From: <Saved by Windows Internet Explorer 7>
Subject: Texas Judiciary Online - HTML Opinion
Date: Sat, 18 Aug 2007 18:02:50 -0500
MIME-Version: 1.0
Content-Type: multipart/related;
	type="text/html";
	boundary="----=_NextPart_000_003F_01C7E1C1.FD7305E0"
X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.3138

This is a multi-part message in MIME format.

------=_NextPart_000_003F_01C7E1C1.FD7305E0
Content-Type: text/html;
	charset="Windows-1252"
Content-Transfer-Encoding: quoted-printable
Content-Location: http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?OpinionId=84579

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD><TITLE>Texas Judiciary Online - HTML Opinion</TITLE>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Dwindows-1252">
<SCRIPT language=3DJavaScript><!--
function openWindow(windowName, urlLoc, w, h, top, left) {=20
	windowName =3D window.open("",windowName, =
'scrollbars=3Dyes,status=3Dno,width=3D' + w + ',height=3D' + h + =
',menubar=3Dno,resizable=3Dno,top=3D' + top + ',left=3D' + left + =
',screenX=3D0,screenY=3D0');
	windowName.location.href =3D urlLoc;
	windowName.focus();
	if (windowName.opener =3D=3D null) windowName.opener =3D self;
}
//--></SCRIPT>
<LINK =
href=3D"http://www.1stcoa.courts.state.tx.us/resource/includes/oca.css"=20
type=3Dtext/css rel=3Dstylesheet>
<META content=3D"MSHTML 6.00.6000.16481" name=3DGENERATOR></HEAD>
<BODY text=3D#000000 vLink=3D#551a8b aLink=3D#ff0000 link=3D#0000ff =
bgColor=3Dwhite=20
leftMargin=3D0 topMargin=3D0 marginwidth=3D"0" =
marginheight=3D"0"><!--MAIN Content Table Begin-->
<TABLE width=3D"100%">
  <TBODY>
  <TR>
    <TD class=3DTextSmall><A class=3DTextSmall=20
      href=3D"mailto:?subject=3DAn opinion from the Texas Judiciary =
Online: First Court of Appeals&amp;body=3DThis opinion is from the Texas =
First Court of Appeals web site.  =
http://www.1stcoa.courts.state.tx.us/opinions/HTMLOpinion.asp?OpinionID=3D=
84579"><IMG=20
      =
src=3D"http://www.1stcoa.courts.state.tx.us/resource/opinions/images/icoE=
Mail.gif"=20
      align=3DabsMiddle border=3D0> Send this document to a=20
      colleague</A>&nbsp;&nbsp;&nbsp; </TD>
    <TD class=3DtextSmall align=3Dright><!--		Close This Window<a =
href=3D"javascript:window.close()"><img =
SRC=3D"../resource/images/icons/close.gif" WIDTH=3D"16" HEIGHT=3D"16" =
BORDER=3D"0" ALIGN=3D"absmiddle" HSPACE=3D"3"></a-->Close=20
      This Window<A onclick=3Dwindow.close()=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84579#"><IMG=20
      height=3D16 hspace=3D3 src=3D"" width=3D16 align=3DabsMiddle =
border=3D0></A> </TD></TR>
  <TR>
    <TD class=3DTextJustify colSpan=3D2>
      <HR>
      <BR><BR>
      <META content=3DWordPerfect name=3DGenerator><BR WP=3D"BR1"><BR =
WP=3D"BR2"><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 11pt"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>Opinion=20
      issued August 2, 2007</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman"><STRONG>=20
      </STRONG></SPAN><SPAN style=3D"FONT-FAMILY: Times New =
Roman"><MULTICOL=20
      GUTTER=3D"23" WIDTH=3D"576" COLS=3D"2"><IMG height=3D115 src=3D""=20
      width=3D115></SPAN><SPAN style=3D"FONT-SIZE: 11pt"></SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR=20
      WP=3D"BR2"></MULTICOL><MULTICOL GUTTER=3D"46" COLS=3D"2">
      <P><SPAN style=3D"FONT-SIZE: 11pt"></SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"></MULTICOL><MULTICOL =
GUTTER=3D"23"=20
      WIDTH=3D"576" COLS=3D"2">
      <P><SPAN=20
      style=3D"FONT-SIZE: 11pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman"><IMG height=3D115 src=3D""=20
      width=3D115></MULTICOL> </SPAN></P>
      <P align=3Dcenter><STRONG><SPAN style=3D"FONT-SIZE: 13pt">In=20
      The</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>Court of=20
      Appeals</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN style=3D"FONT-SIZE: 13pt"><STRONG>For=20
      The</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>First=20
      District of Texas</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>
      <HR align=3Dcenter width=3D"15%">
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>NO. <A=20
      name=3D5>01-04-00566-CV</A></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>__________</STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>R.C. JONES,=20
      SUPERIOR WASTE MANAGEMENT SERVICES, INC.</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>AND JTI=20
      CONTRACTORS, INC., Appellants</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>V.</STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>REPUBLIC=20
      WASTE SERVICES OF TEXAS, LTD. AND </STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>RUSTIN=20
      TRANSPORTATION COMPANY, L.P.<A name=3D7></A>,=20
      Appellees</STRONG></SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>
      <HR>
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>On =
Appeal=20
      from the<A name=3D8></A> 295th District Court</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG><A =

      name=3D10></A>Harris County, Texas</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>Trial Court=20
      Cause No. 2001-59389</STRONG></SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>
      <HR>
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>O =
P I N I O=20
      N</STRONG></SPAN></P>
      <P><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG>This=20
      is an appeal from a final judgment rendered on a jury verdict in =
favor of=20
      appellees, Republic Waste Services of Texas, Ltd. ("Republic")<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84579#N_1_"><SUP>=20
      (1)</SUP></A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"> and =
Rustin=20
      Transportation Company, L.P. ("Rustin"), in a breach of contract =
and fraud=20
      action brought by appellants, R.C. Jones, Superior Waste =
Management=20
      Services, Inc. ("Superior"), and JTI Contractors, Inc. ("JTI"). In =
two=20
      issues, appellants contend that (1) as a matter of law, the =
evidence is=20
      insufficient to support the jury's verdict that Rustin, Republic's =

      subcontractor, did not breach its subcontracts with them by =
failing to pay=20
      them certain rate increases for hauling trash and (2) the trial =
court=20
      erred in denying their motion for new trial on the ground that =
Rustin's=20
      trial counsel engaged in improper and incurable jury argument. We=20
      affirm.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>
      <CENTER>Background</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">In 1999,=20
      the City of Houston began soliciting bids for a long-term contract =
for=20
      disposal of its trash. The proposed 20-year project called for: =
(1) the=20
      construction and operation of two City-owned transfer stations, =
one in=20
      southwest Houston (the Westpark transfer station) and another in =
southeast=20
      Houston (the Lawndale transfer station) and (2) the hauling of =
trash from=20
      these transfer stations to a landfill for disposal. Republic was =
the low=20
      bidder on the City of Houston waste disposal contract. The City =
estimated=20
      Republic's bid amount for the 20-year contract to be $295 million. =

      </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">All city=20
      contracts up for bid must comply with the City's Minority and =
Women=20
      Business Enterprises ("MWBE") Program. Before being awarded a =
contract, a=20
      city contractor must submit an MWBE participation plan, along with =
either=20
      executed subcontracts or letters of intent for each MWBE =
subcontractor.=20
      For the proposed City contract at issue, the City set the MWBE=20
      participation requirement as follows: "at least 30% of the total =
value of=20
      all construction subcontracts or supply agreements" and "contracts =
or=20
      supply agreements in at least 20% of the remaining value of this=20
      Agreement." </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Republic=20
      subcontracted all transfer station waste loading and hauling to =
Rustin,=20
      which operates every transfer station in the City of Houston. Ted =
Meyer,=20
      Republic's area president, and Donald Poarch, Rustin's owner, =
agreed that=20
      Rustin, which is not an MWBE, would subcontract with MWBEs to meet =
the=20
      MWBE requirement. Superior, which is owned by R.C. Jones, an=20
      African-American, and JTI, which is owned by Jesse Valeriano, an =
Hispanic,=20
      agreed with Rustin to haul waste to Republic's landfill. Both =
Jones and=20
      Valeriano signed blank letters of intent. They understood that the =
letters=20
      of intent were not themselves the agreements, but merely =
precursors for=20
      more extensive and complete agreements. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Once City=20
      Council approved the contract with Republic (the "City Contract"), =

