In Jasek v. Texas Farm Bureau Underwriters, the Court held that the Seller of used personal property was not liable to the Buyer for alleged misrepresentations posted by the third party online auction service. Jasek v. Tex. Farm Bureau Underwriters, No. 14-19-00759-CV, 2022 WL 364050, at *1 (Tex. App.—Houston [14th Dist.] Feb. 8
5th Circuit Upholds Judgment for Conspiracy to Commit Fraud & Theft
Introduction. A party can be held liable for conspiracy to commit fraud and theft, even if the party did not commit all of the underlying bad acts. Bates Energy Oil & Gas, L.L.C. v. Complete Oil Field Servs., L.L.C., No. 20-50952, 2021 WL 4840961, at *1 (5th Cir. Oct. 15, 2021). In this…
Homebuyers Waived their Contractual Rights to Complain about Defects in Home they Purchased
As you probably have read or heard in the news, we currently are in a seller’s residential real estate market. There is often a bidding frenzy over a home as soon as it is listed, and buyers frequently waive provisions in the standard real estate form contract hoping that their bid will be accepted. The…
Texas Homebuyers Beware–Closing Document Language May Render Seller Disclosure Statements Meaningless
In this residential property contract case, the Court addressed whether “as-is” and disclaimer-of-reliance contractual provisions contained in the closing documents barred the homebuyer’s claims for fraud, negligent misrepresentation and violations of the Deceptive Trade Practice Act (DTPA), even when the seller’s disclosure statement apparently misrepresented and omitted material information. Pogue v. Williamson, 01-17-00844-CV, 2020…
Court Imposes a Constructive Trust to Prevent Brother from Cheating his Sister out of Family Farm
Introduction. In the fraud case of Pettit*v. Tabor, Marilyn Eileen Pettit Tabor (Lyn) ‘conveyed her interest in the family farm to her brother, Robert York Pettit (Bob), based upon Bob’s promise to protect the property and to reconvey it to Lyn. However, when it came time for Bob to reconvey the farm…
$3,131,064 Texas Jury Verdict Against Automation and Software Development Company for Negligent Misrepresentation Upheld by 5th Circuit Court of Appeals
Introduction. Negligent misrepresentation and fraud can be viable alternative causes of action to a breach of contract claim, as shown by the recent Texas federal court case of Correct RX Pharmacy Services, Inc. v. Cornerstone Automation Sys., L.L.C., 945 F.3d 423 (5th Cir. 2019). In this case, Plaintiff, Correct RX Pharmacy Services (“…
Court Holds “As Is” Clause Does Not Bar Homebuyer’s Fraudulent Inducement Claim Against Seller
Introduction. In Ivy v. Garcia, Buyer sued Sellers for fraudulently inducing Buyer into entering a contract and buying Sellers’ defective home. 03-18-00545-CV, 2019 WL 3756483 (Tex. App.—Austin Aug. 9, 2019, no pet. h.). Sellers filed a motion for summary judgment on the basis that the as-is clause in the purchase contact barred Buyer’s…
Multi-Million Dollar Judgment against IBM Reversed by Texas Supreme Court
Introduction. The Texas Supreme Court reversed a judgment rendered against IBM originally in the amount of $21 million because Lufkin Industries disclaimed its reliance upon IBM’s misrepresentations in the written contract between the parties. Int’l Bus. Machines Corp. v. Lufkin Indus., LLC, 573 S.W.3d 224 (Tex. 2019), reh’g denied (May 31, 2019).
Background…
Fraud Verdict in Favor of Real Estate Investors Reduced from $7,897,981 to $1,410,400
Introduction. The case of Jang Won Cho v. Kun Sik Kim, involves a dispute between 3 investors who invested in a retail strip shopping mall venture in Houston, Texas. No. 14-16-00962-CV, 2019 WL 1442412 (Tex. App.—Houston [14th Dist.] Apr. 2, 2019, no pet. h.). The 3 investors formed a corporation in which they…
Texas Supreme Court Reverses another Multi-Million Dollar Business Fraud Verdict
Introduction. The Texas Supreme Court recently reversed another multi-million dollar business fraud verdict in Mercedes-Benz USA, LLC v. Carduco, Inc., 16-0644, 2019 WL 847845, at *1 (Tex. Feb. 22, 2019). The court found that the underlying contract between the parties negated the fraud claim.
Background. In this case, Carduco, Inc. entered into…