Pante Technology Corporation v. Austin Concrete Solutions, Inc.

CourtCourt of Appeals of Texas
DecidedOctober 7, 2010
Docket03-10-00059-CV
StatusPublished

This text of Pante Technology Corporation v. Austin Concrete Solutions, Inc. (Pante Technology Corporation v. Austin Concrete Solutions, 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
Pante Technology Corporation v. Austin Concrete Solutions, Inc., (Tex. Ct. App. 2010).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN




NO. 03-10-00059-CV

Panté Technology Corporation, Appellant



v.



Austin Concrete Solutions, Inc., Appellee



FROM THE DISTRICT COURT OF TRAVIS COUNTY, 261ST JUDICIAL DISTRICT

NO. D-1-GN-09-000809, HONORABLE STEPHEN YELENOSKY, JUDGE PRESIDING

M E M O R A N D U M O P I N I O N



Appellee Austin Concrete Solutions, Inc. ("Austin") sued Christopher M. Steele and appellant Panté Technology Corporation ("Panté") for fraud and breach of contract. Austin later dropped its suit against Steele, but Panté filed a cross-claim against Steele for breach of fiduciary duty. The jury found that Panté entered into and breached a contract with Austin, but did not commit fraud. The jury also found that Steele did not breach his fiduciary duty to Panté. The trial court rendered judgment consistent with the jury's findings. Panté appeals in five issues, asserting that (1) the evidence was legally and factually insufficient to support the jury's finding that Panté entered into a contract with Austin, and (2) the evidence conclusively showed that Steele breached his fiduciary duty to Panté, or in the alternative, the jury's finding that Steele did not breach his fiduciary duty is against the great weight and preponderance of the evidence. We will affirm the trial court's judgment.



FACTUAL AND PROCEDURAL BACKGROUND

Seeking to diversify its investment portfolio, Panté, a provider of technology services and products, decided to invest in real estate by building high-end houses. Lacking experience in the building trade, Panté sought to partner with professionals who had construction expertise. Martin Ward, Panté's president, testified that he identified four knowledgeable building professionals with whom he wanted to partner, one of whom was Steele, a construction expert Ward knew from Steele's work for another builder. When he learned that Steele was nearing the end of a construction project with his then-current employer, Ward approached Steele about working with Panté on several building projects.

The exact nature of Steele's relationship with Panté was unclear. Ward testified that he and Steele envisioned working together, "building a better mousetrap" by creating a "team concept . . . by bringing together more partnerships and builders . . . to work on one single project or multiple projects having multiple project managers." According to Ward, Steele shared his enthusiasm for this apparently novel approach to home-building, and the two men began discussing plans for collaborating on their first building project in a new subdivision near Lake Travis called Spanish Oaks ("the project"). Ward testified that Steele originally suggested that he (Steele) act as general contractor on the project and that Panté take the role of "owner" or financier. Ward, however, envisioned having more control over the day-to-day aspects of the project and, according to his testimony, specifically wanted to retain control over the hiring of contractors and subcontractors. Steele testified that in practice, his company, Construction & Company, made the day-to-day decisions, paid the various suppliers and subcontractors directly, and submitted the invoices to Panté for reimbursement. Steele testified that he had no direct financial investment in the project apart from his time, for which he received a "salary" or "fee"--the parties disagree on the label--of roughly $9,200 per month. Although Steele and Panté never entered into a written contract to define the parties' precise roles with respect to the project, it is undisputed that Steele was affiliated with Panté and had authority to act on its behalf for some purposes.

The extent of that authority is central to the dispute here. The parties agree that Steele had Panté's authority to purchase the lot in Spanish Oaks, clear it, and prepare it for the foundation to be poured. Panté asserted that, after those tasks were complete, "Ward repeatedly instructed Steele not to enter in contracts on behalf of Panté, never authorized Steele to enter into [the contract at issue here], and repeatedly instructed him to stop all work that had been started on the [Spanish Oaks project]." Steele testified differently. He stated that, despite receiving several e-mails from Ward instructing him to stop building, Ward orally repudiated his e-mailed instructions and instructed Steele to continue building the foundation.

Austin, a concrete subcontractor that Steele hired to build the house's foundation, completed a large part of the foundation per the contract, but Panté refused to pay for most of the work done. Austin sued Steele and Panté for breach of contract and fraud. Panté answered and asserted that it was not liable to Austin because Steele was not acting as Panté's agent when he contracted with Austin. Panté also filed a cross-claim against Steele asserting that if Steele was found to be Panté's agent, he breached his fiduciary duty to Panté by contracting with Austin. Panté asserted that Steele put his own interests--having a finished "show house" ready in time for the Parade of Homes (1)--ahead of Panté's financial interest by not soliciting additional bids for the foundation and by continuing to build the foundation after being ordered to stop. Before trial, Austin dropped its claims against Steele. The jury returned a verdict in favor of Austin on the breach-of-contract claim and in favor of Steele on Panté's fiduciary-duty claim against him. The trial court rendered judgment consistent with the verdict and denied Panté's motion for new trial. Panté filed this appeal.



STANDARD OF REVIEW

In reviewing a jury verdict for legal sufficiency, we consider the evidence in the light most favorable to the verdict, crediting evidence favorable to the verdict if reasonable jurors could and disregarding contrary evidence unless reasonable jurors could not. City of Keller v. Wilson, 168 S.W.3d 802, 827 (Tex. 2005). We reverse the court's judgment only if the evidence presented at trial would not allow reasonable and fair-minded jurors to reach the finding under review. Id. We will sustain a legal-sufficiency challenge if the record reveals: (1) the complete absence of evidence of a vital fact; (2) that the court is barred by rules of law or evidence from giving weight to the only evidence offered to prove a vital fact; (3) that the evidence offered to prove a vital fact is no more than a mere scintilla; or (4) that the evidence conclusively establishes the opposite of a vital fact. Id. at 810. More than a scintilla of evidence exists when reasonable and fair-minded people could differ in their conclusions based on the evidence in the record. Forbes, Inc. v. Granada Biosciences, 124 S.W.3d 167, 172 (Tex. 2003).

"When reviewing a jury verdict to determine the factual sufficiency of the evidence, the court of appeals must consider and weigh all the evidence, and should set 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

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Pante Technology Corporation v. Austin Concrete Solutions, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/pante-technology-corporation-v-austin-concrete-sol-texapp-2010.