Len Critcher, Brett Stacy, Imagine Automotive Group v. Boardwalk Motor Cars, LTD. Porche/Audi/Volkswagen

430 S.W.3d 620, 2014 WL 1828997, 2014 Tex. App. LEXIS 4954
CourtCourt of Appeals of Texas
DecidedMay 7, 2014
Docket05-11-01119-CV
StatusPublished
Cited by17 cases

This text of 430 S.W.3d 620 (Len Critcher, Brett Stacy, Imagine Automotive Group v. Boardwalk Motor Cars, LTD. Porche/Audi/Volkswagen) 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
Len Critcher, Brett Stacy, Imagine Automotive Group v. Boardwalk Motor Cars, LTD. Porche/Audi/Volkswagen, 430 S.W.3d 620, 2014 WL 1828997, 2014 Tex. App. LEXIS 4954 (Tex. Ct. App. 2014).

Opinion

OPINION

Opinion by

Justice FRANCIS.

The trial court struck the pleadings of Imagine Automotive Group, Imagine Automotive Group, I., L.P., eCarLink GP, Inc., Brett Stacy, and Len Critcher as a sanction for discovery abuse. A jury then determined damages. The trial court rendered judgment awarding actual damages and attorney’s fees to appellees Boardwalk Motor Cars, Ltd. d/b/a Boardwalk Porsche, Boardwalk Automobiles, Ltd. d/b/a Boardwalk Audi, and Boardwalk Transportation, L.P. d/b/a Boardwalk Volkswagen (collectively, Boardwalk) on their cause of action under the Texas Theft Liability Act. 1 The trial court also awarded additional attorney’s fees as sanctions against appellants.

In multiple issues, appellants challenge the trial court’s sanction order, alleged errors in the jury charge, 2 and . the trial court’s award of attorney’s fees. For the reasons set out below, we conclude the issues are without merit. We affirm the trial court’s judgment.

Background

All of the parties are in the business of selling cars. Appellees are three of the new and used car dealerships operated under the name “Boardwalk” by their owner Scott Ginsburg. In their operative petition, appellees allege that appellants Brett Stacy and Len Critcher were involved in the business of selling used cars and purchasing cars for resale using the names “Imagine Auto Group” and “eCarLink.” The record also revealed that Critcher had expertise in the business of selling cars through the internet.

This case began in March 2007 when Boardwalk sued its former president, Robert Rodriguez. Boardwalk alleged that Rodriguez had embezzled funds from its car dealerships. Several months later, Boardwalk joined appellants as defendants. At the time of trial, Boardwalk claimed that appellants bribed Boardwalk employees to obtain used cars at preferential prices. Boardwalk asserted that appellants would then resell the cars at a profit. Boardwalk also alleged that appellants stole cars from its dealerships, and were therefore liable for damages under the Texas Theft Liability Act. See Tex. Civ. PRAC. & Rem.Code Ann. § 134.001-134.005 (West 2011 & Supp.2013) *625 (“TTLA”) (person who commits theft is liable for damages resulting from the theft).

To establish these claims, Boardwalk sought to discover any payments made by appellants to Boardwalk’s employees. Boardwalk also sought to discover whether appellants had paid for cars obtained from Boardwalk. Boardwalk’s attempts to obtain appellants’ financial records led to protracted disputes in the trial court. The parties’ disputes and the trial court’s sanctions centered around four categories of documents: (1) appellants’ bank records, including cancelled checks, showing payments to Boardwalk employees or payments for cars; (2) appellants’ financial records kept in an accounting software program called “QuickBooks;” (3) electronic “Common Gateway Interface” data kept internally by appellants (referred to by the parties as the “CGI documents”); and (4) evidence supporting appellants’ defense that they had paid for eleven cars Boardwalk contended had been stolen.

The week before trial, the trial court struck appellants’ defenses to Boardwalk’s commercial bribery claim for failures to produce documents in the first two categories. On the third day of trial, the trial court struck the remainder of appellants’ pleadings for failure to produce documents in the third category. During trial, the trial court excluded all of the evidence in the fourth category, including documents and the testimony of several witnesses.

The record shows discovery began at least two years before trial. On May 7, 2008, appellants responded to Boardwalk’s Second Request for Production. In request number four, Boardwalk sought documents regarding “every vehicle or vehicle transaction” between appellants and Boardwalk. 3 Although appellants objected to this request as overly broad, unduly burdensome, not reasonably calculated to lead to the discovery of admissible evidence, and requiring the creation of documents not already in existence, appellants also responded that “[d]ocuments reflecting wholesale vehicle transactions between the corporate [appellants] and Plaintiffs have already been made available to Plaintiffs for review at the offices of [appellants’] counsel.” In request number 67, Boardwalk sought “[a]ll documents that reflect or evidence each check or money order or receipt for cash received from or paid to any of the Boardwalk dealerships or any employee of the Boardwalk dealerships by any of the [appellants] or on their behalf for any transaction made the basis of this suit.” Appellants did not object to this request, and responded, “[documents that are responsive to this Request have already been made available to Plaintiffs for review at the offices of [appellants’] counsel.” In its May 23, 2011, Order on Plaintiffs’ Motion for Sanctions (the “Sanctions Order”), the trial court found that appellants “withheld and concealed the ex *626 istence of documents” responsive to these two requests.

In October 2008, Boardwalk filed a motion to compel, alleging that appellants had failed to produce cancelled checks, records of cash withdrawals for payments to Boardwalk, and credit card records. After two hearings, the trial court ordered appellants in January 2009 to produce three categories of documents: (1) “Defendants’ file copies of checks (voucher checks) pertaining to vehicles purchased from Plaintiffs; (2) “deal jackets” 4 on five specific Porsche trade-ins; and (8) “all cancelled checks, withdrawals of cash, credit card chits, American Express chits and wire transfers pertaining to vehicles purchased from Plaintiffs.”

Two weeks later, Boardwalk filed a “Motion to Enforce Order Compelling Production of Cancelled Checks,” alleging that appellants’ production of copies of approximately 350 cancelled checks was incomplete. In their response, appellants averred that “[a]t the present time, the Imagine Wholesale Defendants have produced all of the payment records for vehicles of which they are aware,” and promised to supplement if additional records were identified.

In late February, the trial court appointed an auditor to “determine (1) whether the Imagine Wholesale Defendants purchased a motor vehicle from Plaintiff dealerships as alleged by Plaintiffs, (2) whether clear title was timely tendered by the Plaintiff dealerships on such alleged purchase, and (3) whether payment was made or timely made by the Imagine Defendants on any timely cleared transaction.” The auditor issued a report in June 2009, and was able to confirm payment for all but approximately twenty of the 256 cars that were the subject of the audit. At the time of trial, this number had been reduced to eleven.

Also that summer, Boardwalk filed additional motions to compel, seeking records from nonparty Sterling Bank for an entity called “Magic Imports” and additional responsive documents from appellants. Boardwalk stated that appellants had recently claimed the transactions at issue were with Magic Imports, not appellants. The court granted the motion for Sterling Bank records.

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430 S.W.3d 620, 2014 WL 1828997, 2014 Tex. App. LEXIS 4954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/len-critcher-brett-stacy-imagine-automotive-group-v-boardwalk-motor-texapp-2014.