Paul T. DeNucci v. William Moretti

CourtCourt of Appeals of Texas
DecidedApril 29, 1999
Docket03-98-00114-CV
StatusPublished

This text of Paul T. DeNucci v. William Moretti (Paul T. DeNucci v. William Moretti) 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
Paul T. DeNucci v. William Moretti, (Tex. Ct. App. 1999).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN




NO. 03-98-00114-CV

Paul T. DeNucci, Appellant


v.



William Moretti, Appellee



FROM THE DISTRICT COURT OF TRAVIS COUNTY, 201ST JUDICIAL DISTRICT

NO. 96-01767, HONORABLE MARY PEARL WILLIAMS, JUDGE PRESIDING

Paul DeNucci and William Moretti went into business together to build a golf instruction academy and a golf course. Moretti withdrew from the projects before completion. DeNucci sued Moretti for damages, asserting causes of action for breach of contract, promissory estoppel, negligent misrepresentation, fraud, and breach of fiduciary duty. The jury found in favor of DeNucci on the issues of breach of contract, promissory estoppel, and negligent misrepresentation, but the trial judge disregarded the jury's verdict and rendered judgment that DeNucci take nothing. (1) We will reverse the judgment non obstante veredicto and render judgment in favor of DeNucci.

THE CONTROVERSY

DeNucci is a businessman with interests in several corporations in the Austin area, including a golf practice facility known as the Ben White Golf Center. Moretti operates a golf instruction school at the Hills of Lakeway on Lake Travis. The two men met in October 1993 while DeNucci was a student at Moretti's school. While discussing the business of golf, Moretti explained to DeNucci that the owner of the land on which his school was located would not allow Moretti to enter into a long-term lease. Moretti expressed interest in building a permanent home for his golf instruction business.

In February 1994, DeNucci and Moretti orally agreed to go into business together to build and operate a golf instruction academy provided they found acceptable property and financing. Over the next several months, DeNucci and Moretti investigated multiple tracts of land in southeast Austin but for various reasons did not purchase any property. In November 1994, a golf professional named Danny Britt suggested they expand their project to include a member-owned, private 18-hole golf course adjacent to the proposed golf academy. DeNucci and Moretti decided to pursue this idea and concentrated their efforts on locating property large enough to accommodate both a golf academy and a golf course. In December 1994, Decucci and Moretti agreed that a 650-acre tract ("the Armstrong tract") located east of F.M. 973 near Highway 71 was suitable for their proposed development.

DeNucci and Moretti formed two corporations, Academy of Golf Development, Inc. ("the golf academy corporation") and Glenfield Development, Inc. ("the golf course corporation"), to pursue the golf academy project and the golf course project. Both DeNucci and Moretti contributed $40,000 to cover start-up costs into a checking account bearing the name of the golf course corporation. On February 8, 1995, the golf academy corporation entered into an earnest money contract with the owner of the Armstrong tract to purchase 60 acres on which to build the academy. The contract provided that subject to closing on the 60-acre tract, the golf academy corporation or its designee, the golf course corporation, had the option to purchase another 190 acres. DeNucci and Moretti intended to use the additional acreage for the construction of the golf course.

DeNucci and Moretti agreed that for the golf course project to be feasible, a minimum of 120 to 150 memberships had to be presold. On March 30, 1995, a "kickoff party" was held to promote the proposed Glenfield Golf Club. Only twenty-three people signed in at the event, and just eight people committed to join Glenfield. Shortly after the promotional party, Moretti spoke to DeNucci and expressed his doubts concerning the success of the projects. On April 29, DeNucci sent Moretti a letter detailing ways to restructure both the golf academy project and the golf course project. Moretti responded by letter on May 1. The letter informed DeNucci that Moretti was withdrawing from the projects.

After receiving Moretti's letter, DeNucci attempted to complete the projects on his own. By June 1995, DeNucci decided the projects were not economically viable and began to liquidate the corporations' assets and pay the corporations' outstanding debts. Both corporations were dissolved in December 1995. DeNucci then sued Moretti for damages.

At trial, the court submitted nineteen questions to the jury. The first thirteen questions addressed DeNucci's causes of action for breach of contract, promissory estoppel, fraud, and negligent misrepresentation. The next three questions dealt with whether a partnership existed on May 1, 1995, the date of Moretti's withdrawal, between DeNucci, Moretti, and a third investor (2) to develop "a Golf Course, Academy, and driving range." The final three questions covered whether Moretti waived claims against DeNucci; whether Moretti accepted an offer from DeNucci to be released from the project; and whether DeNucci accepted an offer from Moretti to be released from the project.