      Republic entered into a subcontract with Rustin. The Republic =
subcontract=20
      provided for yearly rate adjustments pursuant to a formula set =
forth in=20
      the City Contract. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">JTI and=20
      Superior each signed a set of three subcontracts (the "Rustin=20
      subcontracts") to perform hauling work at the two City of Houston =
transfer=20
      stations, Westpark and Lawndale. The Rustin subcontracts also =
provided for=20
      yearly rate adjustments "for the applicable year" but did not =
define that=20
      term. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Westpark=20
      and Lawndale were scheduled to open in July 2000. However, =
Westpark did=20
      not open until March 9, 2001, and Lawndale did not open until =
October of=20
      that year. Until the Westpark and Lawndale transfer stations =
opened, JTI=20
      and Superior agreed with Rustin to perform hauling work out of =
other=20
      privately-owned transfer stations operated by Rustin including the =

      Sommermeyer/290, Sam Houston, and Friendswood transfer stations.=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">When the=20
      Westpark transfer station opened, Superior took both of its =
trailers=20
      there, and JTI also began hauling from Westpark, although it =
hauled mostly=20
      from the Sommermeyer transfer station. The Rustin subcontracts =
paid=20
      Superior and JTI an initial rate of $5.25 per ton to work out of =
Westpark=20
      and Lawndale. However, at Westpark, Superior's costs were $6.06 =
per ton=20
      and JTI's costs were $6.78 per ton. At the contracted rate of =
$5.25 per=20
      ton, Superior and JTI were losing money working at Westpark and =
Lawndale.=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Jones=20
      recognized that Superior was losing money at Westpark, and he =
requested a=20
      contract directly from Republic's president, Bill Linthicum. =
Linthicum=20
      testified that Jones complained that "his drivers weren't being =
treated=20
      fairly to be allowed to get the same number of loads that the . . =
. Rustin=20
      drivers were." Rustin allowed Superior to send one of its trailers =
back to=20
      the more profitable Friendswood transfer station. Both Linthicum =
and Jones=20
      exchanged proposed contracts that proved unacceptable to the =
other. Jones=20
      took his concerns to the Mayor's Office of Affirmative Action and =
Contract=20
      Compliance. Jones was told by the City that, once the Lawndale =
transfer=20
      station opened, he needed to have both of his trucks running from =
the=20
      Lawndale and Westpark transfer stations. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Faced with=20
      this dissatisfaction from Superior, Republic and Rustin reviewed =
their=20
      records and discovered that JTI had been overpaid $1.81 per ton =
for the=20
      first four months that Westpark was open, from March 2001 through =
June=20
      2001. After the overpayment was discovered, Poarch, Rustin's =
owner, asked=20
      Valeriano, JTI's owner, to meet Republic's new area president, =
Linthicum,=20
      to discuss JTI's profitability. Valeriano told them that he was =
making=20
      money. On July 1, 2001, Rustin adjusted the rate that JTI was paid =
to=20
      conform with the figures in the Rustin subcontracts.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">When the=20
      Lawndale transfer station opened in October 2001, Superior =
realized that=20
      it could not make money hauling from there, either. By the end of =
the next=20
      month, Superior ceased operations and sued Republic asserting a =
number of=20
      legal theories, all based on a purported contractual and/or =
partnership=20
      relationship arising out of the letters of intent. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">While the=20
      litigation was ongoing between Superior and Republic, Republic and =
Rustin=20
      asked Valeriano to prepare a profit and loss statement for the =
individual=20
      transfer stations. Valeriano responded that he could not separate =
it by=20
      transfer station. Instead, he spent 10 minutes preparing a profit =
and loss=20
      statement and determined that he was making money on the Rustin =
work.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84579#N_2_"><SUP>=20
      (2)</SUP></A></SPAN><SPAN style=3D"FONT-FAMILY: Times New Roman">=20
</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">One month later, =
Superior's=20
      counsel </SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">deposed =
Valeriano in=20
      conjunction with the Superior case against Republic and questioned =
him at=20
      length about the financial statement that he had prepared. Based =
on the=20
      questions he answered during his deposition, Valeriano "felt like =
[his]=20
      price increases hadn't been paid; and in going through that =
financial=20
      statement that [he] had produced, [he] realized that maybe [he] =
wasn't=20
      making money at Westpark like [he] had originally thought [he] =
was."=20
      Valeriano's CPA discovered that JTI was losing money at Westpark =
and had=20
      been underpaid approximately $160,000 in Consumer Price Index =
("CPI") rate=20
      increases. Valeriano also discovered that he was not getting a 10% =

      participation in the MWBE contract. After an investigation by =
Rustin in=20
      response to JTI's claims, Rustin issued two checks totaling more =
than=20
      $65,000 to one of Valeriano's trucking entities. Because Valeriano =
cashed=20
      the checks and stopped hauling from the City transfer stations, =
Rustin=20
      believed that the matter was settled. Valeriano notified Rustin =
that he=20
      was terminating his performance under the Rustin subcontracts, but =
would=20
      continue to haul from Sommermeyer. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">JTI, who=20
      was represented by the same attorney who represented Superior,=20
      subsequently intervened in Superior's suit against Republic, and =
Rustin=20
      was brought in as a co-defendant. The parties appeared for trial. =
During=20
      closing argument, Rustin's trial counsel alluded to how =
appellants' theory=20
      of the case was merely a "lawyer's construct" and how Valeriano =
changed=20
      his testimony after meeting with Superior's attorney. After a =
nearly=20
      three-week long trial, the jury rendered a verdict for Republic =
and Rustin=20
      finding that there was no agreement for Superior or JTI to have a =
10%=20
      participation in the City Contract; that there was no fraud by =
Republic in=20
      signing the letters of intent; and that Rustin had not breached =
its=20
      subcontracts. Superior and JTI filed a motion for new trial and =
for=20
      judgment notwithstanding the verdict that was denied by the trial=20
      court.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">
      <CENTER><STRONG>CPI Adjustments</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">In their=20
      first issue, appellants contend that they are "entitled to =
judgment=20
      against Rustin on the CPI claims because the unambiguous contracts =
should=20
      be interpreted by the court, and the damages are liquidated and=20
      undisputed."<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84579#N_3_"><SUP>=20
      (3)</SUP></A> We disagree.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman"><STRONG>Standard =
of=20
      Review</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">A judgment =
notwithstanding=20
      the verdict ("JNOV") is proper when a directed verdict would have =
been=20
      proper. Tex. R. Civ. P. 301; <EM>Fort Bend County Drainage Dist. =
v.=20
      Sbrusch</EM>, 818 S.W.2d 392, 394 (Tex. 1991). A motion for JNOV =
should be=20
      granted when (1) the evidence is conclusive and one party is =
entitled to=20
      recover as a matter of law or (2) a legal principle precludes =
recovery.=20
      <EM>Mancorp, Inc. v. Culpepper</EM>, 802 S.W.2d 226, 227 (Tex. =
1990);=20
      <EM>John Masek Corp. v. Davis</EM>, 848 S.W.2d 170, 173 (Tex.=20
      App.--Houston [1st Dist.] 1992, writ denied). We review the denial =
of the=20
      appellants' motion under the legal sufficiency standard. <EM>See =
Brown v.=20
      Bank of Galveston</EM>, 963 S.W.2d 511, 513 (Tex. 1998); <EM>CDB =
Software,=20
      Inc. v. Kroll</EM>, 992 S.W.2d 31, 35 (Tex. App.--Houston [1st =
Dist.]=20
      1998, pet. denied).</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">In a =
legal-sufficiency=20
      review, a court should look at all the evidence in the light most=20
      favorable to the finding to determine whether a reasonable trier =
of fact=20
      could have formed a firm belief or conviction that its finding was =
true.=20
      <EM>City of Keller v. Wilson</EM>, 168 S.W.3d 802, 822 =
</SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">(Tex. =
2005). To give=20
      appropriate deference to the factfinder's conclusions and the role =
of a=20
      court conducting a legal sufficiency review, looking at the =
evidence in=20
      the light most favorable to the finding means that a reviewing =
court must=20
      assume that the factfinder resolved disputed facts in favor of its =
finding=20
      if a reasonable factfinder could do so. <EM>Id</EM>. A corollary =
to this=20
      requirement is that a court should disregard all evidence that a=20
      reasonable factfinder could have disbelieved or found to have been =

