KEM THOMPSON FROST, Justice.
This appeal arises out of a dispute between the owner of a company and two partners who agreed to buy all of the company's stock. The trial court rendered judgment in favor of the partners and against the owner based upon a favorable jury verdict on the partners' claims for breach of contract, common-law fraud, and statutory fraud under Chapter 27 of the Texas Business and Commerce Code. On appeal, the owner challenges the legal and factual sufficiency of the evidence to support various jury findings. We conclude that the evidence is legally and factually sufficient to support the jury's first damage finding. We also conclude that, even if the evidence is sufficient to support the jury's second damage finding, the partners cannot recover judgment based upon both findings and are deemed to have elected recovery under the first finding. We further conclude that the evidence is legally and factually sufficient to support the statutory-fraud findings challenged by the owner. Accordingly, we modify the trial court's judgment to change the amount of damages awarded to $180,000, and we affirm the trial court's judgment as modified.
Appellee Eve Zou ("Eve") and appellee Jian Zhong Zou ("James") are former spouses. Eve obtained an accounting degree in China before emigrating to the United States. At the time of the transaction made the subject of this lawsuit, Eve had worked as an accountant but was not a certified public accountant. James obtained a bachelor's degree in computer engineering in China and a master's degree in that field from the University of Southern California. During their marriage, the Zous started an import/export business and a property-management business. After their divorce, the Zous continued to operate these two businesses together.
Appellant Clement Yeng owned one hundred percent of the stock in Golden Star Trading Co., Inc. ("Golden Star"), a Texas corporation and wholesaler of Asian groceries in the Houston area. In late 2006, Yeng was interested in selling his stock in Golden Star, and Eve was interested in buying an existing business. The Zous previously had not purchased an existing business. In December 2006, Eve was introduced to Yeng. After their initial meeting, Eve and Yeng began negotiating a potential sale by Yeng of his stock in Golden Star. After considering purchasing this stock with another person, Eve decided to go into business with James regarding the purchase of the Golden Star stock.
The Zous met Yeng on March 5, 2007, at the office of Yeng's attorney, Andy Lai. The Zous and Yeng signed a written agreement that Lai had drafted regarding the sale of Yeng's stock in Golden Star to the Zous ("First Agreement"). Under the First Agreement, the Zous agreed to make certain payments to Yeng and to perform
Effective March 13, 2007, Eve and James entered into a written partnership agreement regarding buying, selling, operating, and managing Golden Star. Within a week, on March 19, 2007, Yeng and Eve signed a second written agreement regarding the sale of Yeng's stock in Golden Star to the Zous ("Second Agreement"). James did not sign the Second Agreement but he testified that anything Eve did regarding Golden Star from the effective date of their partnership forward was done on behalf of their partnership.
After she signed the Second Agreement, Eve took over management of Golden Star. Accounting discrepancies came to light. Accounts receivables were discovered that were not reflected in the accounts receivable report contained in the First Agreement. The Zous tried for several months to operate Golden Star's business but encountered various problems. By September 2007, the Zous had stopped trying to manage Golden Star's business and were pursuing other business interests.
The Zous filed suit against Yeng and other defendants in October 2007. Yeng also filed suit against the Zous, and the suits were consolidated. The Zous asserted various claims against Yeng, including claims for breach of contract, fraudulent inducement, common-law fraud, and statutory fraud. The Zous also asserted various tort claims against Andy Lai and The Law Office of Andy Lai and Associates. Yeng asserted claims against the Zous, including claims for breach of contract. Following a trial, the jury rendered its verdict as follows:
The jury also found in favor of Lai as to all liability questions submitted for claims against Lai. The trial court rendered judgment in favor of the Zous and against Yeng for $350,600 plus awards of reasonable and necessary attorney's fees. The trial court denied Yeng's motion for judgment notwithstanding the verdict, motion to disregard jury findings, and motion for new trial. On appeal, Yeng challenges the legal and factual sufficiency of various jury findings.
When reviewing the legal sufficiency of the evidence, we consider the evidence in the light most favorable to the challenged finding and indulge every reasonable inference that would support it. City of Keller v. Wilson, 168 S.W.3d 802, 823 (Tex.2005). We must credit favorable evidence if reasonable jurors could and disregard contrary evidence unless reasonable jurors could not. See id. at 827. We must determine whether the evidence at trial would enable reasonable and fair-minded people to find the facts at issue. See id. Jurors are the sole judges of witness credibility and the weight to give to testimony. See id. at 819.
