David Nelson, Individually and d/b/a Collective Contracting, a Sole Proprietorship; Collective Contracting, Inc.; and E.E. Hood & Sons, Inc. v. Vernco Construction, Inc.

Summary

The Texas Eighth Court of Appeals vacated its prior judgment and modified the trial court’s judgment concerning liability arising from a construction-related dispute. The court characterized E.E. Hood’s liability as knowing participation in David Nelson’s breach of fiduciary duty, deleted the attorney’s-fee award, specified actual and exemplary damages against Hood, affirmed the remainder as modified, and apportioned appellate costs.

Holdings

1. The judgment must reflect that E.E. Hood is liable for knowing participation in David Nelson's breach of fiduciary duty, rather than for breach of contract.
2. The attorney's-fee award must be deleted from the judgment.
3. The judgment must reflect actual damages of $1,702,758.00 and exemplary damages of $150,000.00 against E.E. Hood individually, for a total of $1,852,758.00.

Questions Presented

1. Whether the judgment should characterize E.E. Hood's liability as knowing participation in David Nelson's breach of fiduciary duty rather than breach of contract.
2. Whether the attorney's-fee award should be deleted.
3. Whether the judgment should reflect actual and exemplary damages against E.E. Hood individually in the specified amounts.

Disposition

other