JHC Ventures, L.P. v. Fast Trucking, Inc.

94 S.W.3d 762, 49 U.C.C. Rep. Serv. 2d (West) 167, 2002 Tex. App. LEXIS 8407, 2002 WL 31662057
CourtCourt of Appeals of Texas
DecidedNovember 27, 2002
Docket04-01-00251-CV
StatusPublished
Cited by41 cases

This text of 94 S.W.3d 762 (JHC Ventures, L.P. v. Fast Trucking, 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
JHC Ventures, L.P. v. Fast Trucking, Inc., 94 S.W.3d 762, 49 U.C.C. Rep. Serv. 2d (West) 167, 2002 Tex. App. LEXIS 8407, 2002 WL 31662057 (Tex. Ct. App. 2002).

Opinion

Opinion by

KAREN ANGELINI, Justice.

This appeal involves a commercial dispute arising from alleged defects in dump trailers sold to Fast Trucking, Inc. (“Fast Trucking”). Following a jury verdict in favor of Fast Trucking, the trial court entered judgment accordingly and ordered JHC Ventures, L.P. (“JHC Ventures”), JHC Holding Co. (“JHC Holding”), Hoss Equipment Co. (“Hoss Equipment”), and Gregg M. Hoss (“Hoss”) to pay damages. JHC Ventures, JHC Holding, Hoss Equipment, and Hoss appeal the trial court’s judgment. We affirm the judgment as modified.

Background

Gregg Hoss, the president and sole shareholder of Hoss Equipment, was informed by one of Hoss Equipment’s employees, Martin Kirbie, that a man named Frank Johnson had invented a new type of dump truck, the “Shape Shifter.” Unlike the typical dump truck, the Shape Shifter was designed to possess dual-dumping capabilities: it could dump its loads by raising up its trailer and dumping its load out the back or it could dump its load through its doors in the belly of the hopper. After being informed of these dual-dumping capabilities, Hoss decided that Hoss Equipment should invest in the Shape Shifter. As president of Hoss Equipment, Hoss formed a wholly owned subsidiary of Hoss Equipment, JHC Holding. He then made JHC Holding the general partner of yet another newly formed limited partnership, JHC Ventures. Hoss formed JHC Ventures for the purpose of obtaining the patent for the Shape Shifter, manufacturing the Shape Shifter, and then selling it.

Fast Trucking uses dump trailers to haul bulk materials, like sand, gravel, grain, asphalt, and sludge. According to Fast Trucking, through an advertisement emphasizing the Shape Shifter’s unique dual-dumping capabilities, Sam Vale, Fast Trucking’s sole shareholder, was solicited by Hoss. Interested in these unique capabilities, Vale entered into negotiations with Hoss to purchase some Shape Shifters. According to Vale, Hoss made express assurances during these negotiations about the superior durability of the Shape Shifters, their capability to haul various types of materials, and their dual-dumping capabilities. For example, if Fast Trucking bought certain accessories, Hoss assured Vale that the Shape Shifter could haul grain, sand, and sludge. At trial, Fast *766 Trucking alleged that these representations constituted an express warranty.

The negotiations between Hoss and Vale being successfully completed, Vale signed, on behalf of Fast Trucking, a commercial invoice on December 13, 1994 to buy five new Shape Shifters for $175,000, plus $21,000 in federal excise tax. Fast Trucking bought the accessories under a separate invoice for $9,750. Although the invoice, which was signed by both parties, reflects that JHC Ventures is the seller, Vale testified at trial that he thought Hoss Equipment was the seller. On December 29, 1994, Fast Trucking paid in full for all five completed Shape Shifters.

