Signad, Ltd. v. DW PR/ Marketing, Media & Public Relations, LLC D/B/A Wicked Publicity and BIJ Motors TX, LLC D/B/A Mercedes Benz of the Woodlands

CourtCourt of Appeals of Texas
DecidedMarch 9, 2021
Docket14-20-00042-CV
StatusPublished

This text of Signad, Ltd. v. DW PR/ Marketing, Media & Public Relations, LLC D/B/A Wicked Publicity and BIJ Motors TX, LLC D/B/A Mercedes Benz of the Woodlands (Signad, Ltd. v. DW PR/ Marketing, Media & Public Relations, LLC D/B/A Wicked Publicity and BIJ Motors TX, LLC D/B/A Mercedes Benz of the Woodlands) 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
Signad, Ltd. v. DW PR/ Marketing, Media & Public Relations, LLC D/B/A Wicked Publicity and BIJ Motors TX, LLC D/B/A Mercedes Benz of the Woodlands, (Tex. Ct. App. 2021).

Opinion

Affirmed and Memorandum Opinion filed March 9, 2021.

In The

Fourteenth Court of Appeals

NO. 14-20-00042-CV

SIGNAD, LTD., Appellant

V. DW PR/MARKETING, MEDIA & PUBLIC RELATIONS, LLC D/B/A WICKED PUBLICITY AND BIJ MOTORS TX, LLC D/B/A MERCEDES BENZ OF THE WOODLANDS, Appellees

On Appeal from the 165th District Court Harris County, Texas Trial Court Cause No. 2017-33888

MEMORANDUM OPINION

In this breach of contract case SignAd appeals a judgment following a bench trial. In three issues SignAd argues (1) the trial court erred in finding that DW PR/Marketing, Media & Public Relations, LLC (“Wicked Publicity”) was not an agent of BIJ Motors TX, LLC d/b/a Mercedes-Benz of the Woodlands (“Mercedes”) in signing the advertising contracts; (2) if Wicked Publicity was not an agent of Mercedes the trial court erred in finding that the advertising contracts are valid and enforceable; and (3) if the contracts were not valid and enforceable the trial court erred in finding that SignAd was not entitled to recover in quantum meruit. Concluding there is sufficient evidence to support the trial court’s judgment, we affirm.

BACKGROUND

When Mercedes planned to open a car dealership in the Woodlands, Robert Milner, Mercedes’ general manager, sought billboard advertisements on nearby roadways. Mercedes paid Wicked Publicity a flat fee each month for general public relations and event planning. When Milner mentioned his interest in billboard advertising to Donna Wick, Wicked Publicity’s owner, Wick had advertisements for her PR firm on several billboards and represented to Milner that she owned one of the billboards. Wick told Milner that her firm would contract with Mercedes to place Mercedes’ advertisements on the billboards. Milner testified that Wicked Publicity would contract with the billboard company and Mercedes would pay Wicked Publicity to sublease the billboards. According to Milner this arrangement allowed Mercedes flexibility to move its billboards to different locations as opposed to contracting directly with the billboard company.

Milner testified that he submitted an email inquiry directly to SignAd but never spoke with anyone at SignAd directly. Milner testified that he “sent an e-mail to every billboard company in Houston asking them for information about billboards,” but decided that he would rather work through Wicked Publicity than directly with the sign companies. Milner testified that Wick through Wicked Publicity “held the contract” on the billboard and he subleased it from Wicked Publicity. Mercedes eventually contracted with Wicked Publicity for two billboards, for which Mercedes paid Wick in addition to the monthly flat fee for advertising services. Milner testified that he did not believe that Mercedes had any responsibility

2 to SignAd directly and that no one ever suggested that it did. Mercedes never signed any of the contracts with SignAd nor did it sign an “agency of record” letter giving Wick or Wicked Publicity authority to bind Mercedes to the contracts. Mercedes never authorized Wick to sign a contract on its behalf or authorize Wick to represent that she had such authority. Mercedes paid Wicked Publicity a total of $127,600 for the use of the billboards.

Three contracts for the billboards were admitted into evidence. Two of the contracts were for the same billboard, which rented for $2,800 per month: the initial contract, and a renewal contract. Another contract was for a second billboard, which rented for $6,000 per month.1 The contracts stated they were between SignAd and Wicked Publicity. The contracts listed Wicked Publicity as the agency and Mercedes as the client.

