Horton v. DAIMLERCHRYSLER FIN. SERV. AMERI., LLC

262 S.W.3d 1
CourtCourt of Appeals of Texas
DecidedSeptember 23, 2008
Docket06-07-00141-CV
StatusPublished
Cited by4 cases

This text of 262 S.W.3d 1 (Horton v. DAIMLERCHRYSLER FIN. SERV. AMERI., LLC) 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
Horton v. DAIMLERCHRYSLER FIN. SERV. AMERI., LLC, 262 S.W.3d 1 (Tex. Ct. App. 2008).

Opinion

262 S.W.3d 1 (2008)

Larry D. HORTON, Appellant
v.
DAIMLERCHRYSLER FINANCIAL SERVICES AMERICAS, L.L.C., f/k/A Mercedes-Benz Financial and Commercial Recovery Systems, Inc., Appellees.

No. 06-07-00141-CV.

Court of Appeals of Texas, Texarkana.

Submitted: April 4, 2008.
Decided: September 5, 2008.
Rehearing Overruled September 23, 2008.

*2 Michael G. Carroll, Michael G. Carroll, PC, Tyler, TX, for appellant.

Robert F. Kemp, Attorney At Law, Dallas, Jeffrey J. Jowers and Robert J. Rosenbach, Clemens & Spencer, PC, San Antonio, TX, for appellee.

*3 Before MORRISS, C.J., CARTER and MOSELEY, JJ.

OPINION

Opinion by Chief Justice MORRISS.

All seem to concede that the debt Larry D. Horton owed to DaimlerChrysler Financial Services Americas, L.L.C., f/k/a Mercedes-Benz Financial and Commercial Recovery Systems, Inc. (Daimler) had been settled in 2003 through Daimler's agent, Commercial Recovery Systems, Inc. (Commercial). Horton believed that settlement included an obligation of Daimler and Commercial to remove from his credit report any adverse information about the Daimler debt. When Horton applied in 2005 to purchase a house and a commercial truck, he discovered his credit report still contained adverse information concerning the account. Horton sued Daimler and Commercial for breach of contract. Horton appeals from a summary judgment that held he was not entitled to removal of the adverse credit information. For the reasons set out below, we reverse the summary judgment and remand this matter to the trial court for further proceedings.

The settlement in question resulted from negotiations during 2003 and rests on the meaning of two letters: one from Commercial and one to Commercial. In a letter dated June 5, 2003,[1] Commercial offered Horton a settlement:

As an authorized representative of DaimlerChrysler/Mercedes, Commercial Recovery Systems, Inc. will accept $1,000 as full and final settlement of the $25,038.85 owed on the above referenced account. No further funds will be due. This offer will be extended through June 30, 2003, after which time the full balance will be due.
In addition, all derogatory credit information regarding this account will reflect the account to be settled. Please allow ninety (90) days for credit information to be updated.
This settlement is being made with the mutual understanding that the debt is not currently secured.
Terms: $500.00 due 6/15/03 & $500.00 due 6/30/03.

On June 18, 2003, Commercial received a check from Horton in the amount of $500.00. This check was dated June 14, 2003. A second check, dated June 27, 2003, was received by Commercial July 2, 2003. The second check was accompanied by a letter dated July 1, 2003, that indicated it had been mailed "[v]ia Express Mail" and provided some terms of its own:

Enclosed please find Mr. Horton's final payment in the amount of $500.00 payment with regard to the above-referenced account. This check is tendered with the understanding that it is to be accepted in full and complete satisfaction of all sums due and owing, and in complete release with regard to these matters. This check is tendered in trust and is not to be negotiated otherwise.

Commercial accepted both checks.

In response to Horton's suit, Daimler and Commercial sought summary judgment by denying that a contract had been formed pursuant to the June 5 offer. Daimler and Commercial contended that Horton failed to accept the June 5 offer by tendering $1,000.00 by the date specified. Instead, Daimler and Commercial argued the July 1 letter constituted a counter-offer. *4 Daimler and Commercial claimed that, by accepting the check, they formed a new contract that did not contain the contractual duty to correct derogatory credit information on Horton's credit report.

On appeal, Horton argues it was error to grant the summary judgment because there are genuine issues of material fact concerning whether the acceptance of the checks was a waiver or modification of the time limitations contained in the June 5 offer. Daimler and Commercial argue Horton failed to plead the doctrines of waiver and modification, Horton did not accept the June 5 offer as a matter of law, and the doctrines of waiver and modification do not apply as a matter of law. We conclude that (1) genuine issues of material fact preclude the summary judgment, and (2) no pleading defect was raised in the trial court.

Daimler and Commercial's motion for summary judgment was a traditional motion. To prevail on a traditional motion for summary judgment, a movant must establish that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law. TEX.R. CIV. P. 166a(c); City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671 (Tex.1979); Baubles & Beads v. Louis Vuitton, S.A., 766 S.W.2d 377 (Tex.App.-Texarkana 1989, no writ). When reviewing a summary judgment, we take as true all evidence favorable to the nonmovant and indulge every reasonable inference and resolve any doubts in the nonmovant's favor. Limestone Prods. Distrib., Inc. v. McNamara, 71 S.W.3d 308, 311 (Tex. 2002); Rhone-Poulenc, Inc. v. Steel, 997 S.W.2d 217, 223 (Tex.1999). Summary judgment for a defendant is proper when the defendant negates at least one element of each of the plaintiff's theories of recovery or pleads and conclusively establishes each element of an affirmative defense. Sci. Spectrum, Inc. v. Martinez, 941 S.W.2d 910, 911 (Tex.1997); Wornick Co. v. Casas, 856 S.W.2d 732, 733 (Tex.1993).

(1) Genuine Issues of Material Fact Preclude the Summary Judgment

The dispute in this case concerns the parties' differing interpretations of the negotiations. When interpreting a contract, our primary objective is to ascertain and give effect to the intent of the parties as expressed in the contract. Seagull Energy E & P, Inc. v. Eland Energy, Inc., 207 S.W.3d 342, 345 (Tex.2006). "Where terms are not defined in agreements, we will use the plain, ordinary and generally accepted meaning attributed to the term or word." Pratt-Shaw v. Pilgrim's Pride Corp., 122 S.W.3d 825, 833 (Tex.App.-Dallas 2003, pet. denied). If a written instrument's text can be given a definite legal meaning, it is not ambiguous[2] and must be construed as a matter of law. Coker v. Coker, 650 S.W.2d 391, 393 (Tex.1983).

Daimler and Commercial argue that, as a matter of law, the June 5 offer was never accepted. According to Daimler and Commercial, the offer could be accepted only by timely payment of the full $1,000.00. Since that amount was not *5

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262 S.W.3d 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horton-v-daimlerchrysler-fin-serv-ameri-llc-texapp-2008.