Larry Meyer v. John Cathey

Summary

The Supreme Court of Texas held that the evidence was legally insufficient to establish a fiduciary relationship between business associates Meyer and Cathey. The court also held that Cathey ratified any fraud arising from alleged compensation misrepresentations by continuing to work after learning of the discrepancy. The court affirmed the reversal of posttrial discovery sanctions because Meyer waived the sanctions claim by failing to seek a pretrial ruling.

Holdings

1. The evidence was legally insufficient to establish that Meyer owed Cathey a fiduciary duty.
2. Legally sufficient evidence supported the jury's finding that Cathey ratified the fraud, so Cathey could not recover on his fraud claims.
3. Meyer waived his claim for sanctions by failing to seek a pretrial ruling on discovery misconduct of which he was aware before trial.

Questions Presented

1. Whether legally sufficient evidence supported the jury's finding that Meyer owed Cathey a fiduciary duty in connection with the final two real estate projects.
2. Whether legally sufficient evidence supported the jury's finding that Cathey ratified the alleged fraud.
3. Whether Meyer waived his entitlement to discovery-abuse sanctions by waiting until after trial to seek sanctions for misconduct of which he was aware before trial.

Disposition

other