Curocom Energy LLC and Curo Holdings Co. Ltd v. Wong Soon Eem and Jason Kim ( 2016 )


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  • Opinion issued August 4, 2016
    In The
    Court of Appeals
    For The
    First District of Texas
    ————————————
    NO. 01-14-00816-CV
    ———————————
    CUROCOM ENERGY LLC AND CURO HOLDINGS CO. LTD., Appellants
    V.
    WONG SOON EEM AND JASON KIM, Appellees
    On Appeal from the 165th District Court
    Harris County, Texas
    Trial Court Case No. 2009-06630
    MEMORANDUM OPINION
    This appeal arises out of a dispute between two Korean conglomerates over
    the sale of a working interest in the Caliente Field, part of the Eagle Ford Shale. The
    field is located in Karnes County, Texas. In its first oil and gas investment, Woolim
    Construction Company, a Korean firm, formed Woolim Energy Holdings LLC, a
    United States corporation, to purchase the working interest in mid-2006. Woolim
    decided to sell its interest a few months later.
    Woolim identified another Korean firm, Curocom Energy LLC, as a potential
    buyer. It transferred its interest in the Caliente Field to Curocom effective July 2007.
    After the sale, Curocom learned that Woolim had not disclosed data that it had
    received from one of its analysts before the sale closed. That data indicated that its
    Caliente Field interest was worth less than half the amount suggested by other
    reserve reports that Woolim had provided to Curocom during their negotiations.
    Curocom and its related entities sued Woolim and Woolim’s related corporate
    entities, Woolim’s oil and gas consultants, and several Woolim individual
    employees involved in the transaction, including Woong Soom Eem, the managing
    director of Woolim Energy Holdings and Woolim Resource Development, and Jason
    Kim, who managed the Houston office of Woolim Resource Development.
    Curocom tried its claims for statutory fraud, common-law fraud, conspiracy
    to commit fraud, and breach of contract to a jury. The jury found several Woolim
    entities liable and Eem and Kim individually liable. Woolim moved for judgment
    notwithstanding the verdict, which the trial court granted as to Eem and Kim. The
    trial court otherwise rendered judgment on the verdict.
    2
    On appeal, Curocom contends that the trial court erred in granting the motion
    for JNOV as to Eem and Kim because (1) the trial court relied on a ground not raised
    in the motion; (2) Eem and Kim are liable in their individual capacities in addition
    to their corporate capacities; and (3) legally sufficient evidence supports findings of
    personal liability as to Eem and Kim. We hold that the trial court properly granted
    judgment notwithstanding the verdict as to Kim in his individual capacity, but we
    reverse the judgment as to Eem.
    BACKGROUND
    Because this appeal is limited to the individual judgments in favor of Eem and
    Kim, we focus on the facts relevant to those rulings. When the underlying events
    occurred, Eem lived in Korea and performed most of his job functions there. Eem
    worked for Woolim Construction Company and served as its managing director of
    some Woolim’s subsidiaries involved in this transaction, including Woolim
    Resources Development, Ltd. and Woolim Energy Holdings, as well as a Los-
    Angeles based subsidiary. He occasionally traveled to the United States to meet
    with Woolim’s employees in California and Texas. Eem held a master’s degree in
    Economics, but had no experience in the oil and gas industry when Woolim
    undertook the Caliente Field investment.
    Kim received his bachelor’s degree in economics in 2006 and began working
    for Woolim Construction in Los Angeles shortly thereafter. Like Eem, Kim had no
    3
    background in oil and gas. Kim relocated from California to Houston so that
    Woolim would have a presence in its office near its anticipated investment.
    Woolim acquires the Caliente Field Interest
    Woolim became interested in the possibility of investing in United States’ oil
    and gas properties and put Eem in charge of looking for an opportunity. Lacking
    knowledge and experience in oil and gas, Eem met with Park Hee-Won Park,
    president of Korea Energy Investment, LLC, a prominent petroleum engineering
    company in Korea. Woolim retained Park as a technical consultant. Woolim also
    engaged John Myung, a Korean petroleum engineer who had spent most of his career
    in the United States and resided in Houston, as a consultant. Myung identified oil
    and gas investment opportunities for his clients. He also provided engineering
    consulting services to help investors in the oil and gas business optimize their
    production.
