James E. Newton and James E. Newton, Inc. v. Billy G. Newman and Automatic Cooling, Inc.

CourtCourt of Appeals of Texas
DecidedFebruary 19, 1992
Docket03-90-00122-CV
StatusPublished

This text of James E. Newton and James E. Newton, Inc. v. Billy G. Newman and Automatic Cooling, Inc. (James E. Newton and James E. Newton, Inc. v. Billy G. Newman and Automatic Cooling, 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
James E. Newton and James E. Newton, Inc. v. Billy G. Newman and Automatic Cooling, Inc., (Tex. Ct. App. 1992).

Opinion

Newton v. Newman
IN THE COURT OF APPEALS, THIRD DISTRICT OF TEXAS,


AT AUSTIN




ON MOTION FOR REHEARING


NO. 3-90-122-CV


JAMES E. NEWTON AND JAMES E. NEWTON, INC.,


APPELLANTS

vs.


BILLY G. NEWMAN AND AUTOMATIC COOLING, INC.,


APPELLEES





FROM THE DISTRICT COURT OF TRAVIS COUNTY, 167TH JUDICIAL DISTRICT


NO. 468,374, HONORABLE TRUMAN ROBERTS, JUDGE PRESIDING




The opinion issued by this Court on January 15, 1992, is withdrawn and the following is filed in lieu thereof.

James E. Newton and James E. Newton, Inc. (collectively, Newton), appellants, sued Billy Newman and Automatic Cooling, Inc. (collectively, Newman), appellees, for breach of contract, usury, and violations of the Texas Deceptive Trade Practices Act, Tex. Bus. & Com. Code Ann. §§ 17.41-.63 (1987 & Supp. 1991) (DTPA). After a bench trial, the trial court rendered a take-nothing judgment. By ten points of error, Newton complains that the trial court erred: (1) in finding against Newton on the contract, DTPA, and usury claims; (2) in awarding attorney's fees to Newman rather than to Newton; (3) in making its findings of fact and conclusions of law; and (4) in permitting two witnesses to testify. We will affirm in part and reverse and render in part.



BACKGROUND

In February 1988, Billy Newman and Jim Newton signed a written agreement permitting Newton to open a store in Austin to sell automotive air-conditioning parts under the name "Auto Cool." Auto Cool was the assumed name used by Newman's corporation, Automatic Cooling, Inc., for his San Antonio business, which also sold automotive air-conditioning parts. The agreement bound Newton and his newly formed corporation, James E. Newton, Inc., to pay Newman a ten thousand dollar cash down payment and six hundred dollars monthly as long as the Austin store remained in business. The written agreement contained no other express obligations.

After only a few months, Newton closed his store. Alleging that he had suffered losses as a result of Newman's failure to honor the contract, Newton sent a DTPA claim letter stating his complaint and asking for compensation. Newman declined to settle, and Newton brought this suit. After a bench trial, the trial court rendered judgment that Newton take nothing on any of his claims. In addition, the trial court awarded attorney's fees to Newman. Newton perfected this appeal.



THE AGREEMENT

By entering into the written agreement, Newton unquestionably committed himself to pay Newman a ten thousand dollar down payment and six hundred dollars per month thereafter. Newton maintains that Newman verbally promised him more in return for these payments than the written document shows. Three witnesses testified that Newman offered to provide: (1) use of the "Auto Cool" name; (2) technical training and marketing support; (3) customer clinics; (4) a unique price structure advantageous to Newton; (5) warehouse distributor status for Newton; and (6) the right to fill orders from six Austin businesses which, collectively, had purchased more than $100,000 worth of parts from Newman's store the previous year. Although Newman admitted offering to help set up the customer clinics and to provide the pricing arrangement, he denied that he extended Newton warehouse- distributor status or that he promised that Austin customers would buy from Newton as a part of the agreement.



ADMISSION OF TESTIMONY

By point of error nine, Newton asserts that the trial court abused its discretion by allowing two of Newman's witnesses to testify despite Newman's failure properly to identify them in answer to interrogatories. The witnesses about whose testimony Newton complains are Gregg Henderson, one of Newton's former employees, and Lin Friesen, an AC Delco representative.

Whether Newton has shown that Newman initially identified Henderson and Friesen in an improper manner depends on what was required by the plain language of Newton's interrogatory. It reads:



Please identify (as defined above) all persons whom you believe may have knowledge of facts relevant to this lawsuit, and as to each, please give a summary of the facts you believe may be known by such person.



In answering this interrogatory, Newman named Henderson and Friesen, described in detail their respective relationships to the parties, and briefly summarized facts within each witness's knowledge. Newman provided no address or telephone number for either witness; he stated that he believed Henderson lived in Llano, but that his address was unknown.

At trial, Newton offered and had admitted an exhibit consisting of photocopies of Newton's interrogatories on which Newman had typed responses. However, the exhibit did not include the definitions expressly referred to in the interrogatory.

Newton has the burden of showing error. See Englander Co. v. Kennedy, 428 S.W.2d 806, 807 (Tex. 1968). Newton also must bring forward a record sufficient for appellate court review and from which that court can determine reversible error. Woodruff v. Cook, 721 S.W.2d 865, 871 (Tex. App. 1986, writ ref'd n.r.e.); Evans v. State Farm Mut. Auto. Ins. Co., 685 S.W.2d 765, 768 (Tex. App. 1985, writ ref'd n.r.e.). To demonstrate the claimed error, Newton had to show that a deficiency in the answer rendered the trial court's admission of the witnesses' testimony an abuse of discretion. While the record does include the interrogatory and the answer, Newton's failure to include the definitions prevents us from determining whether Newman was required to disclose additional information beyond the witnesses' names. Accordingly, the record before us does not show that Newman failed to properly identify the two witnesses.

In determining what Newman was required to disclose in response to the interrogatory, we keep in mind the provisions of Rule 166b(2)(d) of the Rules of Civil Procedure. That Rule allows a party to obtain "the identity and location (name, address and telephone number) . . . of persons having knowledge of relevant facts." Tex. R. Civ. P. 166b(2)(d). The presence of a conjunction between "identity" and "location" indicates a distinction between the two ideas. The parenthetical strengthens that suggestion, making explicit a party's ability to ascertain potential witnesses' addresses and telephone numbers as well as their names.

If Newman was asked merely to identify persons, a response listing only names was not unreasonable. As far as we can tell from this record, the interrogatory did not seek the locations (i.e., addresses and telephone numbers) of the persons whose names Newman supplied. Thus, Newton has not shown that Newman failed to comply either with the ordinary meaning of the word "identify" or the language of Rule 166b(2)(d).

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James E. Newton and James E. Newton, Inc. v. Billy G. Newman and Automatic Cooling, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-e-newton-and-james-e-newton-inc-v-billy-g-ne-texapp-1992.