When reviewing a challenge to the factual sufficiency of the evidence, we examine the entire record, considering both the evidence in favor of, and contrary to, the challenged finding. Maritime Overseas Corp. v. Ellis, 971 S.W.2d 402, 406-07 (Tex.1998). After considering and weighing all the evidence, we set aside the fact finding only if it is so contrary to the overwhelming weight of the evidence as to be clearly wrong and unjust. Id. The jury is the sole judge of the credibility of the witnesses and the weight to be given to their testimony. GTE Mobilnet of S. Tex. v. Pascouet, 61 S.W.3d 599, 615-16 (Tex. App.-Houston [14th Dist.] 2001, pet. denied). We may not substitute our own judgment for that of the jury, even if we would reach a different answer on the evidence. Maritime Overseas Corp., 971 S.W.2d at 407. The amount of evidence necessary to affirm a judgment is far less than that necessary to reverse a judgment. Pascouet, 61 S.W.3d at 616.
In his first issue, Yeng asserts that the evidence is legally and factually insufficient to support the jury's findings in response to parts (a) and (d) of Question 4A, the damages question. In his second issue, Yeng asserts that the trial court erred in rendering judgment in the Zous' favor based upon both damage findings. The trial court submitted a single damage question, Question 4A for the claims for breach of contract, common-law fraud, and statutory fraud. In Question 4A, the trial court asked the jury what sum of money, if paid now in cash, would fairly compensate the Zous for their losses, if any, resulting from the occurrence in question. Parts (a) and (d) of Question 4A submitted two different measures of damages. At the charge conference, no party objected to the form of this damages question. Therefore, this court measures the sufficiency of the evidence using the charge given. See Osterberg v. Peca, 12 S.W.3d 31, 55 (Tex. 2000) (holding that appellate court could not review the sufficiency of the evidence based on a particular legal standard because
In response to part (a) of Question 4A, the jury found $180,000 in damages based upon the following measure of damages: "[t]he money paid by James Zou and/or Eve Zou to Clement Yeng." The record contains uncontroverted evidence that the Zous paid Yeng $190,000, and thus there is evidence supporting a finding that the Zous paid Yeng the lower amount of $180,000. Yeng does not assert or show how the evidence is insufficient to support a finding that the Zous paid Yeng $180,000. Under the applicable standards of review, we conclude that the evidence is legally and factually sufficient to support the jury's finding in answer to part (a) of Question 4A. See Li Li v. 1821 West Main Development, LLC, No. 14-10-01227-CV, 2011 WL 5926679, at *5-6 (Tex.App.-Houston [14th Dist.] Nov. 29, 2011, pet. denied) (mem. op.). Accordingly, we overrule Yeng's first issue as to the damage finding in response to part (a) of Question 4A.
In response to part (d) of Question 4A, the jury found $170,600 in damages based upon the following measure of damages: "[t]he difference between the value of the accounts payable as represented at the time of the sale of [Golden Star] and the actual value at the time the Zous took possession of the business." We presume, without deciding, that the evidence is legally and factually sufficient to support the jury's damage finding in response to part (d) of Question 4A.
Though it is limited to accounts payable and arguably is not a correct statement of the benefit-of-the-bargain or expectancy measure of damages,
Recovering both benefit-of-the-bargain or expectancy damages and out-of-pocket or reliance damages for the same loss is inconsistent and impermissible because it is a double recovery. See Waite Hill Servs., Inc. v. World Class Metal Works, Inc., 959 S.W.2d 182, 184 (Tex. 1998); Leyendecker, 683 S.W.2d at 373; Foley, 68 S.W.3d at 882-83; Hendon v. Glover, 761 S.W.2d 120, 122 (Tex.App.-Beaumont 1988, writ denied). Yeng preserved error regarding this complaint by his post-verdict motion raising this issue. See Waite Hill Servs., Inc., 959 S.W.2d at 184; Royce Homes, L.P. v. Humphrey, 244 S.W.3d 570, 581-82 (Tex.App.-Beaumont 2008, pet. denied). Because the Zous did not designate which of the two possible damage findings they wished to elect, the trial court should have rendered judgment on the finding in response to part (a) of Question 4A, because it yielded the greater recovery. See Birchfield v. Texarkana Mem'l Hosp., 747 S.W.2d 361, 367 (Tex. 1987); Hatfield v. Solomon, 316 S.W.3d 50, 59 (Tex.App.-Houston [14th Dist.] 2010, no pet.). By rendering judgment awarding the Zous both damage amounts instead of the greater of the two, the trial court erred. See Waite Hill Servs., Inc., 959 S.W.2d at 184; Leyendecker, 683 S.W.2d at 373; Foley, 68 S.W.3d at 882-83; Hendon, 761 S.W.2d at 122. Accordingly, we sustain Yeng's second issue and modify the trial court's judgment to delete the damage award based upon the damage finding in response to part (d) of Question 4A.
