Simulis, L.L.C. v. General Electric Capital Corporation

439 S.W.3d 571, 2014 WL 3747609, 2014 Tex. App. LEXIS 8409
Court of Appeals of Texas·Decided July 31, 2014·No. 14-13-00383-CV·Published·Cited by 18 cases

Opinions

OPINION

WILLIAM J. BOYCE, Justice.

Simulis, L.L.C. challenges two orders on appeal: (1) a “Final Summary Judgment” signed on January 29, 2018, in which the trial court directed that Simulis take nothing on its counterclaims against General Electric Capital Corp. (“GE Capital”); and (2) an “Order Enforcing Jury Waiver Agreement” signed on February 11, 2013. Simulis contends that the trial court erred in signing the first order and lacked subject matter jurisdiction to sign the second order. We affirm the trial court’s grant of summary judgment.

Background

This is the fourth appeal arising from a decade-long commercial dispute between GE Capital and software company Simulis in connection with a failed software marketing effort.

Two prior appeals addressed the disposition of Simulis’s claims against GE Capital. See Simulis, L.L.C. v. General Electric Capital Corp., 392 S.W.3d 729 (Tex.App.Houston [14th Dist.] 2011, pet. denied) (“Simulis II ”); Simulis, L.L.C. v. General Electric Corp., No. 14-06-00701-CV, 2008 WL 1747483 (Tex.App.-Houston [14th Dist.] Apr. 17, 2008, no pet.) (“Simulis I ”). The third appeal addressed the propriety of a post-judgment garnishment obtained by GE Capital in connection with its claim against Simulis to collect on a promissory note. Simulis, L.L.C. v. G.E. Capital Corp., 276 S.W.3d 109 (Tex.App.-Houston [1st Dist.] 2008, no pet.).

Simulis’s claims are grounded on allegations that GE Capital, which provides commercial financial services, approached Sim-ulis in 2000 about forming a “strategic alliance” to market Simulis’s training software to other companies and entities associated with General Electric.

Simulis is a limited liability company formed under Delaware law. GE Capital invested $5 million in Simulis in late 2000 in exchange for a 20 percent ownership interest. Under the “Second Amended and Restated Limited Liability Company Agreement of Simulis, L.L.C.,” effective as of September 29, 2000, GE Capital became a “member” of the limited liability company and held 20 percent of the “units” in Simulis. See 6 Del. C. §§ 18-101(11), 18-303. GE Capital loaned an additional $100,000 to Simulis in 2002.

According to Simulis’s live pleading, the “strategic alliance” between GE Capital and Simulis contemplated that (1) “G.E. companies would have access to Simulis software and development techniques;” and (2) “Simulis’ association with G.E. would ensure even greater credibility in the marketplace, as well as access to additional markets and business relationships.” GE Capital allegedly told Simulis to “ ‘staff up’ in order to meet the product needs of G.E.’s industrial divisions;” maintain “an additional office;” meet “minimum employment targets;” and create “working mockups of the products that would be supplied.”

Simulis contends that GE Capital represented “these extraordinary expenditures [573]*573would be accompanied by G.E. company investments in Simulis products.” Simulis alleges: “Despite the promises and representations by G.E. Capital, na G.E. company ever purchased a single product from Simulis.” It continues: “Ultimately, Simu-lis incurred millions of dollars in additional costs and expenses in reliance on G.E. Capital’s representations that it had the ability to provide business from its G.E. sister divisions.” Simulis further alleges: “... G.E. Capital did not have the ability to secure G.E. business for Simulis, and it never did. And it was G.E. Capital’s representation that it did have this ability, or its failure to tell Simulis the truth about the matter, that caused damage to Simu-lis.”

PROCEDURAL HlSTpRY

The legal fight began when GE Capital sued Simulis in 2005 for breach of contract and asserted a sworn account claim after Simulis defaulted on a promissory note in connection with GE Capital’s $1P0,000 loan.

GE Capital moved for summary judgment on its claims. Simulis did not deny liability; instead, Simulis asserted an offset defense and counterclaims against GE Capital for breach of contract, promissory estoppel, and quantum meruit. After the trial court granted an interlocutory summary judgment in favor of QE Capital on the note, GE Capital filed a combined no-evidence and traditional motion for summary judgment on Simulis’s counterclaims and defenses. The trial court granted summary judgment, and Simulis pursued the first appeal in this case.

In its first appeal, Simulis challenged only the trial court’s grant of summary judgment with respect to the counterclaims for promissory estoppel and quantum meruit; Simulis did hot challenge summary judgment with respect to the underlying promissory note, its offset defense, or its breach of contract claim. Simulis I, 2008 WL 1747488, at *1.

This court affirmed the grant of summary judgment on Simulis’s counterclaim for promissory estoppel. Id. at *2. “While a specific, detailed promise might support a promissory estoppel claim, relying on a vague, indefinite promise of future business is unreasonable as a matter of law.” Id. (citations omitted).

“Here, Simulis presented evidence that GE promised that Simulis would ‘receive business’ and that the volume of business would be a ‘company maker’ for Simulis.” Id. “The parties never discussed or negotiated the specific pieces of business, the price, when and for how long such transactions would occur, or any other terms.” Id. “Relying on such promises is unreasonable as a matter of law and cannot be the basis for a promissory estoppel claim.” Id. This court distinguished cases relied upon by Simulis because they “all involve much more definite promises that GE made here.” Id. at *2 n. 1 (citing Preload Tech., Inc. v. A.B. & J. Constr. Co., 696 F.2d 1080, 1082-88, 1085 (5th Cir.1983); CWTM Corp. v. AM Gen. LLC, No. Civ. A. H-04-2857, 2005 WL 1923605, at *1 (S.D.Tex. Aug. 10, 2005); ‘Moore’ Burger, Inc. v. Phillips Petroleum Co., 492 S.W.2d 934, 937-38 (Tex.1972); Wheeler v. White, 398 S.W.2d 93, 94-95 (Tex.1965); Frost Crushed Stone Co. v. Odell Geer Constr. Co., 110 S.W.3d 41, 45 (Tex.App.-Waco 2002, no pet.)).

íhis court reversed the grant of summary judgment on Simulis’s counterclaim for quantum meruit after concluding that the evidence raised a fact issue with respect to whether GE Capital received valuable services from Simulis. Id. at *3. Accordingly, this court reversed and remanded “for further proceedings consistent with this opinion.” Id.

[574]*574Simulis did not pursue its quantum me-ruit claim on remand. Simulis II, 392 S.W.3d at 732. Instead, Simulis amended its pleadings to add more than half a dozen new causes of action. Id.

GE Capital filed special exceptions in response to the amended pleadings. Among other things, GE Capital contended that Simulis violated this court’s Simu-lis I mandate by adding new causes of action on remand. Id.

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Simulis, L.L.C. v. General Electric Capital Corporation, 439 S.W.3d 571, 2014 WL 3747609, 2014 Tex. App. LEXIS 8409 (Tex. Ct. App. 2014).

439 S.W.3d 571 (Simulis, L.L.C. v. General Electric Capital Corporation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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