Houston Cable TV, Inc. v. Inwood West Civic Ass'n

839 S.W.2d 497, 1992 Tex. App. LEXIS 2625, 1992 WL 259040
CourtCourt of Appeals of Texas
DecidedOctober 8, 1992
DocketA14-90-00949-CV
StatusPublished
Cited by18 cases

This text of 839 S.W.2d 497 (Houston Cable TV, Inc. v. Inwood West Civic Ass'n) 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
Houston Cable TV, Inc. v. Inwood West Civic Ass'n, 839 S.W.2d 497, 1992 Tex. App. LEXIS 2625, 1992 WL 259040 (Tex. Ct. App. 1992).

Opinion

OPINION

SEARS, Justice.

Seventeen homeowners’ associations sued appellants for breach of contract, fraud, tortious interference, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, estoppel and ratification. At the close of the evidence, the trial court found the appellants were alter egos of each other as a matter of law. Following the jury’s verdict on the remaining issues, the trial court entered judgment for appellees. Appellants have raised nine points complaining of error in the trial court because a trial amendment was granted, alter ego was found as a matter of law, there were not findings by the jury as to each appellant, the evidence was legally and factually insufficient, punitive damages were awarded, and prejudgment and post-judgment interest were incorrectly awarded. We affirm.

In 1979, to avoid the expense and cumbersome process of negotiating individual rights-of-way with each of the homeowners in suburban Houston subdivisions, appellants (or entities they purchased) entered into contracts with homeowners’ associations. The associations executed “right-of-way” agreements with appellants and did the work of convincing recalcitrant homeowners to permit the cable lines to be laid on their easements. In exchange, appellants agreed to pay the homeowners’ associations two or three percent of gross revenues. These agreements were very valuable to appellants. Once their cable lines were run through the subdivisions, no other cable companies were willing to place lines in those areas and appellants became the exclusive cable television providers to the area.

In 1986, when appellants had achieved nearly complete penetration of the market, they decided they no longer wanted to pay the agreed percentage to the associations because the expense “was in excess of $300,000 a year.” They sent letters to approximately 150 homeowners’ associations, including appellees, falsely telling them that appellants were prohibited by new federal legislation from continuing payments under the contracts in order “to avoid a confrontation with the homeowner associations.” Many of these associations accepted appellants’ explanation and did nothing. However, appellees complained to their congressmen and learned that the new legislation did not prevent appellants’ performance of the contracts. Appellees subsequently brought this suit after discovering they had tort and breach of contract claims arising from the actions of appellants.

In point of error two, appellants complain the trial court erred in granting appel-lees’ trial amendment. At the close of the evidence, and after both parties had rested, appellees moved for a trial amendment to supplement their Fifth Amended Original Petition. The trial amendment alleged that each of the defendants (appellees) were “managed and operated as the alter ego of the other with respect to the ‘Houston operation’ of ‘Warner Cable’[; e]ach is the alter ego for the other with respect to the contracts which are the subject of this suit.”

Rules 63, 66, and 67 of the Rules of Civil Procedure have been interpreted to require a trial court to liberally permit trial amendments. Greenhalgh v. Service Lloyds Ins. Co., 787 S.W.2d 938, 939-41 (Tex.1990). See Tex.R.Civ.P. 63, 66, 67. The burden of showing prejudice or sur *500 prise rests on the party resisting the amendment. Greenhalgh, 787 S.W.2d at 939. Although appellants alleged surprise and prejudice, they presented no evidence to establish either surprise or prejudice. Such allegations, without more, are not sufficient to defeat a request for a trial amendment. Wingate v. Hajdik, 795 S.W.2d 717, 720 (Tex.1990).

The granting of a trial amendment is purely discretionary with the trial court and will not be disturbed on appeal absent a clear showing of an abuse of that discretion. Ohio Medical Prods., Inc. v. Suber, 758 S.W.2d 870, 872 (Tex.App.—Houston [14th Dist.] 1988, writ denied). Since we find no abuse of discretion, point of error two is overruled.

In point of error one, appellants complain the trial court erred in finding as a matter of law that they were alter egos of each other and that a judgment against one would be a judgment against all. Appellants contend that alter ego is an independent ground of recovery and was waived by appellees when no jury question was tendered regarding alter ego. Further, appellants contend that the alter ego finding is improper since appellees have not conclusively established appellants’ alter ego status.

Appellants’ contention that the issue of alter ego was waived by appellees is without merit. The trial court found appellants’ alter ego status as a matter of law pursuant to appellees’ request. Therefore, a jury question on this issue was not required. Waiver cannot occur based on the lack of an unnecessary jury question.

As to appellants’ contention that alter ego is not conclusively established, we will review the record, viewing the evidence in the light most favorable to appellants and disregarding all evidence and inferences to the contrary. White v. Southwestern Bell Tel. Co., 651 S.W.2d 260, 262 (Tex.1983); Collora v. Navarro, 574 S.W.2d 65, 68 (Tex.1978). If we find any evidence of probative value that raises a material fact issue, then the judgment must be reversed and the case remanded for the jury’s determination of the issue. Qantel Business Sys., Inc. v. Custom Controls Co., 761 S.W.2d 302, 303-04 (Tex.1988).

Disregarding the corporate fiction is an equitable doctrine, and Texas takes a flexible fact-specific approach. Castleberry v. Branscum, 721 S.W.2d 270, 273 (Tex.1986) (citing Gentry v. Credit Plan Corp., 528 S.W.2d 571, 575 (Tex.1975)). There are several different bases for disregarding the corporate fiction including where a corporation is operated “as a mere tool or business conduit of another corporation.” Id. at 272. The Texas Supreme Court has held that because “the different bases for disregarding the corporate fiction involve questions of fact, ... [e]xcept in very special circumstances,” the issue should be determined by the jury. Id. at 277 (citing Tex.Const. art. I, § 15; and State v. Credit Bureau of Laredo, Inc., 530 S.W.2d 288, 293 (Tex.1975)). However, where all the material facts are undisputed, the application of the alter ego doctrine is a question of law. Tigrett v. Pointer, 580 S.W.2d 375, 379 (Tex.Civ.App.—Dallas 1978, writ ref’d n.r.e.).

Under the facts of this case, we find that alter ego was conclusively established primarily by appellants’ own evidence.

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839 S.W.2d 497, 1992 Tex. App. LEXIS 2625, 1992 WL 259040, Counsel Stack Legal Research, https://law.counselstack.com/opinion/houston-cable-tv-inc-v-inwood-west-civic-assn-texapp-1992.