Wallace v. Ramon

82 S.W.3d 501, 2002 Tex. App. LEXIS 3023, 2002 WL 799622
CourtCourt of Appeals of Texas
DecidedMay 1, 2002
Docket04-01-00461-CV
StatusPublished
Cited by15 cases

This text of 82 S.W.3d 501 (Wallace v. Ramon) 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
Wallace v. Ramon, 82 S.W.3d 501, 2002 Tex. App. LEXIS 3023, 2002 WL 799622 (Tex. Ct. App. 2002).

Opinions

Opinion by:

SARAH B. DUNCAN,

Justice.

Holden Wallace and Holden Wallace, Inc. contend there is legally and factually [503]*503insufficient evidence to support the trial court’s post-answer default judgment. We agree that there is legally insufficient evidence to support the judgment against Holden Wallace individually and therefore reverse this aspect of the trial court’s judgment and render judgment in his favor. We further agree that the trial court erred in awarding interest at ten, rather than six percent and therefore reform the trial court’s award of prejudgment interest. In all other respects, the trial court’s judgment is affirmed.

Factual and PROCEDURAL Background

The Ramons sued Wallace, alleging that he had refused to pay them for their labor. Wallace filed an answer but did not appear at trial. The only evidence introduced at trial was the testimony of Ralph Ramon. Ramon testified as follows:

Q: Your name is Ralph Ramon?
A: Yes, it is.
Q: And you and your wife Diana Ramon are the owners of RD or R & D Produce?
A: Yes.
Q: You are a labor contractor and you harvest vegetables and crops in this area?
A: Yes.
Q: And did your wife and your company and you perform labor for Holden Wallace and Holden Wallace, Inc.?
A: Yes.
Q: Did that involve the picking of some onions and cabbage?
A: That’s correct.
Q: As a result of that, did he owe you the sum of $23,847.78?
A: Yes.
Q: And has that money been paid?
A: No.
Q: Is it still owing?
A: It is still owing. It has not been paid.

Following the hearing, the trial court signed a default judgment awarding the Ramons $23,847.78 in damages, $10,000 in attorney’s fees, pre- and postjudgment interest, and costs. Wallace appealed.

Standards of Review

“A post-answer ‘default’ constitutes neither an abandonment of defendant’s answer nor an implied confession of any issues thus joined by the defendant’s answer. Judgment cannot be entered on the pleadings, but the plaintiff in such a case must offer evidence and prove his case as in a judgment upon a trial.” Stoner v. Thompson, 578 S.W.2d 679, 682 (Tex.1979). We therefore review Wallace’s sufficiency complaints under the familiar standards of review. To determine whether there is legally sufficient evidence, we review “only the evidence and the inferences tending to support the [jury’s] finding and disregard all evidence and inferences to the contrary.” E.g., Garza v. Alviar, 395 S.W.2d 821, 823 (Tex.1965). If there is more than a scintilla of evidence to support the finding, the legal sufficiency challenge must fail. See Stafford v. Stafford, 726 S.W.2d 14, 16 (Tex.1987). Conversely, to determine whether there is factually sufficient evidence to support a jury finding, we review the entire record to determine if the finding “is so against the great weight and preponderance of the evidence as to be manifestly unjust.” E.g., Pool v. Ford Motor Co., 715 S.W.2d 629, 635 (Tex.1986). See generally Robert W. Calvert, “No Evidence” and “Insufficient Evidence” Points of Error, 38 Tex. L.Rev. 361 (1960). We apply these standards, however, cognizant of the supreme court’s admonition that “[m]ere formalities, minor defects and technical insufficiencies will not invalidate a default judgment where the petition [504]*504states a cause of action and gives ‘fair notice’ to the opposing party of the relief sought.” Stoner, 578 S.W.2d at 683.

BReach of Contract

Wallace first argues there is legally and factually insufficient evidence of a breach of contract. We disagree. Wallace fails to consider the reasonable inferences flowing from Ramon’s testimony.

To recover for a breach of contract, the plaintiff must establish: “(1) a valid contract; (2) the plaintiff performed' or tendered performance; (3) the defendant breached the contract; and (4) the plaintiff was damaged as a result of that breach.” Aquila Southwest Pipeline, Inc. v. Harmony Exploration, Inc., 48 S.W.3d 225, 235 (Tex.App.-San Antonio 2001, no pet.).

As Holden recognizes in his brief to this court, the Ramons’ petition quite plainly gives fair notice of their breach of contract claim for $23,847.78. Ramon’s testimony—and the reasonable inferences therefrom—establish Ramon and his wife promised to harvest produce for Wallace; in exchange for the Ramons’ labor, Wallace agreed to pay Ramon $23,847.78; the Ramons picked the produce; Wallace breached the contract by failing to pay the sum due; and as a result of the breach the Ramons were damaged in the amount of $23,847.78. Ramon’s testimony thus establishes the verbal contract, performance by the Ramons, breach by Holden Wallace and Holden Wallace, Inc., and damage to the Ramons. No more is required. See, e.g., Jones v. Star Houston, Inc., 45 S.W.3d 350, 354 (Tex.App.-Houston [1st Dist.] 2001, no pet.) (holding evidence was “sufficient to implicate the existence of a contract”).

Individual Liability

Wallace next argues there is legally and factually insufficient evidence to hold him individually liable, because Ramon “did not define the capacity in which Holden Wallace entered into the alleged contract or otherwise produce any proof that Holden Wallace intended to be bound individually to the agreement.” We agree.

The corporate fiction is properly disregarded: “(1) when the fiction is used as a means of perpetrating fraud; (2) where a corporation is organized and operated as a mere tool or business conduit of another corporation; (3) where the corporate fiction is resorted to as a means of evading an existing legal obligation; (4) where the corporate fiction is employed to achieve or perpetrate monopoly; (5) where the corporate fiction is used to circumvent a statute; and (6) where the corporate fiction is relied upon as a protection of crime or to justify wrong.” Castleberry v. Branscum, 721 S.W.2d 270, 272 (Tex.1986).

This record does not contain a sufficient pleading, evidence, or finding sufficient to support an award against Wallace in his individual capacity. See id.

Attorney’s Fees

Wallace next argues the evidence is insufficient to support the trial court’s award of attorney’s fees. We again disagree.

The Ramons’ petition states:

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82 S.W.3d 501, 2002 Tex. App. LEXIS 3023, 2002 WL 799622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-v-ramon-texapp-2002.