANE, INC., Appellant V. JOE BALLARD, Appellee

On Appeal from the 44th Judicial District Court Dallas County, Texas Trial Court Cause No. DC-17-07758

MEMORANDUM OPINION Before Justices Myers, Osborne, and Carlyle Opinion by Justice Myers George P. Bane, Inc. appeals the trial court’s judgment that it take nothing

following a trial before the court on its suit against Joe Ballard for breach of a

guaranty agreement. Appellant brings two issues on appeal contending it proved its

cause of action for breach of a guaranty agreement and that Ballard failed to prove

his defense of forgery. Ballard brings a motion to dismiss the appeal arguing

appellant lacks standing. We deny the motion to dismiss, and we affirm the trial

court’s judgment. BACKGROUND In 2010, Ballard and Ronnie Shadowen formed Affordable Sand & Materials,

LLC to excavate and sell sand. Shadowen had the knowhow to run the day-to-day

operations, and Ballard provided the capital and good credit to fund and obtain credit

for Affordable Sand.

In 2011, Affordable Sand needed a replacement tractor, and Ballard and

Shadowen decided to lease with option to purchase a tractor from Bane Machinery,

Inc. On March 11, 2011, Shadowen went to Bane Machinery, Inc.’s office to discuss

the transaction with George Bane, the president of Bane Machinery, Inc. Ballard

was not present at the meeting, but Bane testified that Shadowen told Bane he was

calling Ballard on his cell phone, and it was Bane’s understanding that Shadowen

was on the phone with Ballard during the meeting.

Bane required Shadowen and Ballard to complete a credit application form

before extending credit to Affordable Sand to acquire the tractor. The credit

application form was headed “George P. Bane, Inc.” The application required

Shadowen and Ballard’s signatures as owners of Affordable Sand and Ballard’s

signature as the individual guarantor. The credit application was faxed to Ballard

for his signatures. The document was faxed back to Bane’s office with signatures

purporting to be Ballard’s as an owner of Affordable Sand and as guarantor of the

credit extended to Affordable Sand.

–2– The completed credit application included Ballard’s social security number,

driver’s license number, and credit references including the name of the Bank

Ballard used, the bank officer Ballard dealt with, and the names of other businesses

with which Ballard had done business. Ballard confirmed at trial that the

information on the credit application was correct.

The credit application provided a line of credit to Affordable Sand for the

tractor as well as for future purchases. The credit application set forth the terms of

the line of credit: payment due on the tenth of the month following the month of

purchase and past due accounts subject to a monthly finance charge of 1-1/2 percent.

For the first few years, Affordable Sand was able to pay its bills for the items

leased and purchased from Bane Machinery, Inc., including that first tractor, but it

later was not able to pay for its subsequent purchases and leases. By the time of

trial, Affordable Sand owed $256,294.87 for unpaid rentals, goods, services, and

interest.

Appellant sued Affordable Sand, Ballard, and Shadowen for breach of

contract and suit on a sworn account, and appellant sued Ballard for breach of

guaranty. Affordable Sand did not answer the suit, and the trial court rendered a

default judgment against it. Ballard filed a verified denial of the claims, and he

stated in the affidavit attached to the answer that he did not sign the credit application

or authorize anyone to sign for him. Ballard alleged in a supplemental answer that

the signatures of his name on the credit application were forgeries.

–3– The case was tried before the court. Ballard testified that he did not sign the

credit application and he did not authorize anyone to sign it on his behalf. Bane

testified that Ballard was not present in his office on March 11, 2011, and that he did

not see Ballard sign the credit application. Bane testified that he thought Shadowen

was on his cell phone with Ballard during the March 11 meeting.

Ballard testified that for the first two or three years of the business, he had

access to Affordable Sand’s bank statements, which he reviewed. He observed that

Affordable Sand made payments to Bane Machinery. After that first two or three

years, Affordable Sand changed banks or changed the password to its online account,

and Ballard was no longer able to access the company’s bank statements.

Shadowen testified that Ballard was on the phone with him during the meeting

with Bane and that he did not sign Ballard’s name. He also testified he did not know

or have access to Ballard’s social security number, driver’s license number, or credit

references. According to Shadowen, Ballard was “specifically aware of the line of

credit that the company opened up at Bane Machinery.” He also testified that

Affordable Sand paid off the debt for the tractor acquired in that first transaction.

The trial court found for Ballard and rendered judgment that appellant take

nothing on its claims against him. Appellant nonsuited its claims against Shadowen.

Appellant now appeals the judgment on its claims against Ballard.

–4– MOTION TO DISMISS Ballard moves to dismiss this appeal on the ground that appellant lacks

standing. Standing is a constitutional prerequisite to suit, and it is a component of

subject-matter jurisdiction. Meyers v. JDC/Firethorne, Ltd., 548 S.W.3d 477, 484

(Tex. 2018). Standing cannot be waived, and it may be raised for the first time on

appeal. Id.

“In Texas, the standing doctrine requires a concrete injury to the plaintiff and

a real controversy between the parties that will be resolved by the court.” Id.

(quoting Heckman v. Williamson Cty., 369 S.W.3d 137, 154 (Tex. 2012)). There are

three elements to standing. First, the plaintiff must plead facts demonstrating that

the plaintiff has suffered the injury. Id. at 485. Second, the plaintiff’s alleged injury

must be “fairly traceable” to the defendant’s conduct. Id. Third, the plaintiff must

show a substantial likelihood that the requested relief will remedy the alleged injury.

Id. In this case, Ballard argues appellant failed to meet the first requirement,

pleading facts demonstrating the plaintiff suffered the alleged injury.

When standing is raised for the first time on appeal, the appellate court

construes the petition in favor of the plaintiff, and, if necessary, may review the

entire record to determine if any evidence supports standing. Tex. Ass’n of Bus. v.

Tex. Air Control Bd., 852 S.W.2d 440, 446 (Tex. 1993).

Appellant alleged the following:

Bane Machinery, Inc. is in the business of selling, renting and maintaining heavy construction equipment. Those goods and services –5– may be paid for up front, or they may be purchased on credit through Bane Machinery, Inc.’s affiliated entity, George P. Bane, Inc. (both Bane entities referred to jointly herein as “Bane” or “Bane Machinery”).

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