Grider v. Boston Co., Inc.

773 S.W.2d 338, 1989 Tex. App. LEXIS 1942, 1989 WL 86400
CourtCourt of Appeals of Texas
DecidedMarch 28, 1989
Docket05-87-00952-CV
StatusPublished
Cited by41 cases

This text of 773 S.W.2d 338 (Grider v. Boston Co., Inc.) 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
Grider v. Boston Co., Inc., 773 S.W.2d 338, 1989 Tex. App. LEXIS 1942, 1989 WL 86400 (Tex. Ct. App. 1989).

Opinion

*339 HOWELL, Justice.

Forrest K. Grider and nine other partners in several oil and gas limited partnerships (Plaintiffs) sued The Boston Company, Inc. (Boston), its successors and subsidiaries (collectively Defendants) for, inter alia, recovery of claimed excessive administrative and professional fees charged to the respective partnerships. The trial court entered a judgment non obstante veredicto for Defendants, disregarding a jury verdict for Plaintiffs awarding almost $750,000 in actual damages and $250,000 in punitive damages. In twelve points of error, Plaintiffs challenge the take nothing judgment rendered by the court including the denial of punitive damages, attorneys’ fees and interest; Plaintiffs also complain that the judge should have recused himself, that the trial court erred in releasing the parent companies prior to final judgment, and that the court erred in failing to certify the suit as a class action under Texas Rule of Civil Procedure 42. For the reasons recited below, we affirm the trial court’s judgment.

THE JUDGMENT NON OBSTANTE VEREDICTO 2

Initially the Boston Company of Texas (BCOT) was a wholly owned subsidiary of Boston. Co-plaintiff Earl A. Brown, Jr. was president of BCOT until he resigned in 1981. BCOT served as general partner and operated a number of oil and gas limited partnerships in which Plaintiffs held limited partnership interests. In June 1983, Boston sold BCOT to Terrapet Energy Corp. (Terrapet) and the name of BCOT was changed to TPET Management, Inc. (TPET). 3 Each partnership was governed by an integrated, written agreement, all in substantially the same language, as stipu-cted by the parties. Each agreement contained the following pertinent provisions:

Subject to any specific limitations contained in this Agreement, the General Partner [BCOT, later TPET] shall have control over the management and affairs of the Partnership, and shall have complete and unrestricted authority and discretion to expend the funds of the Partnership and perform all other acts necessary in its sole discretion to accomplish the purposes of the Partnership, ...

Article 11(b).

Except as herein otherwise provided, the General Partner shall not be liable to the Partnership or any Limited Partner except for wilful [sic] malfeasance or fraud.

Article 11(c).

The General Partner hereby agrees to act as Managing Partner for the Partnership, and in doing so will make available to the Partnerships so much of its managerial and technical staff, office facilities, business machines, and secretarial and clerical help as it may deem necessary in connection with the Partnership’s program. All such services will be furnished at cost to and paid for by the Partnership, as determined in accordance with generally accepted accounting practices. The classification of Partnership expenditures as general, administrative, or overhead, on the one hand, or direct charges on the other, and the allocation of such direct charges among Operating Limited Partnerships shall be made by the General Partner after consultation with its accounting advisors, and such classification shall be final, binding and conclusive on all parties.

*340 Article IX. The partnership agreements, as originally signed, had no limitation as to the amount of administrative expenses to be incurred by the general partner. Plaintiffs commenced this lawsuit against the original and successor parents — Boston and Terrapet — and against the subsidiary— BCOT/TPET — in July 1983.

The key question submitted to the jury was question one, which, including the jury’s answer, reads:

In answering Question No. 1, you áre instructed that the term “excessive” means fees, if any, which exceed those fees, if any, which are customarily charged against a similar oil and gas partnership under the same or substantially the same circumstances. QUESTION NO. 1
Do you find that the charges, if any, by TPET to the TPET partnerships in question for administrative and professional fees, if any, were:
(a) excessive for the year 1981?
ANSWER: yes
(b) excessive for the year 1982?
ANSWER: yes
(c) excessive for the year 1983?"
ANSWER: yes
(d) excessive for the year 1984?
ANSWER: yes

Question one, as submitted, differed little from the question requested by Plaintiffs. Plaintiffs, however, did not request a definition of the term “excessive,” nor did they object to the court’s definition. 4 In common parlance, the term “excessive” is often used to connote extreme or unconscionable actions. In contrast, the court submitted a much milder definition; in effect, the jury was instructed to answer “yes” if Defendants’ charges were more than the amount “customarily charged” to similar oil and gas partnerships.

At the same time, the partnership agreements purported to grant “unrestricted authority and discretion” to BOOT and exempted BOOT for liability “except for wilful [sic] malfeasance or fraud.” In addition, the General Partner’s allocation of indirect expenses was declared by the partnership agreement to be “final, binding and conclusive.”

Obviously, the inquiry submitted to the jury did no more than establish that the charges to the partnership were above those “customarily charged.” The jury’s answer of “yes” failed to establish willful malfeasance, fraud or even an abuse of the broad discretionary powers vested in the General Partner by the above-recited contract language.

It follows, therefore, that the case was submitted to the jury on the wrong theory. Defendants objected that question one lacked support in the evidence and pleadings, and that it failed to inquire about any legally cognizable claim upon which relief could be granted. Under these circumstances, the jury verdict favoring Plaintiffs would not have supported a judgment. The most relief that the trial court could have given to Plaintiffs would have been the award of a new trial. The most relief that we could award to Plaintiffs would be a remand for new trial.

Plaintiffs, however, did not file any motion for new trial, much less one urging inappropriate submission of a jury question or an instruction. In this Court, Plaintiffs limit themselves to a prayer that the trial court’s judgment “be reversed and that Judgment be rendered.” Ordinarily, an appellant may not have relief not pleaded. Owest Microwave v. Bedard, 756 S.W.2d 426, 439 (Tex.App.—Dallas 1988, orig. proceeding); West End API, Ltd. v. Rothpletz, 732 S.W.2d 371, 374 (Tex.App.—Dallas 1987, writ ref'd n.r.e.). But see Kaspar v.

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Cite This Page — Counsel Stack

Bluebook (online)
773 S.W.2d 338, 1989 Tex. App. LEXIS 1942, 1989 WL 86400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grider-v-boston-co-inc-texapp-1989.