George T. Moench v. Dennis and Patti Notzon

CourtCourt of Appeals of Texas
DecidedMarch 13, 2008
Docket13-06-00490-CV
StatusPublished

This text of George T. Moench v. Dennis and Patti Notzon (George T. Moench v. Dennis and Patti Notzon) 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 T. Moench v. Dennis and Patti Notzon, (Tex. Ct. App. 2008).

Opinion

NUMBER 13-06-490-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI - EDINBURG

GEORGE T. MOENCH, Appellant,

v.

DENNIS AND PATTI NOTZON, Appellees.

On appeal from the County Court at Law No. 1 of Cameron County, Texas.

MEMORANDUM OPINION Before Justices Rodriguez, Garza, and Benavides Memorandum Opinion by Justice Benavides

The two happiest days in a boat owner’s life are the day he buys the boat and the

day he sells the boat, or so the saying goes. In this case, both days are involved, and

neither the buyer nor the seller is happy. Appellees, Dennis and Patti Notzon, brought suit

against appellant George Moench for his failure to return a “deposit” they paid in the course

of attempting to purchase Moench’s boat. After a jury trial, the trial court rendered judgment awarding actual damages, mental anguish damages, exemplary damages, and

attorney’s fees apparently under the Texas Deceptive Trade Practices Act (“DTPA”). See

TEX . BUS. & COMM . CODE ANN . § 17.50 (Vernon Supp. 2007). Moench argues that the

evidence is legally and factually insufficient to support the jury’s findings and that the trial

court should have granted a mistrial. For the reasons that follow, we affirm.

I. BACKGROUND

Dennis Notzon is an Arizona resident. He is married to Patti Notzon. Dennis was

employed as a truck driver and a heavy machine operator for some time, but he was forced

to retire when he injured his back. The Notzons then survived on Dennis’s disability pay,

Patti’s disability pay, and social security income the Notzons received for their minor child.

This apparently was not enough to sustain their family, as the Notzons filed for and

finalized their bankruptcy in 2002.

Not wanting to “just sit around,” Dennis began exploring a career in scuba-diving.

Dennis began looking for a boat to purchase in the hope of later finding underwater

employment. He located a listing on the internet for a 58 foot sailboat called the “Fat

Duck.” Dennis was interested in the boat because it had a flat deck that was suitable for

diving.

The listing referenced Mark Stuart as the boat’s contact person. Dennis contacted

Stuart on multiple occasions over the course of a few months to discuss the boat. Stuart

represented that he was the boat’s salesman, but George Moench actually owned the boat.

Before Dennis traveled to Texas to view the boat, Stuart represented that the boat was “a

good boat.” Stuart told Dennis that the Fat Duck “was really dirty and needed cleaning

from one end to the other” and needed fresh paint; otherwise, it was overall sound.

2 In November 2003, the Notzons traveled to Port Isabel, Texas, to look at the boat.

They met with Stuart at Anchor Marina where the boat was docked. After viewing the boat,

the Notzons and Stuart drove the boat out to sea for 15 to 20 minutes. The Notzons then

met with Stuart and Moench on November 14, 2003, to negotiate the Notzons’ purchase

of the boat. Also present was Bill Coleman, the boat’s “broker,” and Stuart’s secretary.

The parties’ negotiations culminated in a “talking paper” setting out the terms the

parties negotiated. Dennis testified that he requested the sale be contingent on a survey

of the boat’s structural condition. He recalled telling Moench and Stuart that he did not

want to buy a boat that required much work. Anything more than a little sanding and

painting would be too much for Dennis, given his disability. Moench initially refused to

make the sale contingent on a favorable survey, but ultimately, Stuart convinced Moench

that most boat sales include such provisions. Accordingly, the condition was included in

the talking paper.

The Notzons presented Moench with a financial statement that showed that they

had some equity in their home and that they had previously filed for bankruptcy. Moench

testified that he reviewed the Notzons’ financial statement and was aware of their financial

condition. The Notzons needed owner financing because they could not get a loan with

their credit history. They planned to sell their home to pay for the boat. Stuart represented

to the Notzons that the boat’s price was $115,000, which included a $15,000 deposit or

down payment, and Moench agreed to finance the sale for the Notzons.

Dennis paid the $15,000 deposit that day. He testified that he believed that the

$15,000 was paid to “hold the boat until the time [he] came down to get the survey to

establish the [boat’s] condition.” Dennis testified that he asked what Moench would do with

3 the $15,000:

Q. Okay. What was told to you when you paid the 15,000? What was told to you about it?

A. I asked if that was going into an escrow account, like with a house, and I was told that I could wait until Monday and we could do an escrow account, or that it would just go into the safe until the time the sale was completed.

Q. Okay.

A. And I couldn’t stay until Monday, which they knew . . . .

...

Q. Okay. What did Mr. Coleman tell you?
A. About?
Q. About the money.
A. That it would go in the safe until the sale was finalized.
Q. Okay. And then what did [Stuart] tell you about the money?
A. Just that it would be in the safe until the sale was finalized.

The talking paper was very short and did not include a lot of detail. Regarding the

survey and initial payments, it stated:

Sales Price $115k

Owner financed sale

Sale contingent on survey of structural integrity and haul-out Both parties agree to surveyor Boat must be insured by buyer prior to haul-out Buyer assumes responsibility of vessel upon acceptance of this agreement

Down Payment 15k Buyer can occupy and improve boat

4 Boat cannot leave dock until the first balloon is paid Buyer assumes slip rent ($250 until occupied)

First Baloon [sic] $20k Due on sale of buyer’s residence—NLT 120 days Boat must be insured Boat can only sail in US Gulf Coastal region

After the parties signed the talking paper and the Notzons paid the deposit, the

Notzons returned home to Arizona. Dennis began searching for a surveyor to conduct the

survey of the boat. Stuart recommended Manning Dierlam as the surveyor. Dennis hired

Dierlam in February 2004 and paid him $350 to conduct the survey.

Dierlam told Dennis it would take three to five days to produce a written report after

he conducted the survey. Dennis did not hear from Dierlam for 10 to 12 days after hiring

him, so Dennis called. Over the phone, Dierlam reported that he had not been given

access to the boat. Dierlam also stated that before he would be given access to the boat,

the boat owner required that Dierlam send him any survey reports first before sending the

report to Dennis. Dennis thought this was odd because he was paying for the survey, not

Moench. It appeared to Dennis that Dierlam was taking orders from Moench, Stuart, and

Coleman. Dennis testified that Dierlam finally obtained access to the boat on March 18-20,

2004.

Dennis’s conversations with Dierlam, along with other factors, caused him to

question the structural integrity of the boat. During Dierlam’s survey, he drilled holes in and

around the hatchway and below the hatchway on the inside of the boat. These holes

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