Specialty Retailers, Inc. v. Fuqua

29 S.W.3d 140, 2000 WL 675127
CourtCourt of Appeals of Texas
DecidedOctober 12, 2000
Docket14-99-00187-CV
StatusPublished
Cited by153 cases

This text of 29 S.W.3d 140 (Specialty Retailers, Inc. v. Fuqua) 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
Specialty Retailers, Inc. v. Fuqua, 29 S.W.3d 140, 2000 WL 675127 (Tex. Ct. App. 2000).

Opinion

OPINION

WANDA McKEE FOWLER, Justice.

This is an appeal from the grant of a no-evidence summary judgment. Specialty Retailers, Inc. (SRI) sued Aviex Jet, Inc., Richard L. Fuqua, and David D. Trigg for causes of action arising from the operation of a corporate jet. Fuqua moved for a no-evidence summary judgment, and it was granted as to all claims. Fuqua’s case was then severed, and the summary judgment order became final. Finding the summary judgment proper as to all but two causes of action, we affirm in part and reverse and remand in part.

Facts

In this case, as the facts below reveal, SRI claims that Aviex, through two actors, namely Fuqua and Trigg, acting unlawfully and fraudulently, deprived it of income and damaged its corporate jet by not performing required maintenance.

SRI, which operates several chains of department stores, owned a Cessna Citation II SP business jet. SRI contracted with Aviex to manage and operate the jet on their behalf; providing whatever flight crews, maintenance, or other operational services as might be necessary. When SRI did not need the Cessna, Aviex would *144 operate it as a charter with the net revenue being divided between SRI and Aviex. Since the maintenance of an aircraft is dependent on the amount of flight hours logged, a set portion of the revenue was also to be set aside for the Cessna’s regular maintenance.

Fuqua was a director of Aviex, and owned its stock in trust for his children. Trigg was Aviex’s director of operations, and later its president.

In 1994, the Federal Aviation Administration began an investigation of Aviex based on an anonymous tip to its safety hotline. The FAA discovered that Aviex had failed to log hundreds of hours of flight time on the aircraft it operated. As for the Cessna specifically, the FAA determined that Aviex failed to log a total of 550 hours of flight time and 365 landings. SRI was not given any revenue from these flights and, because the hours had not been logged, necessary maintenance was not performed.

The FAA and Aviex entered into a consent decree, signed by Fuqua, which imposed a fíne of $98,200, required that Aviex update all of its flight logs, and banned David Trigg from holding any federally regulated management position, i.e., chief pilot, director of operations, and director of maintenance. In response, Fu-qua named Trigg to be Aviex’s president, which is not a federally regulated management position. As president, however, Trigg had authority over those federally regulated positions which he himself was banned from holding. Fuqua then filled those federally regulated positions after consulting with Trigg.

SRI was not informed of the FAA investigation, and, rather than telling SRI the full extent of its false reporting, Aviex told SRI that it had failed to log only 65.2 hours of flight time. Aviex then continued to fly the Cessna without informing and compensating SRI.

Eventually, SRI decided to purchase a larger aircraft. Aviex agreed to act as an agent for SRI in finding both a new aircraft and a buyer for the Cessna. SRI sold the Cessna to Corporate Fleet Services (CFS) and purchased an Israeli Aircraft Industries Westwind business jet. The Westwind, which was owned by a South American company, was being brokered by Miami-based Aero consulting corporation. Aviex bypassed Aero and purchased the jet for SRI directly from its owners. SRI and Aviex then entered into an agreement concerning the Westwind similar to the one concerning the Cessna. When the Westwind jet was not being used by SRI, it would be chartered by Aviex and the revenue split.

In the meantime, CFS planned to have the interior of the Cessna refurbished. While this work was being done, numerous mechanical defects were found. The Cessna’s deterioration was so severe that CFS had to return the plane to the manufacturer’s plant for repairs. While there, even more defects were found. The defects included frayed control surface cables, leaking fuel tanks, and cracked heating elements in the wings. When Aviex refused to remedy the problem, SRI spent “hundreds of thousands of dollars” to bring the Cessna up to the condition Aviex represented it was in at the time of the sale.

After realizing that Aviex was responsible for this wholesale deterioration of the Cessna, SRI canceled the Westwind agreement with Aviex. SRI also inspected the Westwind aircraft and discovered that the pre-purchase inspection had not been completed, that the aircraft had not been placed on Aviex’s charter certificate, that numerous repairs were needed before the plane could fly legally, and that Aero consulting had placed a lien on the aircraft for its brokerage fee.

SRI sued Aviex, later adding Trigg and Fuqua as parties, seeking its share of revenue from the embezzled flight time, the return of the maintenance deposits, the cost to repair the Cessna and the West-wind, and the cost to satisfy Areo’s lien.

*145 Adequate Time for Discovery

SRI’s third issue, which we will address first, is whether an adequate time for discovery had passed before the trial court granted the no-evidence summary judgment.

A party may move for a no-evidence summary judgment only “[a]fter adequate time for discovery.” Tex.R. Civ. P. 166a (i). The rule does not require that discovery must have been completed, only that there was “adequate time.” In re Mohawk Rubber Co., 982 S.W.2d 494, 498 (TexApp.-Texarkana 1998, orig. proceeding). The comment to rule 166a(i) explains that “[a] discovery period set by pretrial order should be adequate opportunity for discovery unless there is a showing to the contrary, and ordinarily a motion ... would be permitted after the period but not before.” Tex.R. Civ. P. 166a (i) comment. This comment, unlike other notes and comments in the rules of civil procedure, was specifically intended to inform the construction and application of the rule. See id.

The instant case was first filed on April 18, 1997 with an original discovery deadline of June 27, 1998. SRI filed an amended petition naming Fuqua as a party on January 12, 1998. An extended discovery deadline was set for September 11, 1998. Fuqua filed his motion on Sept. 8, 1998, eight days before that deadline.

An adequate time for discovery is determined by the nature of the cause of action, the nature of the evidence necessary to controvert the no-evidence motion, and the length of time the case had been active in the trial court. See Dickson Constr., Inc. v. Fidelity & Deposit Co. Of Maryland, 5 S.W.3d 353, 356 (Tex.App.-Texarkana 1999, pet. denied). A court may also look to factors such as the amount of time the no-evidence motion has been on file, whether the movant has requested stricter time deadlines for discovery, the amount of discovery that has already taken place, and whether the discovery deadlines that are in place are specific or vague. See William J. Cornelius and David F. Johnson, Tricks, Traps, And Snares in Appealing a Summary Judgment in Texas, 50 BayloR L.Rev. 813 (1998).

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Cite This Page — Counsel Stack

Bluebook (online)
29 S.W.3d 140, 2000 WL 675127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/specialty-retailers-inc-v-fuqua-texapp-2000.