Sensible Care Holdings, LLC, Alan Guggenheim, and Susanne Guggenheim v. Burl and Marian Sens

CourtCourt of Appeals of Texas
DecidedJanuary 25, 2018
Docket13-16-00422-CV
StatusPublished

This text of Sensible Care Holdings, LLC, Alan Guggenheim, and Susanne Guggenheim v. Burl and Marian Sens (Sensible Care Holdings, LLC, Alan Guggenheim, and Susanne Guggenheim v. Burl and Marian Sens) 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.

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Sensible Care Holdings, LLC, Alan Guggenheim, and Susanne Guggenheim v. Burl and Marian Sens, (Tex. Ct. App. 2018).

Opinion

NUMBER 13-16-00422-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

SENSIBLE CARE HOLDINGS, LLC, ALAN GUGGENHEIM, AND SUZANNE GUGGENHEIM Appellants,

v.

BURL AND MARIAN SENS, Appellees.

On appeal from the County Court at Law No. 2 of Nueces County, Texas.

MEMORANDUM OPINION Before Chief Justice Valdez and Justices Longoria and Hinojosa Memorandum Opinion by Justice Longoria

Appellants Sensible Care Holdings, LLC, Alan Guggenheim, and Suzanne

Guggenheim (collectively the “Buyers”), appeal the disposition in the trial court following

a jury trial for breach of contract and fraud about the sale of an ambulance business in which appellees received a judgment for $395,000.00, attorney fees, interest, and court

costs. In four issues, the Buyers argue that there was factually and legally insufficient

evidence to support the jury’s damage findings, the jury charge failed to specify the proper

elements of contract damage, the jury’s findings regarding appellees’ fraud and breach

of contract went against the great weight and preponderance of the evidence, and there

was factually and legally insufficient evidence to support the award of attorney’s fees. We

affirm.

I. BACKGROUND

On December 2, 2011, the Buyers entered into a contract to purchase Sens-ible

Care, Inc., an ambulance company, from appellees, Burl and Marian Sens (collectively

the “Sellers”). Buyers purchased the company with an initial cash payment of

$550,000.00, a promissory note in the amount of $180,000.00, and a second promissory

note, the amount of which was to be calculated based on the receivables collected for

pre-closing services received within nine months of the closing date, less any liability,

interest, or offset.

The two promissory notes formed the basis of the underlying breach of contract

claim brought by the Sellers. The promissory note signed on behalf of Sensible Care

Holdings, LLC was in the original principal amount of $180,000.00, payable to the Sellers,

with a guarantee of payment signed by the Buyers in their individual capacities. The trial

court heard testimony from both parties that in or about July 2013, the Buyers ceased

making payments on the promissory note, and it is undisputed that the remaining principal

balance on that note was $113,854.11.

The second note represents additional damages sought by the Sellers for breach

of contract. The agreement, in relevant part, provided that the Sellers would loan Sensible 2 Care Holdings, LLC working capital on the following terms and conditions, to wit: for nine

months after closing date, the Sellers will do the billings and appeals for ambulance runs

with a service date on or prior to the closing date and assist Sensible Care Holdings, LLC

with the operation of the business. Sensible Care Holdings, LLC agreed to segregate

and deposit all funds received for such pre-closing ambulance runs, provide copies of all

deposit records and relevant reports to the Sellers and credit the Note account for the

Sellers with all collected amounts. Further, the agreement, in relevant part, provided that

at the end of the nine month period, Sensible Care Holdings, LLC would execute a second

promissory note in a form substantially similar to the $180,000.00 promissory note

payable to the Sellers in the amount of the collected accounts receivable for those

ambulance runs with a service date on or prior to the closing date, net of any liability,

interest or offset. The agreement provided that such note would be payable in forty-eight

monthly installments and would bear simple interest at the rate of 6% per annum. The

Buyers promised to personally guarantee payment of the note. The gross amount

collected for pre-closing runs during the applicable time period agreed to in the contract

was $226,331.16. No payments were made.

The Sellers brought suit against the Buyers for fraud, civil conspiracy and

conversion, and breach of contract. The Buyers filed an answer and counterclaim

alleging the Sellers were guilty of fraud and misrepresentation and further that any lack

of performance found on the Buyers’ behalf should be excused due to the deceptive,

fraudulent, and otherwise illegal conduct of the Sellers. The Buyers alleged that prior to

the sale, the Sellers withheld information relating to regulatory changes in payments by

Medicare for dialysis patients, which the Buyers argue was material to the business and

3 further claimed that the Sellers misrepresented the cash position of the company prior to

sale, violating the terms of their agreement.

The jury unanimously found that the failure to comply with the agreement by the

Buyers was not excused; that the Sellers were not guilty of a breach of warranty given to

the Buyers; that the Sellers were not guilty of fraud through material misrepresentations

of fact to the Buyers; that the Sellers were not guilty of fraud through failure to disclose

material facts to the Buyers; and that the Sellers did not commit statutory fraud against

the Buyers with regard to the sale of shares in Sens-ible Care, Inc. The jury awarded

contract damages in the amount of $395,000.00 plus trial and appellate attorney fees,

interest, and court costs to the Sellers. This appeal followed.

II. SUFFICIENCY OF THE EVIDENCE

The Buyers argue sufficiency of the evidence in issues one, three, and four. We

address each in turn in this section.

A. Standard of Review

We may sustain a legal sufficiency challenge only when: (1) the record discloses

a complete absence of evidence of a vital fact; (2) the court is barred by rules of law or of

evidence from giving weight to the only evidence offered to prove a vital fact; (3) the

evidence offered to prove a vital fact is no more than a mere scintilla; or (4) the evidence

establishes conclusively the opposite of a vital fact. Damian v. Bell Helicopter Textron,

Inc., 352 S.W.3d 124, 156–57 (Tex. App.—Fort Worth 2011, pet. denied). “Evidence

does not exceed a scintilla if it is so weak as to do no more than create a mere surmise

or suspicion that the fact exists.” Akin, Gump, Strauss, Hauer & Feld, L.L.P. v. Nat’l Dev.

& Research Corp., 299 S.W.3d 106, 115 (Tex. 2009) (internal quotation marks omitted).

We review the record and consider evidence favorable to the finding if a reasonable 4 factfinder could, and we disregard contrary evidence unless a reasonable factfinder could

not. City of Keller v. Wilson, 168 S.W.3d 802, 822 (Tex. 2005). We view the evidence in

the light most favorable to the challenged finding and indulge every reasonable inference

that supports it. Id. The final test for legal sufficiency is always “whether the evidence at

trial would enable reasonable and fair-minded people to reach the verdict under review.”

Id. at 827. In a factual-sufficiency challenge, we consider and weigh all of the evidence,

both supporting and contradicting the finding. See Mar. Overseas Corp. v. Ellis, 971

S.W.2d 402, 406–07 (Tex. 1998). We may set aside the finding only if it is so contrary to

the overwhelming weight of the evidence as to be clearly wrong and unjust. Id. at 407.

We may not substitute our own judgment for that of the fact finder or pass upon the

credibility of witnesses. Id.; see Duradril, L.L.C. v. Dynomax Drilling Tools, Inc., 516

S.W.3d 147, 156 (Tex.

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Sensible Care Holdings, LLC, Alan Guggenheim, and Susanne Guggenheim v. Burl and Marian Sens, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sensible-care-holdings-llc-alan-guggenheim-and-susanne-guggenheim-v-texapp-2018.