      incredible. <EM>Id</EM>. This does not mean that a court must =
disregard=20
      all evidence that does not support the finding. =
<EM>Id</EM>.</SPAN></P>
      <P><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>Analysis</STRONG>=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">The jury=20
      answered the following questions pertaining to Rustin:</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">
      <CENTER>Question 9</CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Did Rustin=20
      fail to comply with the contracts between Superior and Rustin in =
payment=20
      of CPI increases?</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">It is your=20
      duty to interpret the following language of the signed agreements =
between=20
      Rustin and Superior:</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">"The=20
      transportation rate for the applicable Contract Year shall be =
adjusted . .=20
      . ."</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">You must=20
      decide its meaning by determining the intent of the parties at the =
time of=20
      the agreement. Consider all the facts and circumstances =
surrounding the=20
      making of the agreement, the interpretation placed on the =
agreement by the=20
      parties, and the conduct of the parties.</SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Answer=20
      "Yes" or "No":</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Answer:=20
      [No] </SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Jury=20
      Question 19 simply replaced "Superior" with "JTI," but was =
otherwise=20
      verbatim. The jury answered Jury Question 19 "No" as well. =
</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Superior=20
      and JTI each signed a set of three hauling subcontracts with =
Rustin.=20
      Exhibit "A" to each subcontract called for a rate adjustment for =
"the=20
      applicable Contract Year," but did not define that term. Although=20
      appellants suggest that we should construe the various contracts =
at issue=20
      as a matter of law, the trial court evidently found language in =
these=20
      contracts ambiguous. In the jury charge, the trial court submitted =
an=20
      instruction that the jury "must decide [the contract's] meaning by =

      determining the intent of the parties at the time of the =
agreement."=20
      <EM>See J.M. Davidson, Inc. v. Webster</EM>, 128 S.W.3d 223, 229 =
(Tex.=20
      2003) (ambiguous contract creates a fact issue on the parties' =
intent).=20
      Although appellants find it significant that Rustin did not plead=20
      ambiguity, a court may conclude that a contract is ambiguous even =
in the=20
      absence of a proper pleading by either party. <EM>Id</EM>. at=20
      231.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Section=20
      6.03 of the City Contract provides for the adjustment of rates=20
      "[b]eginning July 1, 2001 and each subsequent July 1, thereafter," =
in=20
      accordance with the CPI formula set forth in Exhibit "H" to the =
contract.=20
      Appellants contend that the Rustin subcontracts should be read =
together=20
      with the City Contracts to ascertain the parties' intent. All six =
of the=20
      Rustin subcontracts were executed at the same time and all say the =
same=20
      thing: Superior's and JTI's rates for the "applicable Contract =
Year" shall=20
      be adjusted using the formula set forth in Exhibit "A." Appellants =
argue=20
      that the language in Exhibit "A" of the Rustin subcontracts =
"exactly=20
      mirrors" the language in Exhibit "H" of the City Contract. =
Appellants=20
      suggest that the Rustin subcontracts should be read in conjunction =
with=20
      the City Contract, which, under its operative provisions, includes =
a July=20
      1, 2001 effective date for CPI adjustments. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Exhibit "A"=20
      to the Rustin subcontracts provides, in part, as =
follows:</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><SPAN=20
      style=3D"TEXT-DECORATION: underline">Cost Adjustment for =
Transportation=20
      Rate</SPAN>:</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">The=20
      transportation rate for the applicable Contract Year shall be =
adjusted by=20
      the cumulative percent determined as follows:</SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">0.30 times=20
      the Labor Index for the applicable Contract Year divided by the =
Labor=20
      Index for March, 1998; plus </SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">0.30 times=20
      the Machinery and Equipment Index for the applicable Contract Year =
divided=20
      by the Machinery and Equipment Index for March 1998; =
plus</SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">0.40 times=20
      the Fuel Index for the applicable Contract Year divided by the =
Fuel Index=20
      for March 1998.</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Exhibit "H"=20
      to the City Contract provides, in part, as follows:</SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><SPAN=20
      style=3D"TEXT-DECORATION: underline">CPI COST=20
      ADJUSTMENT</SPAN></SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">The=20
      <EM>disposal</EM> rate for the applicable Contract Year shall be =
adjusted=20
      by the cumulative percent determined as follows:</SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><EM>0.20=20
      times the Construction Index for the applicable Contract Year =
divided by=20
      the Construction Index for March 1998;</EM></SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">plus 0.30=20
      times the Labor Index for the applicable Contract Year divided by =
the=20
      Labor Index for March 1998; </SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><EM>plus=20
      0.35</EM> times the Machinery and Equipment Index for the =
applicable=20
      Contract Year divided by the Machinery and Equipment Index for =
March=20
      1998;</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><EM>plus=20
      0.15</EM> times the Fuel Index for the applicable Contract Year =
divided by=20
      the Fuel Index for March 1998.</SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">(Emphasis=20
      added to note the differences in the two provisions.) Appellants =
find it=20
      significant that both exhibits capitalize "Contract Year." They =
argue=20
      that, if the subcontracts and the City Contract are read together =
and the=20
      rate is adjusted on July 1 of each year, Superior is due $77,204 =
and,=20
      after crediting Rustin for its overpayment on the =
Sommermeyer/Highway 290=20
      route, JTI is due $160,002.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84579#N_4_"><SUP>=20
      (4)</SUP></A> </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">In contrast, both =
Rustin's=20
      president, Sid Sherwood, and owner, Donald Poarch, testified that =
its=20
      intent was for Superior and JTI to get increases when Rustin=20
      received</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">its increases =
under Rustin's=20
      various contracts.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84579#N_5_"><SUP>=20
      (5)</SUP></A></SPAN><SPAN style=3D"FONT-FAMILY: Times New Roman"> =
The=20
      appellants argue that, if there is an ambiguity, "a possible=20
      interpretation of 'applicable Contract Year' is that Superior and =
JTI were=20
      to receive rate adjustments on each route when Rustin received its =