With respect to DeNucci's breach of contract claim, the jury found that: (1) Moretti and DeNucci agreed that the golf academy would be built without regard to whether the golf course was built; (2) Moretti failed to comply with the agreement; (3) Moretti's failure to comply was not excused; and (4) DeNucci suffered damages in the amount of $21,000 resulting from Moretti's failure to comply. Regarding DeNucci's promissory estoppel claim, the jury found that: (1) DeNucci substantially relied to his detriment on a promise by Moretti to develop the golf academy without regard to whether the golf course was built, and that DeNucci's reliance was foreseeable by Moretti; (2) DeNucci had not waived his promissory estoppel claim; and (3) DeNucci suffered damages in the amount of $61,610 resulting from his reliance on Moretti's promise. The jury also found that: (1) Moretti made a negligent misrepresentation on which DeNucci justifiably relied; (2) DeNucci did not waive his negligent misrepresentation claim; and (3) $65,000 would fairly and reasonably compensate DeNucci for damages proximately caused by Moretti's negligent misrepresentation.

The jury failed to find that: (1) Moretti committed fraud against DeNucci; (2) a partnership existed on May 1, 1995 between DeNucci and Moretti to develop the golf academy and the golf course; (3) Moretti waived his claim against DeNucci; (4) Moretti accepted an offer from DeNucci to be released from the project; and (5) DeNucci accepted an offer from Moretti to be released from the project.

DeNucci filed a motion electing to recover actual damages under the theory of promissory estoppel. See Boyce Iron Works, Inc. v. Southwestern Bell Tel. Co., 747 S.W.2d 785, 787 (Tex. 1988) (when jury returns favorable findings on two or more theories, party has right to judgment on theory entitling him to greatest or most favorable relief). Moretti filed a motion for judgment n.o.v. "or, alternatively, disregarding jury answers" that presented multiple grounds upon which judgment n.o.v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Mancorp, Inc. v. CULPEPPEER
802 S.W.2d 226 (Texas Supreme Court, 1990)
Ben Fitzgerald Realty Co. v. Muller
846 S.W.2d 110 (Court of Appeals of Texas, 1993)
Stephanz v. Laird
846 S.W.2d 895 (Court of Appeals of Texas, 1993)
City of Corpus Christi v. Bayfront Associates, Ltd.
814 S.W.2d 98 (Court of Appeals of Texas, 1991)
Traco, Inc. v. Arrow Glass Co., Inc.
814 S.W.2d 186 (Court of Appeals of Texas, 1991)
Boy Scouts of America v. Responsive Terminal Systems, Inc.
790 S.W.2d 738 (Court of Appeals of Texas, 1990)
Brown v. Goldstein
685 S.W.2d 640 (Texas Supreme Court, 1985)
Angelo Broadcasting, Inc. v. Satellite Music Network, Inc.
836 S.W.2d 726 (Court of Appeals of Texas, 1992)
Dowling v. NADW Marketing, Inc.
631 S.W.2d 726 (Texas Supreme Court, 1982)
English v. Fischer
660 S.W.2d 521 (Texas Supreme Court, 1983)
Burroughs Wellcome Co. v. Crye
907 S.W.2d 497 (Texas Supreme Court, 1995)
Transportation Insurance Co. v. Moriel
879 S.W.2d 10 (Texas Supreme Court, 1994)
Harbin v. Seale
461 S.W.2d 591 (Texas Supreme Court, 1970)
Coastal Plains Development Corp. v. Micrea, Inc.
572 S.W.2d 285 (Texas Supreme Court, 1978)
Fretz Construction Co. v. Southern National Bank of Houston
600 S.W.2d 878 (Court of Appeals of Texas, 1980)
Hines v. Hash
843 S.W.2d 464 (Texas Supreme Court, 1993)
Behring International, Inc. v. Greater Houston Bank
662 S.W.2d 642 (Court of Appeals of Texas, 1983)
Fretz Construction Co. v. Southern National Bank of Houston
626 S.W.2d 478 (Texas Supreme Court, 1982)
Associated Indemnity Corp. v. CAT Contracting, Inc.
964 S.W.2d 276 (Texas Supreme Court, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
Paul T. DeNucci v. William Moretti, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-t-denucci-v-william-moretti-texapp-1999.