Great Western Drilling, Limited v. Bill Alexander

CourtCourt of Appeals of Texas
DecidedOctober 8, 2009
Docket11-08-00110-CV
StatusPublished

This text of Great Western Drilling, Limited v. Bill Alexander (Great Western Drilling, Limited v. Bill Alexander) 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
Great Western Drilling, Limited v. Bill Alexander, (Tex. Ct. App. 2009).

Opinion

Opinion filed October 8, 2009

In The

Eleventh Court of Appeals __________

No. 11-08-00110-CV ________

GREAT WESTERN DRILLING, LIMITED, Appellant

V.

BILL ALEXANDER, Appellee

On Appeal from the 238th District Court Midland County, Texas Trial Court Cause No. CV 44,955

OPINION Appellant Great Western Drilling, Limited (herein Great Western) brings this appeal from a take-nothing verdict in its suit against appellee Bill Alexander (herein Alexander). In the suit, Great Western sought to recover damages suffered by it because Alexander allegedly conspired with his client Marilyn Paschal (herein Paschal) to convert certain insurance proceeds it claimed. For reasons we later discuss, we affirm the judgment of the trial court. A review of the somewhat convoluted history of the events giving rise to this suit is necessary to a proper discussion of the appeal. Originally, Great Western filed suit against Paschal asserting that Paschal had conspired with her husband Alan Paschal, who died on June 23, 2003, to embezzle money from Great Western, which was used to purchase insurance policies issued by Cuna Mutual Life Insurance Company, Stonebridge Life Insurance Company, and U.S. Financial Life Insurance Company with death benefits totaling $775,0961 received by Paschal after the death of her husband. Great Western further sought the imposition of a constructive trust on those proceeds. Later, and in the course of that proceeding, Great Western also sued Alexander and William R. Bowden Jr. (herein Bowden), Paschal’s former attorney, for conversion of the proceeds of those policies. Before the trial of the claims against Paschal, the trial court severed the portion of the suit involving Great Western’s claims against Alexander and Bowden and ordered a separate trial of those matters. The original suit against Paschal was tried and, on February 5, 2005, resulted in a judgment against Paschal in favor of Great Western. Later, and before trial of this severed cause, Great Western settled with Bowden, and the case proceeded to trial against Alexander alone. That trial commenced on October 29, 2007, and on November 1, 2007, the case was submitted to the jury on three issues. In its charge, because of its pretrial partial summary judgment rulings, the trial court instructed the jury that (1) Great Western’s stolen funds were used to pay the insurance premiums on the Cuna, U.S. Financial, and Stonebridge policies in dispute in Cause No. 44196 (the other cause); (2) Great Western was the equitable owner of the Cuna, U.S. Financial, and Stonebridge policies; (3) former defendant Bowden collected the Cuna, U.S. Financial, and Stonebridge policies in the amount of $775,096; (4) on September 16, 2003, Bowden delivered proceeds from the policy proceeds to Paschal in the amount of $732,614.15; and (5) Paschal delivered those proceeds to Alexander on September 16, 2003. The trial court then submitted three questions to the jury for its decision. The first question and instruction submitted was as follows: Did Bill Alexander on September 16, 2003 have notice that Great Western was the owner of the life insurance proceeds paid to Marilyn Paschal by Cuna, Stonebridge and U.S. Financial?

You are instructed that the term ”Notice” is broadly defined as information concerning a fact actually communicated to a person, derived by him from a proper

1 Two other life insurance policies had been purchased by the Paschals from United of Omaha that provided for a total of $450,000 in death benefits. The proceeds from those policies were interpleaded by the insurer and later collected by Great Western to partially satisfy its judgment against Paschal.

2 source, or presumed by law to have been acquired. Notice may be actual or constructive. Actual notice results from personal information or knowledge, as well as those facts which reasonable inquiry would have disclosed. Constructive notice is notice the law imputes to a person not having personal information or knowledge.

Jury Questions Nos. Two and Three were conditioned upon an affirmative answer to Question No. One. Jury Question No. Two inquired if, on September 16, 2003, or September 22, 2003, Alexander converted personal property of Great Western in the form of the life insurance proceeds paid to Paschal by the life insurance companies. In connection with Jury Question No. Two, the jury was instructed as to the legal definition of the term “convert.” Jury Question No. Three, with an instruction, inquired as to the amount of compensation to which Great Western would be entitled if the jury found a conversion. In accordance with the instruction, because of its negative answer to Jury Question No. One, the jury did not answer Questions Nos. Two and Three. In pursuing this appeal, Great Western presents five issues for our review. In the first three of those issues, it contends the trial court erred in not granting its motion for judgment notwithstanding the jury verdict because the evidence established as a matter of law that (1) Alexander converted life insurance proceeds belonging to it in the amount of $250,000, (2) Alexander was on “notice” that Great Western was the owner of the life insurance proceeds, and (3) the evidence established as a matter of law that the funds converted by Alexander were in the amount of $250,000 even though the jury did not answer Questions Nos. Two and Three. In support of its contention that it was entitled to a judgment notwithstanding the jury verdict, Great Western also cites and relies upon the trial court pretrial summary judgment ruling that gave rise to the declarations given the jury in the court’s charge as being sufficient as a matter of law to entitle it to a judgment notwithstanding the verdict that Alexander had converted funds in the amount of $250,000. In its fourth issue, Great Western posits that its motion for new trial should have been granted because the jury’s answer to Question No. One was so against the great weight and preponderance of the evidence as to be manifestly unjust. In its fifth issue, and in the alternative, it contends that its motion for new trial should have been granted because the trial court erred in admitting the expert testimony of Alexander’s witness Steven L. Lee because his testimony included opinions on pure

3 questions of law, lacked relevance, and was unreliable, all of which combined to probably cause the rendition of an improper judgment. At trial, in addition to Lee’s testimony, portions of Bowden’s deposition and Alexander’s deposition were admitted into evidence, and Alexander also testified in person. Of necessity, the issues presented by Great Western require us to reference some of the pertinent trial evidence. In the course of his testimony, Alexander averred that he first heard of Alan’s death by reading a newspaper account on June 24, 2003. He also said that in the past, and prior to that time, he had drafted a marital agreement for Alan that provided that Alan would obtain a life insurance policy on himself that would pay Paschal one million dollars in the event of Alan’s death. Alexander said that he received two calls from Paschal on September 4, 2003, and met her at his office on September 5, 2003. At that time, Paschal told him that she needed to hire a lawyer because Great Western had sued her. On September 10, 2003, he prepared, and entered into, an employment contract with Paschal. Although the contract provided for the payment to him of an undivided one-third contingent fee “in the funds in dispute in the litigation whereby Great Western Drilling, Limited is attempting to recover the insurance proceeds paid to you and to be paid to you, totaling One Million One Hundred Twenty Five Thousand ($1,125,000.00),” Alexander testified that he had not actually seen any pleadings in the case nor had he seen any evidence to support Great Western’s claims.

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Great Western Drilling, Limited v. Bill Alexander, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-western-drilling-limited-v-bill-alexander-texapp-2009.