Texas Beef Cattle Co. v. Green

921 S.W.2d 203, 39 Tex. Sup. Ct. J. 523, 1996 Tex. LEXIS 43, 1996 WL 200354
CourtTexas Supreme Court
DecidedApril 25, 1996
Docket94-1004
StatusPublished
Cited by349 cases

This text of 921 S.W.2d 203 (Texas Beef Cattle Co. v. Green) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texas Beef Cattle Co. v. Green, 921 S.W.2d 203, 39 Tex. Sup. Ct. J. 523, 1996 Tex. LEXIS 43, 1996 WL 200354 (Tex. 1996).

Opinions

On Application FOR WRIT of Error to the Court of Appeals for the Ninth District of Texas

CORNYN, Justice,

delivered the opinion of the Court,

in which PHILLIPS, Chief Justice, HECHT, ENOCH, SPECTOR, OWEN, BAKER, and ABBOTT, Justices, join.

Texas Beef Cattle Company’s motion for rehearing is granted in part and overruled in part. Jeff Green’s motion for rehearing is overruled. We withdraw our opinion and judgment of January 11,1996, and substitute the following opinion.

This malicious prosecution and tortious interference with contract case is the culmination of three lawsuits filed in two counties arising out of competing claims to several hundred head of cattle. We address three [206]*206main issues: first, whether a civil case upon which a malicious prosecution suit is predicated has “terminated” in favor of a plaintiff before appeals of the underlying case have been exhausted; second, whether the “special injury” requirement for damages has been satisfied in this case; and third, whether actual malice or legal malice is the relevant inquiry in a justificátion defense to a claim of tortious interference with contract.

We hold that an underlying civil claim does not terminate in favor of the plaintiff in a malicious prosecution case until the appeals process has been exhausted, and that the special injury threshold for damages in such cases requires an interference with the plaintiffs person or property. We also hold that a jury finding that interference is legally justified is not nullified by a finding of actual malice. Accordingly, we reverse the judgment of the court of appeals and render judgment for W.H. O’Brien, the managing partner of Texas Beef Cattle Company (Texas Beef), and Texas Beef on the malicious prosecution claim, and render judgment for O’Brien on the tortious interference with contract claim.

The facts of this case are convoluted. In search of a buyer and at the behest of Doug Florence, a cattle stocker for and joint ven-turer with Texas Beef, Jeff Green shipped 253 head of cattle to the Beck Ranch, located in the Texas Panhandle. During negotiations with O’Brien, Green offered to sell these cattle to Texas Beef. O’Brien declined, saying that the price was too high.

Florence then proposed to Green that he sell the cattle to Cargill Agricultural Credit Corporation. Cargill, however, was only interested in 247 of the 253 head of cattle. Green agreed to the sale and told O’Brien that 247 of the cattle would be relocated to Caprock IV, a feedyard in Dalhart, to close the deal with Cargill. Following this agreement, Florence shipped the cattle to Caprock IV, where they were registered in his name. Cargill subsequently issued a $102,853.65 draft to Green, and Green warranted the buyer’s title to the cattle.

Florence later confessed to Texas Beef that he had stolen all or a major portion of Texas Beefs cattle pastured on the Beck Ranch. O’Brien subsequently claimed to Cargill that some or all of the cattle delivered by Florence to Caprock IV belonged to Texas Beef. These were the same 247 head of cattle that Texas Beef had chosen not to buy just weeks before. Cargill responded by relocating the cattle to the Dalhart sale bam for auction, where 233 were sold for $102,-000.00. As a result of Texas Beefs and Cargill’s competing claims to the sale proceeds, the Dalhart Livestock Auction inter-pleaded the funds into the registry of the court in Hartley County.

The first lawsuit concerning the contested cattle was filed by Texas Beef in Hartley County. Texas Beef sued Cargill for conversion, and later joined Green and several other parties who claimed title to the cattle that had been in either Florence or Texas Beefs possession. The trial court issued a temporary injunction against Cargill, preventing both its collection of the auction proceeds and the sale of any other cattle located on Ca-prock IV to which Texas Beef claimed an interest. Cargill cross-claimed against Green on his warranty of title.

Two days later, Green filed suit in Liberty County against Texas Beef, its partners, and Florence. Green alleged nonpayment for several shipments of cattle delivered to Florence and resold by Florence to Texas Beef, and that he was not certain which cattle had been paid for. Texas Beef countersued Green for conversion of the 247 head of cattle delivered to Caprock IV, the identical claim it asserted in the Hartley County case.

The Liberty County suit was tried first, in May of 1989, and resulted in a judgment for Green, including the 247 head of cattle claimed by Texas Beef. This judgment was affirmed by the Beaumont Court of Appeals, and we denied Texas Beefs application for writ of error on June 5,1991.

Although it lost its counterclaim on the 247 head of cattle in the Liberty County suit, Texas Beef pursued that same claim in Hart-ley County, along with several other claims that had not been litigated in the Liberty County suit. The trial court ordered a separate trial on Green’s affirmative defenses of res judicata and collateral estoppel, which [207]*207resulted in a jury finding that Texas Beefs claims to the 247 head of cattle had been finally decided in the Liberty County suit. The Hartley County court ultimately rendered judgment for Green on all claims.

The Amarillo Court of Appeals affirmed that judgment in part and reversed it in part, 860 S.W.2d 722, agreeing that Texas Beefs claims to the 247 head of cattle were barred by res judicata but that its claims to other cattle were not barred. After denying the application for writ of error, this Court overruled the motion for rehearing on March 9, 1994.

Green filed this case in Liberty County on April 3, 1992, ten days after the trial court signed the judgment in the Hartley County case. He alleged that Texas Beefs continuation of the Hartley County suit after it lost the first Liberty County suit tortiously interfered with his contract with Cargill and amounted to malicious prosecution. Following a jury trial, the trial court rendered judgment for Green on both claims. The jury found, in part, that while both Texas Beef and O’Brien were legally justified in interfering with Green’s contract with Car-gill, O’Brien had interfered maliciously. Malice was defined in the charge as ill will, spite, evil motives, and the purposeful injuring of another. Based on this finding, the trial court disregarded the justification finding for O’Brien. The trial court also rendered judgment for Green on the malicious prosecution claim, even though the underlying Hartley County suit was still on appeal. The Beaumont Court of Appeals affirmed, 883 S.W.2d 415, and we granted Texas Beef and O’Brien’s application for writ of error.

I. Malicious Prosecution

To prevail in a suit alleging malicious prosecution of a civil claim, the plaintiff must establish: (1) the institution or continuation of civil proceedings against the plaintiff; (2) by or at the insistence of the defendant; (3) malice in the commencement of the proceeding; (4) lack of probable cause for the proceeding; (5) termination of the proceeding in plaintiffs favor; and (6) special damages. James v. Brown, 637 S.W.2d 914, 918 (Tex.1982). The parties dispute the existence of the fifth and sixth elements.

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Bluebook (online)
921 S.W.2d 203, 39 Tex. Sup. Ct. J. 523, 1996 Tex. LEXIS 43, 1996 WL 200354, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-beef-cattle-co-v-green-tex-1996.