Playoff Corp. v. Blackwell

300 S.W.3d 451, 2009 Tex. App. LEXIS 8382, 2009 WL 3490865
CourtCourt of Appeals of Texas
DecidedOctober 29, 2009
Docket2-06-249-CV
StatusPublished
Cited by57 cases

This text of 300 S.W.3d 451 (Playoff Corp. v. Blackwell) 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
Playoff Corp. v. Blackwell, 300 S.W.3d 451, 2009 Tex. App. LEXIS 8382, 2009 WL 3490865 (Tex. Ct. App. 2009).

Opinion

OPINION ON REHEARING

ANNE GARDNER, Justice.

After reviewing appellee/cross appellant, Lawrence Blackwell’s motion for rehearing and/or motion for en banc reconsideration, we deny the motions. We withdraw our December 11, 2008 opinion and judgment and substitute the following.

This is a breach of employment-contract case. The key issue is whether the oral employment contract in question is unen-forceably indefinite as a matter of law. We hold that it is, and we affirm the trial court’s take-nothing judgment notwithstanding the verdict on Lawrence Blackwell’s breach of contract claim against Playoff Corp., Donruss Playoff, L.P., Don-russ LLC, and Ann Powell (collectively, “the defendants”). We also affirm the trial court’s denial of the defendants’ motion for attorney’s fees under the Texas Commission on Human Rights Act.

Background

The jury heard six days of testimony from fourteen witnesses, and the trial court admitted approximately 1,200 pages of exhibits into evidence. The following summary reflects only the evidence essential to our resolution of this appeal.

Powell founded Playoff Corp., a sports trading-card company, in 1992. In 1997, Playoff hired Blackwell as a consultant for $1,500 per day. A few months later, Powell and Blackwell began a romantic relationship, which continued until February 2002.

In December 1999, Playoff hired Blackwell as an employee, and Powell appointed him to serve as Playoffs president. The terms of Blackwell’s employment agree *453 ment are the crux of this case. According to Blackwell, he and Powell orally agreed to the following eight terms:

1. Playoff would employ Blackwell;
2. Playoff would not pay Blackwell $600,000 in consulting fees that it allegedly owed to him;
3. Playoff would pay Blackwell a lower salary than he would have earned as a consultant;
4. Blackwell would not engage in business opportunities with other companies or organizations in which he, in reasonable probability, would otherwise have had an opportunity to engage;
5. Blackwell would loan money to Playoff and entities contemplated to be formed by the parties; 1
6. Blackwell would sign personal guaranties for loans made to Playoff and entities contemplated to be formed by the parties;
7. Playoff and Powell would pay Blackwell 25% of the proceeds from the sale of Playoff or entities contemplated to be formed by the parties, if any, after reducing the proceeds from the sale by $5,000,000.00 (Playoffs agreed fair market value at the time of the alleged employment agreement); or 25% of the fair market value of Playoff or entities contemplated to be formed by the parties, if any, after reducing the fair market value by $5,000,000.00, on the last day of his employment if Playoff or any entity contemplated to be formed by the parties terminated Blackwell’s employment; and
8. Playoff and Powell would pay Blackwell 25% of any distributions made by Playoff or any entity contemplated to be formed by the parties after payment of taxes owed by Powell arising from the operation of Playoff or any entity contemplated to be formed by the parties, if any.

Blackwell testified that he and Powell shook hands over the deal but did not memorialize the agreement in writing. Powell denied the existence of any agreement whatsoever, calling Blackwell’s testimony regarding the handshake deal “a complete lie.”

Blackwell continued to work for Playoff and related entities until November 2002, during which time the Playoff entities greatly increased in value. The parties hotly contested whether Blackwell resigned or Powell terminated his employment.

Blackwell sued the defendants for sexual harassment under the Texas Commission on Human Rights Act (TCHRA), alleging that Powell terminated him when he refused to rekindle their romantic relationship. He later added claims for breach of contract, fraud, and breach of fiduciary duty and nonsuited his TCHRA claims. The defendants filed a motion for attorney’s fees and costs under TCHRA. The parties tried Blackwell’s claims to a jury and submitted the issue of TCHRA attorney’s fees to the court.

The trial court granted a directed verdict in favor of Donruss on Blackwell’s breach of contract claim and in favor of all the defendants on his fraud claim. The jury found that Blackwell and Powell agreed to the eight terms set forth above and that Playoff and Powell failed to comply with the agreement. It also found that Blackwell did not resign and did not engage in any misconduct that justified his termination. With regard to breach of *454 contract damages, the trial court instructed the jury to consider only the following element:

Twenty-five (25%) of the fair market value of Playoff Corporation, Donruss Playoff, LP and Donruss LLC (after reducing the fair market value by $5,000,000.00) on the last day of Lawrence Blackwell’s employment, if any, with Donruss, LLC, Donruss Playoff, LP, or Playoff Corporation.

The jury returned a verdict on breach of contract damages of $6,100,000.

The trial court first rendered judgment for Blackwell for $6,100,000, but then granted Powell and Playoffs motion for judgment notwithstanding the verdict and rendered a take-nothing judgment. In the order granting Powell and Playoffs motion for judgment notwithstanding the verdict, the trial court stated,

[T]he court is of the opinion that Plaintiff Blackwell should take nothing by way of his claims against any Defendant. The alleged oral agreement found by the jury in Question 1 is legally unenforceable. In particular, but not by way of limitation, the Court finds that the alleged oral agreement found by the jury in Question 1 is insufficiently definite as a matter of law. The jury’s finding in Question 1 cannot support a recovery in favor of Plaintiff Blackwell against any Defendant.

The trial court also denied the defendants’ motion for attorney’s fees under TCHRA. Blackwell appeals from the judgment not withstanding the verdict, and the defendants appeal from the trial court’s denial of their motion for TCHRA attorney’s fees.

Blackwell’s Appeal

1. Standard of review.

A trial court may disregard a jury verdict and render judgment notwithstanding the verdict (“JNOV”) if no evidence supports the jury findings on issue necessary to liability or if a directed verdict would have been proper. See Tex.R. Civ. P. 301; Tiller v. McLure, 121 S.W.3d 709, 713 (Tex.2003); Fort Bend County Drainage Dist. v. Sbrusch, 818 S.W.2d 392, 394 (Tex.1991). A directed verdict is proper only under limited circumstances: (1) when the evidence conclusively establishes the right of the movant to judgment or negates the right of the opponent; or (2) when the evidence is insufficient to raise a material fact issue. Prudential Ins. Co. v. Fin.

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Cite This Page — Counsel Stack

Bluebook (online)
300 S.W.3d 451, 2009 Tex. App. LEXIS 8382, 2009 WL 3490865, Counsel Stack Legal Research, https://law.counselstack.com/opinion/playoff-corp-v-blackwell-texapp-2009.