    Myung met with Dan Hughes, an owner of working interests in the Caliente
    Field, and identified these interests as a potential for an investment to Park. Park
    then contacted Woolim and arranged a meeting with Myung about the opportunity.
    At the meeting, which was attended by Woolim’s Chairman, Young-sub Shim, and
    several other executives, Myung presented information about the Caliente Field
    interest that Hughes was offering for sale.
    4
    The presentation piqued Woolim’s interest. Chairman Shim, Myung, and
    other Woolim employees traveled to Texas to meet with Hughes. Hughes provided
    Myung with a reserve report prepared by Albrecht and Associates “to assist
    prospective purchasers in their evaluations” of the offered properties. Myung
    forwarded the Albrecht report to Woolim.
    Dan Hughes also reported to Myung that petroleum engineer Oladipo Aluko
    was familiar with the Caliente Field because he had provided technical consulting
    services in connection with the field in the past. Park and Myung emailed Aluko
    regarding the prospective deal between Woolim and Hughes, but they did not obtain
    any documentation from Aluko before Woolim made its investment.
    After reviewing the materials that Hughes had provided, Myung concluded
    that the interest had reserves that offset existing production and, based on the data
    presented in the Albrecht report, recommended that Woolim acquire it. Meanwhile,
    in Korea, Park provided the Albrecht report to the Korea Institute of Geosciences
    (KIGAM) to use in preparing its own reserve report, a prerequisite of obtaining the
    loan that would in part fund Woolim’s investment.
    Before proceeding with the transaction, Woolim retained the Korean
    accounting firm of Samil PriceWaterhouse Coopers to perform an audit based on
    information that Park had provided to KIGAM. KIGAM also obtained production
    history information from the Texas Railroad Commission.
    5
    Woolim relied on Myung’s technical advice in negotiating a purchase price.
    In July 2006, Woolim bought the Caliente Field interest from Hughes for $23
    million. The deal included an agreement to retain Hughes to rework some of the
    wells.
    Woolim sells the Caliente Field interest to Curocom
    Several months into the rework project, Myung learned from Park that
    Woolim was not pleased with the Caliente Field’s production. Woolim decided to
    divest itself of the Caliente Field investment and use the money to pursue real estate
    development and oilfield exploration in Kazakhstan. Woolim began to search for a
    potential buyer, and it tasked Park with preparing a report reflecting the rework’s
    effectiveness.
    Park then learned from Hughes that Aluko had prepared a well testing report
    for the Caliente Field. At Park’s request, Myung met with Aluko in February 2007.
    Myung asked Aluko to prepare a report showing reserve and economic analysis after
    the rework so that Park could evaluate it. When Aluko estimated that his fee for the
    report would be approximately $6,000 to $8,000, however, Myung and Park knew
    that Woolim would not agree to the expense. Instead they asked Aluko to provide
    just the production and reserve numbers so that Park could prepare an analysis from
    them.
    6
    In June 2007, Aluko provided Myung and Park with 12 pages of data,
    consisting of charts entitled “Reserves and Economics” as of July 1, 2007. Aluko
    did not charge Woolim for the data because Hughes had paid him to collect it in
    connection with preparation of Hughes’s income tax returns. Unlike the Albrecht
    report, the Aluko data is not analyzed or signed by the preparer.
    Park received the collection of data from Aluko and forwarded the document
    as an email attachment to Eem, noting: “This is the result on Caliente producing
    wells analysis by Dr. Dipo. Please take as reference.” Eem, in turn, forwarded the
    document to Kim and two other employees in Woolim’s offices in Korea, noting:
    “Confidential. Please use for reference only.”
