Marcus Brent Patterson, Individually, as Independent Administrator of the Estate of Diane Patterson, and as Next Friend of Daniel Patterson and Danae Patterson, and Danae Patterson and Daniel Patterson (Now 18 Years of Age) v. Brewer Leasing, Inc.

490 S.W.3d 205, 2016 WL 1389231, 2016 Tex. App. LEXIS 3620
CourtCourt of Appeals of Texas
DecidedApril 7, 2016
DocketNO. 01-14-00013-CV
StatusPublished
Cited by1 cases

This text of 490 S.W.3d 205 (Marcus Brent Patterson, Individually, as Independent Administrator of the Estate of Diane Patterson, and as Next Friend of Daniel Patterson and Danae Patterson, and Danae Patterson and Daniel Patterson (Now 18 Years of Age) v. Brewer Leasing, 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
Marcus Brent Patterson, Individually, as Independent Administrator of the Estate of Diane Patterson, and as Next Friend of Daniel Patterson and Danae Patterson, and Danae Patterson and Daniel Patterson (Now 18 Years of Age) v. Brewer Leasing, Inc., 490 S.W.3d 205, 2016 WL 1389231, 2016 Tex. App. LEXIS 3620 (Tex. Ct. App. 2016).

Opinion

*207 OPINION

Sherry Radack, Chief Justice

This is a bill of review proceeding. On June 30, 2015, we issued an opinion reversing and remanding the trial court’s judgment on appellants’ fraud claim. We affirmed the remainder of the judgment.

Appellant filed a motion for rehearing, which we deny. We withdraw our June 30, 2015 opinion and issue this opinion in its stead to correct a clerical error and address appellants’ arguments on rehearing. Our June 30, 2015 judgment remains unchanged.

BACKGROUND

Diane Patterson was killed on June 15, 2006 when her stationary vehicle was struck by an 18-wheeler truck driven by Charles Hitchens. Traffic had been stopped on Interstate Highway 10 by police officers escorting an oversized load onto the freeway. Witnesses testified, and the physical evidence confirmed, that Hitchens did not slow down from his 55-mile-per-hour speed before plowing into Diane’s stopped car and hitting several other vehicles.

THE 2006 LITIGATION

In Cause No.2006-76647, the Patterson family sued Hitchens, Brewer Leasing, Inc., Texas Stretch, Inc., Ray Bellew & Sons, Inc., and Williams Brothers Construction Co., Inc. for wrongful death. It alleged that Texas Stretch was the company that hired Hitchens and that related-company Brewer Leasing owned or leased the tractor-trailer combination that Hitch-ens was driving. Texas Stretch had its TxDOT number, corporate logo, US DOT number, and ICC numbers on both sides of the tractor. A sign on both sides of the cab of the tractor also contained Brewer Leasing’s TxDOT number and corporate logo, and it stated “Leased to Brewer Leasing, Inc.”

The Patterson family further alleged that defendants Ray Bellew & Sons and Williams were negligent in their oversight and moving of the large bridge beams onto the freeway that caused the freeway traffic to stop at the location of the accident. According to the Patterson family, that location was not a safe entrance ramp to bring such equipment on the freeway, and there should have been additional motorcycle police escorts used.

On March 6, 2009, Brewer Leasing, Texas Stretch, and Hitchens filed a pre-trial Joint Motion of Defendants to Exclude Evidence that Hitchens tested positive for cocaine after the accident. They represented in that motion that the amount of cocaine in Hitchens’s system had not been quantified and that there was no other evidence indicating that he was impaired. Because evidence of a drug or alcohol consumption is generally not admissible in an automobile-accident case unless there is also evidence of impairment that causes the accident, defendants argued that the positive drug test evidence should be excluded as highly prejudicial. On March 27, 2009, the trial court granted the motion to exclude this evidence.

