v.
BJ Corporation D/B/A National Building Service
Fourth Court of Appeals San Antonio, Texas OPINION No. 04-16-00186-CV
COTTER & SONS, INC.; James F. Cotter; Alamo Towers-Cotter, LLC; Cotter 11211 Katy Freeway Building, LP; Cotter 7447 Harwin Building, LP; Cotter Equities LLC; Cotter Harwin Equities LLC; Cotter Katy Equities LLC; Cotter Katy Freeway Building, LP; et. al., Appellants v. BJ CORPORATION d/b/a National Building Service, Appellee
From the 438th Judicial District Court, Bexar County, Texas Trial Court No. 2012-CI-09427 Honorable Gloria Saldaña, Judge Presiding Opinion by: Patricia O. Alvarez, Justice Sitting: Sandee Bryan Marion, Chief Justice Marialyn Barnard, Justice Patricia O. Alvarez, Justice Delivered and Filed: July 26, 2017 REVERSED AND RENDERED IN PART, REVERSED AND REMANDED IN PART
Appellee BJ Corporation d/b/a National Building Service (NBS) sued Appellants, 1 Brad Simpson, and James V. “Val” Cotter 2 for breaching NBS’s contracts to provide janitorial services 04-16-00186-CV
[*2]5.11 New Janitorial Contracts. The Seller (or its affiliates) is the owner of certain commercial buildings that have been cleaned by Seller, a list of which is contained in Schedule 5.11. As a condition of this Agreement, Seller (or its affiliates) will enter into new janitorial contracts with Purchaser for the cleaning of the buildings listed in Schedule 5.11 and containing terms and conditions substantially the same as those contained in the Janitorial Contract attached as Exhibit “E”. The same day the parties executed the Asset Purchase Agreement, Val Cotter and Simpson executed new janitorial contracts with NBS on behalf of Cotter & Sons.
After Cotter & Sons slow paid and underpaid NBS’s invoices, NBS terminated the Contracts, sued Cotter & Sons for breach of contract, negligent misrepresentation and quantum meruit (in the alternative). Cotter & Sons disputed Val Cotter’s and Simpson’s authority to sign the Contracts on behalf of Cotter & Sons, and sued both. The case proceeded to trial.
After the parties rested, the trial court held a charge conference. In the charge conference, Cotter & Sons did not object to the breach of contract or commercial bribery questions. It did, however, raise a no-evidence objection to the negligent misrepresentation question.
The jury found Cotter & Sons breached the Contracts and the Contracts were not procured by commercial bribery. The jury’s verdict found damages as follows:
• Breach of contract: $431,716.84 • Negligent misrepresentation: $50,000.00 • Quantum meruit: $431,716.84 (same amount as breach of contracts) The trial court entered judgment and awarded damages, interest, attorney’s fees, and costs as follows:
• Breach of contract: $431,716.84 • Negligent misrepresentation: $50,000.00 • No award in the alternative for quantum meruit damages • Attorney’s fees for trial: $348,596.00 • Conditional attorney’s fees for COA: $25,000.00 • Conditional attorney’s fees for TSC: up to $12,500.00 • Interest on past due debt: $23,642.35 04-16-00186-CV
[*3]• Pre-judgment interest: $76,163.50 • Post-judgment interest • Costs of court: $1,312.50
Appellants filed a motion for new trial contending the jury’s findings on the breach of contract and commercial bribery questions were against the great weight and preponderance of the evidence. From the record before us, it appears the motion for new trial was denied by operation of law and this appeal ensued.
BREACH OF CONTRACT
We will first address NBS’s breach of contract claim and Cotter & Sons’s affirmative defense of commercial bribery.
A. Charge Questions on Breach of Contract/Bribery 04-16-00186-CV
[*4]jury’s finding of no bribery; it only argued that the jury’s finding was against the great weight and preponderance of the evidence.
B. Preservation
After a jury trial, a complaint (1) that the evidence was not factually sufficient to support a jury’s finding or (2) that a jury’s finding was against the great weight and preponderance of the evidence must be raised in a motion for new trial or it is waived. See TEX. R. CIV. P. 324(b); Cecil v. Smith, 804 S.W.2d 509, 512 (Tex. 1991) (“Factual insufficiency points of error are expressly required by Rule 324(b) to be raised in a motion for new trial.”); Daniels v. Empty Eye, Inc., 368 S.W.3d 743, 749 (Tex. App.—Houston [14th Dist.] 2012, pet. denied) (“[A] party challenging the factual sufficiency of the evidence to support a jury finding must raise this issue in a motion for new trial to preserve error.”). Similarly, after a jury trial, to preserve a no-evidence complaint for review, it must be raised in “(1) a motion for instructed verdict; (2) a motion for judgment notwithstanding the verdict; (3) an objection to the submission of the issue to the jury; (4) a motion to disregard the jury’s answer to a vital fact issue; or, (5) a motion for new trial.” Aero Energy, Inc. v. Circle C Drilling Co., 699 S.W.2d 821, 822 (Tex. 1985); accord Regan v. Lee, 879 S.W.2d 133, 135 (Tex. App.—Houston [14th Dist.] 1994, no writ). If a no-evidence complaint is not raised by one of these procedural steps, it is waived. See Aero Energy, 699 S.W.2d at 822; DFW Aero Mechanix, Inc. v. Airshares Inc., 366 S.W.3d 204, 206 (Tex. App.—Dallas 2010, no pet.).