    Meanwhile, Eem, who had attended college with Curocom’s CEO, told
    Curocom about the Caliente Field investment. He directed him to Park for technical
    information about the Caliente Field. After Curocom contacted Park, Eem told Kim
    that Curocom was interested in buying the interest. The parties arranged a June 2007
    meeting in Houston for a sales presentation.
    Park was in charge of the presentation. The night before the meeting, he sent
    an email to Kim with a Powerpoint presentation attached. He asked Kim to make
    copies and bind all but one of them for the meeting. Other than performing this
    administrative task, Kim did not prepare anything for the meeting or present
    anything at it.
    7
    Eem invited Myung to the meeting for the technical discussion because he and
    Park had the most technical information about the Caliente Field. Myung attended
    the meeting, but did not make any formal presentation. Park’s presentation included
    the Albrecht report, but he did not present the Aluko data received two days before
    the meeting. Park did not transmit or mention this data to Curocom; neither did
    anyone else.
    The Aluko data challenged the proved developed reserves identified in the
    Albrecht report.    Curocom eventually paid $30 million for the project, but
    Curocom’s expert opined that, based on the Aluko data, the Caliente Field interest
    had a substantially lower fair market value, of approximately $9.5 million.
    Eem negotiated the sale price with Curocom.           On July 14, Eem sent
    Curocom’s CEO an email, attaching a link to what he described as “comparative
    analysis material.” The material related to a transaction with Tristone Capital in the
    Barnett Shale, which Eem explained, was about twice as large as the Caliente Field
    interest and had greater exploration and development risks. Eem stated, “[b]ased on
    the above, our company’s Caliente is worth (price) at least 40 million dollars. Please
    consider the fact that according to the Al[brecht] data, our company’s project was
    proposed at 43 million dollars.” Eem did not mention the Aluko data that Park had
    forwarded to him three days earlier.
    8
    The sale closed at a price of $30 million without disclosure of the Aluko data.
    In December 2007, Myung recommended that Curocom’s auditor hire Aluko to
    prepare a reserve report for the company. Curocom learned for the first time that the
    earlier Aluko data showed that the Caliente Field interest had no proved undeveloped
    reserves to offset existing production. Curocom’s representative in Texas consulted
    Myung; Curocom then discovered that Myung had received data from Aluko before
    the July 2007 sale.
    The disparities between the amounts of undeveloped reserves reported by
    Albrecht and those identified in the Aluko data, and the failure to disclose the Aluko
    data to Curocom, led to this lawsuit. The jury found Woolim Energy, Woolim
    Resources, and Korea Energy Investment liable for fraud and breach of contract.
    With respect to Eem, the jury found that he was liable for statutory fraud and
    common-law fraud under both misrepresentation and nondisclosure theories. With
    respect to Kim, the jury found liability for statutory fraud only. The jury awarded
    $20.3 million in actual damages in connection with both liability theories, and it
    assessed proportionate liability among the defendants that it found liable. The jury
    also found certain of the defendants liable for exemplary damages, including Eem.
    It assessed $1 million in punitive damages against him.
    9
    The trial court granted judgment notwithstanding the verdict as to Eem and
    Kim “[i]n light of the holding in Cox v. State,” 
    448 S.W.3d 497
    (Tex. App.—
    Amarillo 2014, pet. denied). It denied the remaining defendants’ motions to set aside
    the verdict. In its final judgment, the trial court awarded actual damages against the
    remaining defendants of $20.3 million, punitive damages against the defendants who
    were found to be liable, attorney’s fees, and interest.
    Initially, both parties appealed the trial court’s judgment. After its trial
    counsel withdrew, however, the Woolim defendants did not engage new counsel and
    did not file briefs in our court. We have dismissed their appeals for want of
    prosecution. Curocom appeals the trial court’s decision to grant judgment in favor
    of Eem and Kim.
