Lewkowicz v. El Paso Apparel Corp.
| Decision Date | 02 December 1981 |
| Docket Number | No. C-408,C-408 |
| Citation | 625 S.W.2d 301 |
| Parties | Mauricio LEWKOWICZ, et ux., Petitioners, v. EL PASO APPAREL CORPORATION, et al., Respondents. |
| Court | Texas Supreme Court |
Spivey & Grigg, Broadus A. Spivey, Austin, for petitioners.
Grambling, Mounce, Sims, Galatzan & Harris, Donald F. Hagans and S. Anthony Safi, El Paso, for respondents.
This is an appeal from the overruling of a motion for new trial seeking to set aside an agreed judgment, the settlement agreement upon which it is based, and other instruments, including a deed to a homestead. The trial court overruled the motion for new trial and the Court of Civil Appeals affirmed. 614 S.W.2d 198. We reverse and remand.
Mauricio Lewkowicz, a citizen of the United States and a resident of El Paso County, Texas, managed Karen International, a Mexican corporation based in Juarez, Mexico. Karen International imports leather from its twin plant, El Paso Apparel Corporation, located in the United States. The leather is processed into jackets and vests in Mexico and must then be shipped back to the United States for sale. This "maquila" or twin plant program serves people of both nations. Lucy Lewkowicz, Mauricio's wife, also worked at the Juarez plant.
Karen International and its twin plant, El Paso Apparel Corporation, are wholly owned subsidiaries of Silton Brothers, Inc., (Silton) a California corporation. Fred Silton is the president and the majority owner and David Warden is the vice-president of Silton.
On March 14, 1979, Mauricio Lewkowicz was confronted by Fred Silton in the offices of the Karen plant in Juarez, Mexico, with charges of theft, embezzlement, fraud and conversion. He gave Mauricio the choice to either admit to the charges, make a confession and promise restitution, or have criminal charges filed against him and Lucy. Unknown to Lewkowicz the criminal charges had already been filed and Juarez Police were waiting on the premises to arrest Mauricio and Lucy if he failed to admit his guilt, make a confession and promise restitution. When Mauricio refused to admit his guilt, he and Lucy were arrested and placed in the Juarez, Mexico jail. Within an hour of the arrest, Silton filed this civil action in the District Court of El Paso, Texas, for fraud and conversion, praying for actual damages, punitive damages and recission of an employment agreement. It is undisputed that Fred Silton orchestrated the steps by which the civil suit in Texas and the criminal charges in Mexico were carried out as a coordinated effort.
Mauricio and Lucy Lewkowicz remained in the Juarez jail from March 14, until July 10, 1979. Throughout this period they maintained their innocence, refused to admit the charges filed against them, or to promise restitution as requested by Silton. During the four months of incarceration Lucy's mental and physical health deteriorated appreciably; she lost 30 to 40 pounds, became highly nervous, cried a great deal and talked of suicide. Dr. Morris, an El Paso psychiatrist, started treating Lucy four days after her release from the Mexico jail; he diagnosed her as having traumatic neurosis brought about by the arrest and incarceration. Mauricio Lewkowicz had a number of contacts with Fred Silton, David Warden, and Mr. Gonzales, their Mexican attorney, during the approximate four months of confinement. The position of the parties never changed. Silton kept insisting that if Mauricio and Lucy would admit their guilt, sign a confession and promise restitution, they would be pardoned and released from jail. Mauricio steadfastly maintained that he was not guilty and refused to comply with the demands of Silton. During the first of July, Mauricio told his El Paso attorney he would execute whatever documents Fred Silton wanted. His attorney advised him against signing, but Mauricio, gravely concerned for Lucy's welfare and health, was ready to bow to Silton's demands. On July 10, Mauricio and Lucy Lewkowicz executed the following documents which had been prepared by Silton's attorneys in El Paso and approved as to form only by the Lewkowiczs' El Paso attorneys. They are:
1. A compromise settlement agreement which included a covenant not to compete in the clothing business for five years.
2. A unilateral release of all claims of every nature against respondent and their attorneys 3. An affidavit of voluntariness;
4. A consent judgment including an award of $270,000 to respondents; and
5. Three warranty deeds, including one transferring the Lewkowicz's homestead to Silton Brothers.
Lewkowiczs' attorneys refused to go to Juarez to witness the execution of the documents because they had been advised by Lewkowicz that he was doing it not because they were true, but because of Lucy's mental and physical problems, he had to free her at any price. After these instruments were executed in a room above the Juarez jail, but before the Lewkowiczs were released from jail, the instruments were taken to El Paso and an agreed judgment entered in this cause, based upon these instruments.
On July 20, 1979, the Lewkowiczs filed a motion for new trial which, after a full hearing, was denied by the trial court. No...
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