      adjustments from its customers." Using these dates for =
adjustments, the=20
      appellants assert that Superior is due $72,618 and JTI is due =
$154,987.96.=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Finally, =
appellants state=20
      that "the only other interpretation for the 'applicable Contract =
Year' is=20
      that the rate increases were to be paid one year after actual work =
began=20
      on each route." Appellants contend, however, that this =
interpretation is=20
      unreasonable when viewed in light of the context of the other=20
      contemporaneous contracts and circumstances. In summary, =
appellants argue=20
      that, under any interpretation, Rustin breached its contracts and =
failed=20
      to pay the adjustments. </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Rustin asserts =
that neither=20
      Superior nor JTI was entitled to any adjustments because (1) =
Superior=20
      stopped hauling before any CPI increases became due and (2) JTI =
"was=20
      brought up to date on all its CPI increases in February 2003, =
after it=20
      quit hauling from all but the Sommermeyer transfer station, for =
which it=20
      had been previously overpaid." In June 2001, Poarch's CPA, Jim =
Pouns,=20
      proposed to Republic's president, Bill Linthicum, that Rustin =
receive a=20
      rate increase. Pouns asked for a delay on any increases, and Pouns =
asked=20
      Linthicum what constituted the "applicable Contract Year" for =
purposes of=20
      CPI adjustments under Superior's contracts with Rustin. Linthicum=20
      responded via e-mail that he thought the "applicable Contract =
Year" meant=20
      the "initial operating date," which, for the City-owned transfer =
stations,=20
      was March 9, 2001, when the Westpark transfer station was opened.=20
      Linthicum's e-mail stated that "I have read the contract between =
Rustin=20
      and Superior, and I interpret the contract year as March 9, 2001, =
though=20
      March 8, 2002. There is nothing in the contract defining 'contract =
year.'=20
      Superior Waste Management stated this contract began on March 9th, =
2001,=20
      not when the agreement was signed." Accordingly, Linthicum =
instructed=20
      Rustin to prepare for a CPI adjustment for Superior in March 2002, =
and, as=20
      is standard in the trucking industry, only if Superior requested =
one.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84579#N_6_"><SUP>=20
      (6)</SUP></A></SPAN><SPAN style=3D"FONT-FAMILY: Times New Roman"> =
Neither=20
      Superior nor JTI requested a CPI increase either in July 2001 or =
March=20
      2002. </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Jones's first =
formal request=20
      for a rate increase was in a demand letter sent by his attorney in =
August=20
      2002 after Superior had already stopped hauling for Rustin. Sid =
Sherwood,=20
      Rustin's president, responded and explained that Superior was not =
due any=20
      adjustments using the base year 2000 because decreases in the fuel =

      index--the most heavily-weighted index under the Rustin=20
      subcontracts--offset any increases in other indices. However, =
Superior's=20
      inquiry prompted Sherwood to ask Jim Goodyear to review JTI's =
numbers to=20
      determine if JTI was being paid the proper rate. Using March 1, =
2002 as=20
      the initial due date for CPI adjustments and the CPI formula in =
the Rustin=20
      subcontracts, Goodyear found that JTI was underpaid on some routes =
and=20
      overpaid on others (namely, Sommermeyer), and he prepared a =
schedule of=20
      price increases for JTI, effective on September 1, 2002. =
</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Goodyear testified =
that he=20
      used the date of March 1, 2002 to calculate the CPI adjustments =
because=20
      that date was the one-year anniversary of the opening of Westpark; =
in=20
      other words, it was the first due date for an adjustment based on =
a March=20
      1, 2001 "Initial Operating Date."<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84579#N_7_"><SUP>=20
      (7)</SUP></A></SPAN><SPAN style=3D"FONT-FAMILY: Times New Roman">=20
      Consequently, Rustin issued two checks to JTI totaling more than =
$65,000.=20
      With respect to Superior, Goodyear indicated that it was not =
entitled to=20
      adjustments because it was no longer hauling for Rustin as of =
March 1,=20
      2002. </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Appellants have =
presented at=20
      least three different versions of how the contract could have been =

      interpreted. Rustin presented evidence from, among others, Jim =
Goodyear=20
      and Bill Linthicum who both testified that it was their =
understanding and=20
      impression that the adjustment date should be March 2002, if =
requested by=20
      JTI and Superior. We must assume that the jury resolved disputed =
facts in=20
      favor of its finding. <EM>See City of Keller</EM>, 168 S.W.3d at =
822.=20
      After reviewing the record in the light most favorable to the =
jury's=20
      finding and disregarding all evidence that a reasonable factfinder =
could=20
      have disbelieved or found to be incredible, we hold that the =
evidence is=20
      legally sufficient to support the judgment and the trial court did =
not err=20
      in denying the appellants' motion for directed verdict.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">We overrule =
appellants'=20
      first issue.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">
      <CENTER><STRONG>Incurable Jury Argument</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">In their second =
issue,=20
      appellants argue that the trial court erred in denying their =
motion for=20
      new trial because "the false accusations against counsel for =
Superior and=20
      JTI that he had suborned perjury" made by counsel for appellees in =
closing=20
      argument, "constitute incurable, reversible error." Appellants =
argue that=20
      "House committed incurable reversible error by accusing John Able=20
      (Rustin's trial counsel) of suborning perjury." "Attacks upon the=20
      integrity of opposing counsel are categorically prohibited." =
Appellants=20
      further argue that "Ms. House planned this argument. She attempted =
to=20
      plant the seed of some improper conduct by Mr. Able during her =
cross. She=20
      then argued it as fact during her closing argument." Appellants =
contend=20
      that, because the evidence "absolutely establishes that Rustin =
failed to=20
      pay the contracted rate for services to Superior or JTI," it is =
impossible=20
      to conclude that the jury was not influenced by the "outrageous=20
      accusation" against Superior and JTI's lawyer. We =
disagree.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman"><STRONG>Closing =
Argument and=20
      Motion for New Trial</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">In closing =
argument,=20
      Republic's counsel commented that "[t]his case is a construction =
of=20
      attorneys, trying to turn a letter of intent into something =
entirely=20
      unintended by any of the parties." Next, Rustin's counsel, =
Jennifer House,=20
      stated</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">[House]: =
[Republic's lawyer]=20
      alluded to the fact that this case is a lawyer's construct, it is =
created=20
      by lawyers. I am proud to be a lawyer. I take no pride in accusing =
other=20
      lawyers of wrongdoing, but I cannot help but have difficulty with =
the fact=20
      that Rustin never made representations to these minority =
subcontractors=20
      that they were going to be entitled to overall 20 percent =
participation of=20
      $295 million.</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">. . . =
</SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">And when =
[Valeriano]=20
      testified in October of 2002 that he was operating profitably from =

      Westpark and Lawndale, he was telling the truth. </SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Why did the story =
change,=20
      then? Why did the story change? Because he met Mr. Able and Mr. =
Able said,=20
      "Jesse, by the way, did you know under our theory you are entitled =
to $5=20
      million of profit over 20 years?"</SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">[Able]: Objection, =
Your=20
      Honor. There is no evidence that I told him =
anything.</SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">[Trial Court]:=20
      Sustained.</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">[House]: Suddenly =
-- and you=20
      heard the testimony. Mr. Able questioned him, and the testimony =
was he met=20
      with Mr. Able after his deposition. Do you know who else he met =
with? The=20
      gentleman sitting in this corner right here, Greg Brown,=20
      CPA.</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">. . =
.</SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">And I will tell =
you why he=20
      is a party to this lawsuit. Because the couple of hundred thousand =
dollars=20
      that he was going to make or was making with Rustin, vis-a-vis the =