    DISCUSSION
    I.    Standard of Review
    A trial court may grant a motion for judgment notwithstanding the verdict if
    a directed verdict would have been proper, and it may disregard any jury finding on
    a question that is immaterial or has no support in the evidence on issues necessary
    to impose liability. TEX. R. CIV. P. 301; Tiller v. McLure, 
    121 S.W.3d 709
    , 713 (Tex.
    2003); Spencer v. Eagle Star Ins. Co. of Am., 
    876 S.W.2d 154
    , 157 (Tex. 1994); Pills
    & Collard L.L.P v. Schechter, 
    369 S.W.3d 301
    , 320 (Tex. App.—Houston [1st Dist.]
    2011, no pet.). In reviewing a trial court’s judgment notwithstanding the verdict, we
    10
    determine whether any evidence supports the jury’s finding, viewed in the light most
    favorable to the verdict. 
    Tiller, 121 S.W.3d at 713
    ; see also B & W Supply, Inc. v.
    Beckman, 
    305 S.W.3d 10
    , 15 (Tex. App.—Houston [1st Dist.] 2009, pet. denied);
    see also City of Keller v. Wilson, 
    168 S.W.3d 802
    , 822 (Tex. 2005). We credit
    favorable evidence if reasonable jurors could and disregard contrary evidence unless
    reasonable jurors could not. City of 
    Keller, 168 S.W.3d at 822
    .
    No evidence exists when there is (a) a complete absence of evidence of a vital
    fact; (b) the court is barred by rules of law or of evidence from giving weight to the
    only evidence offered to prove a vital fact; (c) the evidence offered to prove a vital
    fact is no more than a mere scintilla; (d) the evidence establishes conclusively the
    opposite of the vital fact. Gharda USA, Inc. v. Control Solutions, Inc., 
    464 S.W.3d 338
    , 347 (Tex. 2015) (citing City of 
    Keller, 168 S.W.3d at 810
    ).
    II.   Propriety of the JNOV as to Eem and Kim
    On appeal, Curocom challenges the trial court’s ruling on procedural and
    substantive grounds. Procedurally, it contends that the trial court improperly relied
    on a ground not raised in the motion for judgment notwithstanding the verdict to rule
    in favor of Eem and Kim. Substantively, it contends that the trial court erred in
    determining that no evidence exists to support a finding of individual liability as to
    Eem and Kim.
    11
    A.     The trial court relied on grounds expressly raised in the motion.
    Curocom contends that the Woolim defendants did not cite Cox v. State in
    their written motion for JNOV, and the trial court thus erred in relying on that case
    in its order granting relief. On the contrary, paragraph 29, page 11 of the Woolim
    defendants’ written motion for JNOV expressly cites Cox to support its contention
    that “[a] false promise by Woolim Resources alone cannot be treated as a false
    promise made by any other Defendant especially in light of no alter ego pleading,
    jury issue, or jury finding.” We therefore reject this challenge as unfounded in the
    record.
    Curocom further contends that the trial court erred in ostensibly relying on
    Cox’s “hold[ing] that a corporate officer’s acts as the ‘guiding spirit’ behind
    corporate violations of the Deceptive Trade Practices Act fail to create personal
    liability for an officer.” This contention is unavailing for two reasons. First, the
    Woolim defendants’ motion for JNOV and the trial court’s order demonstrate that
    the trial court did not rely on the federal “guiding spirit” doctrine for determining
    whether Eem and Kim could be held liable for Woolim’s conduct. Second, the Cox
    court did not make a determination about whether the guiding spirit doctrine was
    useful in determining corporate versus individual liability; it only observed that the
    DTPA did not include the doctrine, and it deferred to the legislature the decision
    whether to adopt it as a basis for individual liability under the DTPA. See 
    446 12 S.W.3d at 503
    . Cox’s holding relates to whether Cox, a certified public accountant
    who was the president, chief executive officer, chairman of the board, and majority
    holder of Tax Masters, Inc. could incur individual liability without either a showing
    that he personally engaged in conduct violative of the DTPA or an evidentiary basis
    for piercing the corporate veil. See 
    id. at 503–04.
