Larry Turner v. NJN Cotton Company

485 S.W.3d 513, 2015 Tex. App. LEXIS 12181, 2015 WL 9311588
Court of Appeals of Texas·Decided November 30, 2015·No. 11-13-00303-CV·Published·Cited by 21 cases

Opinion

OPINION

JIM R. BRIGHT, CHIEF JUSTICE

The disagreement that underlies this appeal arises from the purchase and sale of a eottoh crop in Dawson County for the crop *517 year 2010. After a jury trial, and in accordance with answers to questions presented to it by the trial court, the jury found that Larry Turner agreed to sell his entire 2010 cotton crop to NJN Cotton Company at a certain price and that it was to be delivered after the 2010 harvest. The jury also found as follows: Turner failed to comply with the agreement; Turner admitted in his testimony that he contracted with NJN for the sale of his 2010 cotton crop; NJN did not send Turner a written confirmation of the contract within a reasonable time; Turner received confirmation of the contract and had reason to know thé contents of it; and Turner did not give written notice of his objections to the contents of the confirmation within ten days after he received it.

The jury assessed damages of $407,607.74 against Turner. Additionally, because the jury found that NJN substantially relied tó its detriment on Turner’s promise and that such reliance was foreseeable by Turner, it assessed damages of $3,400 that resulted from that reliance. Further, the jury found that $60,000 was a reasonable and necessary amount for attorney’s fees.

The trial court entered a judgment in favor of NJN in accordance with the verdict of the jury. In addition to post-judgment interest, the trial court awarded NJN $49,303.79 in prejudgment interest. Finally, the trial court ruled that Turner take nothing on the counterclaims that he had brought against NJN. We affirm. ■

Larry Turner is & cotton producer in Dawson County. Judy Seely owns - and operates NJN Cotton Company. Seely purchased NJN in 1984. Before that, -she had worked for the company for appróxi-mately fourteen years, beginning in 1970.

NJN buys cotton from cotton producers, such as Turner, and then sells the cotton to shippers. The testimony in this case reveals two ways in which a buyer -and seller transact the business of buying and selling cotton: “forward contracts” and sales by bid after harvest. When a producer sells cotton by forward' contracts, the producer and the búyer agree to the purchase and sale of a cotton crop to be harvested in the future. The producer informs the buyer of the number of acres that he expects to plant as well as the number of bales that he expects to produce per acre. After the producer and buyer enter into the forward contract at a certain price, the.buyer then sells that cotton to a shipper for. future delivery. Normally, a producer enters into a forward contract because he likes the then prevailing price for cotton and wants to lock it in for his future cotton crop.

In his testimony, Turner described the custom for buying and selling cotton when a producer has not entered into a forward contract—the cotton is ginned and the gin will find buyers for it. The gin sends information regarding the cotton (a “recap”) to various buyers and those buyers may bid on the cotton. It is then up to the producer to determine whether he wants to accept any of the bids. These sales are accomplished orally based upon the recap sheet-.

The primary issue in.. this appeal is whether Turner was obligated to sell his 2010 cotton crop under a forward contract. NJN maintains that he was; Turner argues that he was not. ...

At the time Of the transaction out of which this lawsuit arose, NJN had known Turner for a number- of years-and had purchased Turner’s cotton on multiple "occasions—almost every year' since NJN began doing business. Although Turner and NJN had previously entered into only one contract for the sale of cotton before it was ginned (on that occasion it had been *518 stripped and was in modules, but not yet ginned), NJN had negotiated a forward contract between Turner and a third party. In the one instance that Turner and NJN had entered into a forward contract, they signed a written contract. According to Seely, NJN and Turner executed no other contract on any of the other transactions between them.

In April 2010, before Turner had planted his cotton crop for that year, he contacted NJN about contracting his 2010 cotton crop. At that time, the contract price for cotton was 1300 points over the government loan price per bale of cotton. Turner did not want to accept that price. Seely testified that Turner told her that, if the price rose to 1400 points over, he would contract his cotton. Turner, on the other hand, testified at trial that he told Seely that, if the price rose to 1400, to call him. However, in Turner’s deposition, he had testified, “I told her if it got to 1400 over, I would contract the cotton.”

Seely testified that she phoned Turner a few days later, when the market price for cotton .had gone up, and told him that she could offer 1400 if he still wanted to sell his cotton. Seely testified that Turner said that he did. Turner testified that he told her that 1400 was an acceptable price. In his deposition, Turner testified that Seely told him in April that she would pay him 1400 for his cotton and that he accepted it. He also said that he understood that the effect of this conversation was that, at the end of the ginning season, Seely would pay him money and that he would deliver the cotton to .her. Additionally, Sammy Stevens testified that Turner had told him that he had agreed to sell his 2010 cotton crop to Seely.

Seely testified that she did fill out a contract form in this instance but that she did so simply to remind herself of the deals that she had made. The contract form that Seely filled out was dated April 12, 2010, the date that she talked to Turner on the phone. Although Seely expected Turner to sign the written agreement, she did not send it to him to sign because he did not ask to sign it and never expressed any concern or need for a written contract.

In October 2010, Seely sent Sparenberg Gin a list of producers from whom she had purchased 2010 cotton. Sparenberg Gin was the gin that Turner had used to gin his cotton for approximately fifty years. At the time of the events that formed the basis for this lawsuit, Turner was president of Sparenberg Gin and held a twenty percent ownership interest in it.

Although Turner’s testimony was that he expected to sign a contract, he did not ask Seely for the contract until someone at the gin notified him that his name was on the list that Seely had furnished to the gin. In November 2010, after Turner found out that Seely claimed to have his cotton under contract, he went to Seely’s office to get a copy of the contract. He wanted the contract so that he could take it to “somebody” to have them look at it. In Turner’s deposition testimony, he said that he did not sign the contract in November because the price had gone up and he thought that he could get a better deal from someone else. And, he said, “I’m not going to lie about that.”

“Maybe the afternoon [of] the next day after [Turner] was in [Seely’s] office,” Turner’s then attorney faxed a letter to her. In that November 16, 2010 letter, Turner’s lawyer told Seely that Turner would not be selling his cotton to NJN and. that, if she had a copy of “an enforceable contract,” to send it to him. Seely sent a copy of the form contract to Turner’s lawyer.

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Larry Turner v. NJN Cotton Company, 485 S.W.3d 513, 2015 Tex. App. LEXIS 12181, 2015 WL 9311588 (Tex. Ct. App. 2015).

485 S.W.3d 513 (Larry Turner v. NJN Cotton Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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