Hedley Feedlot, Inc. v. Weatherly Trust

855 S.W.2d 826, 1993 WL 158226
CourtCourt of Appeals of Texas
DecidedJuly 12, 1993
Docket07-92-0246-CV
StatusPublished
Cited by93 cases

This text of 855 S.W.2d 826 (Hedley Feedlot, Inc. v. Weatherly Trust) 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
Hedley Feedlot, Inc. v. Weatherly Trust, 855 S.W.2d 826, 1993 WL 158226 (Tex. Ct. App. 1993).

Opinion

ON MOTION FOR REHEARING

BOYD, Justice.

The motion for rehearing of appellee Weatherly Trust is granted. Accordingly, our opinion dated March 24, 1993, is withdrawn, our judgment set aside, and the following opinion substituted.

Appellant Hedley Feedlot, Inc., (Feedlot) brings this appeal from a judgment in favor of appellee Weatherly Trust (Trust) for losses sustained in a cattle feeding venture. In its suit, the Trust attributed its losses to misrepresentations by the Feedlot about the cattle purchase. For reasons hereinafter expressed, we affirm the judgment of the trial court.

The suit originated in February of 1988 when the Trust, 1 acting through Bill Weatherly, (Weatherly) purchased cattle, feed, medicine, and feeding services from *831 the Feedlot. The Trust lost $17,439.16 on itsjnvestment, as well as its expected profits. The Trust alleged that the Feedlot violated § 17.46(b)(5) of the Deceptive Trade Practices Act (DTPA) by misrepresenting the characteristics of the goods and services purchased by the Trust, and violated § 17.46(b)(7) of the DTPA by misrepresenting the quality of the goods and services sold to the Trust.

The Trust contended that it relied upon the false, misleading, and deceptive representations of the manager of the Feedlot, 2 Sammy Slover, in making its decision to purchase the cattle and services provided by the Feedlot. Slover made various representations to Weatherly regarding the type of cattle, weight, projected cost of feeding, the length of time on feed, and the projected gain of the cattle. The Trust further alleged that these representations were a producing and proximate cause of the losses it suffered.

In three of its nineteen points, 3 the Feedlot attacks the finding that the Trust is a “consumer” as that term is defined by § 17.45(4) of the DTPA. We will address these points topically rather than seriatim.

In order to support a judgment based on a violation of the DTPA, the complainant must be a consumer of goods. Lochabay v. Southwestern Bell Media, 828 S.W.2d 167, 170 (Tex.App.-Austin 1992, n.w.h.). Whether a complainant is a consumer under the DTPA is a question of law to be determined by the court. Johnson v. Walker, 824 S.W.2d 184, 187 (Tex.App.—Fort Worth 1991, n.w.h.).

The DTPA defines consumer as:

an individual, partnership, corporation, this state, or a subdivision or agency of this state who seeks or acquires by purchase or lease, any goods or services, except that the term does not include a business consumer that has assets of $25 million or more, or that is owned or controlled by a corporation or entity with assets of $25 million or more.

Tex.Bus. & Com.Code Ann. § 17.45(4) (Vernon 1987).

A complainant must establish at least two requirements to qualify as a consumer under the DTPA. First, the complainant must have sought or acquired goods or services by purchase or lease; and second, the goods or services purchased or leased must form the basis of the complaint. Melody Home Mfg. Co. v. Barnes, 741 S.W.2d 349, 351-52 (Tex.1987); Cameron v. Terrell & Garrett, Inc., 618 S.W.2d 535, 539 (Tex.1981); Herndon v. First Nat. Bank of Tulia, 802 S.W.2d 396, 399 (Tex.App.-Amarillo 1991, writ denied).

“Goods” are defined as “tangible chattels 4 or real property purchased or leased for use.” Tex.Bus. & Com.Code Ann. § 17.45(1) (Vernon 1987). The section defines “services” as “work, labor, or service purchased or leased for use, including services furnished in connection with the sale or repair of goods.” Id. at § 17.45(2). Standing as a consumer must be established in terms of the complainant’s relationship to the transaction, not by the contractual relationship with the defendant. Birchfield v. Texarkana Memorial Hosp., 747 S.W.2d 361, 368 (Tex.1987); Flenniken v. Longview Bank and Trust Co., 661 S.W.2d 705, 707 (Tex.1983).

*832 The Trust satisfied these two requirements. The Trust purchased the cattle and feeding services from the Feedlot. Second, the Trust primarily complained of the low profitability of the cattle at the time of sale, and attributed its losses to the actions of the Feedlot.

Trusts have been held to be consumers within the meaning of the DTPA. For example, in Citizens State Bank of Dickinson v. Bowles, 663 S.W.2d 845, 847 (Tex.App.—Houston [14th Dist.] 1983, writ dism’d), the appellee-trustee, on behalf of the trust, won a suit against the independent executor of an estate for breach of contract, fraud, and violations of the DTPA. After setting out the definition of a consumer, the court found that the appel-lee-trustee was a consumer. Id. at 849. 5

The Feedlot also argues that the cattle were not acquired “for use” as a consumer, but rather were an investment, i.e., for resale, in the commercial cattle feeding market. We do not agree. Even though the goods are purchased for resale, this does not preclude a complainant from maintaining an action under the DTPA. Otto, Inc. v. Cotton Salvage & Sales, Inc., 609 S.W.2d 590, 595 (Tex.Civ.App.—Corpus Christi 1980, writ dism’d).

In a factually analogous case, Gable v. Wood, 622 S.W.2d 884, 886 (Tex.App.—Fort Worth 1981, writ dism’d), the court addressed the issue of cattle feeders in the context of DTPA violations. The defendants argued that the plaintiffs, who placed cattle at defendant’s feedlot, were not consumers because the cattle were purchased by plaintiff for resale. Id. at 886. In holding that the plaintiffs were consumers within the meaning of the DTPA, the court stated that the fact that the cattle aré kept by plaintiffs for resale is irrelevant to the determination of consumer status. Id. The court pointed out that the feedlot furnished feedstuffs, medicines, and other services used or consumed by the cattle, which the plaintiff did not resell. Id.; see also Hennessey v. Skinner, 698 S.W.2d 382, 385 (Tex.App.—Houston [14th Dist.] 1985, no writ) (court held that “the purchase of cattle for commercial cattle raising purposes generally is a purchase of goods ‘for use’ covered by the DTPA”).

We conclude that the Trust is a consumer for purposes of the DTPA. Accordingly, we overrule points of error one, six and seven.

In appellant’s second point of error it argues that the trial court erred in denying its special exception to the petition which complained of the failure to join necessary and indispensable parties, to-wit, the beneficiaries of the Trust.

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855 S.W.2d 826, 1993 WL 158226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hedley-feedlot-inc-v-weatherly-trust-texapp-1993.