Sturges v. Wal-Mart Stores, Inc.

39 S.W.3d 608, 1998 WL 1756745
CourtCourt of Appeals of Texas
DecidedMarch 12, 2001
Docket09-96-315 CV
StatusPublished
Cited by15 cases

This text of 39 S.W.3d 608 (Sturges v. Wal-Mart Stores, Inc.) 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
Sturges v. Wal-Mart Stores, Inc., 39 S.W.3d 608, 1998 WL 1756745 (Tex. Ct. App. 2001).

Opinion

OPINION

BURGESS, Justice.

Harry W. Sturges, III, Dick Ford, Bruce Whitehead, and J.D. Martin, III, individually and on behalf of Gulf Coast Investment Group, brought suit against Wal-Mart for breach of contract and tor-tious interference with prospective business relations. A jury awarded them $1,000,000 in actual damages, and $500,000 in exemplary damages in a bifurcated trial. Sturges, et al, appeal the exemplary damage award and bring two points of error. Wal-Mart cross appeals bringing nine cross points.

This case involves a dispute concerning commercial property, referred to as “tract 2”. In 1982, Wal-Mart owned tract 2, which was adjacent to tract 1, the property where the Wal-Mart Store in Nederland, Texas was located. In 1984, Whitehead as trustee, purchased tract 2 on behalf of Texas Southwest Gulf Coast Partnership. In connection with the purchase of tract 2, and as part of the consideration of the sale, Texas Southwest executed a document reflecting restrictions on the property, entitled Easements With Covenants and Restrictions Affecting Land (the 1984 ECR). The 1984 ECR confirmed an agreement to develop a commercial shopping center containing a supermarket on tract 2.

In conversations with Whitehead, Wal-Mart representatives enthusiastically supported the development of a supermarket on tract 2. Subsequent to the 1984 ECR, Texas Southwest withdrew from the partnership and any ownership interest in tract 2. In 1987 or 1988, Gulf Coast discovered that Wal-Mart had encroached on tract 2. During that time, Gulf Coast locat *612 ed a potential purchaser for a portion of tract 2. In 1988, Gulf Coast and Wal-Mart entered into and executed a document modifying the 1984 ECR (the 1988 ECR). As a part of the consideration for the 1988 ECR, the encroachment was conveyed to Wal-Mart and certain modifications were made enabling Gulf Coast to sell a portion of the property to a fast food restaurant. The 1988 ECR specifically canceled the provisions of the 1984 ECR and by reference ratified and affirmed and made a part of the 1988 ECR, a 1982 ECR that had been executed by Wal-Mart.

The 1988 ECR incorporated the 1982 ECR which provided that consent to future amendments of the ECR would not be unreasonably withheld. Appellants contend the 1988 ECR evidenced an agreement between Gulf Coast and Wal-Mart to act reasonably regarding any future requested modifications to the 1988 ECR.

Prior to the execution of the 1988 ECR, Whitehead expressed a concern to Wal-Mart that conveyance of the encroachment would interfere with the development of tract 2. Wal-Mart assured Whitehead that they would cooperate in the development of tract 2, including reasonable modifications to the 1988 ECR, to allow commercial development of tract 2, if Gulf Coast would convey the encroachment property to Wal-Mart (the 1988 Agreement). Whitehead, acting on behalf of appellants, relied upon such representations and agreement in conveying the encroachment property to Wal-Mart and executing the 1988 ECR.

During this time frame, Gulf Coast continued its efforts for development of a supermarket on tract 2 pursuant to Whitehead’s agreement with Wal-Mart. In December 1987, Gulf Coast reached an agreement with its lender, Bank One, for the partners of Gulf Coast to each sign deficiency notes and to allow Bank One to foreclose on tract 2. The other two partners of Gulf Coast dropped out of the partnership but Whitehead and Martin, as the sole remaining partners of Gulf Coast, continued their efforts to market and develop tract 2.

Whitehead and Martin, individually and on behalf of Gulf Coast, or as successors in interest of Gulf Coast, entered an agreement whereby Ford and Sturges would participate in the marketing and development of tract 2. In January of 1990, Sturg-es reached an agreement with Fleming Foods of Texas, Inc, (Fleming) under which the appellants would construct and lease to Fleming a supermarket on tract 2. A letter of intent evidenced the agreement between Fleming and Sturges, acting on behalf of appellants and signed January 31, 1990. Although tract 2 had been foreclosed upon by Bank One, the appellants had in place on that date a written agreement to repurchase tract 2.

Fleming furnished a lease form and would have executed a definitive lease agreement, provided that Wal-Mart approved requested revisions to the 1988/82 ECR. These modifications dealt primarily with a minor variation in the ratio of parking spaces to square footage of the Fleming supermarket, and approval of a new site plan which provided for a larger supermarket and eliminated the other retail space on tract 2. Pursuant to the 1988/82 ECR, Sturges, acting on behalf of appellants (including Whitehead and Martin on behalf of Gulf Coast), contacted the appropriate officials of Wal-Mart and requested the changes necessary to consummate the Fleming lease. Wal-Mart personnel were supportive of a supermarket on tract 2. Appellants’ plans were enthusiastically received at both the local and corporate level of Wal-Mart. On January 8, 1990, Sturg-es sent a site plan to Delee Wood, property manager of Wal-Mart, for the purpose of obtaining approval of the changes necessary to accommodate the Fleming lease. Shortly thereafter, Wood represented to Sturges that she had obtained approval from the necessary people at Wal-Mart for the requested changes in the 1988 ECR and that Sturges should submit documen *613 tation for execution by Wal-Mart to memorialize the revisions.

Around July of 1989, the Wal-Mart property division began efforts to purchase tract 2. In approximately November of 1989, Tom Hudson, acting as real estate agent for Wal-Mart, contacted Bank One and was informed by Bank One that tract 2 was already under contract. In early January of 1990, Hudson informed officials of Wal-Mart that if the ECR modification requested by the appellants were withheld it would in all probability “kill” the sale of tract 2 from Bank One to appellants, and the lease arrangement involving the Appellants and Fleming. Wal-Mart never revealed to appellants their efforts to reacquire tract 2 but instead encouraged appellants to proceed with their plans for development of a supermarket on tract 2.

Prior to the time appellants and Fleming could finalize their lease arrangement, Wal-mart, or its agents, informed Fleming that they wanted to acquire tract 2 for expansion; and that if they did not obtain this land on which to expand, Wal-Mart would move its store. Wal-Mart then refused to approve modification of the parking ratio set forth in the 1988/82 ECR, or to approve a new site plan for the 1988/82 ECR, allowing for a larger supermarket and eliminating the other retail space on tract 2. Appellants were then unable to consummate their transaction with Fleming. They then brought suit against Wal-Mart for breach of contract and tortious interference with prospective business relations.

In their first point of error, appellants allege the trial court erred in refusing to grant their motion for new trial based on the trial court’s refusal to admit evidence of prior'judgments and litigation against Wal-Mart during the exemplary damages portion of the trial.

Evidentiary rulings are committed to the trial court’s sound discretion. Owens-Corning Fiberglas Corporation v. Malone, 972 S.W.2d 35, 41 Tex.Sup.Ct.J.

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39 S.W.3d 608, 1998 WL 1756745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sturges-v-wal-mart-stores-inc-texapp-2001.