Mandril v. Kasishke

620 S.W.2d 238, 1981 Tex. App. LEXIS 3993
CourtCourt of Appeals of Texas
DecidedJuly 31, 1981
Docket9268
StatusPublished
Cited by50 cases

This text of 620 S.W.2d 238 (Mandril v. Kasishke) 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
Mandril v. Kasishke, 620 S.W.2d 238, 1981 Tex. App. LEXIS 3993 (Tex. Ct. App. 1981).

Opinion

DODSON, Justice.

A. T. Mandril brought this action against Coraldale Kasishke for alleged breaches of two contracts between the parties. In his action, Mr. Mandril alleged that Mrs. Ka-sishke overcharged him for gasoline and diesel fuel purchased under the agreements. Mrs. Kasishke generally denied Mr. Mandril’s allegations and alleged several affirmative defenses such as voluntary payment, laches, estoppel, waiver, modification, breach of contract, setoff and voidness. The case was tried with a jury. Based on the jury’s answers to certain special issues, the trial court rendered a take-nothing judgment on Mr. Mandril’s cause of action against Mrs. Kasishke. Mr. Mandril appeals from the judgment. We reverse and render.

On 23 February 1970, a partnership consisting of Mr. Mandril and Roger Gruhlkey leased a service station from Mrs. Ka-sishke. 1 The station was designed and used as a truck stop and was known as “Texaco Truck Town.” The lease agreement was for a term of five years beginning 1 March *241 1970 and ending 28 February 1975. 2 The monthly rental for the premises was computed on a “cents-per-gallon-of-fuel-sold” basis with a minimum rental of $2,000 per month. In addition, the partnership agreed to purchase, and Mrs. Kasishke (or her nominee) agreed to supply, certain types of gasoline, kerosene and diesel fuel. The prices for these products were variable and, in one way or another, were tied to the “posted tank wagon price of” or the “amount of any increase posted by” the supplier of Mrs. Kasishke. The partnership also agreed (as a “covenant”) to purchase all petroleum products, automobile parts and accessories, and merchandise from Mrs. Kasishke or her nominee to the exclusion of any other supplier. Finally, the parties agreed that, after the first year of the lease, either party may terminate the agreement with 180-days notice if the partnership failed to purchase an average of 150,000 gallons of fuel per month for any consecutive 12-month period.

On 28 February 1975, the parties executed a second lease agreement for the truck stop. This agreement was for a term of one year beginning 1 March 1975 and ending on the last day of February 1976. Again, the monthly rental was computed on a “cents-per-gallon-of-fuel-sold” basis with a minimum rental of $3,000 per month. The parties maintained the same, exclusive purchase arrangement as before. The prices for fuels were Mrs. Kasishke’s prevailing price to her customers adjusted by any increases or decreases by Mrs. Ka-sishke’s supplier. There was no minimum fuel sales requirement.

In response to special issues one, two and three, the jury found that Mrs. Kasishke overcharged Mr. Mandril a total amount of $22,403.89 for the sale of gasoline and diesel fuel under the agreements; in issues four and five, that Mr. Mandril voluntarily paid the invoices for gasoline and diesel fuel delivered to him, although he was convinced at the time he was being overcharged, but that he did so without knowledge of all the material facts concerning the overcharges; and, in issue six, that through their course of dealings the parties did not modify or adjust the prices provided for in the 23 February 1970 agreement.

In issue seven, the jury found that Mr. Mandril or one of his agents, servants, or employees signed written invoices agreeing to pay the amounts charged for gasoline and diesel fuel delivered to him during the period in question; in issue eight, that by his conduct, Mr. Mandril did not waive any right he had to recover for the alleged overcharges; and, in issue nine, that Mr. Mandril failed to purchase from P-K Supply, Inc. (Mrs. Kasishke’s nominee) all of his oils, washing compounds, automobile and truck parts and accessories, and other merchandise that P-K Supply, Inc. could have sold and delivered or could have caused to be sold and delivered during the period in question.

In issues ten and eleven, the jury found that Mr. Mandril unreasonably delayed bringing this lawsuit and that the unreasonable delay hindered Mrs. Kasishke in the defense of this lawsuit. In issues twelve and thirteen, the jury also found that by his conduct, Mr. Mandril led Mrs. Kasishke reasonably to believe that he would not insist upon strict performance under the 23 February 1970 contract and that she relied upon his conduct by continuing to provide gasoline and diesel to him.

Mr. Mandril brings fifteen points of error. By his first four points, he maintains that the trial court erroneously failed to disregard the jury’s answers to special issues ten and eleven, i. e., the laches issues; that, as a matter of law, the defense of laches was never an issue in the case; and that the evidence is legally and factually insufficient to support the jury’s answers to the laches issues.

The parties agree that laches is an affirmative defense and that two of the essential elements of laches are: (1) an *242 unreasonable delay by one having legal or equitable rights in asserting them; and (2) a good faith change of position by another to his detriment because of the delay. City of Fort Worth v. Johnson, 388 S.W.2d 400, 403 (Tex.1964). The burden of proving the essential elements of laches is on the party asserting it, and the failure to prove any one or more of the elements is fatal. Id. Furthermore, Mr. Mandril filed his action within the applicable statute of limitations period. In Barfield v. Howard M. Smith Co. of Amarillo, 426 S.W.2d 834, 840 (Tex.1968), the Court acknowledged and stated the following settled principle: “Generally in the absence of some element of estoppel or such extraordinary circumstances as would render inequitable the enforcement of petitioners’ right after a delay, laches will not bar a suit short of the period set forth in the limitation statute.” (Emphasis added).

In support of his position, Mr. Mandril, in essence, claims that the evidence is legally and factually insufficient to support a finding that Mrs. Kasishke made a good faith change of position to her detriment because of any delay by him in bringing this action. Conversely, Mrs. Kasishke contends that the record supports such a finding in that: (1) she was “lulled” into not exercising her right to terminate the agreement for his failure to purchase 150,000 gallons of fuel per month as a result of his continuing to order, receive and pay for fuels at the prices charged; (2) Mr. Mandril destroyed or materially hindered proof of a substantial counterclaim or setoff for lost profits; and (3) a material witness for Mrs. Ka-sishke died before the trial of this case.

The record shows that Mr. Mandril, more often than not, failed to meet the minimum purchase requirement of 150,000 gallons of fuel per month; that as early as 1973 he thought he was being overcharged; that he told Mrs. Kasishke that he was being overcharged; that she did not acknowledge any overcharges and told him he was being treated fairly; that she thought he was satisfied; and that she continually pushed him to increase his volume of fuel sales. As stated in Barfield, 426 S.W.2d at 840: “As a party to arm’s length business transactions, respondent had a duty to use ordinary care for the protection of its own interests . ..

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Bluebook (online)
620 S.W.2d 238, 1981 Tex. App. LEXIS 3993, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mandril-v-kasishke-texapp-1981.