Gomez v. Franco

677 S.W.2d 231, 39 U.C.C. Rep. Serv. (West) 388, 1984 Tex. App. LEXIS 6143
CourtCourt of Appeals of Texas
DecidedAugust 31, 1984
Docket13-83-355-CV
StatusPublished
Cited by21 cases

This text of 677 S.W.2d 231 (Gomez v. Franco) 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
Gomez v. Franco, 677 S.W.2d 231, 39 U.C.C. Rep. Serv. (West) 388, 1984 Tex. App. LEXIS 6143 (Tex. Ct. App. 1984).

Opinion

OPINION

NYE, Chief Justice.

This is an appeal from a judgment in which the jury found that appellee Carlos Franco loaned money to appellants Simon and Patricia Gomez, by obtaining a Letter of Credit for them, for which he had not been paid. The trial court entered judg *233 ment in favor of Franco for $17,441.84. Simon and Patricia Gomez appeal.

The appellants are the daughter and son-in-law of the appellee, Carlos Franco. Franco brought suit against Mr. and Mrs. Gomez, claiming that they owed him money on a Letter of Credit that he obtained on their behalf. Franco alleged that he obtained the Letter of Credit from McAllen State Bank in his name in order to assist the appellants in purchasing 15,120 pairs of shoes from Hong Kong. He testified at trial that he expected to be repaid by the appellants. At the time of the transaction, appellants were the owners of a retail variety store, and appellee Franco was in the electronics business. Appellants assert that the shoes were a gift from their father and father-in-law or, alternatively, it was a sale of goods. They contend that, if the transaction was a sale of goods, it is unenforceable since it was not in writing in compliance with TEX.BUS. & COM.CODE ANN. § 2.201 (Tex. UCC) (Vernon 1968).

A review of all of the testimony will be necessary in order to explain the conflicting contentions of the parties. Franco, the appellee, testified that Simon Gomez, his son-in-law, requested him to assist them in purchasing some shoes from Hong Kong. Franco said that Gomez told him that he could easily sell the shoes at his store within sixty days after they received them. Franco, the appellant, applied for a Letter of Credit which was to be paid ninety days after the shoes were received. All transactions were in Franco’s name or his company name. Franco indicated that he agreed to help his daughter and son-in-law on the condition that, when the money became due, appellants would pay the bank. According to Franco, Gomez agreed. Appel-lee also testified that the parties agreed that he would be paid a commission for his effort in obtaining the necessary line of credit. Franco claims that he did not receive the promised commission when the shoes were sold, nor did he sue for it.

During Mr. Franco’s testimony, various exhibits were introduced which showed the amount that he had been charged to complete the purchase of the shoes through a Letter of Credit. Franco testified that the appellants paid him $5,000.00 after the Letter of Credit was obtained. According to Franco, this money was repayment on an earlier loan he had made to his daughter and her husband and was not a payment on the loan in question. He testified that he never told appellants that he would forgive the balance due. Appellee testified that he paid the bank the amount owed on the Letter of Credit, but that he was never paid the amount of the letter of credit or interest which was due and owing.

Patricia Gomez, the daughter and one of the appellants herein, testified that her father told her that the shoes were in the United States, and that if she paid the import tax on them, she could have them. She claimed she never asked her father to order them. She also said that her father never told her how much they cost. She also testified that her father told her, after they had paid him $5,000.00, that they did not owe him any more money. She said that, when her father gave her the shoes, they began to sell them in the store. She testified that in August 1981, they obtained a Letter of Credit in their own name, thereby attempting to refute Franco’s testimony that they needed his financial assistance.

The son-in-law testified that he never asked his father-in-law to buy the shoes for him. He claims no demand for payment was made until the inception of the lawsuit. He testified that he placed an order himself for the same type of shoes in October 1981, paid cash and obtained a better price. Mr. Gomez, too, claimed that the money was a gift to him and his wife.

The jury found, however (in answer to special issues); that the appellee and appellants had agreed upon a loan; that $17,-441.84 was still due Mr. Franco; that the money was not a gift; and that the $5,000.00 Franco received from appellants was not a part payment on the loan.

Appellants assert three points of error on appeal. First, they claim the trial court erred in denying them certain special issues because they plead the defense of the Stat *234 ute of Frauds under TEX.BUS. & COM. CODE ANN. § 2.201(a) (Tex. UCC) (Vernon 1968), but such issues were refused. They claim that appellee’s testimony that he expected a commission on the sale of the shoes was evidence that the transaction was one for the sale of goods and not a loan. The three issues that the appellants requested were, as follows:

1. Do you find from a preponderance of the evidence that the dominant factor or “essence” of the transaction was that of a loan or of the sale of goods?
You are instructed that essence means the predominant factor, the thrust, the purpose of the transaction was for the rendition of a loan or for the sale of goods.
2. Do you find from a preponderance of the evidence that the plaintiff and defendants at the time of the transaction treated each other as merchants?
3. Do you find from a preponderance of the evidence that there existed a writing between the parties such that the terms of the transaction in question were described and which the defendant signed?
A writing need not be a single piece of paper but may be several documents which taken together will specify the terms of the agreement.

Under TEX.R.CIV.P. 277 and 279, all parties are entitled to have controlling issues that are raised by the written pleadings and evidence submitted to the jury. Dennis Weaver Chevrolet, Inc. v. Chadwick, 575 S.W.2d 619 (Tex.Civ.App.—Beaumont 1978, writ ref d n.r.e.). A “controlling issue” is one which, if answered favorable to the theory in which it is presented, will support a basis for judgment for the proponent of the issue. Stone v. Metro Restaurant Supply, Inc., 629 S.W.2d 254 (Tex.App.—Fort Worth 1982, writ ref d n.r. e.); Simmons Motor Co. v. Mosley, 379 S.W.2d 711 (Tex.Civ.App.—Austin 1964, writ ref’d n.r.e.). Appellant correctly states that the issue before this Court is not the applicability of the U.C.C. to" this case, but whether the appellants had the right to have their issues submitted to the jury.

The issues appellants requested sought to disprove appellee’s theory of the case that the transaction was a loan. They plead that the transaction was a sale of goods. Appellants’ requested issues were not controlling issues because by themselves they would not support a basis for judgment for the appellants. Their requested issues sought only to bring the case within the U.C.C. by inquiring whether the transaction was, in fact, a sale of goods.

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Bluebook (online)
677 S.W.2d 231, 39 U.C.C. Rep. Serv. (West) 388, 1984 Tex. App. LEXIS 6143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gomez-v-franco-texapp-1984.