Under his fourth issue, Yeng asserts that the evidence is legally and factually insufficient to support the jury's finding that Yeng made "a false representation of a past or existing material fact" in response to Question 3 regarding liability for statutory fraud. At the charge conference, no party objected to the form of this question. Therefore, this court measures the sufficiency of the evidence using the charge given. See Osterberg, 12 S.W.3d at 55 (Tex.2000); Hirschfeld Steel Co., 201 S.W.3d at 283-86. On the day the parties signed the First Agreement, Yeng gave the Zous the accounts receivable report and the accounts payable report for Golden
On appeal, Yeng argues that the accounts receivable report and the accounts payable report cannot be representations because their purpose in the First Agreement was to identify the accounts that the Zous agreed to assume. Presuming, without deciding, that these reports served this purpose in the First Agreement, this would not change the fact that Yeng gave these reports to the Zous the day they signed the First Agreement, and that these reports purport to state Golden Star's accounts receivable and accounts payable as of February 22, 2007. In addition, as shown in the above-quoted excerpt, Yeng represented in the First Agreement that these reports did not contain any untrue statement of a material fact or any omission of a material fact necessary to make the statements contained in the reports not misleading.
Yeng also argues that the merger clause in the Second Agreement precludes as a matter of law any misrepresentation related to the First Agreement. That merger clause states:
Under the merger clause, the Second Agreement, once effective, takes the place of the First Agreement, and the First Agreement is no longer a valid contract.
Considering the evidence in the light most favorable to the challenged finding, indulging every reasonable inference that would support it, crediting favorable evidence if reasonable jurors could, and disregarding contrary evidence unless reasonable jurors could not, the trial evidence would enable reasonable and fair-minded people to find that Yeng made "a false representation of a past or existing material fact" in response to Question 3. See City of Keller, 168 S.W.3d at 823, 827; Energy Maintenance Services Group I, LLC v. Sandt, 401 S.W.3d 204, 211-15 (Tex.App.-Houston [14th Dist.] 2012, pet. denied). Examining the entire record, considering both the evidence in favor of, and contrary to, the challenged finding, and considering and weighing all the evidence, we conclude that the jury's finding that Yeng made "a false representation of a past or existing material fact" is not so contrary to the overwhelming weight of the evidence as to be clearly wrong and unjust. See Maritime Overseas Corp., 971 S.W.2d at 406-07; Energy Maintenance Services Group I, LLC, 401 S.W.3d at 211-16. Therefore, the evidence is legally and factually sufficient to support this jury finding.
Under his fourth issue, Yeng also asserts that the evidence is legally and factually insufficient to support the jury's finding that the Zous relied upon a false representation by Yeng in response to Question 3 regarding liability for statutory fraud. At the charge conference, no party objected to the form of this question. Therefore, we measure the sufficiency of the evidence using the charge given. See Osterberg, 12 S.W.3d at 55 (Tex.2000); Hirschfeld Steel Co., 201 S.W.3d at 283-86. The record contains the following trial testimony from James:
Considering the evidence in the light most favorable to the challenged finding, indulging inferences and crediting and disregarding evidence in accordance with the governing standard of review, we conclude the trial evidence would enable reasonable and fair-minded people to find that the Zous relied upon a false representation by Yeng. See City of Keller, 168 S.W.3d at 823, 827. Examining the entire record, considering both the evidence in favor of, and contrary to, the challenged finding, and considering and weighing all the evidence, we conclude that a finding that the Zous relied upon a false representation by Yeng is not so contrary to the overwhelming weight of the evidence as to be clearly wrong and unjust.
Having rejected all of Yeng's arguments regarding the Zous' statutory-fraud claim under his fourth issue, we overrule this issue as to the statutory-fraud claim.
The evidence is legally and factually sufficient to support the jury's damages finding in answer to part (a) of Question 4A. Presuming, without deciding, that the evidence is legally and factually sufficient to support the jury's damages finding in answer to part (d) of Question 4A, the trial court erred in awarding the Zous recovery under both damage findings because these findings were based upon inconsistent