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Tim Beverick v. KOCH Power, Inc., Flint Hills Resources, L.P. and Entergy-Koch Trading, L.P.

Citation: Not availableDocket: 01-03-01300-CV

Court: Court of Appeals of Texas; December 28, 2005; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves an attorney, who filed suit against a corporation for breach of contract, promissory estoppel, fraud, quantum meruit, and punitive damages after an alleged failure to pay a promised bonus for legal services. The central legal issue revolved around whether an oral agreement for a bonus, based on projected savings from a power project, was enforceable. The trial court granted summary judgment for the corporation, resulting in a take-nothing judgment against the attorney. The court found that the statute of frauds did not bar the oral contract claim but dismissed the breach of contract claim due to lack of evidence showing an authorized promise. The promissory estoppel and fraud claims failed due to a lack of evidence of authorized representations and reliance. The quantum meruit claim was denied because the attorney's services were within his scope of employment. Consequently, the claim for punitive damages was dismissed due to the absence of a valid underlying tort. The appellate court affirmed the trial court's rulings, concluding that the attorney failed to demonstrate genuine issues of material fact for any of his claims.

Legal Issues Addressed

Breach of Contract and Authority

Application: Beverick's breach of contract claim failed due to a lack of evidence showing that an authorized agent made a binding promise.

Reasoning: Beverick acknowledged in his deposition that Windle, a fellow employee, did not have the authority to bind Koch in a bonus agreement.

Fraud and Misrepresentation

Application: Beverick’s fraud claim was dismissed due to insufficient evidence of an authorized misrepresentation and lack of a duty to disclose.

Reasoning: A failure to disclose is actionable only if there is a duty to disclose, which arises from a confidential or fiduciary relationship.

Promissory Estoppel and Authorized Promises

Application: The court upheld summary judgment on promissory estoppel as Beverick could not show evidence of an authorized promise.

Reasoning: However, the court concludes there is no evidence of an authorized promise regarding the 10 to 15 percent bonus.

Punitive Damages and Underlying Tort Claims

Application: The claim for punitive damages was dismissed because it relied on a fraud claim that lacked evidence of actual tort damages.

Reasoning: Since punitive damages require actual tort damages, the court found no basis for his claim.

Quantum Meruit and Scope of Employment

Application: Beverick’s quantum meruit claim was denied as his services fell within his employment duties, negating a separate compensation claim.

Reasoning: As in-house counsel, Beverick did not provide evidence that his project-related work was outside the scope of his employment duties.

Statute of Frauds and Oral Contracts

Application: The court found that the statute of frauds did not bar the oral contract claim because the project could theoretically be completed within a year.

Reasoning: If a contract can potentially be completed within a year, it does not fall under the statute, regardless of the improbability of such completion.

Summary Judgment Standards under Texas Law

Application: The court granted summary judgment for Koch, as Beverick failed to produce evidence to support essential elements of his claims.

Reasoning: A no-evidence motion for summary judgment may be granted if, after sufficient discovery, there is no evidence for essential elements of a claim where the adverse party bears the burden of proof.