SOUTH TEXAS FREIGHTLINER, INC. v. Muniz

288 S.W.3d 123, 2009 Tex. App. LEXIS 1770, 2009 WL 620474
CourtCourt of Appeals of Texas
DecidedMarch 12, 2009
Docket13-07-00460-CV
StatusPublished
Cited by9 cases

This text of 288 S.W.3d 123 (SOUTH TEXAS FREIGHTLINER, INC. v. Muniz) 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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SOUTH TEXAS FREIGHTLINER, INC. v. Muniz, 288 S.W.3d 123, 2009 Tex. App. LEXIS 1770, 2009 WL 620474 (Tex. Ct. App. 2009).

Opinion

OPINION

Opinion by

Chief Justice VALDEZ.

Appellant, South Texas Freightliner, Inc. (hereinafter “STF”), appeals a $117,000 civil judgment for malicious prosecution rendered in favor of appellees, Francisco and Margarita Muniz (collectively “the Munizes”). 1 By three issues, STF contends that the (1) evidence is legally and factually insufficient to support three elements of a malicious prosecution claim; (2) evidence is legally and factually insufficient to support the damages; and (3) trial court erred in calculating prejudgment interest. We affirm.

*127 I. Background

On April 13, 2000, Francisco was indicted for a state-jail felony theft charge. See Tex. Penal Code Ann. § 31.03(e)(4) (Vernon Supp.2008) (providing that it is a state-jail felony to steal property valued at $ 1,500 or more but less than $20,000). The indictment alleged that Francisco failed to disclose a second lien, which was held by Valley Trucking, on a 1993 Freightliner that Francisco traded-in to STF in connection with the purchase of a new truck. This indictment was dismissed, but Francisco was subsequently re-indicted on August 23, 2003. After a week-long jury trial, Francisco was acquitted on November 12, 2004.

On August 6, 2002, the Munizes sued STF for malicious prosecution, but that suit was non-suited. On December 15, 2004, the couple re-filed a malicious prosecution suit against STF. The case was tried to a jury in January 2007. The testimony and evidence came from the following individuals: (1) Valley Trucking employees, who testified about a promissory note executed by the Munizes; (2) STF employees, who recounted the sales process; (3) a police officer, who explained his investigation; and (4) the Munizes, who relayed their understanding of the promissory note, sale, and criminal prosecution.

A. Valley Trucking Employees

Sofia Garza, the office manager of Valley Trucking, testified that she typed a promissory note that was executed by Richard Carruthers, vice president of Valley Trucking, and the Munizes. The note, dated June 9, 1998, references Francisco and Margarita as the lenders and Valley Trucking as the borrower, 2 and states in relevant part:

TERMS FOLLOWING A □ APPLY ONLY IF CHECKED
NOTE — For value received, I promise to pay you, or your order, at your address above, the principal sum of: Eleven thousand six hundred nineteen Dollars $11,619.00 plus interest from _at the rate of_% per year until_
PAYMENTS — I will pay this note as follows:
(a) □ In 12 payments. The first payment will be in the amount of $ 1,04.0.51 and will be due July 9, 1998. A payment of $ 1040.51 will be due on the 9th day of each month thereafter.
[[Image here]]
SECURITY — You have certain rights that may affect my property as explained on page 2. This loan |x| is Q is not further secured.
(a) □ This loan is secured by _, dated_
(b) □ Security Agreement — I give you a security interest in the Property described below. The rights I am giving you in this Property and the obligations this agreement secures are defined on page 2 of this agreement.
Keep insurance on 1993 Freightliner tractor vin# 1FUYDSYBXPP485198 with Valley Trucking as loss payee.

Garza testified that she did not check either the (a) or (b) box under the “SECURITY” section and that she “put down up at the top of that [section of the note that it] was secured but [she] didn’t write down what it was securing.” Garza testified that STF eventually paid the outstanding bal- *128 anee on the 1998 note and the “lien was released.”

On redirect examination by the Munizes’ attorney, Garza was asked whether the 1998 note created a second lien. Garza responded that it did not. Then she was asked, “So, if [Francisco] goes out and tells people there is no second lien, he is not misrepresenting anything, is he?” Garza responded, “No, sir.”

Richard Carruthers testified that the 1998 note “wiped-out” the 1997 note. On cross-examination by STF’s counsel, Car-ruthers testified that he discussed the 1993 Freightliner’s financing agreement with the Munizes, and Francisco was aware he had to pay off the note before he could trade in the Freightliner. Carruthers testified, “I told him to make sure that he was getting a trade-in where he can get his equity out, where he wouldn’t be upside on the deal.... ”

B. STF Employees

Angel Beltran, a former STF salesman, testified that he would help customers complete credit applications, but he could not remember if he specifically and consistently asked customers if a truck proposed as a trade-in was secured by a second lien. During Beltran’s testimony, the trial court admitted a Mercedes-Benz Credit Corporation application that Francisco signed; its only reference to liens was to whether the applicant had any “tax liens.” The application contained sections titled “Bank/Mortgage Company References” and “Equipment Financing and Leasing References.”

Stacy Gillard, a former STF finance manager, testified that she reviewed the original Texas title to the traded-in 1993 Freightliner and discovered that Valley Trucking claimed a second lien on the truck. In March 1999, Gillard was directed by her supervisor to go to the Pharr Police Department and provide a statement regarding the 1993 trade-in vehicle. On March 30, 1999, STF paid the balance on the 1998 note. On cross-examination by STF’s counsel, Gillard testified that Francisco had to know about the second lien because he signed a title application acknowledging the second lien by Valley Trucking in order for that second lien to appear on the title.

Eddie Vaughan, STF’s president, testified that he sent a letter to the Pharr Police Department alleging that Francisco’s credit application did not accurately disclose a second lien. The letter, dated September 1,1999, states:

I, Eddie Vaughan, owner and president of South Texas Freightliner, wish to press criminal charges against Mr. Francisco Ruiz [sic].
On December 10, 1998, Mr. Ruiz [sic] approached South Texas Freightliner about purchasing a new 1999 Freightliner Classic XL. He completed a credit application and a retail buyers order on which he stated the lien against his trade-in vehicle was with First Valley Bank for the approximate amount of $28,000. This payoff amount was confirmed with First Valley Bank, and Mr. Muniz signed a contract for and took delivery of his new Freightliner. Several days later, the title for the trade-in was received from First Valley Bank, and it was discovered that Mr. Muniz had a second and previously undisclosed lien on the vehicle. Mr.

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288 S.W.3d 123, 2009 Tex. App. LEXIS 1770, 2009 WL 620474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-texas-freightliner-inc-v-muniz-texapp-2009.