    It was upon that proposition that
    the trial court relied.
    B.     The trial court properly held that no evidence supports personal
    liability as to Kim, but some evidence supports the finding against
    Eem.
    A corporate officer who knowingly participates in tortious or fraudulent acts
    may be held individually liable to third persons even though he performed the act as
    an agent of the corporation. Nwokedi v. Unltd. Restoration, 
    428 S.W.3d 191
    , 201
    (Tex. App.—Houston [1st Dist.] 2013, pet. denied). We therefore focus our legal-
    sufficiency review on whether there is evidence that either Kim or Eem personally
    engaged in the fraud that supports the jury’s findings against the Woolim entities
    and other individuals.
    1.     Kim
    Curocom claims that legally sufficient evidence supports the verdict against
    Kim personally based on his failure to disclose the Aluko data to Curocom.
    Curocom’s statutory fraud claim provides the basis for the jury’s sole affirmative
    finding that Kim committed fraud. Under the Texas Business and Commerce Code,
    13
    to establish a cause of action for statutory fraud in a real estate transaction, a plaintiff
    must show: (1) a false representation of a past or existing material fact, (2) made to
    a person for the purpose of inducing that person to enter into a contract, and (3) relied
    on by that person in entering into that contract. TEX. BUS. & COM. CODE ANN.
    § 27.01(a) (West 2012).
    The instruction supporting the statutory fraud question informed the jury:
    Fraud occurs when—
    a. there is a false representation of a past or existing material fact,
    b. the false representation is made for the purpose of inducing that
    person to enter into a contract, and
    c. the false representation is relied on by that person in entering into
    that contract.
    or
    a. a party makes a false promise to do an act,
    b. the promise is material,
    c. the promise is made with the intention of not fulfilling it,
    d. the promise is made to a person for the purpose of inducing that
    person to enter into a contract, and
    e. that person relies on the promise in entering into that contract.
    This instruction does not support a finding under the nondisclosure theory that
    Curocom urges here.1 The charge gave the jury a fraud by nondisclosure instruction
    1
    Curocom cites Keathley v. Baker, an opinion from the Tyler Court of Appeals, for
    the proposition that statutory fraud includes Curocom’s nondisclosure theory. See
    No. 12-11-00151-CV, 
    2013 WL 1342524
    , at *7 (Tex. App.—Tyler Apr. 3, 2013,
    no pet.). That case involved claims for both statutory and common-law fraud. The
    Tyler court discussed fraud by nondisclosure after reciting the elements of a
    statutory fraud claim, but it did not suggest that fraud by nondisclosure was part of
    statutory fraud, and its citation to the common-law fraud discussion in Lesikar v.
    Rappeport, 
    33 S.W.3d 282
    (Tex. App.—Texarkana, pet. denied), shows that its
    14
    in the common-law fraud question, but the jury did not find that Kim committed
    common-law fraud. Curocom does not advance any other argument for reversing
    the jnov as to Kim personally on the statutory fraud finding.
    Because the sole finding against Kim does not support personal liability, the
    conspiracy finding cannot support it either. See Tilton v. Marshal, 
    925 S.W.2d 672
    ,
    681 (Tex. 1996) (“[A] defendant’s liability for conspiracy depends on participation
    in some underlying tort for which the plaintiff seeks to hold at least one of the named
    defendants liable.”) Accordingly, we hold that the trial did not err in granting the
    motion for jnov and entering a take-nothing judgment on Curocom’s claims against
    Kim.
    2.   Eem
    The jury found Eem liable for both common-law fraud and statutory fraud.
    We first consider whether legally sufficient evidence exists that Eem made a
    misrepresentation, which would support the jury’s findings against him for both
    common-law fraud and statutory fraud. The jury charge contains the following
    instruction:
    discussion of fraud by nondisclosure was grounded in the common law, not statute.
