Price Pfister, Inc. v. Moore & Kimmey, Inc.

48 S.W.3d 341, 2001 WL 521243
CourtCourt of Appeals of Texas
DecidedJune 7, 2001
Docket14-99-01214-CV
StatusPublished
Cited by106 cases

This text of 48 S.W.3d 341 (Price Pfister, Inc. v. Moore & Kimmey, 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
Price Pfister, Inc. v. Moore & Kimmey, Inc., 48 S.W.3d 341, 2001 WL 521243 (Tex. Ct. App. 2001).

Opinion

OPINION

ANDERSON, Justice.

This breach of contract case arises from an oral agreement whereby Moore & Kim-mey, Inc. (“MKI”) 1 agreed to serve as a wholesale sales representative for Price Pfister, Inc. in exchange for commissions on the sales of Price Pfister’s products. After Price Pfister terminated the agreement, MKI sued to recover for commissions allegedly owed. Based on the jury’s findings, the trial court entered judgment for MKI and awarded MKI treble damages under the Sales Representatives Act, TexBus. & Com.Code Ann. §§ 35.81-35.86 (Vernon 1987 & Supp.2001). Price Pfister raises four issues on appeal: (1) the trial court erred in applying the Sales Repre *346 sentatives Act to MKTs cause of action; (2) the evidence demonstrated as a matter of law that the parties’ agreement had been modified and that Price Pfister did not breach the modified agreement; (3) the evidence was legally and factually insufficient to support the jury’s findings regarding the substance of the parties’ agreement; and (4) the damage award erroneously includes elements of damages for which there is no evidentiary support. We affirm the trial court’s judgment.

Factual and PROCEDURAL BACKGROUND

Price Pfister is a manufacturer of faucets and other plumbing supplies. In 1992, Price Pfister entered into an oral agreement with MKI under which MKI would serve as Price Pfister’s wholesale sales representative for a defined territory in south Texas. Although the exact terms of MKI’s compensation were disputed, the parties agreed that MKI would be paid a commission based on a percentage of MKI’s sales of Price Pfister’s products. At the time the agreement was made, the standard commission rate paid by Price Pfister was 5 percent for “core,” or basic, products, - and 6 percent for “decorative” products. However, the statements accompanying MKI’s monthly commission checks indicate that MKI was actually paid different rates for different invoices submitted by MKI. These statements indicate that on most invoices, Price Pfister paid a commission of either 4 or 5 percent, while in a few cases, the commission paid was 1, 7½, or 8 percent.

In January 1994, at a national meeting of its sales representatives, Price Pfister announced that the commission rate on core products and parts would be reduced to 2⅜ percent, effective April 1. Immediately following that announcement, MKI’s two co-owners, Tommy Moore and Gary Kim-mey, voiced their objection to Price Pfis-ter’s then-vice president of sales, Rod Ya-min. MKI expressed its belief that this new commission rate would be unfair, based on MKI’s high percentage of sales in core products. According to Moore, Ya-min told the co-owners that Price Pfister was familiar with MKI’s situation and that Price Pfister would “correct it.” Moore also testified that in the following two months, MKI asked Price Pfister about the status of the proposed commission change and was told that it “would not affect us.”

By. a memorandum dated March 29, 1994, addressed to “All Wholesale Agency Principals,” Price Pfister announced that the company was “on target for converting to the new tiered rates effective April 1, 1994.” Attached to this memo was a chart of Price Pfister’s ‘Wholesale Commission Structure,” which indicated a 2.5 percent rate for core products and a 5 percent rate for decorative. It is undisputed that MKI received a copy of this memo.

In May 1994, MKI began receiving commission statements from Price Pfister that reflected the new 2½ percent commission rate. Kimmey testified that he and Moore immediately called Price Pfister to protest. He and Moore both testified that up until the time MKI was terminated, they met several times with Price Pfister’s regional sales manager, David Thames, and others at Price Pfister concerning their commission rate. MKI was told during these meetings that Price Pfister recognized the unfairness of MKI’s situation and that it “would be rectified.” Kimmey also testified that Thames told MKI that he “would get the commission back to 5 percent.”

In the summer of 1996, during a national sales meeting in California, Moore requested a meeting with William Phillips, Price Pfister’s new vice president of wholesale sales, at which he again expressed concern about the commission rate. Phil *347 lips told Moore that he would get back to him. Four to six weeks later, Phillips informed Thames that there would be no change in the commission rate at that time. Thames conveyed Phillips’s message to MKI, but Thames also told Moore and Kimmey that another Price Pfister employee was working on a proposal to change the commission rates.

In March 1997, Price Pfister informed MKI that it was terminating their agreement. MKI filed suit, alleging breach of contract and violation of the Sales Representatives Act. The jury found that (1) Price Pfister and MKI had agreed that Price Pfister would pay a 5 percent commission on sales of core products and 4 percent on parts, (2) Price Pfister did not give MKI unequivocal notice of a change in these commission rates, and (3) the difference between the commissions Price Pfis-ter should have paid and the commissions it paid to MKI was $161,199.97. The trial court trebled MKI’s damages under section 35.84 of the Sales Representatives Act and entered judgment for $483,599.91, plus prejudgment interest and attorneys’ fees.

Challenges to JuRy’s Findings

We begin by reviewing Price Pfister’s challenges to the jury’s findings. We will consider these challenges in the same order as the questions were presented in the charge.

Standard of Review

When a party challenges the legal sufficiency of the evidence supporting an adverse finding on an issue on which it does not have the burden of proof, that party must demonstrate on appeal that there is no evidence to support the adverse finding. Croucher v. Croucher, 660 S.W.2d 55, 58 (Tex.1983). We consider all the evidence in the light most favorable to the jury’s verdict, indulging every reasonable inference in favor of the prevailing party. Associated Indem. Corp. v. CAT Contracting, Inc., 964 S.W.2d 276, 285-86 (Tex.1998). A legal sufficiency point will be sustained when: (a) there is a complete absence of evidence of a vital fact, (b) the court is barred by rules of law or of evidence from giving weight to the only evidence offered to prove a vital fact, (c) the evidence offered to prove a vital fact is no more than a mere scintilla, or (d) the evidence conclusively establishes the opposite of a vital fact. Merrell Dow Pharms., Inc. v. Havner, 953 S.W.2d 706, 711 (Tex.1997). If the record contains any evidence of probative force to support the jury’s finding, the legal insufficiency challenge must be overruled. ACS Investors, Inc. v. McLaughlin, 943 S.W.2d 426, 430 (Tex.1997).

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Bluebook (online)
48 S.W.3d 341, 2001 WL 521243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-pfister-inc-v-moore-kimmey-inc-texapp-2001.