Victor Antolik v. Dennis Antolik

Court of Appeals of Texas·Decided May 15, 2019·No. 06-18-00096-CV·Published

Opinion

In The Court of Appeals Sixth Appellate District of Texas at Texarkana

No. 06-18-00096-CV

VICTOR ANTOLIK, Appellant

V.

DENNIS ANTOLIK, Appellee

On Appeal from the 345th District Court Travis County, Texas Trial Court No. D-1-GN-17-000655

Before Morriss, C.J., Burgess and Stevens, JJ. Memorandum Opinion by Chief Justice Morriss MEMORANDUM OPINION Victor Antolik and his brother, Dennis, settled several lawsuits with Garrett Jennings for

$1.4 million, with the brothers agreeing to split the settlement proceeds. Under the brothers’ oral

agreement, Dennis was to receive $600,000.00, $200,000.00 of which he received. When Victor

failed to pay him the $400,000.00 balance, Dennis filed this suit alleging that Victor breached their

oral contract. After a bench trial, the 354th Judicial District Court of Travis County 1 entered

judgment in favor of Dennis for $250,000.00 and awarded him attorney fees. 2

In this pro se appeal, Victor complains that the statute of frauds precludes Dennis’

recovery, the trial court abused its discretion by admitting an allegedly confidential document, the

trial court committed several errors in its evidentiary rulings, the trial court abused its discretion

1 Originally appealed to the Third Court of Appeals, this case was transferred to this Court by the Texas Supreme Court pursuant to its docket equalization efforts. See TEX. GOV’T CODE ANN. § 73.001 (West 2013). We are unaware of any conflict between precedent of the Third Court of Appeals and that of this Court on any relevant issue. See TEX. R. APP. P. 41.3. 2 In its findings of fact, the trial court found that, during the course of the bankruptcy proceedings of Cheval Manor, LLC (Cheval), an entity owned by Dennis, certain real property on which Cheval conducted business was sold to Victory Cheval Holdings, LLC (Victory Cheval), an entity owned by Victor and Garrett Jennings. The trial court entered a number of unchallenged findings of fact, which are supported by the evidence. See In re E.R.C., 496 S.W.3d 270, 288 (Tex. App.—Texarkana 2016, pet. denied) (“Unchallenged findings of fact are binding unless there is no evidence to support the finding or the contrary is established as a matter of law.” McElwrath v. McElwrath, No. 03- 14-00487-CV, 2016 WL 1566624, at *1 (Tex. App.—Austin Apr. 13, 2016, no pet.) (mem. op.) (citing McGalliard v. Kuhlmann, 722 S.W.2d 694, 696 (Tex. 1986))). Dennis was to receive a lease back on the property to continue equine activities. After disputes arose among these parties, Victory Cheval, Jennings, Victor, and Dennis asserted claims against each other in an action filed in a Travis County district court, and a separate action was filed by Victory Cheval to evict Dennis and Victor from the property (the Victory Cheval Lawsuits). All the parties ultimately agreed to settle the Victory Cheval Lawsuits. The settlement was structured as a purchase of Victor’s interest in Victory Cheval by Jennings for $1.4 million, with Dennis releasing all claims against Jennings and Victory Cheval (the Settlement). The Settlement was documented in a mediation agreement and an escrow agreement, both of which were signed by Victor and Dennis in late December 2015. Victor and Dennis agreed to split the proceeds of the Settlement, with Dennis to receive $600,000.00, but their agreement was not reduced to writing. Victor paid Dennis some amounts of money, including a $200,000.00 payment. Separately, Victor, who is currently incarcerated for tax fraud, represented in a pre-sentencing disclosure of assets that he owed Dennis $250,000.00.

2 by denying Victor’s motion for continuance, and one of the documents admitted into evidence was

fraudulent. Because we find that (1) the statute of frauds does not bar Dennis’ recovery,

(2) admitting the allegedly confidential document was not an abuse of discretion, (3) denying

Victor’s motion for continuance was not an abuse of discretion, and (4) Victor’s evidentiary

complaints and his complaint regarding the allegedly fraudulent document were not preserved, we

will affirm the trial court’s judgment.

(1) The Statute of Frauds Does Not Bar Dennis’ Recovery

Victor challenges the trial court’s finding that the agreement was performable within one

year and its conclusion that the oral agreement was not within the statute of frauds. 3 Within this

issue, Victor argues that the time for the performance of the contract was too indefinite to be

binding, 4 and if there was an agreement, certain testimony of Dennis shows that it was not to be

completed within one year of its making.

In reviewing a trial court’s conclusions of law, we determine whether the trial court

correctly applied the law to the facts. BMC Software Belgium, NV v. Marchand, 83 S.W.3d 789,

3 The parties disputed whether the statute of frauds was tried by consent. When the trial began, Victor’s live pleadings did not assert the statute of frauds as an affirmative defense. During Dennis’ rebuttal testimony, Victor elicited testimony, without objection, regarding when the agreement was formed and when the final payment by Victor was due. At the conclusion of the evidence, Victor moved for directed verdict, arguing that the statute of frauds barred the agreement since it could not be completed within one year. Dennis only argued that Victor’s partial performance was sufficient to remove the agreement from the statute of frauds. Post-trial, Victor filed a motion to amend his answer to include, inter alia, a statute of frauds affirmative defense. Although the trial court entered a finding that the statute of frauds was not tried by consent, it also entered a finding that the agreement was performable within one year and concluded that the agreement was not within the statute of frauds. Based on this record, we find that the statute of frauds defense was before the trial court and tried by consent. See TEX. R. CIV. P. 67. 4 It is unclear whether Victor argues on appeal that other terms of the contract were also indefinite. However, at trial, he only argued that the time for repayment was indefinite. Consequently, by not arguing the indefiniteness of any other terms at trial, he has not preserved any complaint regarding them for our consideration. See TEX. R. APP. P. 33.1(a). 3 794 (Tex. 2002); Monasco v. Gilmer Boating & Fishing Club, 339 S.W.3d 828, 834 (Tex. App.—

Texarkana 2011, no pet.). We review conclusions of law de novo. Marchand, 83 S.W.3d at 794;

Monasco, 339 S.W.3d at 834.

Victor does not state whether he challenges the legal or factual sufficiency of the trial

court’s finding that the agreement was performable within one year. Therefore, we will review it

as a challenge to both. We conduct a “legal and factual sufficiency review of a trial court’s findings

by the same standards applied when reviewing evidence supporting a jury’s verdict.” Monasco,

339 S.W.3d at 830 (citing Catalina v. Blasdel, 881 S.W.2d 295, 297 (Tex. 1994)).

A party who challenges the legal sufficiency of a trial court’s adverse finding on an issue

on which the party has the burden of proof “must demonstrate on appeal that the evidence

establishes, as a matter of law, all vital facts in support of the issue.” Dow Chem. Co. v. Francis,

46 S.W.3d 237, 241 (Tex. 2001) (citing Sterner v. Marathon Oil Co., 767 S.W.2d 686, 690 (Tex.

1989)). To make this determination, we “first examine the record for evidence that supports the

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