Hunter v. PRICEKUBECKA, PLLC

339 S.W.3d 795, 2011 Tex. App. LEXIS 3035, 2011 WL 1522410
CourtCourt of Appeals of Texas
DecidedApril 22, 2011
Docket05-09-01397-CV
StatusPublished
Cited by50 cases

This text of 339 S.W.3d 795 (Hunter v. PRICEKUBECKA, PLLC) 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
Hunter v. PRICEKUBECKA, PLLC, 339 S.W.3d 795, 2011 Tex. App. LEXIS 3035, 2011 WL 1522410 (Tex. Ct. App. 2011).

Opinion

OPINION

Opinion By

Justice LANG.

In this case, we address issues arising out of the termination of an agreement (the “letter agreement”) that provided for, inter alia, terms of David Hunter’s employment with and his potential purchase of equity in PriceKubecka, PLLC (“PK”), an accounting firm. Appellant Hunter appeals from a take nothing judgment on his breach of contract and tort claims. Appel-lees PK and Brian Price (collectively, “ap-pellees”) assert a cross-issue respecting the take nothing judgment on PK’s counterclaims and the trial court’s denial of PK’s motion for judgment notwithstanding the verdict.

In nine issues on appeal, Hunter contends the trial court erred by (1) instructing a verdict in favor of PK on Hunter’s breach of contract claim, (2) not instructing a verdict in Hunter’s favor on that claim, (3) refusing to submit Hunter’s requested jury issues on his claims for breach of contract, fraud, and negligent misrepresentation, (4) denying Hunter’s motion to modify the judgment, (5) granting appellees’ motion for no-evidence summary judgment on Hunter’s fraud and negligent misrepresentation claims, and (6) submitting PK’s counterclaims to the jury. In a single issue on cross-appeal, appellees assert the trial court erred by denying PK’s motion for judgment notwithstanding the verdict because the jury’s findings pertaining to PK’s counterclaims were not supported by the evidence.

*799 Based on the analysis below, we decide against Hunter on his first, second, third, fifth, sixth, seventh, and ninth issues. We do not reach Hunter’s fourth and eighth issues. Additionally, we decide against ap-pellees on their cross-issue. The trial court’s judgment is affirmed.

I. FACTUAL AND PROCEDURAL BACKGROUND

On June 13, 2004, Hunter and PK entered into a letter agreement that provided for Hunter’s employment with PK as “Director of Practice Development” and for terms of a possible purchase by Hunter of equity in PK. In a section of the letter agreement titled “Compensation,” there were two subsections. Subsection one of the “Compensation” section, titled “Equity,” provided

a. An amount equal to 20% of the ownership interest in PriceKubecka shall be transferred to David Hunter on December 31, 2005. Total payment for a 20% equity interest in PK is $277,564 and will be paid in two ways:
b. Clients formerly serviced by [Hunter’s previous employer] that are transferred to PK will be applied to the payment of equity. Valuation of these clients will be based on the total fees charged within the first twelve months after the new services are commenced at PK. Clients that do not continue with PK for at least 12 months will not be counted.
c. Any amount leftover after applying the payment from transferred clients will be paid for by applying the 10% equity commission outlined below until the full $277,564 has been reached.

Under subsection two of the “Compensation” section, titled “Commission,” the letter agreement provided that, in addition to a base salary, Hunter would be paid a commission for new business generated by his efforts in the amount of 17.5% of each new client’s total billings. Additionally, part (c) of that subsection stated, “Clients that leave prior to the first twelve months will have the commission calculated as 17.5% of total billings and the excess paid will be charged back against future compensation.”

In another section, titled “Termination of relationship,” the letter agreement stated in part

a. If the relationship between Hunter & PK terminates prior to the equity funding date of 12/31/05, all clients brought over from [Hunter’s previous employer] will remain the property of Hunter. PK will assist in the transition of clients to Hunter or pay 1 times the most immediate twelve months of billings, whichever Hunter chooses.
b. All clients developed from Hunter’s marketing efforts while employed by PK will remain the property of PK. Hunter agrees not to solicite [sic] those clients or agrees to purchase them at 1 times the most immediate twelve months of billings.

In his suit filed on December 7, 2007, Hunter asserted in relevant part that Price, on behalf of PK, terminated the letter agreement in writing on December 9, 2005. According to Hunter, PK owed him the “equity payment” of $277,564 described in the letter agreement and “an amount equal to the most immediate twelve (12) months’ of billing” for clients transferred by Hunter to PK. Hunter asserted, inter alia, (1) claims against both defendants for common law fraud and negligent misrepresentation, (2) a breach of contract claim against PK, and (3) a claim against Price for tortious interference with a contract.

PK and Price filed general denial answers and PK filed counterclaims for *800 breach of contract and money had and received. PK claimed Hunter breached the letter agreement in several respects not relevant to our analysis. With respect to the claim for money had and received, PK contended it had overpaid commissions to Hunter in the amount of “at least $50,000.” Therefore, PK alleged, Hunter held money that, “in equity and conscience,” belonged to PK and should be returned. In response, Hunter contended such counterclaims were barred in whole or part by PK’s unclean hands and affirmative defenses including laches, equitable estoppel, waiver, and voluntary payment.

In response to appellees’ motion for no-evidence summary judgment as to all of Hunter’s claims, Hunter argued the evidence relied upon by him consisted of (1) the pleadings and (2) an affidavit made by him and the exhibits attached thereto. The trial court granted summary judgment in part, determining that Hunter take nothing on his claims for fraud and negligent misrepresentation. Summary judgment was denied as to Hunter’s claims for breach of contract and tortious interference with a contract.

The trial court granted appellees’ motion for directed verdict on Hunter’s claims for breach of contract and tortious interference with a contract. Then, four questions were submitted to the jury, all pertaining to PK’s claims for breach of contract and money had and received. In question number one of the jury charge, the jury was asked, “Did David Hunter fail to comply with the [letter agreement] dated June 13, 2004 between David Hunter and Price-Kubecka?” The jury’s answer to question number one was “no.” Question number three of the jury charge asked, “Does David Hunter hold money, that in equity and good conscience, belongs to PriceKu-becka?” The jury answered “no” to question number three. 1

The trial court denied PK’s motion for judgment notwithstanding the verdict, whereby PK requested the answers to the questions submitted to the jury be disregarded and judgment be rendered that it recover the “overpaid commissions.” The final judgment ordered that Hunter and PK recover nothing on their claims.

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Cite This Page — Counsel Stack

Bluebook (online)
339 S.W.3d 795, 2011 Tex. App. LEXIS 3035, 2011 WL 1522410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunter-v-pricekubecka-pllc-texapp-2011.