Within a few months of delivery, Fast Trucking began experiencing problems with the Shape Shifters. Fast Trucking returned the Shape Shifters to JHC Ventures for repairs, but alleges that these repairs were never successful. On October 30, 1998, Fast Trucking sued JHC Ventures and Hoss Equipment, later adding Hoss as a defendant. Then, in November 1998, Fast Trucking sold the Shape Shifters and their accessories for $43,000. After hearing all of the evidence presented at trial, the jury found (1) that JHC Ventures breached an express warranty, committed fraud, violated the DTPA, engaged in an unconscionable action, and acted knowingly, (2) that Hoss Equipment committed fraud, violated the DTPA, engaged in an unconscionable action, and acted knowingly, (3) that Fast Trucking should have known about the fraud on December 13, 1994, (4) that Fast Trucking failed to use ordinary care in the use and operation of the trailers, (5) that Fast Trucking caused 40% of the damages, Hoss Equipment caused 20% of the damages, Gregg Hoss caused 30%, and JHC Ventures caused 10%, (6) that Hoss Equipment is responsible for the conduct of JHC Holding, and (7) that Gregg Hoss is responsible for the conduct of JHC Holding.

As for damages, the jury found that benefit of the bargain damages are $104,500, that transportation and freight costs for returning the trailers for repairs are $5,000, and that Hoss Equipment and JHC Ventures should each pay $50,000 in exemplary damages. Further, the jury found that Fast Tracking was not entitled to any damages based on JHC Ventures’ and Hoss Equipment’s knowing conduct. Finally, the jury found that Fast Trucking’s trial attorney’s fees are $150,000, its fees for an appeal to the court of appeals will be $40,000, its fees for making or responding to a petition for review to the supreme court will be $30,000, and if a petition for review is granted by the supreme court, its fees will be $45,000.

Based on these findings, the trial court entered judgment. The judgment provides that (1) Hoss Equipment, JHC Ventures, and JHC Holding, as general partner of JHC Ventures, are jointly and severally liable to Fast Trucking for its actual damages in the amount of $109,500, (2) Gregg Hoss, Hoss Equipment, JHC Ventures, and JHC Holding, as general partner of JHC Ventures, are jointly and severally liable to Fast Trucking for exemplary damages in the amount of $50,000, (3) Hoss Equipment is solely and separately hable to Fast Trucking for an additional award of exemplary damages in the amount of $50,000, and (4) Hoss Equipment, JHC Ventures, and JHC Holding, as general partner of JHC Ventures, are jointly and severally liable to Fast Trucking for its attorney’s fees.

Benefit of Bargain Damages

According to appellants, there is no evidence to support the jury’s award of $104,500.00 in benefit of the bargain dam *767 ages. 1 In resolving damages issues, a jury’s finding will be upheld if it is within the range of the testimony regarding the amount of damages incurred. State Farm, Fire & Cas. Co. v. Rodriguez, 88 S.W.3d 313, 321 (Tex.App.-San Antonio 2002, rule 53.7(f) motion filed). Here, both parties agree that section 2.714 of the Uniform Commercial Code applies. See Tex. Bus. & Comm.Code Ann. § 2.714 (Vernon 1994). Section 2.714, “Buyer’s Damages for Breach in Regard to Accepted Goods,” provides:

(a) Where the buyer has accepted goods and given notification (Subsection (c) of Section 2.607) he may recover as damages for any non-conformity of tender the loss resulting in the ordinary course of events from the seller’s breach as determined in any manner which is reasonable.
(b) The measure of damages for breach of warranty is the difference at the time and place of acceptance between the value of the goods accepted and the value they would have had if they had been as warranted, unless special circumstances show proximate damages of a different amount.
(c) In a proper case any incidental and consequential damages under the next section may also be recovered.

Id. (emphasis added).

The purchase price is some evidence of the value of the goods as warranted. See Sweco, Inc. v.

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94 S.W.3d 762, 49 U.C.C. Rep. Serv. 2d (West) 167, 2002 Tex. App. LEXIS 8407, 2002 WL 31662057, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jhc-ventures-lp-v-fast-trucking-inc-texapp-2002.