      existing work that he was doing, in his mind was peanuts compared =
to the=20
      $5 million that he was going to ask you for under the trumped up =
claim=20
      that he was entitled to 10 percent of $295 million over 20 years. =
And=20
      that's why the story changed, and that's why we are =
here.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">After nearly three =
weeks of=20
      trial, the case was submitted to the jury on issues primarily =
relating to=20
      whether the Letters of Intent gave rise to a contract between =
Republic and=20
      Superior and/or JTI, whether Republic breached that contract, =
whether=20
      Republic committed fraud in connection with the Letters of Intent, =
and=20
      whether Rustin breached its subcontracts with Superior and JTI to =
pay CPI=20
      increases. By an 11-1 verdict, the jury found in favor of Republic =
and=20
      Rustin on all issues.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Appellants filed =
their=20
      motion for new trial, alleging, among other things, that House's =
closing=20
      argument constituted incurable, reversible error. After =
significant=20
      briefing and two hearings, the trial court denied the motion. In =
its=20
      order, the trial court stated that </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">the court =
considered the=20
      entire record and believes that the evidence supports the jury =
verdict and=20
      was not the result of the improper, inflammatory jury argument =
made by=20
      Jennifer House.</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">The court has =
reviewed all=20
      of the evidence in the case supporting the jury verdict and finds =
that=20
      there is more than sufficient evidence to support the verdict. The =
court=20
      also notes that the inflammatory argument was of short duration, =
was not=20
      repeated, and an objection to the argument was promptly sustained. =
There=20
      was also evidence that Mr. Valeriano's testimony did change. The =
court=20
      finds that the probability that the jury verdict was grounded on =
proper=20
      evidence is greater than the probability that the verdict was =
based on the=20
      improper argument. </SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">But let there be =
no doubt=20
      that the argument was improper. And although Ms. House in oral =
argument=20
      stated that she "was stunned by the seriousness with which the =
Court=20
      regarded the allegations," the denial of the new trial does not =
mean that=20
      the court condones this type of argument. Attacks on opposing =
counsel are=20
      error. (citations omitted)</SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">In Ms. House's =
argument she=20
      completely concocted a conversation between the plaintiff's =
counsel, Mr.=20
      Able, and the plaintiff, Mr. Valeriano, and implied that Mr. Able =
suborned=20
      perjury. Ms. House stated in closing argument "Why did the story =
change,=20
      then? Why did the story change? Because he met Mr. Able and Mr. =
Able said,=20
      'Jesse, by the way, did you know under our theory you are entitled =
to $5=20
      million of profit over 20 years?'" </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman"></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">What is most =
disturbing is=20
      Ms. House's attempt to explain away this made-up conversation. In =
her=20
      brief and in her oral argument before the court she attempted to =
justify=20
      her statement, claiming it was based on questions asked by Mr. =
Able in a=20
      deposition. The court has reviewed the entire deposition of Mr. =
Valeriano=20
      and there is no reference to such a question or statement or =
meeting. And=20
      most certainly there was no evidence before the jury of such a =
question or=20
      statement or meeting. Ms. House continues her misstatements in her =

      briefing. At page 5 of her brief, Ms. House says, "each and every=20
      questioned statement made by Ms. House is in the record and is =
based in=20
      fact." There is absolutely no evidence in the record of such a =
meeting or=20
      such a statement.</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">At oral argument, =
realizing=20
      that the court was skeptical that questions were asked in a =
deposition=20
      would be considered a meeting, Ms. House then argues that Mr. Able =
and Mr.=20
      Valeriano must have met to form the attorney client relationship =
and that=20
      such a meeting could be inferred from the fact that Mr. Valeriano =
became=20
      Mr. Able's client. While undoubtedly there were many meetings =
between Mr.=20
      Able and Mr. Valeriano, (although of course there is no evidence =
in the=20
      record of such meetings) what Ms. House fabricated was the content =
of such=20
      a meeting and the implication that Mr. Able suborned perjury and =
induced=20
      Mr. Valeriano to change his story. </SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Lawyers, in the =
heat of=20
      battle, do make misstatements of fact and law, and unwarranted =
personal=20
      criticisms. But they should not compound their errors in legal =
briefs=20
      filed after careful reflection. And they should not impugn the =
rest of=20
      their law firm by making an irrelevant argument that "all of my =
partners=20
      were 100% behind my representation."</SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN=20
      style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman"><STRONG>Standard of=20
      Review</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">We review the =
denial of a=20
      motion for new trial to determine if the trial court<STRONG>=20
      </STRONG>abused its discretion. <EM>Champion Int'l Corp. v. =
Twelfth Court=20
      of Appeals</EM>, 762 S.W.2d 898, 899 (Tex. 1988) (orig. =
proceeding). A=20
      trial court abuses its discretion when it acts in an arbitrary or=20
      unreasonable manner or if it acts without reference to any guiding =
rules=20
      or principles. <EM>Downer v. Aquamarine Operators, Inc.</EM>, 701 =
S.W.2d=20
      238, 241-42 (Tex. 1985). </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">To obtain reversal =
of a=20
      judgment on the basis of improper jury argument, a complainant =
must prove=20
      (1) an error; (2) that was not invited or provoked; (3) that was =
preserved=20
      at trial by a proper objection, motion to instruct, or motion for=20
      mistrial; (4) that was not curable by an instruction, a prompt =
withdrawal=20
      of the statement, or a reprimand by the trial court; and that (5) =
the=20
      argument by its nature, extent, and degree constituted reversibly =
harmful=20
      error. <EM>Standard Fire Ins. Co. v. Reese</EM>, 584 S.W.2d 835, =
839 (Tex.=20
      1979). Reversal is proper only upon a showing that "the =
probability that=20
      the improper argument caused harm is greater than the probability =
that the=20
      verdict was grounded on the proper proceedings and evidence." =
<EM>Id</EM>.=20
      at 840.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman"><STRONG>An=20
      Error</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG>To obtain=20
      reversal, appellants must first prove "an error" that was not =
"invited or=20
      provoked." <EM>Id</EM></SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman"><EM>.</EM></SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman"> at 839. Counsel must =
confine=20
      argument "strictly to the evidence and to the arguments of =
opposing=20
      counsel." Tex. R. Civ. P. 269(e). </SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman">Criticism, censure, or =
abuse of=20
      counsel is not permitted. Appeals to passion and prejudice are =
improper,=20
      as</SPAN><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Times New =
Roman">=20
      </SPAN><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">are=20
      calls to punish a litigant for the acts of counsel. Tex. R. Civ. =
P. 269;=20
      Tex. Disciplinary R. Prof'l Conduct 3.04 (1990), <EM>reprinted in=20
      </EM>Tex. Gov't Code Ann. tit. 2, subtit G. app. A (Vernon 2005) =
(Tex.=20
      State Bar R. art. X, =A7 9). </SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">In this=20
      case, there was no evidence of any post-deposition meeting between =

      Valeriano and his attorney. House's assertion that Valeriano's =
testimony=20
      changed "because he met Mr. Able and Mr. Able said, 'Jesse, by the =
way,=20
      did you know under our theory you are entitled to $5 million of =
profit=20
      over 20 years?'" and her decision to repeat Republic's statement =
that this=20
      "case is a lawyer's construct" constituted improper jury=20
      arguments.<STRONG> </STRONG><EM>See id. </EM>House's closing =
arguments=20
      were not confined "to the evidence and to the argument of opposing =

      counsel," and thus violated rule 269(e). No one argues that the =
error was=20
      invited or provoked.</SPAN></P>
      <P><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>Preservation=20
      of Error</STRONG></SPAN></P>
      <P><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG>Appellants=20
      must next prove either that the uninvited error (1) was preserved =
at trial=20
      by a proper objection, motion to instruct, or motion for mistrial =
or (2)=20
      was not curable by an instruction, a prompt withdrawal of the =
statement or=20
      a reprimand by the trial court. </SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><EM>Standard Fire=20
      Ins. Co.</EM></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">, 584 =
S.W.2d at=20
      839.<STRONG> </STRONG>If a party is to preserve error, an =
objection must=20
      be made when the improper argument occurs, unless the conduct or =
comment=20
      cannot be rendered harmless by proper instruction. <EM>Dow Chem. =
Co. v.=20
      Francis</EM>, 46 S.W.3d 237, 241 (Tex. 2001). The burden to prove =
that=20
      improper argument was incurable rests on the claimant. <EM>See =
Gen. Motors=20
      Corp. v. Grizzle</EM>, 642 S.W.2d 837, 845 (Tex. App.--Waco 1982, =
writ=20
      dism'd).</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Appellants=20
      made one objection to the argument, and the trial court sustained =
the=20
      objection; however, appellants failed to request that the trial =
court=20
      instruct the jury to disregard the argument. Appellants did not =
request=20
      any relief from the trial court regarding these comments until =
their=20
      motion for new trial, after the jury had returned a verdict. Thus, =
to=20
      prevail, appellants must show that the statements constituted =
incurable=20
      jury argument. <EM>See Busse v. Pac. Cattle Feeding Fund No. 1, =
Ltd.</EM>,=20
      896 S.W.2d 807, 815 (Tex. App.--Texarkana 1995, writ denied) =
(stating=20
      failure to press for instruction at time of erroneous jury =
argument=20
      operates as waiver of any possible complaint about argument).=20
      <STRONG></STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Improper=20
      jury arguments can be either curable or incurable. <EM>Otis =
Elevator Co.=20
      v. Wood</EM>, 436 S.W.2d 324, 333 (Tex. 1968). A jury argument is=20
      "curable" when its harmful effect can be eliminated by instructing =
the=20
      jury to disregard what they have just heard. <EM>Id.</EM> However, =
when an=20
      argument is so inflammatory that its harmfulness could not be =
eliminated=20
      by an instruction to the jury to disregard it, the prejudicial =
nature of=20
      the argument is so acute that it is "incurable." <EM>Id</EM>. If =
an=20
      argument is considered to be curable, counsel must make a prompt =
objection=20
      to it <EM>and</EM> request an instruction, or the error is waived. =

