Wilson & Wilson Tax Services Inc. v. Mohammed

131 S.W.3d 231, 2004 Tex. App. LEXIS 1576, 2004 WL 307334
CourtCourt of Appeals of Texas
DecidedFebruary 19, 2004
Docket14-02-00086-CV
StatusPublished
Cited by29 cases

This text of 131 S.W.3d 231 (Wilson & Wilson Tax Services Inc. v. Mohammed) 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
Wilson & Wilson Tax Services Inc. v. Mohammed, 131 S.W.3d 231, 2004 Tex. App. LEXIS 1576, 2004 WL 307334 (Tex. Ct. App. 2004).

Opinion

OPINION

JOHN S. ANDERSON, Justice.

Billy R. Wilson and Jerome Carter appeal from an adverse judgment notwithstanding the verdict and a directed verdict in Hayden and Nazreen Mohammed’s law *234 suit against them. 1 In four issues, Wilson contends the Mohammeds failed to prove as a matter of law that they were entitled to judgment notwithstanding the verdict. In three issues, Carter contends the evidence supports the jury’s findings and the Mohammeds were not entitled to judgment notwithstanding the verdict. In a fourth issue, Carter contends the trial court improperly directed a verdict on the promissory note and erred in refusing to submit requested defensive instructions on that issue. Because the trial court erred in entering a judgment notwithstanding the verdict, we reverse and render judgment based on the jury’s verdict. Because the trial court erred in directing a verdict against Carter on the issue of the promissory note, we reverse and remand for determination of that issue.

I. Background 2

Jerome Carter is an investment banker, a position he held for more than fourteen years. At the time of the transaction made the basis of this suit, he was an officer of Trust Investment Group (“TIG”) and handled financial transactions for the company. TIG was a fee-based business facilitator that connected investors with people or companies needing financing. Wilson was a tax accountant, who performed various accounting functions for TIG, including helping it qualify to do business in Texas and opening a checking account in its name, on which he was authorized to write checks.

The transaction involved in the present lawsuit began as an investment in a commodity transaction to purchase Nike tennis shoes in South America, transport them to Asia, and sell them “at a tremendous markup.” The Mohammeds were investors and TIG was handling the financing for the purchaser of the tennis shoes, Global Commodities.

In early 1997, Nazreen Mohammed’s brother, Samuel Alie, was working with Eddie Tang. Tang, who was associated with a company in Trinidad and Tobago, had been in contact with Carter regarding financing, through TIG, for a construction project. Tang asked Carter if TIG needed investors for any other projects. Carter responded that there was a possible commodity deal (the Nike investment) that was available as a joint venture. Alie called Nazreen, told her about the opportunity, and encouraged her to invest. The Mohammeds invested some of their own money along with money they borrowed from various friends and relatives. On February 28, 1997, the money was deposited in a TIG bank account set up by Wilson. 3

A meeting took place between the Mo-hammeds, Alie, Tang, Carter, Wilson, the man who owned Global Commodities (Sajjad Sheekh a.k.a. Jack Perez), and other interested persons, including Gautum *235 Roy and Shulekha Chandra. Chandra was Nazreen’s sister, and, together with Roy, she owned Royko, a company that was created for investment in the tennis shoe commodity transaction. 4 At the meeting, the participants agreed to go forward with the deal. The plan called for the group led by the Mohammeds to evenly divide the proceeds with TIG; Alie was to receive a ten percent commission; and another $150,000 was to go to the Trinidad and Tobago company associated with Eddie Tang, as a broker’s fee. Once profits were received they were to be returned to TIG’s account and disbursed to the investors. Roy told Carter to transfer $160,000 of the investors’ funds to Global Commodities to enable it to purchase the tennis shoes. Carter then told Wilson to use the investors’ funds in the TIG account to buy a cashier’s check. Wilson did so and gave the check to Carter, who, in turn, gave it to Global Commodities. Global Commodities received the money, but nothing was ever returned to TIG.

When the Mohammeds inquired about their investment, Carter and Wilson signed an undated document containing the following handwritten words: “Payment Amount: $200,000 [and] We agree to transmit the above amount.” 5 The document also included Nazreen Mohammed’s, name, address, bank name, bank account number, and bank address. No money was ever sent pursuant to this document. It was to serve as the basis of the Mo-hammeds’ breach of contract claims against Wilson and Carter. A very similar document, similarly described as a wire transfer, also appears in the record. This document was plaintiffs’ trial exhibit 5, and provides instructions to a Mr. Cuellar to wire transfer $200,000 upon completion of the monetization of the stand-by letter of credit. The banking coordinates, dollar amount, bank and bank account number all match the wire transfer document. The document is dated October 12, 1998, and bears the signatures of Carter and Nazreen. This document will be referred to as the October 12, 1998 wire transfer to distinguish it from the undated wire transfer document.

In May 1997, the Mohammeds, along with Roy, arrived at Carter’s home unannounced. At this meeting, Carter signed a promissory note, payable to Nazreen and Royko, for $193,000. Below Carter’s signature and his address is the notation “on behalf of [TIG].” The body of the note states “I, We or either of us promise to pay....” No money was ever paid on the note. 6

The Mohammeds filed the present lawsuit against TIG, Carter, and Wilson for fraud, breach of contract, corporate officer liability, and default on a promissory note. At the charge conference, the court directed a verdict against Carter and TIG on the promissory note. At the conclusion of trial, the jury found no liability against either Carter or Wilson on fraud, breach of contract, or corporate officer liability. The jury found liability only against TIG for $30,000 based on fraud. The trial court granted the Mohammeds’ motion for judgment notwithstanding the verdict (“JNOV”), and awarded judgment solely against Carter and Wilson.

*236 II. JNOV Standard of Review

A judgment notwithstanding the verdict is reviewed under the same standard as a directed verdict. Rush v. Barrios, 56 S.W.3d 88, 94 (Tex.App.-Houston [14th Dist.] 2001, pet. denied). In reviewing whether the trial court’s JNOV was proper, we must view the evidence in favor of Wilson and Carter and determine whether that evidence supports the jury’s verdict. See Exxon Corp. v. Quinn, 726 S.W.2d 17, 19 (Tex.1987). “No evidence” exists, and a JNOV should be entered when the record discloses one of the following: (1) a complete absence of a vital fact; (2) the court is barred by rules of law or evidence from giving weight to the only evidence offered to prove a vital fact; (3) the evidence offered to prove a vital fact is no more than a scintilla of evidence; or (4) the evidence establishes conclusively the opposite of a vital fact. See Juliette Fowler Homes, Inc. v. Welch Assocs., Inc.,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gregory Jackson v. Kevin Carlton
Court of Appeals of Texas, 2015
Brandon Saxon v. Grove Club Lake, Inc.
Court of Appeals of Texas, 2015
Dilip Tandan v. Affordable Power L.L.P
377 S.W.3d 889 (Court of Appeals of Texas, 2012)
Holman Street Baptist Church v. Jefferson
317 S.W.3d 540 (Court of Appeals of Texas, 2010)
Jaci Deanne Elam v. State
Court of Appeals of Texas, 2010
Brown v. Green
302 S.W.3d 1 (Court of Appeals of Texas, 2009)
Cytogenix, Inc. v. Waldroff
213 S.W.3d 479 (Court of Appeals of Texas, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
131 S.W.3d 231, 2004 Tex. App. LEXIS 1576, 2004 WL 307334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-wilson-tax-services-inc-v-mohammed-texapp-2004.