Mohammed T. Jamshed v. McLane Express, INC. D/B/A the C. D. Hartnett Company

449 S.W.3d 871, 2014 Tex. App. LEXIS 12203, 2014 WL 5794613
CourtCourt of Appeals of Texas
DecidedNovember 7, 2014
Docket08-13-00101-CV
StatusPublished
Cited by13 cases

This text of 449 S.W.3d 871 (Mohammed T. Jamshed v. McLane Express, INC. D/B/A the C. D. Hartnett Company) 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
Mohammed T. Jamshed v. McLane Express, INC. D/B/A the C. D. Hartnett Company, 449 S.W.3d 871, 2014 Tex. App. LEXIS 12203, 2014 WL 5794613 (Tex. Ct. App. 2014).

Opinion

OPINION

YVONNE T. RODRIGUEZ, Justice.

This is an appeal from a final judgment in favor of Appellee McLane Express, Inc. D/B/A The C.D. Hartnett Company (“Hartnett”) against Appellant Mohammed T. Jamshed on his personal guaranty of an open account for his business, Shawn & Sameer, Inc. (“S & S”). Appellant raises four issues for review. For the reasons that follow, we affirm. 1

BACKGROUND

In 2004, Appellant signed a credit application with Hartnett, a wholesale food distributor, on behalf of S & S. As part of the application, Appellant attached a document listing the different store locations owned and operated by S & S. Under the section listing Appellee’s conditions for extension of credit, Appellant signed the application and identified himself as the president of the company. Below that section is a section titled “Individual Personal Guaranty” which Appellant also signed. In pertinent part, the section provides:

INDIVIDUAL PERSONAL GUARANTY

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(Hereinafter referred to as the “Company”) of which I am (Title): President, hereby personally guarantee to The CD. Hartnett Company, payment of any obligation of the Company and I hereby agree to bind myself to pay you on demand, any sum which may become due to you by the Company whenever the Company shall fail to pay the same. It is understood that this guaranty shall be continuing and irrevocable guaranty and indemnity for such indebtedness of the Company. I hereby waive notice of default, non-payment, and notice thereof and consent to any modification or renewal of the credit agreement hereby guaranteed and to all renewals of exten *876 sion of credit. The undersigned guarantor agrées to pay in the event the amount becomes delinquent and is turned over to an attorney for collection, reasonable attorney’s fees, plus all attendant collection costs.

At trial, Stephen Milliken, Hartnett’s president, explained that Hartnett would not extend credit terms to a prospective customer until the credit application was completed and signed by the customer. It was Hartnett’s general policy to require a personal guaranty from the owner of its corporate entity customers. The personal guaranty executed by Appellant was required before Hartnett would extend credit to S & S. Milliken personally approved the credit application signed by Appellant for S & S.

As a result of S & S’s credit application, Hartnett sold and delivered product and merchandise to S & S on credit terms. Hartnett assigned each S & S store receiving product an individual account number which was tied to S & S’s master account. When S & S became delinquent on its open account, Hartnett sent Appellant a demand letter reminding Appellant of his personal guaranty and demanding immediate payment. S & S failed to make payment to Hartnett. Milliken testified that S & S filed bankruptcy and at that time it owed Hartnett $91,817.67.

Hartnett sued Appellant on the personal guaranty seeking to recover the unpaid balance of S & S’s open account and attorney’s fees. Alternatively, Hartnett alleged Appellant was liable under the doctrine of quantum meruit. Appellant responded to the suit with a general denial and asserted various affirmative defenses. After a bench trial, the trial court entered judgment in favor of Hartnett, ordered Hart-nett recover $91,817.67 from Appéllant, and awarded $59,235 in attorney’s fees to Hartnett. Appellant then moved for a new trial. This appeal followed.

DISCUSSION

In four issues on appeal, Appellant contends (1) the alleged personal guaranty he signed was not enforceable; (2) Appellant’s liability is limited to the debts incurred by S & S for stores located in Territory 62; (3) Hartnett failed to establish each element of its cause of action with competent evidence; and (4) the trial court erred in granting Hartnett attorney’s fees. In essence, Appellant is challenging the legal and factual sufficiency of the evidence and both parties cite to the proper standards of review.

Standard of Review

In a bench trial, without findings of fact or conclusions of law, the trial court’s judgment implies all findings of fact necessary to support it. Holt Atherton Indus., Inc. v. Heine, 835 S.W.2d 80, 83-84 (Tex.1992); In re M.C.T., 250 S.W.3d 161, 172 (Tex.App.—Fort Worth 2008, no pet.); Alford v. Johnston, 224 S.W.3d 291, 296 (Tex.App.—El Paso 2005, pet. denied). When a reporter’s record is provided, as in this case, these implied findings are not conclusive, and may be challenged by legal and factual sufficiency of the evidence issues. M.C.T., 250 S.W.3d at 172; Alford, 224 S.W.3d at 296.

In conducting a legal sufficiency review, we consider evidence in the light most favorable to the trial court’s findings and indulge every reasonable inference that would support them. City of Keller v. Wilson, 168 S.W.3d 802, 822 (Tex.2005). We credit favorable evidence if a reasonable fact finder could and disregard contrary evidence unless a reasonable fact finder could not. Id. at 827. However, in a factual sufficiency review, we consider and weigh all of the evidence and -will “set *877 aside the verdict only if it is so contrary to the overwhelming weight of the evidence as to be clearly wrong and unjust.” Cain v. Bain, 709 S.W.2d 175, 176 (Tex.1986). In conducting our reviews, we are mindful that the trier of fact is the sole judge of the credibility of the witnesses and the weight to give their testimony, and that it is within his exclusive province to resolve any conflicts in the evidence. City of Keller, 168 S.W.3d at 819; Precision Homes, Inc. v. Cooper, 671 S.W.2d 924, 929 (Tex.App.—Houston [14th Dist.] 1984, writ ref'd n.r.e.).

Law Applicable to Guaranty Agreements

A guaranty creates a secondary obligation under which the guarantor promises to answer for the debt of another and may be called upon to perform once the primary obligor fails to perform. Anderton v. Cawley, 378 S.W.3d 38, 46 (Tex.App.—Dallas 2012, no pet.) (quoting Dann v. Team Bank, 788 S.W.2d 182, 183 (Tex.App.—Dallas 1990, no writ)). A plaintiff asserting a guaranty claim must establish: (1) the existence and ownership of the guaranty, (2) the terms of the underlying contract by the holder, (3) the occurrence of the conditions upon which liability is based, and (4) the failure or refusal to perform the promise by the guarantor. See Gold’s Gym Franchising LLC v. Brewer, 400 S.W.3d 156, 160 (Tex.App.—Dallas 2013, no pet.); Wiman v. Tomaszewicz, 877 S.W.2d 1

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449 S.W.3d 871, 2014 Tex. App. LEXIS 12203, 2014 WL 5794613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mohammed-t-jamshed-v-mclane-express-inc-dba-the-c-d-hartnett-texapp-2014.