Ronald J. Hettler, Robin Hettler and Cornwall Personal Insurance Agency, Inc. D/B/A Hettler-Brenholtz Insurance v. William David Brenholtz

Court of Appeals of Texas·Decided December 9, 2003·No. 07-02-00366-CV·Published

Opinion

NO. 07-02-0366-CV


IN THE COURT OF APPEALS


FOR THE SEVENTH DISTRICT OF TEXAS


AT AMARILLO


PANEL A


DECEMBER 9, 2003



______________________________


RONALD J. HETTLER, ROBIN HETTLER AND CORNWALL PERSONAL


INSURANCE AGENCY, INC. F/D/B/A HETTLER-BRENHOLTZ INSURANCE,


APPELLANTS


V.


WILLIAM DAVID BRENHOLTZ, APPELLEE


_________________________________


FROM THE 364TH DISTRICT COURT OF LUBBOCK COUNTY;


NO. 97-558,843; HONORABLE BRADLEY S. UNDERWOOD, JUDGE


_______________________________


Before JOHNSON, C.J., and REAVIS and CAMPBELL, JJ.



MEMORANDUM OPINION


Presenting eight points of error, Ronald J. Hettler, Robin Hettler, and Cornwall Personal Insurance Agency, Inc. f/d/b/a Hettler-Brenholtz Insurance (the Agency) challenge the judgment following a jury trial that William David Brenholtz recover damages for, among other claims, breach of contract, fraud, conversion, and interference with business relationships. By points one through seven, they allege the trial court erred in (1) denying their no-evidence motion for summary judgment; (2) soliciting and considering oral testimony to determine the validity of the contract; (3) ruling that a document constituted an enforceable contract between Brenholtz, Ronald, and the Agency as a matter of law; (4) awarding damages for Ronald's breach of contract as insufficient evidence existed to justify the award; (5) submitting an issue of fraud to the jury as to Ronald in tort; (6) submitting liability issues in tort as to Robin as there was no evidence she committed those torts; and (7) submitting the instruction as to exemplary damages as it fails to instruct the jury what conduct could be considered to assess punitive damages. By their eighth point, they contend the punitive damages award was excessive. Based upon the rationale expressed herein, we affirm.

Ronald and Brenholtz, licensed insurance agents, both worked for Cornwall Stevens Southwest, Inc. When Ronald resigned from Cornwall in 1992, he purchased part of Cornwall's book of business and started his own insurance agency. Also, in 1992, Brenholtz resigned from Cornwall and purchased another part of the Cornwall book of business. After their resignations and while operating independently, on occasion they visited socially. Then, in 1994, the Agency, then owned and managed by Ronald, hired Brenholtz and he brought his book of business to the firm. Ronald was President of the corporation and Brenholtz was Vice President. They entered into an oral agreement at that time, and on November 20, 1996, it was reduced to writing when they signed an informal memorandum drafted by Brenholtz. Although Ronald claimed the memorandum did not accurately reflect the original agreement in 1994, and was partially incomplete, nevertheless, he signed it. Robin did accounting for the Agency out of her home, and in 1996, she became licensed as an insurance agent at Ronald's request because the Agency was losing money. She commenced working in the office as an agent and accountant in January 1997; however, she was not an officer of the corporation nor a shareholder.

Before the parties submitted the November 20 memorandum to counsel for formal preparation, on February 13, 1997, Ronald sent Brenholtz a two-page handwritten letter on Hettler-Brenholtz Insurance letterhead. The letter, which contained his final paycheck, notified Brenholtz he was being terminated as of February 14 and transmitted an offer in the form of a buy-sell agreement. Among other things, Brenholtz was informed as follows:

  • •he was no longer an employee;
  • •the staff had been instructed to deny him entry into the agency;
  • •the locks had been changed; and
  • •the police would be called if he showed up.


Then, on February 17, 1997, employees of the Agency commenced sending letters to customers informing them that Brenholtz was no longer with the Agency and that "Ron Hettler will now be servicing your insurance needs."



Based on the letter of termination, Brenholtz commenced the underlying action against Ronald, Robin, and the Agency by seeking a temporary restraining order. He also sought damages for breach of contract, fraud, conversion, interference with business relationships, and an accounting. Following hearings on numerous matters, the trial commenced on February 19, 2002. Based on the jury's findings, the trial court signed its judgment that Brenholtz recover:

  • •$232,601 against Ronald and the Agency, jointly and severally;
  • •$10,000 against Ronald, Robin, and the Agency, jointly and severally;
  • •$200,000 against Ronald for exemplary damages;
  • •$200,000 against Robin for exemplary damages;
  • •$200,000 against the Agency for exemplary damages;


plus attorney's fees and interest.

By their first point, Ronald, Robin, and the Agency contend the trial court erred in denying their no-evidence motion for summary judgment. We disagree. As a general rule the denial of a summary judgment is not reviewable on appeal because it is not a final judgment. Cincinnati Life Ins. Co. v. Cates, 927 S.W.2d 623, 625 (Tex. 1996). See also comment to Rule 166a(i) Tex. R. Civ. P. (the denial of a motion under paragraph (i) is no more reviewable by appeal or mandamus than the denial of a motion under paragraph (c)). Point of error one is overruled.

By point of error two, Ronald contends the trial court erred in considering oral testimony when it granted Brenholtz's motion for partial summary judgment as to the validity of the contract, and by his third point, (1) contends the trial court erred in ruling that a document introduced into evidence constituted an enforceable contract. We disagree. The challenged document was admitted into evidence as Plaintiff's Exhibit 7, which can best be described as a ten paragraph informal printed memorandum with handwritten notations, about one-half page in length, dated November 20, 1996, and signed by Ronald and Brenholtz. (2)

When the question was first presented by motion for partial summary judgment, the trial court was of the opinion that an agreement did not exist and denied the motion. However, after hearing testimony during trial, the court announced it had changed its decision and concluded that an agreement existed as a matter of law. Among other instructions, as related to the contract issue, the jury was instructed as follows:

You are instructed that the court has found an agreement existed between David Brenholtz and Ron Hettler. (3)



You must decide the meaning of the agreement by determining the intent of the parties at the time of the agreement. Consider all the facts and circumstances surrounding the making of the agreement, the interpretation placed on the agreement by the parties, and the conduct of the parties.



Question No. 1 followed the instructions:

Question No. 1

Did Ron Hettler fail to comply with the agreement?

Answer "yes" or "no."

Answer: Yes



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Ronald J. Hettler, Robin Hettler and Cornwall Personal Insurance Agency, Inc. D/B/A Hettler-Brenholtz Insurance v. William David Brenholtz, (Tex. Ct. App. 2003).

Ronald J. Hettler, Robin Hettler and Cornwall Personal Insurance Agency, Inc. D/B/A Hettler-Brenholtz Insurance v. William David Brenholtz (Ronald J. Hettler, Robin Hettler and Cornwall Personal Insurance Agency, Inc. D/B/A Hettler-Brenholtz Insurance v. William David Brenholtz) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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