X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
CONCURRING AND DISSENTING OPINION

I concur with the majority decision in this case to affirm the trial court’s summary judgment in part and to reverse in part the portion of the judgment concerning noncompliance with section 2.5 of the partnership agreement. I agree with the majority’s conclusion that we must remand Russell’s breach-of-contract claim because a fact issue exists concerning Russell’s possible waiver of his right to enforce section 2.5, although the statute of limitations bars damages for any breach that accrued more than four years before this lawsuit was filed.*fn1 I write separately, however, because I respectfully dissent from the majority’s conclusion that the clause in the contract addressing approval of partner salaries is unambiguous and requires the partners’ unanimous agreement on partner salaries. Unlike the majority, I would conclude that section 2.5 of the 1979 partnership agreement is ambiguous, and I would also remand this issue to the trial court for the factfinder to determine the parties’ intended meaning of the clause after consideration of the relevant extrinsic evidence.

To determine whether a contract is ambiguous, we apply the pertinent rules of interpretation to the instrument’s face. Universal C.I.T. Credit Corp. v. Daniel, 243 S.W.2d 154, 157 (Tex. 1951); see also Moon Royalty, LLC v. Boldrick Partners, 244 S.W.3d 391, 394 (Tex. App.-Eastland 2007, no pet.) (noting that rules of interpretation may be utilized to determine if agreement is ambiguous but canons of construction do not apply to determine agreement’s legal effect absent determination of ambiguity). If it is genuinely uncertain which one of two or more meanings is the proper meaning after applying the rules of interpretation, then the terms cannot be given a certain or definite legal meaning, and the contract is ambiguous. Universal C.I.T., 243 S.W.2d at 157. We must decide whether the contract is ambiguous by examining the contract as a whole in light of the circumstances present when the contract was entered. Columbia Gas Transmission Corp. v. New Ulm Gas, Ltd., 940 S.W.2d 587, 589 (Tex. 1996). To ascertain the true intention of the parties as expressed in the instrument, we must “examine and consider the entire writing in an effort to harmonize and give effect to all the provisions of the contract so that none will be rendered meaningless.” Coker v. Coker, 650 S.W.2d 391, 393 (Tex. 1983). No single provision taken alone should control-instead, all the provisions must be considered with reference to the entire agreement. Id. In this case, an examination of the text of section 2.5, the contract as a whole, and the surrounding objective circumstances demonstrates that the contract is ambiguous.

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
November 27, 2024
London

Celebrating achievement, excellence, and innovation in the legal profession in the UK.


Learn More
December 02, 2024 - December 03, 2024
Scottsdale, AZ

Join the industry's top owners, investors, developers, brokers and financiers for the real estate healthcare event of the year!


Learn More
December 11, 2024
Las Vegas, NV

This event shines a spotlight on how individuals and firms are changing the investment advisory industry where it matters most.


Learn More

Downtown property and casualty defense law firm seeks litigation associate with 2+ years' experience in insurance defense litigation. The fi...


Apply Now ›

Description: Fox Rothschild has an opening in the New York office for a Counsel in our renowned Labor & Employment Department, working w...


Apply Now ›

Our client, a large, privately-owned healthcare company, has engaged us to find an Assistant General Counsel for their headquarters located ...


Apply Now ›

Breaking news and trends for law firm and legal departments about the evolving federal regulations in a volatile political climate.

Surveys & Rankings
National Law Journal