      <EM>Id.</EM> When an argument is incurable, a failure to object =
does not=20
      result in a waiver, under the reasoning that "counsel making the =
argument=20
      is the offender so the law will not require opposing counsel to =
take a=20
      chance on prejudicing his cause with the jury by making the =
objection."=20
      <EM>Id</EM>. Whether an argument is incurable depends on "the =
degree of=20
      prejudice flowing from the argument--whether the argument, =
considered in=20
      its proper setting, was reasonably calculated to cause such =
prejudice to=20
      the opposing litigant that a withdrawal by counsel or an =
instruction by=20
      the court, or both, could not eliminate the probability that it =
resulted=20
      in an improper verdict." <EM>Id.</EM></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Here, to=20
      decide whether the jury argument was incurable, we examine the =
record to=20
      determine whether an instruction to disregard House's improper =
arguments=20
      would have sufficiently remedied the harm. <EM>See =
</EM></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><EM>Standard Fire=20
      Ins. Co.</EM>, 584 S.W.2d at 839</SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">; =
<EM>Goswami v.=20
      Thetford</EM>, 829 S.W.2d 317, 321 (Tex. App.--El Paso 1992, writ =
denied).=20
      Only rarely will an improper argument so prejudicially influence =
the jury=20
      that the error cannot be cured. </SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><EM>Standard Fire=20
      Ins. Co.</EM>,<EM> </EM>584 S.W.2d at 839;</SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"> s<EM>ee =
Tex.=20
      Employers' Ins. Ass'n v. Guerrero</EM>, 800 S.W.2d 859, 862-67 =
(Tex.=20
      App.--San Antonio 1990, writ denied) (holding intentional appeal =
for=20
      verdict based on parties' race or ethnicity is incurable); =
<EM>Howard v.=20
      Faberge, Inc.</EM>, 679 S.W.2d 644, 649-50 (Tex. App.--Houston =
[1st Dist.]=20
      1984, writ ref'd n.r.e.) (holding demonstration of product's=20
      inflammability by counsel's attempt to ignite his arm during =
closing=20
      argument was incurable when experiment was not cumulative of =
evidence=20
      adduced during trial);<EM> In re W.G.W.</EM>, 812 S.W.2d 409, =
415-16 (Tex.=20
      App.--Houston [1st Dist.] 1991, no writ) (holding in custody =
dispute that=20
      attempt to link mother's cervical cancer to immoral conduct was =
incurable=20
      because there was no evidence to support such =
connection).</SPAN></P>
      <P><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">Improper =
argument=20
      regarding the alleged wrongful conduct by a lawyer is not <EM>per =
se=20
      </EM>incurable. As Texas courts have held, "charges that opposing =
counsel=20
      manufactured evidence, suborned perjury, or was untruthful are =
highly=20
      improper and are <EM>generally</EM> considered to be =
incurable.<EM>"=20
      Yoakum</EM>,</SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"> 826 =
S.W.2d. at 758=20
      (emphasis added). To determine whether a specific<EM> =
</EM>instance of=20
      accusing opposing counsel of suborning perjury is incurable, we =
must=20
      examine all of the circumstances surrounding the making of the =
statement=20
      to determine if the comment was so inflammatory that its perceived =

      prejudicial effect could not have been cured by an instruction to =
the=20
      jury. </SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><EM>Standard Fire=20
      Ins. Co.</EM>, 584 S.W.2d at 840.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Under the=20
      facts of this case, House's comments were curable. To preserve =
error,=20
      appellants should have timely objected to the comments and sought =
an=20
      appropriate instruction from the trial court who, after listening =
to all=20
      of the evidence and the offending comments and viewing the jury's =
reaction=20
      to the comments, was in the best position to fashion the =
appropriate=20
      remedy for the transgression and punish counsel for her conduct.=20
      Appellants should not have waited until after the jury had =
returned with=20
      its verdict to seek relief for House's clearly improper=20
      argument.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">While=20
      House's comments were reprehensible, the comments were short in =
duration=20
      and occurred at the very end of almost three weeks of trial after =
the jury=20
      had heard all of the evidence, including evidence that clearly=20
      contradicted House's accusations of perjury. Although the record=20
      indisputably reveals that Valeriano did testify differently when =
deposed=20
      during the suit between Superior and Republic and later when JTI=20
      intervened in the suit against Republic and Rustin, Valeriano =
presented=20
      the jury with an arguably legitimate explanation for the change in =
his=20
      position.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84579#N_8_"><SUP>=20
      (8)</SUP></A></SPAN><SPAN style=3D"FONT-FAMILY: Times New Roman"> =
Thus, the=20
      jury could have, with the proper instruction, found House's =
arguments to=20
      be deliberately false and in bad faith. Furthermore, contrary to =
House's=20
      apparent implications, the issue of the changed testimony was not=20
      dispositive of the jury's determination of this case. This issue =
went to=20
      appellants' theory of damages, how much appellants were entitled =
to=20
      recover, which the jury never reached per the court's =
instructions. The=20
      changed testimony did not go to the issue of liability that was =
reached by=20
      the jury--whether there was a breach of contract regarding CPI =
adjustments=20
      and the requisite contractual percentage of income that appellants =
were=20
      required to make under their contracts with Rustin. Of particular=20
      importance is the fact that at no time did the trial court in any =
way=20
      condone or show approval for the comments in front of the jury and =
thus=20
      its ability to issue a curative instruction was not impaired. =
<EM>See=20
      Yoakum</EM>, 826 S.W.2d. at 758-59. Appellants' only objection was =

