John R. "Jack" Christie v. Beatrice A. Heitmann

Texas Court of Appeals, 1st District (Houston)·Decided July 21, 2026·No. 01-24-00587-CV·Published

Opinion

Opinion issued July 21, 2026

In The

Court of Appeals

For The

First District of Texas

sale of the property. The case proceeded to trial and the jury returned a verdict in favor of Heitmann, rejecting Christie’s claims.

In three issues, Christie argues (1) there is insufficient evidence to support the jury’s finding that Heitmann did not breach her contract with him, (2) there is insufficient evidence to support the jury’s finding that Heitmann did not commit fraud, and (3) Heitmann’s counsel’s argument to the jury on how it should answer the jury questions constituted reversible error.

We affirm the trial court’s judgment.

Background

In 2011, Heitmann purchased real property and a storage business on the property (the “Property”) from Christie for $2.2 million. At Christie’s suggestion, Heitmann and Christie executed two promissory notes for purchase of the Property. The first note, signed on June 1, 2011, was for $1,641,000 (“First Note”) and was secured by a deed of trust. It was filed in the Fort Bend County Real Property Records. The second note, which was unsecured, was signed on June 15, 2011, and was for $289,000 (“Second Note”).1 The Second Note provided:

The full purchase price of the property is $2.2 million. The amount of $150,000.00 was paid to the Lender [Christie] in cash as a down payment plus $70,000.00 in checks in the Contract for Deed. This left a balance of $289,000 as a personal loan plus $1,691,000.00 as a

1 As set forth in the text of the Second Note, the promissory notes plus $220,000 in cash and checks remitted to Christie totaled $2.2 million.

Promissory Note which equals $1,980,000.00. This amount is shown on the Loan Amortization Schedule.

The note shall be fully paid on 5/30/2031 or before, on the sale of the property.

Upon the sale of the property, the lender of this note will receive an additional amount up to $800,000.00 if sold for $3.8 million. If the property sells for more than $3.8 million, the lender gets an extra 25% of the profit for the first eight years; then the 25% will be reduced by 5% for each year thereafter.2

If the property sells for less than $3.8 million, the profit will be split 50-50%.

...

This note may be prepaid at any time without notice, in whole or in part, and without incurring any penalty or bonus.

Heitmann testified that she paid interest at the rate of 6.7 percent on her loan from Christie for the Property’s purchase.3 When Heitmann purchased the Property, she purchased both the real property and a mini-storage business on it. Eventually, she and her husband added a business called Trailer World and RV Park (“Trailer World”) to the Property.

In 2013, Heitmann decided to refinance the Property. She testified that she decided to refinance partly because she was able to obtain a lower interest rate

2 Heitmann refers to this paragraph as the “bonus provision” and for consistency’s sake, so do we.

3 The First Note identified an annual interest rate of 9.18 percent. The Second Note did not identify an interest rate. Both notes were twenty-year notes that would have matured on May 30, 2031.

from the bank, and partly so she could pay off Christie and eliminate the bonus provision in the Second Note. At Heitmann’s request, Christie faxed her a payoff amount for the two notes dated June 27, 2013. The handwritten, signed payoff notice—which was on Christie’s chiropractic office letterhead—stated that the “June 28th payoff balance” was $1,879,076.81 in principal and $10,516.52 in interest. In 2013, Heitmann paid Christie the amount she owed according to his handwritten note and he accepted the payment.

In 2014, Heitmann and her husband became interested in selling the Property and Trailer World. During that time, she learned that Christie had placed a lien on the Property, even though he had been paid the outstanding amounts on the notes. Heitmann hired counsel and filed a lawsuit to secure removal of the lien from the Property.

In 2014, BJ Prendergast became interested in purchasing the Property and Trailer World. A few years later, in 2017, BJ Prendergast negotiated with Heitmann a purchase price of $1.8 million for the real property,4 $2.4 million for the trailer business, and $800,000 for the storage business. The purchase closed in 2020. Although Heitmann believed her debt to Christie had been paid in full, Christie claimed he was entitled to a bonus stemming from the sale to BJ

Prendergast because the total purchase price for the Property was for a sum greater 4 The Fort Bend County tax appraisal on the Property and improvements in 2017 was $1,768,200.

than $3.8 million. Christie filed a counterclaim against Heitman for breach of contract claiming she failed to pay him the bonus contemplated in the Second Note after selling the Property and Trailer World to BJ Prendergast.5 He also asserted a claim for fraud alleging Heitmann had entered into the Second Note with the intent to defraud Christie because she “had no intention of honoring the obligations of the Second Note, despite her representations she would do so.”

Trial ensued on Christie’s breach of contract and fraud counterclaims.6 Heitmann, BJ Prendergast, and Christie testified live, and an appraisal expert testified for Christie by deposition. The trial court granted a directed verdict on the fraudulent inducement claim in Heitmann’s favor, leaving only the breach of contract and common law fraud claims for the jury to decide.

Jury Charge

The jury charge gave the jury two instructions. First, it instructed the jury that “The ‘Agreement’ at issue [was] the $289,000.00 Promissory Note dated June 15, 2011 between Plaintiff and Defendant.” Second, the jury was instructed that

‘“Misrepresentation’ means a false statement of fact.” 5 Christie testified at trial that he is entitled to $1.1 million as a result of Heitmann’s sale of the Property. That sum comprises $800,000 because the sale price exceeded $3.8 million, plus an additional $300,000 that represents 25 percent of the $1.2 million by which the sale price exceeded the $3.8 million threshold mentioned in the Second Note.

6 The counterclaims were for breach of contract, common law fraud, and fraudulent inducement. Heitmann’s only claim pertained to the lien, which was resolved by partial summary judgment.

The jury was asked to answer five questions: (1) Did Heitmann fail to comply with the terms of the Agreement? (2) If yes, was Heitmann excused from failure to comply with the Agreement? (3) If yes to question 1 and no to question 2, what sum of money, if any, if paid now in cash, would fairly and reasonably compensate Christie for his damages resulting from Heitmann’s failure to comply? (4) Did Heitmann commit fraud against Christie? and (5) If yes, what sum of money, if paid now in cash, would compensate Christie for his damages, if any, resulting from such fraud? In a unanimous verdict, the jury found in favor of Heitmann on Christie’s breach of contract and fraud claims. The trial court entered judgment on the jury’s verdict. This appeal ensued.

Sufficiency of the Evidence In his first two issues, Christie argues there is factually insufficient evidence to support the jury’s finding that Heitmann did not breach the Second Note and that Heitmann did not commit fraud.7 When reviewing a factual sufficiency challenge, we must consider and weigh all of the evidence, both for and against the finding. Dow Chem. Co. v. Francis, 46 S.W.3d 237, 242 (Tex. 2001). Our review of the evidence must be

7 In his stated issues, Christie argues there is “insufficient evidence” to support the jury’s verdict on the contract and fraud claims. But in the section of his brief titled “Arguments and Authority” he sets forth the standard of review for factual sufficiency only. We thus limit our review to the factual sufficiency of the jury’s verdict.

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John R. "Jack" Christie v. Beatrice A. Heitmann, (Tex. Ct. App. 2026).

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