    See 
    2013 WL 1342524
    , at *7 (citing 
    Lesikar, 33 S.W.3d at 299
    ).
    15
    [F]raud occurs when—
    a.    a party makes a material misrepresentation,
    b.    the misrepresentation is made with knowledge of its falsity or
    made recklessly without any knowledge of the truth and as a
    positive assertion,
    c.    the misrepresentation is made with the intention that it should be
    acted on by the other party, and
    d.    the other party relies on the misrepresentation and thereby suffers
    injury.
    “Misrepresentation” means:
    a. A false statement of fact;
    b. A promise of future performance made with an intent, at the time
    the promise was made, not to perform as promised;
    c. A statement of opinion based on a false statement of fact;
    d. A statement of opinion that the maker knows to be false; or
    e. An expression of opinion that is false, made by one claiming or
    implying to have special knowledge of the subject matter of the
    opinion.
    “Special knowledge” means:
    Knowledge or information superior to that possessed by the other
    party and to which the other party did not have equal access.
    Fraud also occurs when a defendant has a duty to disclose and—
    a. A defendant failed to disclose a material fact within its or his
    knowledge, and
    b. knew Curocom . . . was ignorant of the fact and did not have equal
    opportunity to discover the truth, and
    c. by failing to disclose the fact, intended to induce Curocom . . . to
    enter into the agreement, and
    d. Curocom . . . entered into the agreement as a result of acting without
    knowledge of the undisclosed fact.
    16
    In addition, if any defendant voluntarily disclosed information he
    had a duty to disclose the whole truth; if he made a representation
    he had a duty to disclose new information if he became aware that
    the new information made the earlier representation misleading or
    untrue; and he had a duty to correct a false impression conveyed by
    a partial disclosure.
    A misrepresentation or omission is “material” if it would be likely
    to affect the conduct of a reasonable person with reference to the
    transaction in question.
    Curocom relies on Eem’s email statement to Curocom that the Caliente Field
    interest’s market value was comparable to other transactions and worth $40 million
    as a false representation of a material fact. “Whether a statement is an actionable
    statement of ‘fact’ or merely one of ‘opinion’ often depends on the circumstances in
    which a statement is made.” Italian Cowboy Partners, Ltd. v. Prudential Ins. Co. of
    Am., 
    341 S.W.3d 323
    , 338 (Tex. 2011) (quoting Transport. Ins. Co. v. Faircloth,
    
    898 S.W.2d 898
    S.W.2d 269, 276 (Tex. 1995)). Courts consider circumstances like
    the statement’s specificity, the speaker’s knowledge, the comparative levels of the
    speaker’s and hearer’s knowledge, and whether the statement relates to the present
    or future. 
    Faircloth, 898 S.W.2d at 276
    . “In cases like these, ‘[t]he decisive test . . .
    is whether the seller asserts a fact of which the buyer is ignorant or merely states an
    opinion or judgment on a matter of which the seller has no special knowledge and
    on which the buyer may be expected also to have an opinion and to exercise his
    judgment.’” Steptoe v. True, 
    38 S.W.3d 213
    , 218 (Tex. App.—Houston [14th Dist.]
    17
    2001, no pet.) (emphasis in original) (quoting Autohaus, Inc. v. Aguilar, 
    794 S.W.2d 459
    , 463 (Tex. App.—Dallas 1990), writ denied, 
    800 S.W.2d 853
    (Tex.1991) (per
    curiam)).
    Eem’s email characterized the Tristone Capital transaction as comparable to
    the proposed Caliente Field sale, but it pointed to various differences between the
    two areas, including risk factors. Eem concluded that, “Based on [a recent Tristone
    Capital trade, linked in the email], our company’s Caliente is worth (price) at least
    40 million dollars. Please consider the fact that according to the Albr[echt] data, our
    company’s project was proposed at 43 million dollars.”
