Hycarbex, Inc. v. Anglo-Suisse, Inc.

927 S.W.2d 103, 1996 Tex. App. LEXIS 2245, 1996 WL 307453
CourtCourt of Appeals of Texas
DecidedJune 6, 1996
Docket14-94-00728-CV
StatusPublished
Cited by31 cases

This text of 927 S.W.2d 103 (Hycarbex, Inc. v. Anglo-Suisse, 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
Hycarbex, Inc. v. Anglo-Suisse, Inc., 927 S.W.2d 103, 1996 Tex. App. LEXIS 2245, 1996 WL 307453 (Tex. Ct. App. 1996).

Opinion

OPINION

LEE, Justice.

Appellants, Hycarbex, Inc. (“Hyearbex”), Moin Hussain (“Hussain”), and Kumar Bhat-tacharjee (“Kumar”) sued appellees, Anglo-Suisse, Inc. and Anglo-Suisse Pakistan (collectively referred to as “Anglo-Suisse”), for breach of an agreement to pay commissions. 1 At the close of Hycarbex’s evidence, Anglo-Suisse moved for directed verdict on the following grounds: (1) Hycarbex failed to prove that Anglo-Suisse breached the agreement by failing to pay all the commissions owed; and (2) Anglo-Suisse proved accord and satisfaction as a matter of law. During Anglo-Suisse’s case-in-chief, the court granted Anglo-Suisse’s motion but did not state the basis for its ruling in the final judgment. Raising five points of error, Hyearbex appeals from that judgment. We find the directed verdict was proper and affirm the trial court’s judgment.

In August 1984, Gilíes Labbe formed Anglo-Suisse as an oil exploration and development company. In April 1985, Anglo-Suisse hired Hycarbex to apply to the Pakistan government on behalf of Anglo-Suisse for an oil concession located in southeast Pakistan. The one-thousand acre oil concession is known as the “Thatta concession.” Hycar-bex’s president and sole shareholder, Moin Hussain, enlisted his colleague, Kumar, to help with the application. Labbe knew Hus-sain and Kumar when they were all previously employed with the same oil company. Hy-carbex subsequently filed the application on Anglo-Suisse’s behalf and participated in negotiations with the Pakistan government. For Hycarbex’s efforts, Anglo-Suisse agreed, by letter dated April 10, 1985, to pay Hycar-bex a commission based on “ten percent (10%) of the net cash received by Anglo-Suisse from third parties at the time Anglo Suisse sells a working interest in the concession.”

In June 1985, Labbe formed another related company to operate the concession. While the application was pending, Anglo-Suisse sought partners in the oil industry to provide the substantial capital needed to operate the Thatta concession. Although it did not participate in Anglo-Suisse’s negotiations with prospective partners, Hycarbex helped obtain the data used to prepare the geological and engineering package for the Thatta concession and attended some of the early presentations to prospective partners. In the fall of 1985, Anglo-Suisse unsuccessfully attempted to sell its entire working interest to Amoco for $2 million plus costs. At the time, Labbe told Hussain about the deal,. which, according to Labbe, would have paid Hycarbex a $200,000 commission. By September 1986, Anglo-Suisse finally acquired a 95% working interest in the concession and the government-owned oil company retained a 5% working interest.

In early 1987, Anglo-Suisse sold 75% of its working interest to Phillips Petroleum Co. (“Phillips”) and International Finance Corporation (“IFC”), a division of the World Bank. *107 In return, Phillips/IFC paid Anglo Suisse $1,447,890 and agreed to pay certain future costs of seismic work and drilling operations. However, at the time of the sale, Anglo-Suisse’s costs were approximately $1.7 million as reflected in a “Statement of Concession Costs” prepared by the accounting firm of Ernst & Whinney and Anglo-Suisse’s audited financial statements. Because Anglo-Suisse’s costs exceeded its gross cash from the sale, Labbe told Hussain “the company was in deficit” and Anglo-Suisse “owed nothing under his commission.” However, Labbe offered to pay Hussain $50,000 as a “goodwill gesture.” Hussain expected more because of the failed Amoco deal and when he protested, Labbe offered an additional $10,000. The $60,000 was paid to Hycarbex in two $30,000 installments. The first installment was enclosed in a January 22, 1987, letter from Labbe to Hussain. The letter states:

Re: Our Agreement of April 10,1985
Dear Moin:
Enclosed is our check no. 1111 in the amount of $30,000 which represents 50% of the settlement for the commission owed to Hycarbex regarding the Thatta Concession. We anticipate settling the remaining $30,000 payment prior to the end of March 1987.
Please acknowledge by signing a duplicate original of this letter as your receipt of the 50% and your agreement that these payments shall constitute complete fulfillment of our obligation to Hycarbex.

The letter is signed by Labbe, as president of Anglo-Suisse. At the bottom is the legend: “Accepted and agreed to this 23rd day of January, 1987,” and a signature line containing Hussain’s signature. A notation on the check states: “one half of 10% commission as per Agrmt. of 4/10/85.” In March 1987, Hussain received the second $30,000 check in the mail. The check contains the notation: “Balance due as per letter agreement of 4/10/85.”

A year after Hycarbex received the second check, Hycarbex’s attorney sent Anglo-Suisse a letter demanding “a full accounting” of the amounts owed under the April 10, 1985, agreement and threatening legal action. Nine months after that, Anglo-Suisse sold its remaining 20% working interest to Union Pacific for $4.1 million. The parties agree that Anglo-Suisse did not pay Hycarbex a commission on this sale but disagree on whether a commission was owed.

In April 1989, Hycarbex filed suit against Anglo-Suisse alleging contract and tort causes of action based on Anglo-Suisse’s alleged failure to pay commissions. Anglo-Suisse counterclaimed for damages, including “costs, fees, and expenses ... due to plaintiffs’ repudiation of the January 22, 1987 agreement....” The trial court granted summary judgment on Hycarbex’s breach of fiduciary duty claim and Hycarbex abandoned its remaining tort claims. Thus, the ease was tried solely on Hycarbex’s contract claim. At trial, the parties disputed whether the April 10, 1985, agreement required Anglo-Suisse to pay Hycarbex a commission on each sale of a working interest or on a single sale of a working interest. The parties also disputed whether the January 22, 1987, agreement and Hycarbex’s receipt of the two checks constituted an accord and satisfaction of Anglo-Suisse’s obligation under the April 10, 1985, agreement. The trial court’s final judgment ordered that Hycarbex “take nothing” and dismissed Anglo-Suisse’s counterclaim without prejudice.

By its points of error, Hycarbex contends the directed verdict was improper. Generally, in reviewing the trial court’s granting of a directed verdict, an appellate court must consider the evidence in the light most favorable to the party against whom the verdict was directed, disregarding all contrary evidence and inferences. Qantel Business Sys. v. Custom Controls Co., 761 S.W.2d 302, 303 (Tex.1988); White v. Southwestern Bell. Tel. Co., 651 S.W.2d 260, 262 (Tex.1983); Jones v. Tarrant Util. Co., 638 S.W.2d 862, 865 (Tex.1983); Collora v. Navarro, 574 S.W.2d 65, 68 (Tex.1978). If there is any conflicting evidence of probative value which raises a material fact issue, then the judgment must be reversed and the case remanded for the jury’s determination of that issue. Id.

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Bluebook (online)
927 S.W.2d 103, 1996 Tex. App. LEXIS 2245, 1996 WL 307453, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hycarbex-inc-v-anglo-suisse-inc-texapp-1996.