McCarley v. Hopkins, 01-84-0446-CV

Decision Date07 March 1985
Docket NumberNo. 01-84-0446-CV,01-84-0446-CV
Citation687 S.W.2d 510
PartiesDon McCARLEY, Appellant, v. Royce HOPKINS, Mollie Hopkins and Travel Innovations, Inc., Appellees. (1st Dist.)
CourtTexas Court of Appeals

Robin A. Hartman, Houston, for appellant.

James P. Keenan, Bracewell & Patterson, Houston, for appellees.

Before JACK SMITH, BASS and HOYT, JJ.

OPINION

BASS, Justice.

Appellant, Don McCarley, appeals a directed verdict granted in favor of the appellees, Royce and Mollie Hopkins.

We affirm.

Don McCarley and a partner owned All Seasons Travel Agency. In 1981, McCarley began negotiating the merger of All Seasons with Travel Innovations, Inc., which was a Texas Corporation owned and operated by Royce and Mollie Hopkins. During the negotiations, McCarley and Royce Hopkins decided that McCarley would have to buy out his partner. To do this Royce Hopkins had to replace McCarley's partner as a guarantor on a bank loan that All Seasons had outstanding. Royce Hopkins also loaned McCarley $20,000 to buy out his partner and in return received a promissory note and a security interest in All Seasons. Thereafter, Travel Innovations of Texas, Inc., (TIOT) was formed for the purpose of merging All Seasons and Travel Innovations. After the assets of both agencies were transferred to TIOT, but before the merger papers were signed, a dispute arose concerning the composition of both the board of directors and the officers as well as the proposed issuance of TIOT stock. This dispute precipitated a suit by McCarley against the Hopkinses and Travel Innovations, Inc. In the suit, he alleged a breach of an express and implied contract, unjust enrichment, breach of a joint venture or partnership, fraud, wrongful appropriation, and asked for an accounting. The Hopkinses answered these allegations and asserted that they were not liable in the capacity in which they were sued, and that they did not enter into a partnership or joint venture with McCarley. Additionally, Royce Hopkins filed a counterclaim for default of the promissory note and for fraud in the execution of the promissory note.

The trial court granted a directed verdict on all causes of action asserted by McCarley against the Hopkinses in their individual capacity. The remaining portion of the case was submitted to the jury. The jury found for McCarley on his causes of action against Travel Innovations and for Royce Hopkins on his counterclaim for breach of the promissory note, but not for fraud in the execution of that note. In the jury's answer to the special issues, McCarley was awarded a $128,000 verdict against Travel Innovations, and Royce Hopkins was awarded a $28,807.05 verdict against McCarley.

The appellant claims that the trial court erred in granting the directed verdict for the Hopkinses. The Hopkinses' motion for directed verdict stated that there was a defect in McCarley's pleadings and a lack of sufficient evidence to support any cause of action against them individually. The trial judge did not specifically state upon which grounds he was granting the directed verdict. Therefore, his ruling must be upheld if any of the stated grounds in the motion entitled the moving party to the directed verdict. Yeager v. Abrams, 480 S.W.2d 271 (Tex.Civ.App.--El Paso 1972, no writ). An instructed verdict is proper (1) when a defect in the opponent's pleadings makes them insufficient to support a judgment, (2) when the evidence conclusively proves a fact that establishes a party's right to judgment as a matter of law, or (3) when the evidence offered on a cause of action is insufficient to raise an issue of fact. Ottis v. Haas, 569 S.W.2d 508 (Tex.Civ.App.--Corpus Christi 1978, no writ).

In point of error number one, McCarley asserts that the record raises a fact issue concerning the personal liability of the Hopkinses. He argues that borrowing $20,000 from Royce Hopkins constitutes proof that Hopkins was involved in the merger as an individual. However, the promissory note was not conditioned on the merger, but was an independent contract between McCarley and Royce Hopkins.

McCarley also argues that Royce Hopkins' guaranteeing of a loan, his taking a security interest in All Seasons to secure his promissory note, and the issuing 500 shares of TIOT stock to himself all demonstrates Hopkins individual involvement. However, the record shows that the guarantee transaction was made to assist McCarley in obtaining ownership of All Seasons. It was an independent transaction preceding the merger of the two business entities. As...

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32 cases
  • Metzger v. Sebek
    • United States
    • Texas Court of Appeals
    • September 29, 1994
    ...or grounds on which it is relying, the verdict must be upheld if any of the grounds stated in the motion are meritorious. McCarley v. Hopkins, 687 S.W.2d 510, 512 (Tex.App.--Houston [1st Dist.] 1985, no writ). A directed verdict is proper if (1) a defect in the non-movant's pleadings makes ......
  • Cohen v. Rains
    • United States
    • Texas Court of Appeals
    • April 27, 1989
    ...an issue of fact as to one or more fact propositions which must be established for the opponent to be entitled to judgment. McCarley v. Hopkins, 687 S.W.2d 510, 512 (Tex.App.--Houston [1st Dist.] 1985, no writ); Rowland v. City of Corpus Christi, 620 S.W.2d 930, 932-33 (Tex.Civ.App.--Corpus......
  • Scroggs v. State
    • United States
    • Texas Court of Appeals
    • August 25, 2010
    ...proves a fact establishing a party's right to judgment as a matter of law, and there is no evidence to the contrary. See McCarley v. Hopkins, 687 S.W.2d 510, 512 (Tex.App.-Houston [1st Dist.] 1985, no writ). On review of a denial for instructed verdict, we consider all the evidence in the l......
  • Scroggs v. State, No. 07-07-0453-CR (Tex. App. 5/19/2010)
    • United States
    • Texas Court of Appeals
    • May 19, 2010
    ...proves a fact establishing a party's right to judgment as a matter of law, and there is no evidence to the contrary. See McCarley v. Hopkins, 687 S.W.2d 510, 512 (Tex.App.-Houston [1st Dist.] 1985, no writ). On review of a denial for instructed verdict, we consider all the evidence in the l......
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