APPEALS CT UPHOLDS MCDONALD IN $2.3 MILLION VERDICT

By Juan Montoya
In an opinion handed down Thursday, the 13th Court of Appeals has upheld a $2.3 million verdict form a jury in the County Court-at-Law #1 presided by Judge Arturo McDonald.
The jury returned the verdict in favor of R and G Produce Company, in the total amount of $2,332,596.44 against Williams Farms Produce Sales, Inc. of Islandton, South Carolina.
Williams Farms was represented by  Frank E. Perez and Associates of Brownsville.
R and G was represented by Brownsville attorney Peter Zavaletta.
At the core of the dispute was the failure of Williams Farms to pay the Weslaco-based produce company $490,000 for 37,000 20-pound boxes of grape tomatoes sold from late 2007 to early 2008 as per their agreement.
With the passage of time, the damages increased because R and G missed two planting seasons in year one and two planting seasons in the second year.
The defendant had tried to go on mandamus (denied) seeking a summary judgement to the Corpus Christi Court of Appeals, and again on mandamus to the Supreme Court, also denied.
McDonald submitted the case an oral agreement case under Prayer For Judgement and a negligence case.
Damages for each were the standard submitted (over objections) under the PFJ.
Although Williams Farms Produce Sales, Inc., had gross sales of $37 million in 2007, the year in question, its vice president testified that he didn't know whether that company kept general ledgers, and hadn't seen any. An expert hired by CPA hired by Zavaletta said that would be "totally impossible."
The jury answered awarded the following economic damages against Williams Farms Produce Sales, Inc:
$490,725.80 on the agreements in the past;
$341,870.64 on the agreements in the future;
$300,000 lost profits sustained in the past; and
$1,200,000 lost profits in the future.
The grueling trial lasted for eight days.
On the negligence part, the jury awarded the exact amount of economic damages against Williams Farms who had made a pre-trial offer of 2 bags of tomato seed (not kidding).
Williams Farms appeal argued that the trial court had erred in awarding a verdict in excess of its jurisdictional $1 million limit, that the amount listed in the plaintiff's amended petition was a "sham," and that the trial court should set aside the verdict and and new proceedings with the new amounts be ordered.
The Appeals Court decision denied William Farms's pleadings and upheld McDonald's rulings stating the trial court correctly interpreted Texas law and denied the defendant's objections.
Since the decision in McDonald's court, Zavaletta has filed a federal action in Judge Andrew Hanen's court November 19, 2012 as a Fraud or Truth-In-Lending case after attorneys for Williams farm declared bankruptcy.
The appeals court decision, written by Chief Justice Roy Valdez, was also heard by justices Gina Benavidez and Nora Longoria.