Hogan v. Credit Motors, Inc.

827 S.W.2d 392, 1992 Tex. App. LEXIS 1151, 1992 WL 95398
CourtCourt of Appeals of Texas
DecidedFebruary 12, 1992
Docket04-91-00229-CV
StatusPublished
Cited by10 cases

This text of 827 S.W.2d 392 (Hogan v. Credit Motors, 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
Hogan v. Credit Motors, Inc., 827 S.W.2d 392, 1992 Tex. App. LEXIS 1151, 1992 WL 95398 (Tex. Ct. App. 1992).

Opinion

OPINION

CHAPA, Justice.

Appellant, Michael A. Hogan, appeals the actions of the trial judge which he alleges resulted in an improper directed verdict being granted against him in favor of ap-pellees Credit Motors, Inc. (d/b/a A.E. Wholesale and CMI Shop) Ernesto Ancira, Jr., Bullish Resources, Inc., Ancira Motor, Co., and Ancira Enterprises, Inc.

Michael A. Hogan sued Credit Motors, Inc. (“CMI”) to enforce a lease agreement. Hogan sought unpaid rentals, prejudgment interest, attorney’s fees, postjudgment interest, and costs. Plaintiff’s First Amended Petition included as defendants unnamed shareholders and directors; the suit was further amended to specifically add all the defendants who are the appellees herein.

Hogan also amended his petition to include allegations of civil conspiracy, fraudulent transfer of assets, violations of the Uniform Bulk Transfers Act, fraud, and real estate fraud. Additionally, Hogan sought declaratory relief to pierce corporate veils and utilize alter ego theories to hold all defendants jointly and severally liable. CMI filed a countersuit alleging violations of the Texas Deceptive Trade Practices Act.

In response to interrogatories, appellant listed Ernesto Ancira, Jr., a party defendant, and Ken Carr, the designated corporate representative of defendant CMI, as persons with knowledge of facts surrounding the cause of action. However, appellant failed to list their addresses or telephone numbers. Further, appellant also responded in general terms to a general inquiry about his and Ginger Miller’s knowledge of facts surrounding the cause of action.

As a result, shortly before the trial on December 14, 1990, without any prior order to compel, the trial court granted discovery sanctions, strictly prohibiting appellant from presenting any witnesses “on any matter”, live or by deposition, except for the appellant and Ginger Miller. The order further sanctioned appellant by limiting his testimony and that of Ginger Miller’s because appellant answered an interrogatory generally, even though the interrogatory inquired generally as to his and Miss Miller’s knowledge of the facts surrounding the cause of action.

In furtherance of this order, a subpoena issued by the appellant for Ernesto Ancira, Jr. was quashed by the court immediately prior to trial wherein the court made it clear that the order of December 14, 1990 stood and would be enforced, thus effectively preventing appellant from subpoenaing Ernesto Ancira, Jr., Ken Carr, or anyone other than Miss Miller. Further, as required by the same order, the court prohibited the appellant from presenting any deposition testimony of either Ernesto An-cira, Jr. or Ken Carr, although their depositions had previously been taken.

At the hearing, appellant pointed out to the court that if the court quashed the subpoenas, appellant would be unable to preserve his error by Bill of Exceptions that contained the testimony of either Ernesto Ancira, Jr. or Ken Carr. However, the court nevertheless quashed the subpoena, thereby effectively preventing the preservation of appellant’s complaint.

*394 The record reflects that, as required by the order, the only witnesses the trial court permitted to testify before the jury, to a limited extent, were the appellant and Miss Miller, after which the trial court granted an instructed verdict. The record further reflects that although a Bill of Exceptions was timely requested by the appellant during the trial, it was finally permitted by the court several days after the end of the trial. Since the court’s prior orders and instructions prevented the issuance of any subpoenas for either Ernesto Ancira Jr. or Ken Carr, the record of the Bill of Exceptions only contains the testimony of the appellant and Miss Miller as per the court’s order of December 14, 1990.

Therefore, the dispositive issue is whether the trial court committed reversible error in granting its order of December 14, 1990.

Texas Rule of Civil Procedure 181 states that “[ejither party to a suit may examine the opposing party as a witness, and shall have the same process to compel his attendance as in the case of any other witness.” Also, “the designated company representative [of a party] at trial” should be treated by the court “as it would any other party” and should be permitted to testify in trial as any party even if not designated as a witness of relevant facts in answers to interrogatories. E-Z Mart Stores, Inc. v. Terry, 794 S.W.2d 63, 65-66 (Tex.App.—Texarkana 1990, writ denied). The trial court has discretion to permit a completely unidentified witness, who is not a party, to testify if the party offering the witness shows good cause for not listing the witness. Gee v. Liberty Mut. Fire Ins. Co., 765 S.W.2d 394, 395 (Tex.1989).

Further, prior to October 16, 1991, the general abuse of discretion standard was the appropriate standard of review to be applied in appeals involving discovery abuse sanctions. However, in TransAmerican Natural Gas Corp. v. Powell, 811 S.W.2d 913 (Tex.1991), the Texas Supreme Court established limitations on the trial court’s exercise of sound discretion in imposing “death penalty” sanctions for discovery abuse. In TransAmerican, the supreme court granted mandamus relief to a party whose pleadings were struck, whose cause of action was dismissed, and against whom a default judgment was granted based on a counterclaim, reserving only the issue of damages. Id. The sanctions had been imposed by the trial court upon the relator as a result of discovery abuse. The supreme court held that mandamus lies:

when a trial court imposes discovery sanctions which have the effect of precluding a decision on the merits of a party’s claims — such as by striking pleadings, dismissing an action, or rendering default judgment — a party’s remedy by eventual appeal is inadequate, unless the sanctions are imposed simultaneously with the rendition of a final, appealable judgment.

TransAmerican, 811 S.W.2d at 920.

The court further established standards which “set the bounds of permissible sanctions under Rule 215 within which the trial court is to exercise sound discretion ...” in granting a just sanction order. Id. at 917 (footnote omitted). The court held that in order for a sanction to be just, 1) it “must be directed against the abuse and toward remedying the prejudice caused the innocent party”, which means that “the sanction should be visited upon the offender” requiring “[t]he trial court ... [to] at least attempt to determine whether the offensive conduct is attributable to counsel only, or to the party only, or to both”; 2) and, it “must not be excessive” which means that “[t]he punishment should fit the crime” requiring that “courts must consider the availability of less stringent sanctions and whether such lesser sanctions would fully promote compliance”. Id. Pertaining to “death penalty” sanctions, the court stated:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Mayfield v. Peek
546 S.W.3d 253 (Court of Appeals of Texas, 2017)
Boone v. LeGalley
29 S.W.3d 614 (Court of Appeals of Texas, 2000)
Yarborough v. Tarrant Appraisal District
846 S.W.2d 552 (Court of Appeals of Texas, 1993)
Credit Motors, Inc. v. Hogan
841 S.W.2d 360 (Texas Supreme Court, 1992)
Smith v. Southwest Feed Yards
835 S.W.2d 89 (Texas Supreme Court, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
827 S.W.2d 392, 1992 Tex. App. LEXIS 1151, 1992 WL 95398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hogan-v-credit-motors-inc-texapp-1992.