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Continental Electronics Corp. v. Eurotech Marketing LTD.8/20/2001
Justice Moseley
In this dispute over commissions, Continental Electronics Corporation appeals the trial court's judgment awarding damages and attorney's fees to Eurotech Marketing (Overseas) Ltd. pursuant to jury findings. In a cross-appeal, Eurotech and its owner, Paul Kudurshian, appeal the trial court's directed verdict against them on their fraud and breach of oral contract claims. For the reasons that follow, we reverse the trial court's directed verdict against Eurotech on its fraud claim. We affirm the trial court's judgment in all other respects.
Our disposition of the points of error in the appeal and cross-appeal necessitates only a brief recitation of the facts. Prior to 1989, Continental Electronics Corporation was owned by Varian Associates, Inc. Continental-Varian sold and installed low-and medium-frequency industrial and military communications equipment. Eurotech was an international sales representative for Continental-Varian and was paid on commission. Kudurshian was Eurotech's owner.
In 1986, Continental-Varian closed an $8.2 million sale of low frequency transmitting equipment to the Greek Navy ("the Greek Navy sale"). Kudurshian worked on the deal for ten years, and Eurotech's commission was to be $309,658. But, because the sale was funded by the United States government, federal regulations limited the commission to be paid from the federal funds to $50,000. Consequently, Continental-Varian orally agreed to pay increased commissions on other jobs to make up the difference, and did so for the next several years.
In 1989, Continental-Varian was sold to Tech-Sym Corporation, which continued to operate the division under the Continental name (Continental Electronics Corporation). According to Eurotech, Tech-Sym officers were aware of the agreement regarding the commission on the Greek Navy sale, and Continental continued to pay commissions on it. Then, in 1991, Eurotech and Continental signed a three-year representation agreement, which contained a merger clause. When the contract expired, Continental did not renew it.
Disputes arose over commissions due under the 1991 agreement, as well as the Greek Navy sale. Eurotech and Kudurshian sued Continental, Tech-Sym Corporation, Ross Faulkner, David Russell, and Robert M. McDonald, alleging claims for breach of contract, fraud, negligent misrepresentation, and civil conspiracy. A jury was impaneled to decide the case. Eurotech and Kudurshian presented evidence to support their claims and, after they rested their case, cross-appellees (as defendants) moved for a directed verdict on all claims regarding the Greek Navy sale, fraud, conspiracy, and negligent misrepresentation. The trial court granted the motion on all bases cited in the written motion. All of Kudurshian's claims were dismissed on directed verdict. Additionally, Kudurshian and Eurotech nonsuited all claims, except fraud, against cross-appellees Tech-Sym, Russell, Faulkner, and McDonald (leaving Continental as the only defendant on all claims).
After the directed verdict and nonsuits, the only claims remaining for the jury to decide was the breach of the 1991 written agreement. Continental then orally "stipulated" that it owed Eurotech $25,058.23 in unpaid commissions under the 1991 written agreement and rested its case. Thus, the only issues presented to the jury were (1) how much Continental owed Eurotech in unpaid commissions under the 1991 written agreement and (2) Eurotech's attorney's fees. The jury determined the amount of unpaid commissions at $43,342.73, and determined reasonable attorney's fees for Eurotech at $118,538.19. The trial court entered judgment on the verdict and also ordered pre-and po
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