    The circumstances show that Eem’s valuation is an opinion based on a
    comparable sale. Curocom’s CEO could make an independent assessment of the
    proposed comparable sale based on the primary source documents that Eem linked
    in the email. We hold that Curocom has not demonstrated that the trial court erred
    in considering this statement to be nonactionable opinion.
    Curocom further claims that Eem personally misrepresented the Caliente
    Field interest’s value because he omitted the Aluko data in the email with his value
    estimate, and had received the data three days before he sent the email. The Aluko
    data, however, did not contain an estimated value for the Caliente Field interest or
    an analysis for determining that value. At trial, the uncontroverted evidence was
    that Eem lacked the expertise to analyze the data; for that, he relied on Park and
    18
    Myung. No evidence shows that Park or Myung had provided Eem with a valuation
    analysis of the Aluko data. Curocom presented an expert witness to testify to the
    Caliente Field interest’s value pursuant to the Aluko data, but no evidence
    demonstrates that this valuation was available to Eem at the time he sent the email.
    As a result, the record does not support the statutory fraud and common-law fraud
    finding against Eem based on a misrepresentation-of-value theory.
    But the data nevertheless was material to determining a purchase price for the
    interest and Eem failed to disclose it. In contending that Eem committed fraud by
    nondisclosure, Curocom points to Eem’s silence during Park’s presentation to
    Curocom in Houston as a second opportunity to disclose the Aluko data. It notes
    that Eem received an email from Park with the Aluko data two days earlier. Eem
    forwarded the email to Kim and employees in Korea as “Confidential, please use for
    reference only.” Thus, Eem acted on the email from Park but did not ask Park to
    provide the data to Curocom.      When Curocom’s chief executive officer later
    confronted Eem with the data, Eem denied that he knew about it. Eem also later
    wrote an email indicating that he would rely on his ignorance of geologic matters as
    a defense to failing to disclose the data. Eem was undisputedly charged with making
    decisions regarding the Curocom transaction and overseeing Park’s work. It was to
    Eem that Park provided the data when Park received it from an outside source.
    19
    Eem’s decision to restrict disclosure of the email containing the reserve data,
    confidentially forward it to his colleagues at Woolim, attend the meeting in which
    Park presented reserve reports to Curocom but not the Aluko data that Park had
    provided to Eem, his after-the-fact effort to either conceal that he had knowledge of
    the data or claim ignorance of its import, and his position as the chief negotiator of
    the purchase price and managing director of the subsidiary charged with making the
    deal, taken together, support a reasonable inference that Eem personally participated
    in the decision with Park to withhold the Aluko data from Curocom, with the intent
    to induce Curocom into the sale. Further, the Woolim defendants during the trial
    admitted that Woolim’s agreement with Curocom required disclosure of this data.
    Thus, some evidence supports each of the elements of common-law fraud upon
    which the jury was instructed and for which it imposed liability on Eem.
    Eem has not filed a responsive brief to controvert the evidence and arguments
    submitted by Curocom on appeal in support of the jury’s verdict, nor has he
    otherwise participated in this appeal. Thus, Curocom’s arguments about the state of
    the evidence and its legal effect are uncontroverted. See TEX. R. APP. P. 38.1(g).
    Because a reasonable jury could infer that Eem personally and knowingly
    participated in a decision to withhold the material Aluko data with the intent to
    induce Curocom into purchasing Woolim’s interest in the Caliente Field at an
    inflated price, and knew that he had a duty to disclose such data as evidenced in the
    20
    parties’ agreements, we hold that the trial court erred in granting judgment
    notwithstanding the verdict as to Eem on Curocom’s claim against him for common-
    law fraud.
    CONCLUSION
    We hold that the trial court did not err in granting the motion for judgment
    notwithstanding the verdict as to Kim’s personal liability, but we reverse and
    reinstate the jury’s verdict with respect to Eem’s personal liability. We therefore
    affirm in part, reverse in part, and remand the case to the trial court for entry of a
    judgment consistent with this opinion.
    Jane Bland
    Justice
    Panel consists of Justices Bland, Brown, and Lloyd.
    21