Guilbeau v. Anderson

841 S.W.2d 517, 1992 Tex. App. LEXIS 2841, 1992 WL 322678
CourtCourt of Appeals of Texas
DecidedNovember 5, 1992
DocketA14-92-00202-CV
StatusPublished
Cited by20 cases

This text of 841 S.W.2d 517 (Guilbeau v. Anderson) 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
Guilbeau v. Anderson, 841 S.W.2d 517, 1992 Tex. App. LEXIS 2841, 1992 WL 322678 (Tex. Ct. App. 1992).

Opinion

OPINION

SEARS, Justice.

This is an appeal from a final judgment in favor of the plaintiff, awarding damages for negligence, gross negligence, mental anguish and violations of the Deceptive Trade Practices Act. We affirm.

In the spring of 1988, Eliane Anderson signed an earnest money contract on a home located at 12414 Brandywyne. The contract called for an inspection of the house, and Ms. Anderson arranged for the inspection to be performed by ED-MAR Engineering and Inspection Services, Inc. The inspection was performed by Edgar Guilbeau on approximately May 2, 1988. His report indicated that the foundation had good structural integrity. On May 31, 1988, Ms. Anderson purchased the home. In November of that same year, Ms. Anderson discovered cracks in her bedroom, living room and dining room. In the spring of 1990, she contacted Alvin Al-leyne, a registered engineer, to inspect her home. This second inspection showed that there was significant settling of the foundation. Mr. Alleyne determined that the foundation was cracked, and had been cracked prior to Ms. Anderson’s purchase. By coincidence, Mr. Alleyne had inspected the house in March of 1988 for a different prospective buyer. It was his opinion in March of 1988 that the foundation was cracked; this was two months before the property was inspected by Guilbeau. Ms. *519 Anderson brought suit against ED-MAR Engineering Inspection Services, Inc. and against Edgar Guilbeau, personally, for negligent inspection, gross negligence, mental anguish and violations of the DTPA. The trial court awarded damages on all issues. Appellant brings eight points of error.

In points one through three, Guil-beau complains that the trial court erred in holding him jointly and severally liable on both the negligence and DTPA claims. He challenges the verdict on both legal and factual sufficiency grounds. He claims that: (1) the verdict is incorrect as a matter of law; (2) there is no evidence or alternatively insufficient evidence to support the verdict; and (3) the verdict is against the great weight and preponderance of the evidence. Appellant did not have the burden of proof on either the negligence or DTPA claim. When a party appeals an issue on which he did not have the burden of proof, the proper legal and factual standards, respectively, are no evidence and insufficient evidence. When reviewing a no evidence point, this court considers only the evidence and inferences tending to support the findings, and disregards all evidence and inferences to the contrary. State v. $11,014.00, 820 S.W.2d 783, 784 (Tex.1991); Vickery v. Texas Carpet Co., 792 S.W.2d 759, 762 (Tex.App.—Houston [14th Dist.] 1990, writ denied). When reviewing a factual sufficiency point, the court considers and weighs all the evidence, and will set aside the verdict only if it is so contrary to the overwhelming weight of the evidence that it is clearly wrong and unjust. Cain v. Bain, 709 S.W.2d 175, 176 (Tex.1986).

Guilbeau claims that he cannot be liable for the judgment because he was acting within the course and scope of his employment when he inspected Ms. Anderson’s home. He asserts that the ap-pellee had to plead and pierce the corporate veil in order to hold him personally liable. Appellant’s argument misconceives the nature of this suit. Guilbeau is being sued individually for his own negligence and his own misrepresentations. It is the general rule in Texas that corporate agents are individually liable for fraudulent or tortious acts committed while in the service of their corporation. Light v. Wilson, 663 S.W.2d 813, 815 (Tex.1983); Medallion Homes Inc. v. Thermar Inv. Inc., 698 S.W.2d 400, 403 (Tex.App.—Houston [14th Dist.] 1985, no writ). Further, an agent is liable under the DTPA for affirmative misrepresentations, not-withstanding the agent’s lack of knowledge or notice of the falsity thereof. Henry S. Miller Co. v. Bynum, 797 S.W.2d 51, 55 (Tex.App.—Houston [1st Dist.] 1990) aff'd, 836 S.W.2d 160 (Tex.1992).

Mr. Guilbeau testified that he has been a registered structural engineer for sixteen years. He stated that he performed the inspection on the house located at 12414 Brandywyne. He testified that he considered the settling of the foundation to be normal and that “I specifically stated on my report that this is a statement of condition” as of May 1988. The record is full of other indications of Mr. Guilbeau’s individual participation, and the basis of the lawsuit is the tort committed by Guilbeau individually. The record also shows that Guil-beau is the president and major stockholder of the corporate-defendant. Further, a corporation can be held liable for the torts committed by its agents or employees while acting in the course and scope of their employment. Allied Chemical Co. v. DeHaven, 824 S.W.2d 257, 265 (Tex.App.—Houston [14th Dist.] 1992, no writ). The record sufficiently sustains a verdict of joint and several liability. We overrule appellant’s points of error one through three.

In points four and five, appellant contends that there is an insufficient causal connection between the conduct and/or misrepresentations of the defendants and the plaintiff’s damages to sustain a recovery under the DTPA. Appellant claims both that the award is against the great weight and preponderance of the evidence, and that there is no evidence or alternatively insufficient evidence to support the finding. The proper legal and factual standards for review are no evidence and insufficient evidence. Under the DTPA, the proper “causal connection” is not proxi *520 mate cause but producing cause. Producing cause is “akin to the tort concept of factual causation because it lacks the element of foreseeability imposed by the standard of proximate causation.” Teague v. Bandy, 793 S.W.2d 50, 57 (Tex.App.—Austin 1990, writ denied). Eliane Anderson testified that she received and signed the inspection report on May 7, 1988, and bought the house on May 31, 1988. When asked, “did you place any weight on the fact that his report reflected that there was no structural damage,” she responded “definitely.” She testified that she would not have purchased the house if she had known the true condition of the foundation. The record sufficiently shows that the defendants’ actions and misrepresentations were the producing cause of Ms. Anderson’s damages. We overrule appellant’s fourth and fifth points of error.

In point of error six, appellant claims that the award for mental anguish is against the great weight and preponderance of the evidence.

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Bluebook (online)
841 S.W.2d 517, 1992 Tex. App. LEXIS 2841, 1992 WL 322678, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guilbeau-v-anderson-texapp-1992.