Trevino & Associates Mechanical, L.P. and Mike Trevino. Sr. v. the Frost National Bank

400 S.W.3d 139, 2013 WL 1410319, 2013 Tex. App. LEXIS 4539
CourtCourt of Appeals of Texas
DecidedApril 9, 2013
Docket05-11-00650-CV
StatusPublished
Cited by41 cases

This text of 400 S.W.3d 139 (Trevino & Associates Mechanical, L.P. and Mike Trevino. Sr. v. the Frost National Bank) 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
Trevino & Associates Mechanical, L.P. and Mike Trevino. Sr. v. the Frost National Bank, 400 S.W.3d 139, 2013 WL 1410319, 2013 Tex. App. LEXIS 4539 (Tex. Ct. App. 2013).

Opinion

OPINION

Opinion by

Justice LANG.

Trevino & Associates Mechanical, L.P., (TAM) and Mike Trevino, Sr., a/k/a Miguel Trevino, Sr., appeal the trial court’s final judgment dismissing all of its counterclaims against The Frost National Bank (Frost Bank). TAM raises two issues on appeal, claiming the trial court erred when it (1) granted Frost Bank’s motion for partial no-evidence summary judgment on its counterclaims for breach of contract, promissory estoppel, negligent misrepresentation, fraud, conversion, and wrongful setoff; and (2) granted Frost Bank’s motion for partial traditional summary judgment on its counterclaims as to damages. Trevino did not file a brief in this appeal.

We affirm the trial court’s final judgment as to Trevino because he did not file a brief on appeal. We conclude the trial court did not err when it granted Frost Bank’s motion for partial no-evidence summary judgment on TAM’s counterclaims. Based on this conclusion, we need not address TAM’s claim that the trial court erred when it granted Frost Bank’s motion for partial traditional summary judgment on TAM’s counterclaims. The trial court’s final judgment is affirmed.

I. FACTUAL AND PROCEDURAL BACKGROUND

TAM is a mechanical contractor that provides plumbing, heating, air conditioning, piping, and duct work. Frost Bank provided TAM with a line of credit to allow it to complete its construction projects and expand its business. In 2006, TAM and Frost Bank signed a business loan agreement for a $3.5 million line of credit that was secured by a commercial security agreement. The business loan agreement matured in 2008, but was renewed and extended to April 30, 2009. On May 12, 2009, Frost Bank sent TAM a notice stating that its line of credit had matured and the amount due was stated. That sum was $2,309,749.89.

On June 4, 2009, Trevino met with representatives of Frost Bank. At the conclusion of the meeting, Trevino believed that Frost Bank had orally renewed and extended the business loan agreement for three months or until July 30, 2009, and he had until June 30, 2009, to provide Frost Bank with a business plan. No written renewal and extension or other written agreement was signed by the parties at that time.

Subsequent to the above meeting, Frost Bank sent TAM a written notice dated June 19, 2009, stating the maturity date of the loan as June 30, 2009 and that TAM’s line of credit was due on that date. Also, on June 19, 2009, Frost Bank setoff from TAM’s account at Frost Bank $660,089.17, which constituted all of the funds in TAM’s *142 operating account. Frost Bank sent TAM written notice of the setoff on June 22, 2009. That notice listed the maturity date of the loan as April 80, 2009. According to TAM, Frost Bank’s actions caused TAM to lay off its employees and resulted in its inability to complete eight ongoing construction projects. Liberty Mutual was surety for those projects and incurred the cost of completion. As a result, Liberty Mutual sued TAM and obtained a judgment against it for $6,198,186.00 plus pre- and post-judgment interest.

Frost Bank sued TAM for breach of contract respecting the loan and Trevino on his personal guaranty. Frost Bank claimed it was owed $1,741,469.88, and sought pre- and post-judgment interest and its attorney’s fees. It alleged that the loan agreement with TAM matured by its own terms on April 80, 2009, at which time the outstanding principal and interest became due and payable. TAM and Trevino answered the lawsuit generally denying the claims and asserting the affirmative defenses of estoppel, laches, accord and satisfaction, failure of consideration, waiver, failure to satisfy all conditions precedent to recovery, failure to mitigate damages, ratification, and payment and release. They also alleged counterclaims sounding in fraud, fraudulent inducement, negligent misrepresentation, breach of fiduciary duty, special relationship, breach of contract, promissory estoppel, conversion, and wrongful setoff, and sought damages and attorney’s fees. All of the counterclaims were based on the allegation that Frost Bank orally renewed and extended the note.

Frost Bank moved for partial traditional summary judgment on its breach of contract claim against TAM and Trevino arguing the loan agreement with TAM and Trevino expired by its own terms. The record contains no response by TAM and Trevino to that motion. The trial court granted partial summary judgment on Frost Bank’s breach of contract claim and awarded it $1,758,322.48 in damages, prejudgment interest, and attorney’s fees. See Tex.R. Civ. P. 166a(e).

Frost Bank answered the counterclaims of TAM and Trevinio, generally denying the counterclaims, asserting the affirmative defense of failure of consideration, and seeking an offset and reduction of any amount awarded to TAM from the amount already awarded to Frost Bank on its breach of contract claim. Then, Frost Bank filed a series of motions for partial summary judgment, both traditional and no-evidence.

First, Frost Bank filed a motion for partial traditional and no-evidence summary judgment on TAM and Trevino’s counterclaims for breach of fiduciary duty and special relationship. There is no response by either TAM or Trevino in the record on appeal. The trial court granted that motion and ordered that TAM and Trevino take-nothing on those counterclaims.

Second, Frost Bank filed a motion for partial traditional and no-evidence summary judgment on all of Trevino’s remaining counterclaims. There is no response to this motion by Trevino in the record on appeal. The trial court granted that motion and ordered that Trevino take-nothing on his counterclaims.

Third, Frost Bank filed a motion for partial traditional and no-evidence summary judgment on TAM’s counterclaims for fraud, fraudulent inducement, negligent misrepresentation, breach of contract, promissory estoppel, conversion, and wrongful setoff. This motion for partial traditional summary judgment asserted that TAM’s counterclaims lacked merit, as a matter of law, because Frost Bank did not cause TAM’s alleged damages since *143 the evidence shows that TAM’s liabilities exceeded its assets before Frost Bank set-off TAM’s operating account.

TAM filed a response to Frost Bank’s final motion for partial traditional and no-evidence summary judgment, claiming that in its response it raised an issue of material fact as to its counterclaims for negligent misrepresentation, fraud, breach of contract, promissory estoppel, conversion, wrongful setoff, and damages. TAM did not respond to Frost Bank’s motion for partial no-evidence summary judgment on its counterclaim for fraudulent inducement. Also, TAM did not file a motion asking the trial court to reconsider the prior partial traditional summary judgment rendered in favor of Frost Bank on its breach of contract claim. However, TAM filed a motion to strike the affidavit of Frost Bank’s senior vice president, which was filed in support of its motions for partial traditional and no-evidence summary judgment on TAM’s counterclaims. There is no ruling in the record on that motion.

Frost Bank filed a reply to TAM’s summary judgment response that included an objection to some of TAM’s summary judgment evidence.

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Bluebook (online)
400 S.W.3d 139, 2013 WL 1410319, 2013 Tex. App. LEXIS 4539, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trevino-associates-mechanical-lp-and-mike-trevino-sr-v-the-frost-texapp-2013.