King Optical v. Automatic Data Processing of Dallas, Inc.

542 S.W.2d 213, 1976 Tex. App. LEXIS 3185
CourtCourt of Appeals of Texas
DecidedSeptember 23, 1976
Docket5580
StatusPublished
Cited by63 cases

This text of 542 S.W.2d 213 (King Optical v. Automatic Data Processing of Dallas, 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
King Optical v. Automatic Data Processing of Dallas, Inc., 542 S.W.2d 213, 1976 Tex. App. LEXIS 3185 (Tex. Ct. App. 1976).

Opinion

HALL, Justice.

The appellee, a computer data processing company, brought this suit against the appellant for an alleged balance due for performing payroll, general ledger, accounts payable, daily sales report, and cash disbursement report data processing services for the appellant under an oral contract. After a trial without a jury, the court awarded the appellee $27,942.91 for services rendered under the contract, prejudgment interest on amounts accruing under the contract during 1972 and 1973, attorneys’ fees in the amount of $11,025.00 plus attorneys’ expenses in the sum of $1,074.52, costs of court, and interest on the judgment. Additionally, the court ordered a remittance by the appellee of $3,000.00 of the awarded attorneys’ fees if no appeal was taken by the appellant, and a remittance of $1,000.00 of the attorneys’ fees if the appellant appealed only to the Court of Civil Appeals but not to the Supreme Court.

The appellant contends that the evidence is legally and factually insufficient to show that it agreed to pay the appellee for daily sales reports and cash disbursement reports; that the evidence is legally and factually insufficient to show that the appel-lee’s usual and customary charges for the services it allegedly rendered for the appellant total $27,942.91; that the court erred in striking the appellant’s third and fourth amended original answers merely because they were filed within seven days of the date of trial; that the court’s allowance of prejudgment interest is not supported by either pleading or statute; that the court erred in awarding the appellee “attorney’s expenses” in the absence of statutory authority or an agreement between the parties supporting the award; and that the award of attorney’s fees is erroneous because (1) there is no evidence that the ap-pellee presented its claim to the appellant for payment at least 30 days prior to the judgment and thereby met the required statutory predicate, (2) there is no evidence the fees allowed are reasonable, and (3) the unconditional allowance of attorneys’ fees to the appellee in the event of an appeal by the appellant is an illegal restraint upon its right of appeal.

We modify the judgment by deleting the awards of prejudgment interest, attorneys’ expenses, and attorneys’ fees on appeal.

Without dispute in the record, after negotiations between the parties and. proposals by the appellee, the appellant requested the appellee to service the appellant’s payroll, accounts receivable, general ledger and accounts payable. The appellee did so. The appellee also rendered daily sales report and cash disbursement report services for the appellant and charged the appellant for these services separately from the charges made for the general ledger and accounts payable services. It was the appellant’s position on the trial that the agreement of the parties regarding the general ledger service included the daily sales report; that the agreement regarding the accounts payable service included the cash disbursement report; that the parties’ agreement set maximum charges to be made by the appellee for general ledger and accounts payable services; and that a part of the recovery now sought by the appellee is for charges in excess of those máximums. Of course, the appellee directly disputed these contentions. The trial court made express findings supporting the appellee’s positions on these questions, and these are the findings that the appellant asserts are not supported by legally or factually sufficient evidence.

There is evidence of the following facts: The appellee markets “package services” which include payroll, accounts receivable, accounts payable, and general ledger. These packages can be fitted to the records of any business without extraordinary programming. Any services falling outside these packages must be custom-programmed. Daily sales reports and cash disbursement reports are not parts of the package-programs, and specifically are not included in the accounts payable and general ledger programs of the package services. *216 If desired by a business, these reports must be custom-programmed. At separate times, the appellant purchased the appellee’s package services for its payroll, accounts receivable, accounts payable, and general ledger. The appellee’s proposals, accepted by the appellant, included a one-time installation charge for each service and monthly charges thereafter based upon each item or transaction under the service plus additional charges for changes, additions, or deletions. The proposals contained projected monthly estimates of costs based upon a review of the appellant’s records, but the parties did not understand or agree these estimates were maximum charges that would be made by the appellee. The cash disbursements report was requested by the appellant separately from the accounts payable, and the program for cash disbursements was developed for the appellant by the appellee about six months before the appellant began using the appellee’s accounts payable services. The daily sales report was requested by the appellant separately from the general ledger. It did not begin with the general ledger service, but followed it by about two months. The services for the daily sales reports and cash disbursement reports were specifically designed by the appellee to fit the appellant’s specifications. The appellant was billed monthly by the appellee. The appellant has paid some of the appellee’s monthly charges for services for daily sales reports and cash disbursement reports, but has not paid others. It has also paid a part of the appellee’s charges for other services rendered. After the appellee ceased its services because of the appellant’s delinquency, the appellant assured the appellee it would be paid in full for the services rendered. Later, the appellant disputed some of the charges, and this lawsuit followed.

The appellee’s president testified in detail about the services rendered for the appellant and the charges for the services which remain unpaid, and to the fact that all offsets and credits have been allowed the appellant. His testimony supports the award of $27,942.91. During his testimony he identified and referred to copies of invoices and statements rendered to the appellant by the appellee. The statements and invoices were subsequently admitted into evidence. The appellant asserts that these instruments are hearsay because the record fails to show they fall within the so-called Business Records Act, Art. 3737e, Vernon’s Ann.Tex.Civ.St. The appellant also contends that the witness’s testimony assertedly based on the instruments is also hearsay. This contention was not made on the trial. The record shows that the witness has been closely involved in the dealings, discussions, and differences between the parties from their beginnings. It does not affirmatively show that his testimony was not based upon personal knowledge. Accordingly, this testimony may not now for the first time be condemned as hearsay. 24 Tex.Jur.2d 64, Evidence, § 561. Because this testimony supports the court’s findings relating to the appellant’s delinquencies, the complaints that the statements and invoices are hearsay and were improperly admitted into evidence are immaterial.

The evidence we have recited is legally sufficient to support the challenged findings. A review of the entire record shows the findings are not against the great weight and preponderance of the evidence.

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Bluebook (online)
542 S.W.2d 213, 1976 Tex. App. LEXIS 3185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-optical-v-automatic-data-processing-of-dallas-inc-texapp-1976.