C. Legal Sufficiency Challenges Waived
Appellants argue the jury’s verdict on the breach of contract claim must be reversed because the evidence conclusively establishes its affirmative defense of commercial bribery. As a threshold issue, NBS argues Appellants waived their legal sufficiency complaint because Cotter and Sons did not raise it in their motion for new trial.
[*5]04-16-00186-CV
To preserve a legal sufficiency challenge to NBS’s breach of contract claim and its commercial bribery defense, Appellants had to raise their point by an appropriate procedural step—such as in their objections to the charge or in their motion for new trial—but they did not. See Aero Energy, Inc. v. Circle C Drilling Co., 699 S.W.2d 821, 822 (Tex. 1985). Because they failed to properly preserve their no-evidence complaint, Appellants’ legal sufficiency complaints with regard to the jury’s findings are waived. See Aero Energy, 699 S.W.2d at 822; DFW Aero Mechanix, 366 S.W.3d at 206.
D. Factual Sufficiency Challenge
Although Appellants waived their legal sufficiency challenges, they preserved their factual sufficiency complaints in their motion for new trial. Appellants contend the evidence is factually insufficient to support the jury’s failure to find bribery.
[*6]04-16-00186-CV
Corporation d/b/a National Building Services. Seller is Premier Facility Solutions, LLC “joined herein by the sole members of Seller, Blair Jones, Brad C. Simpson, and James Val Cotter (‘Owners’).” One of the recitals on the first page of the Asset Purchase Agreement states as follows:
WHEREAS, Seller and/or Owners and Purchaser desire to enter into certain other agreements with respect to their respective operations after the Closing in accordance with these terms. Section 2.2 of the Asset Purchase Agreement states NBS shall pay $100,000.00 “in full consideration for the purchase of the Subject Assets and the other agreements and obligations to Purchaser contained herein,” and section 2.6 allocates $25,000.00 of the purchase price to the “Janitorial Contracts.” Finally, section 5.11 entitled “New Janitorial Contracts” provides the following:
The Seller (or its affiliates) is the owner of certain commercial buildings that have been cleaned by Seller, a list of which is contained in Schedule 5.11. As a condition of this Agreement, Seller (or its affiliates) will enter into new janitorial contracts with Purchaser for the cleaning of the buildings listed in Section 5.11 ....
[*7]04-16-00186-CV
The definitions are generally based on the manner in which the offense of commercial bribery is defined by section 32.43 of the Texas Penal Code. [3] See TEX. PENAL CODE ANN. § 32.43 (West 2016). We note, however, the jury charge here failed to include the clause “without the effective consent of his beneficiary” which is included in section 32.43 of the Texas Penal Code. TEX. PENAL CODE ANN. § 32.43.
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[*9]nom., Weightman v. State, 975 S.W.2d 621 (Tex. Crim. App. 1996) (noting commercial bribery crime is defined to cover the conscious act of the wrongdoer and was complete when fiduciary solicited, accepted or agreed to accept a benefit). As the Austin Court of Appeals has explained:
Common sense dictates that when it is alleged and proved that the defendant offered or solicited a proscribed benefit, it is not necessary to further prove that the offer or solicitation resulted in a bilateral arrangement or unlawful conduct with the other party. The offense of bribery is complete when the offer or solicitation is made. … [W]here it is alleged the accused offered or solicited a benefit as consideration for an official act, it is not necessary for the State to prove the party to whom the offer or solicitation was made accepted the proposition or even understood the unlawful nature of the proposition; proof that the offer or solicitation was made by the accused with the purpose to promote or facilitate the exchange of the benefit for the official action is all that is required. Martinez v. State, 696 S.W.2d 930, 932-33 (Tex. App.—Austin 1985, pet. ref’d). We agree. Common sense dictates a bilateral agreement is not a required element to establish commercial bribery. [6] Many criminal defendants are prosecuted for offering a bribe to a person who refuses to accept the bribe and instead becomes the State’s witness. Similarly, many criminal defendants are prosecuted for soliciting a bribe from a person who refuses to pay the bribe and instead becomes the State’s witness.
Applying the definition of bribery in the jury charge to the evidence in this case, we agree that the jury’s finding that the Contracts were not procured by bribery is against the great weight and preponderance of the evidence. First, the Asset Purchase Agreement allocated $25,000.00 of