George P. Bane, Inc. v. Joe Ballard

Court of Appeals of Texas·Decided March 22, 2021·No. 05-19-01459-CV·Published

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.

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.

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.

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

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”). On March 11, 2011, Joe Ballard, on behalf of Affordable Sand and Material LLC, signed a Credit Application in which Bane Machinery agreed to extend an account of credit to Affordable Sand for the purchase of goods and services from Bane Machinery.

....

Affordable Sand has breached the terms and conditions of its agreement with Bane. Between July 17, 2015 and the Present, Bane provided rentals, product sales and other professional services to Affordable Sand as noted in Exhibit B, incorporated herein by reference, which remain unpaid.

....

On March 11, 2011, Defendant Joe Ballard executed and delivered to Bane a written guaranty by which he personally guaranteed Affordable Sand’s account with Bane, including all amounts due and payable under rental, purchase and service transactions between Affordable Sand and Bane. . . .

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