The first contract for a billboard rental of $2,800 was signed by Donna Wick on behalf of the agency Wicked Publicity. Bob Milner’s name was printed as the client, Mercedes. Milner’s signature did not appear on the contract; Wick was listed as “guarantor.” The second contract for a billboard rental of $6,000 was signed by Donna Wick on behalf of Wicked Publicity similar to the first contract. Although Mercedes was listed as the client on the contract, no signature or name appears under the client’s name. The third contract, a renewal of the $2,800 billboard, originally listed the client as Mercedes-Benz of the Woodlands. Wick crossed out Mercedes’ name and wrote in Wicked Publicity. Wick then signed the contract on behalf of Wicked Publicity. All three contracts provided that “For value received, WICKED PUBLICITY hereby promises to pay to the order of SIGNAD, LTD, in Houston,

1 SignAd’s representative testified that the actual rental on the billboards was less than the amount listed on the contracts, but the additional amount was a standard commission paid to the agency by the client.

3 Harris County, Texas, their successors or assigns, the sum of [yearly cost] in monthly installments of [monthly rent].”

Several months into the contracts Wicked Publicity stopped paying SignAd. Wicked Publicity failed to pay a total of $74,600 on the contracts. SignAd sued both Wicked Publicity and Mercedes on the contracts. Wicked Publicity neither answered, nor appeared at trial.

At trial, SignAd introduced three demand letters into evidence that it sent to Wicked Publicity. The recipients of the first two demand letters are listed as Wicked Publicity and Mercedes-Benz of the Woodlands. The only address, however, is one for Wicked Publicity. The third letter, containing the words “Final Demand” was sent only to Wicked Publicity.

Angie Heckel, SignAd’s account manager, testified that she did not expect Mercedes to receive the demand letters. Heckel further testified that SignAd never expected payment directly from Mercedes, never received payment directly from Mercedes, and never asked for payment directly from Mercedes. Invoices for the billboards were sent to Wicked Publicity, not to Mercedes.

After SignAd rested Mercedes moved for directed verdict on the grounds that (1) SignAd had not proved actual or apparent authority for Wick to operate as Mercedes’ agent; (2) SignAd’s quantum meruit claim failed because it proved a valid contract existed; and (3) SignAd could not recover its attorney’s fees because Mercedes was a limited liability corporation. The trial court granted directed verdict on actual authority and attorney’s fees, but denied directed verdict on quantum meruit and apparent authority. After the bench trial the trial court granted default judgment against Wicked Publicity for breach of contract and awarded damages of $74,600. The trial court further ordered that SignAd take nothing from Mercedes. SignAd appeals the trial court’s judgment. 4 ANALYSIS

In its first issue SignAd asserts the trial court erred in finding that Wicked Publicity was not an agent of Mercedes. Following a bench trial we treat SignAd’s issue challenging the trial court’s finding as a challenge to the legal sufficiency of the evidence. See Tendeka, Inc. v. Nine Energy Serv. LLC, No. 14-18-00018-CV, 2019 WL 6872942, at *4 (Tex. App.—Houston [14th Dist.] Dec. 17, 2019, no pet.) (mem. op.).2

I. Standard of Review and Applicable Law

When, as here, a trial court does not make findings of fact and conclusions of law to support its ruling after a bench trial, we infer all findings necessary to support the judgment. See BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789, 795 (Tex. 2002). The judgment of the trial court must be affirmed if it can be upheld on any legal theory that is supported by the evidence. In re W.E.R., 669 S.W.2d 716, 717 (Tex. 1984); Burton v. Prince, 577 S.W.3d 280, 285 (Tex. App.—Houston [14th Dist.] 2019, no pet.).

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Signad, Ltd. v. DW PR/ Marketing, Media & Public Relations, LLC D/B/A Wicked Publicity and BIJ Motors TX, LLC D/B/A Mercedes Benz of the Woodlands, Counsel Stack Legal Research, https://law.counselstack.com/opinion/signad-ltd-v-dw-pr-marketing-media-public-relations-llc-dba-texapp-2021.