      immediately sustained by the court, and appellants elected not to =
pursue=20
      the matter any further by requesting an instruction to disregard =
or a=20
      reprimand from the court.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Under these facts, =
House's=20
      comments were not so inflammatory that their perceived prejudicial =
effect=20
      would have prevented the jury from following its oath with the =
proper=20
      instructions from the judge. Appellants could have requested the =
trial=20
      court to instruct the jury that "the record does not show any=20
      post-deposition meeting or conversations between Mr. Able =
[appellants'=20
      counsel], his retained accounting experts, and Mr. Valeriano and =
to=20
      disregard any reference to such meeting or conversations between =
any of=20
      them." Appellants could have gone further by asking the trial =
court to=20
      instruct the jury that it was improper for House to impute =
wrongdoing of=20
      any kind to appellants' counsel. The trial court, if it had been =
timely=20
      requested to do so, could have also admonished House that any =
further=20
      argument along such lines would result in a mistrial. In this =
case, the=20
      timely request for relief regarding an imaginary post-deposition =
meeting=20
      or conversation would not have prejudiced appellants' case in =
front of the=20
      jury. <EM>See General Motors Corp. v. Iracheta</EM>,<EM> </EM>161 =
S.W.3d.=20
      462, 472 (Tex. 2005) (held comments before closing arguments made =
in=20
      Spanish by party, not his counsel, directly to a Spanish speaking =
jury=20
      were incurable.) </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Appellants' =
reliance on the=20
      holdings in <EM>Yoakum</EM> and <EM>Stephens v. Smith</EM>, 208 =
S.W.2d 689=20
      (Tex. Civ. App.--Waco 1948, writ ref'd n.r.e.) to support the =
conclusion=20
      that House's comments constituted incurable error is misplaced. =
The facts=20
      of those cases are clearly distinguishable from the facts in this =
case. In=20
      both of the cases in which the appellate courts found allegations =
that=20
      counsel manufactured evidence at trial to be incurable, the trial =
court,=20
      by its conduct, erroneously condoned or implied to the jury that =
the=20
      conduct was proper. Accordingly, the trial court's ability to =
fashion an=20
      appropriate instruction was impaired. In <EM>Yoakum</EM>, not only =
did the=20
      trial court erroneously prevent counsel from arguing that =
allegations of=20
      manufactured evidence by opposing counsel was error, but the =
offending=20
      counsel referred to the trial court's rulings to bolster his =
allegations=20
      in front of the jury. <EM>Yoakum</EM>,</SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman"> 826 S.W.2d at 758. =
</SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman">Likewise in =
<EM>Stephens</EM>,<EM>=20
      </EM>the court overruled attempts by opposing counsel to correct =
the error=20
      of counsel's arguments that he "deliberately planted a lie in the =
mouth of=20
      a witness." <EM>Stephens</EM>, 208 S.W.2d at 691. In other cases =
cited by=20
      appellants, in which allegations that counsel manufactured and/or=20
      destroyed evidence were found to be incurable, either additional =
facts=20
      impaired the trial court's ability to give an effective curative=20
      instruction, or the length of the improper argument made an =
effective=20
      curative instruction impossible. <EM>See</EM> <EM>Howsley &amp; =
Jacobs v.=20
      Kendall</EM>, 376 S.W.2d 562, 566 (Tex. 1964) (held that counsel's =

      comments were incurable when, during closing argument, counsel =
asked the=20
      jury who was more likely to be telling the truth--a man on his =
deathbed=20
      "about to come face to face with his Master" or "a colored boy who =
had=20
      been under the coaching of this battery of lawyers, when he got on =
there=20
      to give words that were not his words."); <EM>Montgomery Ward =
&amp; Co. v.=20
      Brewer</EM>, 416 S.W.2d 837, 845-48 (Tex. Civ. App.--Waco 1967, =
writ ref'd=20
      n.r.e.) (held as incurable repeated accusations throughout closing =

      argument that opposing counsel had destroyed key evidence as to =
the issue=20
      of liability and the pointing directly to counsel while making =
these=20
      accusations).</SPAN><SPAN style=3D"FONT-FAMILY: Times New =
Roman"></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG>Because we=20
      hold that the error was curable by an instruction, a prompt =
withdrawal of=20
      the statement, or a reprimand by the trial court, the appellants =
were=20
      required to object, request an instruction to disregard, and =
request a=20
      motion for mistrial. </SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman"><EM>Standard Fire Ins. =
Co</EM>., 584=20
      S.W.2d at 839</SPAN><SPAN style=3D"FONT-FAMILY: Times New Roman">. =
By=20
      failing to do so, appellants have waived this error. =
<EM>Id</EM>.<STRONG>=20
      </STRONG>We overrule appellants' second issue.<STRONG><SPAN=20
      style=3D"TEXT-DECORATION: underline"></SPAN></STRONG></SPAN></P>
      <P><SPAN=20
      style=3D"FONT-FAMILY: Times New =
Roman"><STRONG>Harm</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Finally, assuming =
that the=20
      error had been preserved, appellants must prove that "the argument =
by its=20
      nature, extent, and degree constituted reversibly harmful error."=20
      <EM>Id</EM>. On appeal, we must evaluate the improper argument in =
light of=20
      the entire case, from voir dire to closing arguments. <EM>Luna v. =
North=20
      Star Dodge Sales, Inc.</EM>, 667 S.W.2d 115, 120 (Tex. 1984). The =
test is=20
      whether a juror of ordinary intelligence would have been persuaded =
by the=20
      improper argument to agree to a verdict contrary to that to which =
the=20
      juror would have otherwise agreed. <EM>See Tex. Employers Ins. =
Ass'n v.=20
      Puckett</EM>, 822 S.W.2d 133, 136 (Tex. App.--Houston [1st Dist.] =
1991,=20
      writ denied). </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">We have reviewed =
the entire=20
      record, and we agree with the trial court's finding =
that</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">[t]he court has =
reviewed all=20
      of the evidence in the case supporting the jury verdict and finds =
that=20
      there is more than sufficient evidence to support the verdict. The =
court=20
      also notes that the inflammatory argument was of short duration, =
was not=20
      repeated, and an objection to the argument was promptly sustained. =
There=20
      was also evidence that Mr. Valeriano's testimony did change. The =
court=20
      finds that the probability that the jury verdict was grounded on =
proper=20
      evidence is greater than the probability that the verdict was =
based on the=20
      improper argument. </SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Accordingly, we =
hold that=20
      the trial court did not err in denying appellants' motion for new =
trial.=20
      <EM>See Standard Fire Ins. Co.</EM>, 584 S.W.2d at 840 (for =
reversal, must=20
      show probability that improper argument caused harm greater than=20
      probability verdict grounded on proper proceedings and evidence).=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">We overrule =
appellants'=20
      second issue. </SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2"><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR =
WP=3D"BR2"><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P>
      <CENTER><STRONG>Conclusion</STRONG></CENTER>
      <P></P>
      <P>We affirm the judgment of the trial court.</P>
      <P></P>
      <P>George C. Hanks, Jr.</P>
      <P>Justice</P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P>Panel consists of Justices Jennings, Hanks, and Higley.<SPAN=20
      style=3D"FONT-FAMILY: Times New Roman"></SPAN></P><BR =
WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Justice Jennings,=20
      dissenting.</SPAN></P>
      <P><A name=3DN_1_>1. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">During the =
pendency=20
      of this appeal, appellants dismissed Republic from the appeal.=20
      <P><A name=3DN_2_>2. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">Valeriano =
prepared=20
      the financial statement by taking the income that he received from =
the two=20
      transfer stations, calculating that income as a percentage of his =
total=20
      revenue, and then applying that percentage to his costs.=20
      <P><A name=3DN_3_>3. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">While the =
appellants=20
      do not specify the procedural vehicle whereby they preserved their =

      matter-of-law point on appeal, the record reflects that they filed =
a=20
      motion for judgment notwithstanding the verdict ("JNOV") asserting =
that=20
      they were entitled to a JNOV on their contract claim against =
Rustin for=20
      CPI adjustment increases. A legal-sufficiency challenge may be =
preserved=20
      by a motion for directed verdict, a motion for judgment =
notwithstanding=20
      the verdict, an objection to submitting an issue to the jury, a =
motion to=20
      disregard a jury finding on an issue, or a motion for new trial. =
<EM>See=20
      Cecil v. Smith</EM>, 804 S.W.2d 509, 511 (Tex. 1991); <EM>C.M. =
Asfahl=20
      Agency v. Tensor, Inc.</EM>, 135 S.W.3d 768, 786 (Tex. =
App.--Houston [1st=20
      Dist.] 2004, no pet.)</SPAN><SPAN style=3D"FONT-FAMILY: Times New =
Roman">.=20
      <P><A name=3DN_4_>4. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">Rustin's =
CFO, Jim=20
      Goodyear, agreed with the calculations from Greg Brown, =
appellants'=20
      accounting expert, based on a July 1, 2001 effective date. =
However, he=20
      took issue with the July 1, 2001 effective date.</SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman">=20
      <P><A name=3DN_5_>5. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">Sherwood =
testified=20
      that he was under the impression that, when Rustin got a rate =
increase,=20
      JTI and Superior would get an increase, but he changed his =
understanding=20
      when "it was pointed out to me in the contract."=20
      <P><A name=3DN_6_>6. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">Linthicum =
testified=20
      that, "in our business, in the waste hauling business, all CPIs =
are -- it=20
      is the burden of the person contracting the services to request =
CPIs,=20
      whether they are increases or decreases. It is standard in the =
industry."=20
      <P><A name=3DN_7_>7. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">Westpark =
actually=20
      opened on March 9, 2001, but it was easier to calculate from the =
first of=20
      the month.=20
      <P><A name=3DN_8_>8. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">At trial, =
Valeriano=20
      testified that, when he was deposed, he was under the impression =
that the=20
      Westpark route was profitable. He had not evaluated the various =
routes=20
      separately. Based on the line of questions posed to him during his =

      deposition, he determined that he needed to have an accountant =
audit the=20
      individual routes. He testified at trial that, only after he was =
able to=20
      take the time to do so, he discovered that the Westpark route was =
not, in=20
      fact, profitable. =
</SPAN></P></TD></TR></TBODY></TABLE></BODY></HTML>