Williams Brothers and Ray Bellew & Sons each reached settlements with the Patterson family and were released. Two days before the April 6, 2009 trial setting, the Patterson family also reached a settlement with Texas Stretch requiring money be paid to the Patterson family by or on behalf of Texas Stretch, Sagamore Insurance Company (Texas Stretch’s insurer), and Mr. A.B. Brewer (100% owner of Texas Stretch and Brewer Leasing). The terms of that agreement included:

A. Texas Stretch would pay the Patterson family $470,000 as follows: (1) $400,000 by Sagamore Insurance, *208 (2) $25,000 by Texas Stretch, and (3) $45,000 over time by Texas Stretch, personally guaranteed by Mr. Brewer;
B. Texas Stretch was released;
C. Brewer Leasing would hire Mr. Herzog (the Patterson family’s attorney) to pursue Stowers and other claims against Home State (Brewer Leasing’s insurer); and
D. Brewer Leasing would later assign its claims against Home State to the Patterson family.

Claims against Brewer Leasing were not released as part of this settlement. Also as part of the settlement terms, Mr. Brewer was released from personal liability for future payments (his personal guarantee of some of Texas Stretch’s obligation excepted) and, thus, Brewer Leasing received a Covenant to Not Execute (even though Brewer Leasing was not a party to the settlement or a released party).

The initial portion of the trial was had to the jury. During the second week, Ray Bellew & Sons settled. Hitchens had already stipulated to 100% fault and, with the Patterson’s family agreement, the jury was dismissed and the trial court heard the remainder of the evidence and closing arguments. A post-answer default judgment was taken against Brewer Leasing. The trial court’s Endings of fact and conclusions of law included the Endings that (1) Hitchens’s negligence was the sole cause of the accident, (2) Hitchens was employed by Texas Stretch, and (3) “both Brewer Leasing and Texas Stretch were, at the time of the events in question, the statutory employer of Charles Hitchens under the theory of logo liability.” On June 2, 2009, the trial court signed a final judgment (“2009 Judgment”) memorializing the resolution of all the parties and claims, applying various settlement credits, and then rendering judgment of approximately $8,000,000 in actual damages in favor of the Patterson family and against Brewer Leasing and Hitchens, jointly and severally.

After the 2009 Judgment was entered, Mr. Herzog sent a statutory demand notice to Home State, on behalf of Brewer Leasing, based on his understanding that, under the parties’ settlement agreement, he was being hired by Brewer Leasing to represent it in a Stowers suit. A dispute then arose over Mr. Herzog’s proposed fees, and Brewer Leasing ultimately refused to hire him. Later, the Patterson family received an oral assignment of Brewer Leasing’s claims against Home State, and Mr. Herzog filed suit against Home State on behalf of the Patterson family as assignees of Brewer Leasing. In October 2010, the Patterson family received a written assignment.

THE UNDERLYING BILL-OF-REVIEW PROCEEDINGS

In 2011, the Patterson family sued Brewer Leasing, alleging fraud in the 2006 litigation. Specifically, the Patterson family alleged that Brewer Leasing had concealed evidence about the large amount of cocaine in Hitchens’s system at the time of the accident. According to the Patterson family, this deception induced the trial court in the 2006 litigation to exclude the evidence that Hitchens tested positive for cocaine two hours after the accident, and induced the Patterson family to accept settlement terms that they otherwise would not have accepted.

Their bill-of-review petition alleged:

8. Plaintiffs obtained a favorable judgment [in Cause No. 2006-76647 against Brewer Leasing], but were prevented from making a meritorious claim for [punitive damages and obtaining a full recovery of actual damages by the extrin *209 sic fraud of Defendant. Defendant fraudulently concealed knowledge of the massive level of cocaine in Charles Hitchens’s system at the time the tragic auto collision occurred.

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490 S.W.3d 205, 2016 WL 1389231, 2016 Tex. App. LEXIS 3620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marcus-brent-patterson-individually-as-independent-administrator-of-the-texapp-2016.