McCulley Fine Arts Gallery, Inc. v. "X" Partners

860 S.W.2d 473, 23 U.C.C. Rep. Serv. 2d (West) 350, 1993 Tex. App. LEXIS 1707, 1993 WL 196349
CourtCourt of Appeals of Texas
DecidedJune 9, 1993
Docket08-92-00190-CV
StatusPublished
Cited by67 cases

This text of 860 S.W.2d 473 (McCulley Fine Arts Gallery, Inc. v. "X" Partners) 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
McCulley Fine Arts Gallery, Inc. v. "X" Partners, 860 S.W.2d 473, 23 U.C.C. Rep. Serv. 2d (West) 350, 1993 Tex. App. LEXIS 1707, 1993 WL 196349 (Tex. Ct. App. 1993).

Opinion

OPINION

BARAJAS, Justice.

This is an appeal and cross-appeal from the trial court’s granting of motions for summary judgment in favor of both Appellant and Appellees. McCulley Fine Arts Gallery, Inc., Appellant, originally brought its action for breach of contract and breach of fiduciary duty. The Gallery appeals the granting of summary judgment in favor of “X” Partners, a/k/a “The Texas Bunch,” David McCall, Martin Massman and Gail Cooper, Appellees. Cross-Appellant, Martin Massman, appeals the denial of his special appearance as well as the granting of summary judgment in favor of Appellant on Massman’s counterclaims. We reverse the judgment of the trial court in part and affirm it in part.

I. SUMMARY OF THE EVIDENCE

The record in the instant case shows that in the fall of 1989, the Appellees David McCall, Delwin Morton (later non-suited), Martin Massman, and Gail Cooper, constituting the partnership “ ‘X’ Partners” a/k/a “The Texas Bunch,” approached Don McCul-ley of McCulley Fine Arts Gallery, Inc. requesting that he locate paintings for the Partnership on a commission basis. It is Don McCulley’s efforts to provide the Partnership with a Van Gogh painting entitled “Roadway in a Paris Park” (the Van Gogh), which are the subject of this litigation. In December 1989, Don McCulley, acting on behalf of the Gallery, obtained an option on the Van Gogh for $3 million and offered it to the Partnership for $3.5 million which included a $500,000 commission for the Gallery. However, Appellees failed to agree to those terms and further negotiations ensued. On December 23, 1989, Don McCulley met with Appellees (in some cases, their representatives) in Gail Cooper’s office where an oral agreement was reached whereby the Gallery was asked to become a “partner” in the transaction and postpone payment of any commission until after the resale of the Van Gogh. According to the new agreement, Martin Massman, who was to fund the initial purchase, would receive $3 million upon resale, while McCulley Fine Arts Gallery, Inc. would receive the next $500,000 plus 10 per *476 cent of the profits over $8.5 million. The other partners, McCall and his father, Morton and Cooper were also to share in the profits above $3.5 million. Subsequent to that meeting, Don McCulley discontinued other efforts to sell the Van Gogh, notified the seller that the Gallery was exercising its option and took all steps necessary to close the sale of the Van Gogh to the Partnership. Despite repeated assurances that the Partnership would purchase the Van Gogh, Mass-man never provided the necessary funds to effect the purchase of the painting and, as a result, the option to purchase the painting expired. Based on the above facts, McCulley Fine Arts Gallery, Inc. filed suit against the Partnership alleging breach of contract and breach of fiduciary duty. Appellees “X” Partners, David McCall and Delwin Morton originally filed general denials but, thereafter, McCall and Morton filed specific denials as to the existence of a partnership. Appel-lee Cooper likewise filed a general denial and included various “special denials,” including a denial as to the existence of a partnership. Massman, a California resident, responded to the petition on April 4, 1990 by filing a special appearance. Massman’s special appearance was denied on February 18, 1991 which resulted in his filing his answer denying liability. Massman additionally counterclaimed for fraud, violations of the Deceptive Trade Practices Act, breach of good faith and fair dealing, violations of Rule 13 of the Texas Rules of Civil Procedure and attorneys’ fees. On August 8, 1991, Massman filed his motion for summary judgment. Ap-pellees McCall and Cooper likewise filed their motions for summary judgment. All of Appellees’ motions for summary judgment were granted by the trial court. The Gallery filed its motion for summary judgment on Massman’s counterclaims, which was likewise granted by the trial court. Thus, the Gallery and Massman each appeal the granting of summary judgment against them on their respective claims. Massman further appeals the denial of his special appearance.

II. DISCUSSION

In its first two points, the Gallery assigns error to the trial court’s granting of the defendants’ motions for summary judgment on its action for breach of contract. Specifically, the Gallery alleges the trial court erred: (1) in holding that there are no material fact issues as to the existence of a contract between it and defendants; and (2) in holding that there are no material fact issues with respect to its breach of contract claim against defendants.

The standard of review on appeal is whether the successful movant at the trial level carried its burden of showing that there is no genuine issue of material fact and that a judgment should be granted as a matter of law. Lear Siegler, Inc. v. Perez, 819 S.W.2d 470, 471 (Tex.1991); Nixon v. Mr. Property Management Co. Inc., 690 S.W.2d 546, 548 (Tex.1985); Hernandez v. Kasco, 832 S.W.2d 629 (Tex.App. — El Paso 1992, no writ); Marsh v. Travelers Indem. Co. of Rhode Island, 788 S.W.2d 720 (Tex.App. — El Paso 1990, writ denied). Thus, the question on appeal is not whether the summary judgment proof raises fact issues as to required elements of the movant’s cause or claim, but whether the summary judgment proof establishes, as a matter of law, that there is no genuine issue of material fact as to one or more elements of the movant’s cause or claim. Gibbs v. General Motors Corp., 450 S.W.2d 827, 828 (Tex.1970).

In resolving the issue of whether the mov-ant has carried this burden, all evidence favorable to the non-movant must be taken as true and all reasonable inferences, including any doubts, must be resolved in the non-movant’s favor. Nixon, 690 S.W.2d at 548-49; Stoker v. Furr’s, Inc., 813 S.W.2d 719, 721 (Tex.App. — El Paso 1991, writ denied). Where the defendants are the movants and they submit summary evidence disproving at least one essential element of each of plaintiffs causes of action, then summary judgment should be granted. Perez, 819 S.W.2d at 471; Bradley v. Quality Service Tank Lines, 659 S.W.2d 33, 34 (Tex.1983); Rayos v. Chrysler Credit Corp., 683 S.W.2d 546, 547 (Tex.App. — El Paso 1985, no writ).

In the instant case, in order to prevail on their motion for summary judgment, Appel-lees were required to disprove any one of the *477 following essential elements of the breach of contract claim brought by the Gallery:

(i) a valid contract between the Gallery and defendants;
(ii) performance or tender of performance by the Gallery;
(iii) breach of the agreement by the Appel-lees; and

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860 S.W.2d 473, 23 U.C.C. Rep. Serv. 2d (West) 350, 1993 Tex. App. LEXIS 1707, 1993 WL 196349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcculley-fine-arts-gallery-inc-v-x-partners-texapp-1993.