John Black v. James Redmond

709 F. App'x 766
CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 22, 2017
Docket17-20132 Summary Calendar
StatusUnpublished
Cited by1 cases

This text of 709 F. App'x 766 (John Black v. James Redmond) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Black v. James Redmond, 709 F. App'x 766 (5th Cir. 2017).

Opinion

PER CURIAM: *

A jury found for the plaintiff in this partnership dispute and awarded $200,000. The defendant seeks a new trial on the grounds that the jury’s findings on causation and breach were against the great-weight of the evidence. He also challenges the damages award. Because the district court did not abuse its discretion in denying the motion for a new trial, we AFFIRM.

I.

John Black patented a unique design for wind resistant billboard frames called “Universal Flex Frames.” He traveled from his home in Florida to Houston with the hopes of marketing and selling his invention. It was on this trip to Houston that Black met with James Redmond. The two had worked together before, and had been partners in both a sign business and several bars starting in the late 70s and into the 80s. The two men agreed to create Universal Flex Frames of Texas for the purpose of building, marketing, and selling Black’s patented frames and splitting the profits. They entered into an oral agreement to start this venture “on a 50/50 basis.” Under this agreement, Black would contribute his patent, building materials, tools, and “sweat equity” to the venture. Redmond would contribute cash, facilities, and office support through his other companies. Redmond also hired Black as a subcontractor working for a separate company owned solely by Redmond named Houston Sign and Service, Inc.

After entering into the oral agreement, Black and Redmond began setting up the business. They registered Universal Flex Frames of Texas as an unincorporated business and opened a bank account in its name. They also set up a workspace where they would construct 150 Universal Flex Frames.

About a year and a half later, Black and Redmond’s relationship began to sour when Black learned that Redmond had been selling Universal Flex Frames to Houston Sign and Service, his own company, at wholesale prices. Black was concerned that the frames were being sold for only $50 more than their cost to build. Following Black’s discovery that Redmond had been selling the Flex Frames to his own business, Black proposed written terms over e-mail to clarify what Black believed were the terms of the original oral partnership. Redmond says this email was sent to a defunct address and was never received.

Five days after Black sent the email attempting to clarify the partnership terms, Black and Redmond met in Redmond’s office. According to Black, the meeting lasted about a minute. Black asked to talk about the prices and Redmond allegedly “kicked [him] out of the office, and told [him] to go back to Florida.” The next day, Redmond sent Black an e-mail stating the partnership was over and that the inventory would remain in Redmond’s possession unless Black wished to purchase the remaining frames. Black contends he was never shown financial statements- for the partnership, and was never compensated for his interest in the partnership.

Following the termination of the partnership, Black filed suit alleging that the two had formed an oral partnership agreement; that Redmond had breached that agreement; and that Black was entitled to $248,714.50, half the alleged value of the assets of the partnership at the time it terminated. A jury found in Black’s favor and awarded him $200,000. Redmond unsuccessfully sought a new trial.

II.

We review a district court’s ruling on a motion for new trial for abuse of discretion. Int’l Ins. Co. v. RSR Corp., 426 F.3d 281, 300 (5th Cir. 2005). We give great deference to the district court ruling when it has denied the new trial motion and upheld the jury’s verdict. Int’l Ins. Co., 426 F.3d at 300, “New trials should not be granted on evidentiary grounds unless, at a minimum, the verdict is against the great weight of the evidence.” Conway v. Chem. Leaman Tank Lines, Inc., 610 F.2d 360, 363 (5th Cir. 1980). A jury’s damage award will stand unless clearly erroneous. Myers v. Griffin-Alexander Drilling Co., 910 F.2d 1252, 1255 (5th Cir. 1990).

III.

Redmond’s request for a new trial ultimately fails because the jury was entitled to make its own determinations in weighing the evidence and deciding whose testimony was more credible. The trial featured two competing narratives and the jury was asked to pick sides in a he said/he said dispute about the nature of their oral agreement. The jury was presented with conflicting evidence, such as inventory accounting documents and e-mails about the nature of the partnership. After considering all of the evidence, the jury “could have reached a number of different conclusions, all of which would have sufficient support in this evidence to be upheld.” Conway, 610 F.2d at 367.

A.

One of those permissible conclusions was that a partnership agreement existed. The Texas Business Organizations Code outlines the following five factors that indicate whether a partnership has been formed: “(1) receipt or right to receive a share of profits in the business; (2) expression of an intent to be partners in the business; (3) participation or right to participate in control of the business; (4) agreement to share or actual sharing of: losses of the business, or liability for claims by third parties against the business; and (5) agreement to contribute or contributing money or property to the business. Tex. Bus. Orgs. Code Ann. § 152.052. These factors are nonexclusive and even one factor standing on its own can be strong enough to support the existence of a partnership. See Tex. Gov’t Code Ann. § 311.005 (defining “includes” within the Texas Code to not denote “limitation or exclusive enumeration”); Enter. Prod. Partners, L.P. v. Energy Transfer Partners, L.P., 529 S.W.3d 531, 538-39, 2017 WL 3033312, at *6 (Tex. App. — Dallas July 18, 2017).

The evidence allowed the jury to find that three of the five factors supported the existence of a partnership. 1 Black testified that he and Redmond had orally agreed to form a “50/50 partnership,” and further stated he was going to provide his patent, construction expertise, and uncompensated work to the partnership as part of the agreement. Concerning profit sharing, both Black and Redmond testified that they had discussed splitting the profits from selling the Universal Flex Frames. Furthermore, in Redmond’s final email to Black, he wrote “Looks like the frame partnership is over with.” There was more than sufficient evidence of a partnership to support the jury’s verdict.

B.

The jury’s determination that the partnership agreement was breached is also not against the great weight of evidence.

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709 F. App'x 766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-black-v-james-redmond-ca5-2017.