Marshall Hodges D/B/A Guaranteed Printing Supply and Rhon Rommer v. Jitendra Rajpal

459 S.W.3d 237, 2015 Tex. App. LEXIS 1946, 2015 WL 870729
CourtCourt of Appeals of Texas
DecidedFebruary 27, 2015
Docket05-13-01413-CV
StatusPublished
Cited by15 cases

This text of 459 S.W.3d 237 (Marshall Hodges D/B/A Guaranteed Printing Supply and Rhon Rommer v. Jitendra Rajpal) 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
Marshall Hodges D/B/A Guaranteed Printing Supply and Rhon Rommer v. Jitendra Rajpal, 459 S.W.3d 237, 2015 Tex. App. LEXIS 1946, 2015 WL 870729 (Tex. Ct. App. 2015).

Opinion

OPINION

Opinion by

Justice Fillmore

Marshall, Hodges, individually and d/b/a Guaranteed Printing Supply, 2 and Rhon Rommer (collectively “appellants”) assert the trial court erred by granting a judgment notwithstanding the verdict (JNOV) because appellee Jitendra Rajpal did not file a motion for JNOV, request that jury findings be disregarded, or request that the trial court enter judgment contrary to any of the jury findings; appellants had standing to assert their fraud, breach of contract, and breach of fiduciary duty claims; appellee did not seek judgment based on a purported failure of appellants to make an election of remedies; there was legally sufficient evidence of damages to support appellants’ claims of breach of contract, fraud, and breach of fiduciary duty; and judgment based on a statute of ■limitations defense was improper. Appel *240 lants also assert the trial court abused its discretion by denying their motion to modify the judgment or, alternatively, for a new trial, and they are entitled to attorney’s fees and pre-judgment interest. We affirm the trial court’s judgment.

Background

Factual Background 3

In late 2003, appellants were approached by a mutual acquaintance of Hodges and Rajpal, attorney E. Carter Crook, concerning a potential investment opportunity involving the purchase of a hotel, the Green-ville Days Inn in Greenville, Texas (the Greenville property). Appellants visited the Greenville property and discussed the investment opportunity with Rajpal. Raj-pal told appellants the Greenville property would be purchased, renovated, reflagged, 4 and resold for profit.

To facilitate investment in the Greenville property, Crook signed on behalf of appellants, pursuant to a power of attorney, an Agreement of Limited Partnership of Greenville Travelers, L.P. (the Greenville limited partnership agreement). According to the terms of the Greenville limited partnership agreement, appellants and Rajpal were limited partners. Rajpal was also the president and sole shareholder of Prospera Hospitality Group, Inc. (Prosp-era Hospitality), the general partner of Greenville Travelers, L.P. Along with other investors that included Rajpal, appellants each contributed $50,000 of investment capital to Greenville Travelers, L.P. In December 2003, the Greenville property was purchased by Greenville Travelers, L.P.

In February 2004, Rajpal approached appellants regarding a potential investment opportunity involving, the purchase of another hotel, the Holiday Inn in Sulphur Springs, Texas (the Sulphur Springs property). Rajpal told appellants the Sulphur Springs property would require renovation but likely not be reflagged, 5 and would be resold for profit. In April 2004, Rajpal formed Sulphur Springs Travelers, L.P. Rajpal was a limited partner of Sulphur Springs Travelers, L.P., and although neither Hodges nor Rommer signed the Agreement of Limited Partnership of Sul-phur Springs Travelers, L.P. (the Sulphur Springs limited partnership agreement), it was stipulated at trial that appellants were limited partners of Sulphur Springs Travelers, L.P. Prospera Sulphur Springs, Inc. (Prospera Sulphur Springs) was the general partner of Sulphur Springs Travelers, L.P., and Rajpal was the president and sole shareholder of Prospera Sulphur Springs. Along with other investors that included Rajpal, appellants each contributed $56,000 of investment capital to Sulphur Springs Travelers, L.P. The Sulphur *241 Springs property was purchased in April 2004 by Sulphur Springs Travelers, L.P.

By June 2004, appellants had each received a copy of the Greenville limited partnership agreement and were concerned that the document did not conform to the verbal agreement they had with Rajpal regarding the Greenville property. Specifically, the limited partnership agreement did not provide them a lien on, or some form of security interest in, the Greenville property. Appellants also found the Greenville limited partnership agreement deficient because it provided there would be no return of their capital contributions unless funds sufficient for that distribution were generated by operations or sale of the hotel. Appellants’ objections to the Greenville limited partnership agreement were made known to Rajpal at that time. •

Within months of the April 2004 purchase of the Sulphur Springs property, appellants each received a copy of the the Sulphur Springs limited partnership agreement. Appellants were dissatisfied with the terms of the Sulphur Springs limited partnership agreement because it did not provide them a lien on, or some form of security interest in, the Sulphur Springs property.

According to Hodges, in the summer of 2005, Rajpal approached appellants concerning a potential contract for the sale of the Sulphur Springs property and inquired whether they wanted to utilize their capital invested in Sulphur Springs Travelers, L.P. for the purchase of another hotel property in Tyler, Texas. 6 Appellants advised Rajpal that they were not interested • in investing in another hotel property and, upon the sale of the Sulphur Springs property, they wanted their capital contribution's returned along with their share of any profit arising from the sale of the property. Appellants recovered only their $56,000 capital contributions following the May 2005 sale of the Sulphur Springs property.

The Greenville property was sold by Greenville Travelers, L.P. in December 2006. Appellants did not recover their $50,000 capital contributions to Greenville Travelers, L.P. following the sale of the Greenville property.

Claims Submitted to Jury and Jury’s Findings

Appellants filed suit against Rajpal in June 2009 alleging numerous causes of action arising from their investments in Greenville Travelers, L.P. and Sulphur Springs Travelers, L.P. 7 Of the causes of action alleged in appellants’ live pleading at the time of trial, their claims of breach of contract with regard to the Greenville limited partnership agreement, fraud arising from their investments in Greenville Travelers, L.P., and breach of fiduciary duty with regard to the Greenville and Sulphur Springs properties were submitted to the jury. The jury found in favor of appellants on three causes of action: *242 breach of contract, fraud, and breach of fiduciary duty relating to Greenville property.

With regard to breach of contract, the jury found Rajpal failed to comply with one or more material terms of .the Green-ville limited partnership agreement and awarded $20,000 to each appellant for damages that resulted from that failure. Breach of contract damages were based upon appellants’ “reliance interest,” defined by the jury charge as the “amount of money that [appellants] paid to enter into the Greenville Travelers Limited Partnership Agreement.” The jury awarded $140,000 to each appellant as reasonable and necessary attorney’s fees related to appellants’ breach-of-contract claims.

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Cite This Page — Counsel Stack

Bluebook (online)
459 S.W.3d 237, 2015 Tex. App. LEXIS 1946, 2015 WL 870729, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-hodges-dba-guaranteed-printing-supply-and-rhon-rommer-v-texapp-2015.