Preferred Fuel Distributors, LP v. Amidhara, LLC

Court of Appeals of Texas·Decided January 13, 2010·No. 10-08-00122-CV·Published

Opinion

IN THE

TENTH COURT OF APPEALS

No. 10-08-00122-CV

PREFERRED FUEL DISTRIBUTORS, LP, Appellant

v.

AMIDHARA, LLC, ET AL., Appellee

From the 19th District Court McLennan County, Texas

Trial Court No. 2006-1396-1

MEMORANDUM OPINION

Preferred Fuel Distributors, L.P. (Preferred) appeals the trial court’s summary judgments in favor of Amidhara, L.L.C. (Amidhara), Bhaveshkumar P. Savalia a/k/a Bhavesh Savalia (Savalia), Kamlesh Limbabhai Gajera a/k/a Kamlesh Gajera (Gajera), Krishna Krupa, Inc. (Krishna Krupa), Texas Oil Products, Inc. (TOP), Classic Star Group, LP f/k/a Classic Star Group, Inc. (Classic), Chowdhury M. Hossain a/k/a Tippoo Hossain or Sam S. Hossain (Hossain), Panamerican Fuel Distributors, LLC (Panamerican LLC), Panamerican Fuel Distributors, Inc. (Panamerican Inc.), and USA

Developers, LLC (USA Developers). We will affirm in part and reverse and remand in part.

BACKGROUND

USA Developers sold a Diamond Shamrock gas station to Krishna Krupa. The Purchase and Sale Agreement signed by the parties states in pertinent part:

“Gasoline Supply Agreement” means, as a part of this Agreement. Buyer shall execute a separate agreement with the Seller for supply of petroleum fuel products to the subject location. Seller shall furnish the “Gasoline Supply Agreement” within 5 days of the execution of this agreement for Buyer to review. Buyer must accept or reject the GSA prior to expiration of the Inspection Period. This Purchase and Sale Agreement of the property is contingent upon acceptance of the Gasoline Supply Agreement by the Buyer and shall be enforceable if the sale closes.

Thereafter, Krishna Krupa entered into a Gasoline Supply Agreement (GSA) with USA Fuel Distributors, LLC (USA Fuel). USA Fuel’s interests in the GSA were later acquired by Panamerican LLC and then assigned to Preferred. Preferred subsequently filed suit against Amidhara, Savalia, Gajera, Krishna Krupa, TOP, Classic, Hossain, Panamerican LLC, Panamerican Inc., and USA Developers.

The Allegations

Preferred made the following allegations in its live petition: When USA Fuel and Panamerican1 had each possessed the rights and obligations under the GSA, Krishna Krupa had been obligated to exclusively purchase gasoline from them. Hossain, Panamerican’s principal and the person who assigned Panamerican’s rights under the GSA to Preferred, had represented to Preferred that Panamerican was Krishna Krupa’s

1 Preferred does not distinguish between Panamerican LLC and Panamerican Inc. in making these allegations in its petition.

Preferred Fuel Distribs., LP v. Amidhara, L.L.C. Page 2 exclusive gasoline supplier. Krishna Krupa and its principals, Gajera and Savalia, who had both guaranteed the GSA, knew of this fact.

After receiving the assignment of Panamerican’s interests in the GSA, Preferred was ready, willing, and able to supply Diamond Shamrock and/or Valero-branded gasoline to Krishna Krupa, but Krishna Krupa refused to accept delivery of gasoline from it. Preferred notified Krishna Krupa that it was Krishna Krupa’s authorized exclusive gasoline supplier and provided Krishna Krupa with the necessary paperwork to begin the supply of gasoline to the gas station. Hossain also notified Krishna Krupa’s principals that Panamerican had assigned its rights under the GSA to Preferred and that the assignment of the GSA to Preferred rendered Preferred as Krishna Krupa’s authorized exclusive gasoline supplier. However, Krishna Krupa, by and through its principals Savalia and Gajera, represented to Preferred that it had an exclusive gasoline supply contract with USA Fuel, not Preferred, and it thus had no obligation to purchase gasoline from Preferred.

