FROM THE 96th District Court OF Tarrant COUNTY
The appellee individual was the principal of the appellee company that purchased real property from the appellant company. Appellee company filed the instant lawsuit against appellant company for breach of contract and against its principal individuals for fraud and misrepresentation and reliance upon disclosures made by the principals during the course of the sale of an apartment complex. The jury returned a verdict for the appellees, finding that appellants committed fraud by nondisclosure and statutory fraud, that the appellants made a negligent misrepresentation upon which the appellee company relied, and that the appellant company breached the contract. The jury found that the appellee company sustained damages of $973,900 and should recover $146,153 in trial attorney’s fees. The appellate court found legally and factually sufficient evidence supports the jury’s damage award. The court also held that the disclaimer of reliance clause in the purchase and sale contract was enforceable, and that it precluded the appellee company’s claims for misrepresentation against the appellant company as a matter of law. The court found sufficient evidence to support appellee's fraud, misrepresentation and non-disclosure claims against the appellant company's principal individuals.  The court determined there was insufficient evidence to find a duty or convenant on the part of the appellant company to make the contract fair and just, and thus held that appellant company did not breach the contract of sale. Finally, the court noted that the evidence presented a close case that the jury could have legitimately decided in favor of either the appellee company or the appellants. Therefore, the court could not be certain that the jury was not significantly influenced by the trial court’s submission of legally incorrect instruction. Accordingly, the judgment was reversed and rendered in part and reversed and remanded in part.