Rio Grande Land & Cattle Co. v. Light

749 S.W.2d 206, 1988 Tex. App. LEXIS 1092, 1988 WL 47204
CourtCourt of Appeals of Texas
DecidedMarch 30, 1988
Docket04-86-00482-CV
StatusPublished
Cited by9 cases

This text of 749 S.W.2d 206 (Rio Grande Land & Cattle Co. v. Light) 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
Rio Grande Land & Cattle Co. v. Light, 749 S.W.2d 206, 1988 Tex. App. LEXIS 1092, 1988 WL 47204 (Tex. Ct. App. 1988).

Opinion

OPINION

REEVES, Justice.

This appeal involves the operations of a cattle feed lot. In the fall of 1979 and the spring of 1980, George E. Light III, Dan Kinsel Jr., K.L. Cattle Co., and K.L. Bar Cattle Co. (the plaintiffs) 1 sent several thousand head of cattle to be fed for sale to Rio Grande Land and Cattle Co., a Texas corporation. Rio Grande was owned by four individuals: Lee Bowen, Bob Re-bholtz, Rich Hormaechea, and Robert Hayes. After the plaintiffs’ animals were fed and sold, the plaintiffs were billed for the feed and services rendered to their animals by Rio Grande. The amount the plaintiffs were billed was substantially more than they expected.

The plaintiffs filed suit against Rio Grande and the individual defendants. A jury found that Rio Grande intentionally overcharged the plaintiffs for rations and baled hay and intentionally misweighed cattle belonging to them at receipt and sale. The jury also found that the acts committed by Rio Grande were a proximate cause of the plaintiffs’ damages.

The jury found for the plaintiffs and awarded actual and punitive damages. The jury further found that Bowen, Re-bholtz, Hormaechea, and Hayes had instructed the employees of Rio Grande, with the design and for the purpose of injuring the plaintiffs, to perform the fraudulent acts it found Rio Grande committed.

Based on the jury’s findings, the trial court ordered the defendants held jointly and severally liable for the damages found by the jury. It also ordered that the plaintiffs recover pre-judgment interest at a rate of six percent per annum.

We summarize the defendants’ points of error as follows:

1. there was insufficient evidence proffered to prove the alleged allegations of misconduct;
2. exemplary damages were improperly awarded because the plaintiffs’ cause of action sounded in contract rather than tort;
3. the charge to the jury did not connect each act of alleged misconduct submitted to a separate and corresponding question of damages, making it impossible to determine the damages attributed to that act of misconduct;
4. there was insufficient evidence proffered to prove the actual damage award;
5. the plaintiffs’ damages witness was not qualified to testify as to the damages;
6. there were no pleadings to support the individual liability of the defendants;. and
*208 7. there was insufficient evidence proffered to establish the personal liability of Rio Grande’s officers.

The plaintiffs complain on a cross point that the trial court erred in not awarding prejudgment interest at the rate of ten percent.

FACTS AND SUFFICIENCY OF THE EVIDENCE OF MISCONDUCT

Rio Grande was formed in November 1977 by the four individual defendants to take advantage of an offer made to them by a bank that had foreclosed on a feed lot located in Eagle Pass. The individual defendants put up a total of $10,000 of their own money and received a $7,000,000 line of credit from the forecloser bank. Each defendant also served as an officer and a director of Rio Grande.

Hayes managed the feed lot on a day-today basis. The other defendants kept in touch with Hayes by telephone and had directors’ meetings on a monthly basis.

Feed lots are used by cattle producers to rapidly increase the weight of cattle in the months just prior to the time they are sold for slaughter. Animals are weighed on receipt, given several quasi-medical treatments (checked and dipped for tics, sprayed with insecticide, and given hormone treatments), tagged with lot numbers, and put in pens where they are segregated from animals belonging to other cattle producers.

The cattle kept at feed lots are given water and as much feed, a mixture of hay and grain-derived products (“rations”), as they will eat. The amount of feed given to each lot of animals is measured and recorded. Cattle do not respond equally to a given diet. Hereditary factors, sickness, prior diet, and the quality of services rendered in a feed lot affect how well a particular animal will do in lot feeding.

Animals from a particular pen are only removed from their fellows if they die (their body gets buried), get sick (there is a “hospital” pen where they are treated), or cause disruptions in the pens (some steers apparently produce the odor of a cow in heat).

Cattle are sold when: (1) they reach a marketable weight, or (2) it appears that they are not responding to lot feeding by gaining the expected amount of weight.

One way for a cattle producer to determine how well a particular lot of his cattle performed in a particular feed lot is the cost of gain method. The producer first determines the difference between the starting weight of all the animals taken to the feed lot and the weight of all the animals sold from that group. 2 That difference reflects the total amount of weight gained by the cattle producer’s animals at the lot. To determine the cost of gain, the total amount charged by a feed lot in connection with a particular group of animals is divided by the total amount of weight gained by the animals in the group. The resulting figure is the cost per pound of weight gained and sold. The cost of gain is reported as a cents per pound figure (c/lb).

In the fall of 1979 and the spring of 1980, the plaintiffs kept several thousand head of cattle at Rio Grande. When the plaintiffs examined their cost of gain figures for the cattle they kept at the defendants’ lot they immediately believed that they had been defrauded. They expected, and apparently there was a representation to that effect by Rio Grande, that their cost of gain would fall in the mid to low 50 c/lb range. Instead, the cost of gain for the Light cattle was 66.78 c/lb, for the K.L. Cattle cattle it was 73.91 c/lb, and for the K.L. Bar cattle it was 82.86 c/lb. In contrast, the cost of gain for 2,329 head of cattle owned by the defendants and fed at Rio Grande at about the same time the plaintiffs’ cattle were *209 fed there was 55.16 c/lb. 3

Harry Lee Kelly, a foreman at Rio Grande, worked at Rio Grande before, during, and after the time the plaintiffs had cattle fed there. He stated that he misreported, at the direction of Roger Rodarte (his immediate supervisor), the death of animals belonging to the plaintiffs. He also testified that, after being ordered to by Rodarte, he misweighed cattle belonging to the plaintiffs at receipt and at sale, overreported the amount of hay given to the animals owned by the plaintiffs, and switched lighter for heavier cattle found in the plaintiffs’ pens. Kelly further testified that he observed Rodarte overreporting the amount of feed given to cattle kept at Rio Grande.

Rodarte denied that he committed or ordered such acts. Other employees, who, according to the evidence, would have known of the commission of any wrongful acts by Rodarte, testified that they knew of none.

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Bluebook (online)
749 S.W.2d 206, 1988 Tex. App. LEXIS 1092, 1988 WL 47204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rio-grande-land-cattle-co-v-light-texapp-1988.