Although the gas station was imaged as a Diamond Shamrock gas station, Krishna Krupa then opened the gas station for business, selling unbranded gasoline that it had purchased not from Preferred, but from TOP and/or Classic. This violated Diamond Shamrock’s branding agreement, and Diamond Shamrock thus stripped the gas station of all Diamond Shamrock brand signage and images. Preferred nevertheless made every effort to salvage the situation by trying to re-brand the gas station as Diamond Shamrock, but Diamond Shamrock declined to do so because Krishna Krupa had commingled Diamond Shamrock gasoline with an unbranded gasoline product that it had purchased through Classic.

Causes of Action

Preferred initially sought a declaratory judgment against Krishna Krupa and Panamerican that (1) Preferred has the exclusive right to sell gasoline to Krishna Krupa under the GSA; (2) Krishna Krupa was obligated to purchase gasoline exclusively and solely from Preferred during the term of the GSA; and (3) Preferred, under the assignment and for consideration paid, acquired all rights and interests to exclusively supply gasoline under the GSA to Krishna Krupa. Preferred also asserted a breach of contract cause of action against Krishna Krupa.

Preferred alleged claims for breach of guarantee and tortious interference with a contractual relationship against Savalia and Gajera. Preferred also alleged claims for tortious interference with a contractual relationship against Amidhara, TOP, and Classic. Preferred asserted claims for common-law fraud and fraudulent misrepresentation, negligent misrepresentation, and violation of the Texas Deceptive Trade Practices Act (DTPA) against Hossain, Panamerican LLC, Panamerican Inc., and USA Developers (collectively, the Panamerican defendants).2

2 In both their no-evidence and traditional motions for summary judgment, the Panamerican defendants treat fraudulent concealment and unjust enrichment as independent causes of action. However, as noted by Preferred in its brief, these are not independent causes of action. See R.M. Dudley Constr. Co. v. Dawson, 258 S.W.3d 694, 703 (Tex. App.—Waco 2008, pet. denied) (“Unjust enrichment, itself, is not an independent cause of action.”); Argyle ISD ex rel. Bd. of Trustees v. Wolf, 234 S.W.3d 229, 246 (Tex. App.—Fort Worth 2007, no pet.) (same); Carone v. Retamco Operating, Inc., 138 S.W.3d 1, 10 (Tex. App.—San Antonio 2004, pet. denied) (“Fraudulent concealment . . . is not an independent cause of action.”).

Preferred Fuel Distribs., LP v. Amidhara, L.L.C. Page 4

Motions for Summary Judgment & Trial Court Rulings Krishna Krupa first moved for what appears to be a traditional summary judgment, asserting that, as a matter of law, the GSA did not set out an exclusive arrangement or require Krishna Krupa to purchase fuel solely from Preferred. Thereafter, the Panamerican defendants filed both no-evidence and traditional motions for summary judgment. In their no-evidence motion, they challenged whether there was evidence to support any of the elements of any of the causes of action alleged against them. In their traditional motion, they stated that the GSA did not set out an exclusive agreement nor did it require Krishna Krupa to buy fuel solely from Preferred; therefore, all of Preferred’s causes of action against them must fail. After a hearing on the motions, the trial court granted summary judgments in favor of all ten defendants.

AMIDHARA, SAVALIA, GAJERA, TOP & CLASSIC In its first issue, Preferred contends that the trial court erred in granting summary judgments for Amidhara, Savalia, Gajera, TOP, and Classic because none of them moved for summary judgment.

In Teer v. Duddlesten, 664 S.W.2d 702, 702-03 (Tex. 1984) (op. on reh’g), two of the City of Bellaire’s co-defendants moved for summary judgment, which the trial court granted. The trial court’s judgment, however, was drawn as a final judgment for all three defendants, despite the fact that the City “filed no motion, gave no notice, produced no affidavits, and made no showing.” Id. The supreme court subsequently reversed the trial court’s judgment, holding that it was error to render a final judgment for the City when it had made no motion for summary judgment. Id. at 702; accord Sw.

Preferred Fuel Distribs., LP v. Amidhara, L.L.C. Page 5

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