Quintero v. Citizens and Southern Factors, Inc.

596 S.W.2d 277, 1980 Tex. App. LEXIS 3109
CourtCourt of Appeals of Texas
DecidedFebruary 28, 1980
Docket17568
StatusPublished
Cited by7 cases

This text of 596 S.W.2d 277 (Quintero v. Citizens and Southern Factors, 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
Quintero v. Citizens and Southern Factors, Inc., 596 S.W.2d 277, 1980 Tex. App. LEXIS 3109 (Tex. Ct. App. 1980).

Opinion

EVANS, Justice.

This is an appeal from judgments entered in three separate actions on sworn account which were consolidated for purposes of trial. The plaintiffs in each action were creditors of one of the defendants, Fred Guzman, allegedly doing business as Texas Furniture Unclaimed Freight. The other defendants were two brothers, Arnold and Fred Quintero. Based on jury findings that the debts were due and that a partnership existed between Guzman and the Quintero brothers, the trial court entered a judgment *279 in each of the three cases, awarding the plaintiffs money damages and attorney’s fees against all three defendants.

Arnold Quintero has alone perfected an appeal. During the pending of this appeal, an amended appeal bond has been filed with this court, showing the name of Fred Quintero as an additional principal appellant, but the amended bond was not filed until after time had expired for perfection of an appeal. Therefore, this court lacks jurisdiction over the attempted appeal of Fred Quintero, and the appeal will be considered only as to the defendant Arnold Quintero.

In his first four points of error Arnold Quintero complains that the trial court erred in overruling his motion for judgment non obstante veredicto, challenging the legal sufficiency of the evidence to support the jury’s finding that Fred Guzman was not acting as sole proprietor of Texas Furniture Unclaimed Freight and that the Quinteros were partners in and owners of the business at the time the debts were incurred. The record before this court does not reflect that Quintero’s motion for judgment non obstante veredicto was presented to and ruled upon by the court, and under this state of the record, there is no action of the trial court before this court for review. Home Ins. Co. of New York v. Dacus, 239 S.W.2d 182 (Tex.Civ.App.-Texarkana 1951, no writ); Commercial Standard Insurance Company v. Southern Farm Bureau Casualty Insurance Company, 509 S.W.2d 387 (Tex.Civ.App.-Corpus Christi 1974, writ ref’d n. r. e.).

However, even if it be assumed that the trial court considered and overruled Quinte-ro’s motion for judgment non obstante ve-redicto, these points must be denied because there is legally sufficient evidence to support the jury’s verdict.

In 1973 Fred Guzman, a salesman for a retail furniture company going out of business, was contacted by Arnold and Fred Quintero with respect to the operation of a retail furniture store under a new arrangement. As a result of negotiations between these parties, Guzman obtained a new lease on the retail furniture store premises, and a “Factoring and Security Interest Agreement” was executed by Fred Guzman and Fred Quintero. Under this agreement Guzman was to operate Texas Furniture Unclaimed Freight and Fred Quintero was to assist in financing inventory purchased from designated wholesale companies. The agreement specified that Quintero’s role would be in the nature of a “factor” and that he would be secured by appropriate liens against all of the inventory. Quintero was to have free access to the business premises, including the right to inspect all records, and was to be furnished with periodic accountings. The agreement further stipulated that Quintero was to receive 4% of the “net sales of this enterprize,” payable on a monthly basis, and 1% of the invoice value of all merchandise not paid for by Guzman within thirty days of billing. It was also specified that the agreement would continue in effect until mutually terminated, and if terminated within the first year of operation, Guzman was to pay Quintero $5,000; if during the second year of operation an additional $5,000, and so on until a limit of $25,000 had been reached. The agreement stipulated the parties intended to create a security interest “in the merchandise advanced or paid for” by Quintero and supplied by Guzman. Upon termination, Quintero was to have immediate right to possession or full payment for all merchandise advanced or paid for “by him,” under the agreement. A security statement was filed by Fred Quintero with the Secretary of State, reflecting a lien on the furniture inventory of Texas Furniture Unclaimed Freight, and this statement was on file when the sales in question were made.

Soon after starting up this new business, Fred Guzman began to handle merchandise furnished by suppliers other than Quintero, and in the months of April, May and June 1974, the plaintiffs or their assignors sold merchandise to the business on open account. In June and July 1974 the business began to have cash flow problems and Arnold Quintero started shipping large, *280 unordered quantities of furniture to Guzman. On Guzman’s questioning as to the purpose of these shipments, he was advised by Quintero that this was being done in order to increase sales through the expansion of their volume of inventory. How.ever, the volume of sales did not substantially increase, and the business continued to face severe financial problems. In September 1974 Arnold Quintero went to the store and advised Guzman that they were going to incorporate and that Guzman would have to sign incorporation papers. Under the purposed incorporation arrangement, Quintero was not going to pay anything for the assets of the store, but he would own one hundred percent of the stock of the corporation. Although Guzman signed the papers, the incorporation was never effected.

In October 1974 Guzman found out that the owners of the building premises were selling the property and that it would be impossible for him to get an extension of the lease. When he advised Arnold Quinte-ro of this circumstance, Quintero told him: “I am foreclosing on you.” Arnold Quinte-ro then took possession of all furniture in the store and all accounts receivable, applying the value thereof as a credit against the amounts owed by Guzman under the agreement. No further business was thereafter conducted by Guzman.

The jury failed to find that Guzman had conducted the business as a sole proprietorship or as the Quinteros’ agent or employee. It did find that both Fred and Arnold Quintero were partners in and owners of the business at all material times.

In determining whether there is legally sufficient evidence to support the jury’s findings, this court must consider only the evidence and inferences therefrom which tend to support such findings and must disregard all evidence and inferences to the contrary. Garza v. Alviar, 395 S.W.2d 821 (Tex.1965). If there is any probative evidence which supports the jury’s findings, the points of error must be overruled.

Guzman testified that he had invested about $6,000 in the business and had spent many hours of his own labor in the endeav- or. Arnold Quintero had invested money in the financing of the business inventory and had used his skill, knowledge and experience in the furniture business to assist Guzman in making the venture a profitable operation.

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Bluebook (online)
596 S.W.2d 277, 1980 Tex. App. LEXIS 3109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quintero-v-citizens-and-southern-factors-inc-texapp-1980.