------=_NextPart_000_003F_01C7E1C1.FD7305E0
Content-Type: image/gif
Content-Transfer-Encoding: base64
Content-Location: http://www.1stcoa.courts.state.tx.us/resource/opinions/images/icoEMail.gif

R0lGODlhFAAPAKIAAAAAgIAAAP///8DAwICAgAAAAAAAAAAAACwAAAAAFAAPAAADNCi63P4wykaq
vba4Mrr/ndaITxAM5JI2JrotQCwr7jjVDCnPAq7eKwEHRAwWjshkcsJsShIAOw==

------=_NextPart_000_003F_01C7E1C1.FD7305E0
Content-Type: text/css;
	charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
Content-Location: http://www.1stcoa.courts.state.tx.us/resource/includes/oca.css

.TitleBlue {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-ALIGN: left
}
.TitleBlueCenter {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-ALIGN: center
}
.TitleMaroon {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: maroon; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-ALIGN: left
}
.TitleWhite {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: white; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-ALIGN: left
}
.TitleBlack {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: black; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-ALIGN: left
}
.NavWhite {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: white; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-DECORATION: none
}
A.NavWhite:hover {
	TEXT-DECORATION: underline
}
.BreadCrumbs {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif
}
A.BreadCrumbs {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-DECORATION: underline
}
A.BreadCrumbs:hover {
	COLOR: blue
}
.TextNormal {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; COLOR: black; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif
}
.TextJustify {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: =
black; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-ALIGN: justify
}
A.TextNormal {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; COLOR: #000099; FONT-FAMILY: =
Tahoma, Arial, Helvetica, sans-serif; TEXT-DECORATION: underline
}
A.TextNormal:hover {
	FONT-WEIGHT: bold
}
.TextSmall {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-FAMILY: =
Arial Narrow
}
.TextSmallBlue {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: =
#000099; FONT-FAMILY: Arial Narrow
}
.TextSmallJust {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; FONT-FAMILY: =
Arial Narrow; TEXT-ALIGN: justify
}
A.TextSmall {
	COLOR: #000099; TEXT-DECORATION: underline
}
A.TextSmallJust {
	COLOR: #000099; TEXT-DECORATION: underline
}
A.TextSmall:hover {
	FONT-WEIGHT: bold
}
A.TextSmallJust:hover {
	FONT-WEIGHT: bold
}
.TextSmallWhite {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: =
white; FONT-FAMILY: Arial Narrow
}
.TextWhite {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; COLOR: white; FONT-FAMILY: =
Tahoma, Arial, Helvetica, sans-serif
}
A.TextWhite {
=09
}
A.TextWhite:hover {
	FONT-WEIGHT: bold
}
.LinksSite {
	FONT-WEIGHT: normal; FONT-SIZE: 9pt; COLOR: #000099; FONT-FAMILY: Arial =
Narrow; TEXT-DECORATION: none
}
A.LinksSite {
=09
}
A.LinksSite:hover {
	FONT-WEIGHT: bold
}
.TextNotify {
	FONT-WEIGHT: normal; FONT-SIZE: 9pt; COLOR: #000099; FONT-FAMILY: Arial =
Narrow
}
.SiteMaster {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-DECORATION: underline
}
A.SiteMaster {
	LINE-HEIGHT: normal; TEXT-DECORATION: underline
}
A.SiteMaster:hover {
	COLOR: blue
}
.SiteMenu {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-DECORATION: none
}
A.SiteMenu {
	FONT-WEIGHT: bold; TEXT-DECORATION: none
}
A.SiteMenu:hover {
	COLOR: blue
}
.SiteBase {
	FONT-WEIGHT: bold; FONT-SIZE: 9pt; COLOR: #000099; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-DECORATION: none
}
A.SiteBase {
	FONT-WEIGHT: bold; COLOR: maroon; FONT-FAMILY: Tahoma, Arial, =
Helvetica, sans-serif; TEXT-DECORATION: none
}
A.SiteBase:hover {
	COLOR: blue
}
.ErrorNormal {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: red; =
FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif
}
.ErrorSmall {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: red; =
FONT-FAMILY: Arial Narrow
}
.SystemMSG {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: white; =
FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; BACKGROUND-COLOR: =
navy
}
.SystemErrorMSG {
	FONT-WEIGHT: bold; FONT-SIZE: 10pt; VERTICAL-ALIGN: top; COLOR: white; =
FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; BACKGROUND-COLOR: red
}
.buttonUnused {
	PADDING-RIGHT: 1pt; PADDING-LEFT: 1pt; FONT-WEIGHT: normal; FONT-SIZE: =
9pt; PADDING-BOTTOM: 1pt; MARGIN: 1pt; COLOR: #fff5d7; PADDING-TOP: 1pt; =
BACKGROUND-COLOR: #576a9d; font-face: Tahoma, Arial, Helvetica, =
sans-serif
}
.buttonTanUnused {
	PADDING-RIGHT: 1pt; PADDING-LEFT: 1pt; FONT-WEIGHT: normal; FONT-SIZE: =
9pt; PADDING-BOTTOM: 1pt; MARGIN: 1pt; COLOR: #576a9d; PADDING-TOP: 1pt; =
BACKGROUND-COLOR: #fff5d7; font-face: Tahoma, Arial, Helvetica, =
sans-serif
}
.TextLargeBlue {
	FONT-WEIGHT: bold; FONT-SIZE: 12pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, =
sans-serif; TEXT-ALIGN: left
}
.DocketHeaderTitle {
	FONT-WEIGHT: bold; FONT-SIZE: 14pt; COLOR: black; LINE-HEIGHT: normal; =
FONT-FAMILY: Tahoma, Arial, ' Helvetica', sans-serif; TEXT-ALIGN: center
}
.TextLargeBlack {
	FONT-WEIGHT: bold; FONT-SIZE: 11pt; COLOR: black; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-ALIGN: left
}
.TextLargeBlackcenter {
	FONT-WEIGHT: bold; FONT-SIZE: 11pt; COLOR: black; LINE-HEIGHT: normal; =
FONT-STYLE: normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-ALIGN: center
}
.TextBlue {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif
}
A.TextBlue {
	FONT-WEIGHT: normal; FONT-SIZE: 10pt; COLOR: #000099; LINE-HEIGHT: =
normal; FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif; =
TEXT-DECORATION: none
}
.TextRed {
	FONT-WEIGHT: normal; FONT-SIZE: 12pt; COLOR: red; LINE-HEIGHT: normal; =
FONT-FAMILY: Tahoma, Arial, Helvetica, sans-serif
}
.TextHidenGray {
	FONT-SIZE: 0pt; COLOR: #ebebe1; LINE-HEIGHT: normal; FONT-FAMILY: =
Tahoma, Arial, Helvetica, sans-serif; TEXT-ALIGN: left
}
.Time {
	FONT-WEIGHT: bold; FONT-SIZE: 10px; COLOR: red; LINE-HEIGHT: 4em; =
FONT-FAMILY: Arial, Helvetica, sans-serif; TEXT-ALIGN: center
}

------=_NextPart_000_003F_01C7E1C1.FD7305E0--
