Medical Specialist Group, P.A. v. Radiology Associates, L.L.P.

171 S.W.3d 727, 2005 WL 2090892
CourtCourt of Appeals of Texas
DecidedAugust 31, 2005
Docket13-02-275-CV
StatusPublished
Cited by35 cases

This text of 171 S.W.3d 727 (Medical Specialist Group, P.A. v. Radiology Associates, L.L.P.) 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
Medical Specialist Group, P.A. v. Radiology Associates, L.L.P., 171 S.W.3d 727, 2005 WL 2090892 (Tex. Ct. App. 2005).

Opinions

OPINION

Opinion by

Justice GARZA.

Appellant, Medical Specialist Group, P.A., d/b/a Saratoga Medical Center (“Saratoga”), sued appellees, Radiology Associates, L.L.P., and each of its individual partners (collectively “Radiology Associates”), for breach of fiduciary duty, conversion of a trade secret, and antitrust violations. Radiology Associates counterclaimed that Saratoga’s antitrust claims were groundless and brought in bad faith and requested attorney’s fees and litigation expenses. Prior to trial, Saratoga abandoned its antitrust claims. A jury found against Saratoga, and the trial court signed a take-nothing judgment. On appeal, Saratoga raises four legal and factual sufficiency issues. In a cross-appeal, Radiology Associates asserts the trial court erred in finding that Saratoga’s antitrust claims were not groundless and brought in bad faith. We affirm.

A. Factual BACKGROUND

Saratoga is owned and operated by Dr. Jairo Puentes. In June 1997, Saratoga entered into a contract with Radiology Associates to conduct and interpret radiological procedures performed at Saratoga’s facility. According to the contract, Radiology Associates had the exclusive right to read Saratoga’s MRI films during the contract term. The contract did not contain a non-compete clause, nor was such a clause ever discussed between the parties.

In early 1998, Dr. Tamara Haygood, a partner in Radiology Associates, obtained a computer printout from Saratoga’s MRI technician that included the number of MRI procedures performed by Saratoga in November and December 1997, and the names of the referring physicians. In April 1998, Radiology Associates purchased an MRI machine and started performing MRI procedures. Radiology Associates continued to perform radiological services for Saratoga until December 31, 1998, the end of the contract term.

B. Legal and Factual Sufficiency

In its second and third issues, Saratoga contends the evidence is legally insufficient to support the jury’s answers to Questions One and Three of the court’s charge, and the evidence conclusively established, as a matter of law, the alternative answers. In its first and fourth issues, Saratoga contends the jury’s answers to Questions One and Three of the court’s charge are contrary to the great weight and preponderance of the evidence and are manifestly unjust.

1. Standard of Review

When a party attacks the legal sufficiency of an adverse finding on which it has the burden of proof, the party must demonstrate on appeal that the evidence establishes, as a matter of law, all vital facts in support of the issue. Dow Chem. Co. v. Francis, 46 S.W.3d 237, 241 (Tex.2001); Pearson v. DeBoer, 99 S.W.3d 273, 275 (Tex.App.-Corpus Christi 2003, no pet.). When we review a “matter of law” challenge, we first examine the record for evidence that supports the finding and ignore all evidence to the contrary. Dow Chem. Co., 46 S.W.3d at 241; Pearson, 99 S.W.3d at 275. If there is no evidence to [730]*730support the finding, we examine the entire record to determine if the contrary proposition is established as a matter of law. Dow Chem. Co., 46 S.W.3d at 241; Pearson, 99 S.W.3d at 275. The issue should be sustained only if the contrary proposition is conclusively established. Dow Chem. Co., 46 S.W.3d at 241; Pearson, 99 S.W.3d at 275.

When a party attacks the factual sufficiency of an adverse finding on an issue on which it has the burden of proof, the party must demonstrate on appeal that the adverse finding is against the great weight and preponderance of the evidence. Dow Chem. Co., 46 S.W.3d at 242; Pearson, 99 S.W.3d at 275. We must consider and weigh all of the evidence, and can set aside a verdict only if the evidence is so weak or if the finding is so against the great weight and preponderance of the evidence that it is clearly wrong and unjust. Dow Chem. Co., 46 S.W.3d at 242; Pearson, 99 S.W.3d at 275. If we set aside a verdict, we must “detail the evidence relevant to the issue” and “state in what regard the contrary evidence greatly outweighs the evidence in support of the verdict.” Dow Chem. Co., 46 S.W.3d at 242 (quoting Pool v. Ford Motor Co., 715 S.W.2d 629, 630 (Tex.1986)); Pearson, 99 S.W.3d at 275.

2. Fiduciary Relationship

Question One of the trial court’s charge asked the jury: “Did a relationship of trust and confidence exist between Jairo Puentes, M.D., and Radiology Associates before June 17, 1997 and between Sarato-ga Medical Center and Radiology Associates after said date?” The jury answered “No” to this question.

Saratoga contends the evidence presented to the jury conclusively established, as a matter of law, that Dr. Puentes held Radiology Associates in a position of trust and confidence to act in his best interests and in the best interest of Saratoga. Sara-toga also contends the jury’s answer to Question One is contrary to the great weight and preponderance of the evidence and is manifestly unjust.

Whether a confidential or fiduciary relationship exists is normally a question of fact to be decided by the jury. Procom Energy, L.L.A. v. Roach, 16 S.W.3d 377, 382 (Tex.App.-Tyler 2000, pet. denied); Hoggett v. Brown, 971 S.W.2d 472, 488 (Tex.App.-Houston [14th Dist.] 1997, pet. denied); Farah v. Mafrige & Kormanik, P.C., 927 S.W.2d 663, 675 (Tex.App.-Houston [1st Dist.] 1996, no writ). When the issue is one of no evidence or conclusive evidence, the issue is a question of law. Farah, 927 S.W.2d at 675.

If not a recognized formal fiduciary relationship, the question of whether an informal fiduciary relationship exists is to be determined from the actualities of the relationship between the persons involved. See Thigpen v. Locke, 363 S.W.2d 247, 253 (Tex.1962); Dominguez v. Brackey Enters., Inc., 756 S.W.2d 788, 791 (Tex.App.-El Paso 1988, writ denied). Such a relationship may arise where one person trusts in and relies on another, whether the relation is a moral, social, domestic, or purely personal one. Schlumberger Tech. Corp. v. Swanson, 959 S.W.2d 171, 176 (Tex.1997); see Thigpen, 363 S.W.2d at 253. However, a fiduciary relationship is an extraordinary one and will not be lightly created; mere subjective trust does not convert an arms-length transaction into a fiduciary relationship. See Thigpen, 363 S.W.2d at 253; Schlumberger Tech. Corp., 959 S.W.2d at 177; see also Crim Truck & Tractor Co. v. Navistar Int’l Transp. Corp., 823 S.W.2d 591

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