Rodriguez v. Klein

960 S.W.2d 179, 1997 WL 690097
Court of Appeals of Texas·Decided December 30, 1997·No. 13-96-206-CV·Published·Cited by 35 cases

Opinion

OPINION

SEERDEN, Chief Justice.

Hector and Leovigildo Rodriguez, appellants, asserted a cross claim against Katie Pearson Klein and Martin Morris, appellants, for legal malpractice, violations of the Texas Deceptive Trade Practices Act, and intentional infliction of mental anguish. Appel-lees’ motion for summary judgment, based solely on an application of the statute of frauds, was granted by the trial court. In a single point of error, appellants argue that the trial court erred in granting appellees’ motion for summary judgment. We affirm.

Factual Background

On August 28, 1985, Porfirio Gonzalez (Gonzalez) purchased a junkyard business from appellants for $45,000. The $45,000 was paid as follows: (1) $10,000 in cash, (2) issuance of a $25,000 promissory note in favor of appellants, and (3) assumption by Gonzalez of a $10,000 promissory note previously issued by appellants. Appellants hired ap-pellees, attorneys practicing at the Law Offices of Katie Klein, to represent and assist appellants in this sale. Appellees prepared the $25,000 promissory note, the bill of sale, the sale and purchase agreement, and a security agreement pledging the junkyard business as security for Gonzalez’s obligations under the terms of the sale.

About a year after this sale, Gonzalez defaulted on several payments due on the two promissory notes. Appellants assert that after several meetings, Gonzalez agreed that he would voluntarily return the junkyard business to appellants in what appellants dubbed a “friendly repossession.” Appellants allege that under the terms of this “friendly repossession,” appellants would cancel the balance due on the $25,000 promissory note and assume the balance on the $10,000 note in exchange for which Gonzalez would return possession of the junkyard business to appellants.

On August 15,1986, appellants and Gonzalez again visited the Law Offices of Katie Klein, this time to have documents prepared effectuating the “friendly repossession.” Appellants left appellees’ office before any document was created. Afterwards, a “bill of sale” was created by a legal secretary under appellees’ supervision, and was signed by Gonzalez. This bill of sale, rather than set out the terms of the “friendly repossession,” reflected a direct sale of the junkyard business. Under the terms of this second bill of sale, Gonzalez was to sell the junkyard business to appellants for $45,000. - Without ever signing the second bill of sale, appellants took possession and control of the junkyard business as of August 15,1986.

On February 19, 1987, Gonzalez, alleging that the bill of sale drafted by appellees evidenced a repurchase agreement, sued appellants for $20,000 in cash, cancellation of the $25,000 promissory note, and attorneys fees. Appellants answered Gonzalez’s suit denying that the last bill of sale represented the intentions of the parties. Appellants also filed a counterclaim seeking to accelerate payment on the $25,000 note, and to foreclose on the security agreement and repossess all property constituting security. Appellants subsequently filed a second amended answer in which appellants specifically denied that the bill of sale constituted a valid written contract because appellants did not sign the document.

Appellants also filed a third party claim against appellees seeking damages for violations of the* Texas Deceptive Trade Prae-tices-Consumer Protection Act (DTPA). See Tex. Bus. & Com.Code §§ 17.46, 17.50 (Vernon Supp.1997). The alleged violations included:

(1) Representing that services had sponsorship, approval, characteristics, uses, and benefits which they did not [§ 17.46(b)(5) ];
*182 (2) Representing that services were of a particular standard, quality, or grade when they were in fact of another [§ 17.46(b)(7)];
(3) Representing that an agreement conferred or involved rights, remedies, or obligations which were neither conferred nor involved, or which were prohibited by law [§ 17.46(b)(12) ];
(4) Representing that a guaranty or warranty of services conferred or involved rights or remedies which it did not have [§ 17.46(b)(10) ];
(5) Failure to disclose information known at time of transaction [§ 17.46(b)(23) ];
(6) Breach of implied warranty that services would be performed in good and workmanlike manner [§ 17.50(a)(2)]; and
(7) Unconscionable acts that took advantage of appellants’ lack of knowledge, ability, experience or capacity [§ 17.50(a)(3)].

Appellants also brought third party claims against appellees for breach of fiduciary duty, breach of the duty of good faith, breach of warranty, and for intentional and negligent infliction of emotional distress. Appellants asserted that all of these claims were independent of the claims asserted against them by Gonzalez.

On February 8, 1996, appellees moved for summary judgment based upon the statute of frauds claiming that, because Gonzalez’s claim against appellants could be defeated by application of the statute of frauds, appellants had no cause of action against appel-lees. Additionally, appellees argued at the summary judgment hearing that appellants were not “consumers” under the DTPA and therefore, could not recover under their DTPA claims. Without stating the basis on which it relied, the trial court granted appel-lees’ motion for summary judgment disposing of all claims asserted by appellants against appellees. These claims were properly severed from all other claims and assigned a separate cause number. Appellants now bring error.

STANDARD OF REVIEW

Free access — add to your briefcase to read the full text and ask questions with AI

Rodriguez v. Klein, 960 S.W.2d 179, 1997 WL 690097 (Tex. Ct. App. 1997).

960 S.W.2d 179 (Rodriguez v. Klein) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Duradril, L.L.C. v. Dynomax Drilling Tools, Inc.
516 S.W.3d 147 (Court of Appeals of Texas, 2017)
Hern Family Ltd. Partnership v. Compass Bank
863 F. Supp. 2d 613 (S.D. Texas, 2012)
Edwards v. DUNLOP-GATES
344 S.W.3d 424 (Court of Appeals of Texas, 2011)
Valerio Llanes v. Olan Benge
Court of Appeals of Texas, 2009
Radwan A. Dalu v. Maha Mansour
Court of Appeals of Texas, 2009
Vermont Information Processing, Inc. v. Montana Beverage Corp.
227 S.W.3d 846 (Court of Appeals of Texas, 2007)
Gonzalez v. De La Grana
82 F. App'x 355 (Fifth Circuit, 2003)