Voss v. May

646 S.W.2d 606, 1983 Tex. App. LEXIS 3927
CourtCourt of Appeals of Texas
DecidedFebruary 3, 1983
Docket2-82-075-CV
StatusPublished
Cited by2 cases

This text of 646 S.W.2d 606 (Voss v. May) 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
Voss v. May, 646 S.W.2d 606, 1983 Tex. App. LEXIS 3927 (Tex. Ct. App. 1983).

Opinion

OPINION

JORDAN, Justice.

Under contract of sale dated August 13, 1981, Voss Motors, Inc., sold the assets of an automobile dealership known as Voss Motors, Inc., to appellee Jack Q. May. Harvey A. Voss, who negotiated the sale as president of Voss Motors, Inc., was not a party to the contract individually. A dispute arose regarding certain alleged unpaid business debts of Voss Motors, Inc., which under the contract were to be paid by Voss Motors, Inc.

Suit was brought in the District Court, Jack County, by appellee May, exclusively under the Texas Deceptive Trade Practices Act, Tex.Bus. & Comm.Code, sec. 17.41, et seq.

Appellant filed his Plea of Privilege to be sued in Tarrant County, the county of his residence, and after hearing thereon, the trial court overruled it and retained venue in Jack County.

The appeal is based primarily on appellant’s contention that the Deceptive Trade Practices Act in no way applies to him individually in this case, since he was not a party to the Contract of Sale of August 13, 1981, and because appellee is not a consumer under the act. We agree and reverse and remand the cause with instructions to the trial court to transfer said cause to the District Court of Tarrant County, Texas.

Appellee purports to maintain venue in Jack County under sec. 17.56, Tex.Bus. & Comm.Code, and sec. 5(a), art. 1995, Tex. Rev.Civ.Stat.Ann.

Under the Contract of Sale of the automobile dealership from Voss Motors, Inc. to appellee, which contract is referred to in the briefs as the Buy-Sell Agreement, Voss Motors, Inc. agreed to sell for a certain price his entire inventory of vehicles, parts, equipment, merchandise and furniture. Voss Motors, Inc. is not made a party defendant to this suit, even though the contract was between Voss Motors, Inc. and May. The suit alleges wrongdoing and a violation of the Deceptive Trade Practices Act, sec. 17.50, by Voss, but it does not claim that Voss made wrongful representations and engaged in improper conduct as an agent, servant or employee of the seller, Voss Motors, Inc.

In paragraph 5 of the contract, the buyer May agreed to waive the requirements of the Texas Bulk Sales Law, and the seller, Voss Motors, Inc., agreed to indemnify and hold buyer or his assigns harmless from any loss, including reasonable attorneys fees, incurred by buyer by reason of the seller failing to pay its creditors. The agreement had provided that the sale would be made free of debts of the seller. Later, on November 17,1981, the date of the clos *608 ing of the sale, appellant filed an affidavit reading as follows:

I, HARVEY A. VOSS, have entered into a Buy-Sell Agreement with JACK Q. MAY, dated August 13, 1981. NOW, THEREFORE, for and in consideration of the completion of the sale between said parties, I, HARVEY A. VOSS, do hereby agree to indemnify and hold JACK Q. MAY, his heirs, successors and assigns, harmless from any cost, damages or expenses, including reasonable attorney fees, incurred by JACK Q. MAY, his heirs, successors and assigns, by reason of me failing to pay creditors, and I agree to pay any and all just debts owed by me in connection with the business and property which I am selling JACK Q. MAY.
Harvey A. Voss

This affidavit effectively made Voss, individually, a co-guarantor or co-indemnitor with Voss Motors, Inc. Neither agreement of indemnification, that contained in paragraph 5 of the Contract of Sale or in the affidavit of Voss, individually, promised indemnification in Jack County, Texas. Neither said anything about where payment of the debts would be made.

Appellee’s petition is unclear as to what specific sections of the Deceptive Trade Practices Act appellant violated. The petition alleges that Voss, individually, made certain misrepresentations to appellee with respect to debts of the business and with respect to the total value of the parts and accessories inventory. Since the contract was with Voss Motors, Inc., we fail to see how appellant, individually, was guilty of any misrepresentations or violations of the Deceptive Trade Practices Act. It appears that appellee’s reliance and dependence on that Act was misplaced and that any action against appellant should have been a common law action for breach of his indemnification agreement, if such was the case.

Any breach of the indemnification agreement, either in paragraph 5 of the contract or in Voss’s affidavit, would not constitute misconduct under the Deceptive Trade Practices Act, and indeed, appellee does not actually allege that.

Moreover, there is a complete lack of proof of any violation of the indemnification agreement by Voss, individually, in Jack County. May did testify at the Plea of Privilege hearing that he had had some claims made by creditors of Voss Motors, Inc. since the sale, but there was no proof that he had actually paid any such claims or had suffered any loss in Jack County or elsewhere.

At the Plea of Privilege hearing, appellee, over repeated objections of appellant, testified, in violation of the parol evidence rule, that Voss made additional agreements and representations with respect to the parts and accessories inventory and that such representations were not true. He testified that Voss told him orally that at the time of the sale, there was $60,000 worth of parts inventory, when in fact, according to May, there was only $28,-000 worth of parts inventory. We believe this testimony should have been excluded and should not have been considered by the trial court. The written Contract of Sale said nothing about the value of the inventory, and it is our opinion that May’s testimony with respect thereto was a clear violation of the parol evidence rule. It altered and added to the written agreement of the parties.

There is still another reason why the Deceptive Trade Practices Act does not apply to appellant in this case. We do not believe that appellee, plaintiff in the trial court, comes within the definition of a “consumer” under sec. 17.50(a) of the Deceptive Trade Practices Act. In the case sub judi-ce, appellee purchased most, if not all, of the goods from appellant for purposes of resale. Sec. 17.45(4) defines a consumer as “an individual, partnership, corporation or governmental entity who seeks or acquires by purchase or lease, any goods or services.” Sec. 17.45(1) defines “goods” as “tangible chattels or real property purchased or leased for use.”

It has been held that a purchase for resale was not a purchase for use and hence, *609 the purchaser did not have consumer status under the act. See Person v. Latham, 582 S.W.2d 246 (Tex.Civ.App.—Beaumont 1979, writ ref’d n.r.e.); South Texas Irrigation Systems, Inc. v. Lockwood Corp., 489 F.Supp. 256 (W.D.Tex.1980); Ratcliff v. Trenholm, 596 S.W.2d 645 (Tex.Civ.App.—Tyler 1980, writ ref d n.r.e.). In South Texas Irrigation Systems, Inc. v. Lockwood Corp., supra, it was held that the plaintiff, a seller of irrigation systems, was not a consumer within the meaning of the Deceptive Trade Practices Act.

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Cite This Page — Counsel Stack

Bluebook (online)
646 S.W.2d 606, 1983 Tex. App. LEXIS 3927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/voss-v-may-texapp-1983.