Griffin Industries, Inc. v. Honorable Thirteenth Court of Appeals

BAKER, Justice, joined by ENOCH, Justice,

dissenting.

Maria Villegas’ testimony showed that her only income source was from welfare pro*355grams. The Court correctly observes that a person’s dependence upon welfare programs is, by itself, prima facie evidence that the person is financially unable to pay the court costs or give security therefore. See Goffney v. Lowry, 554 S.W.2d 157, 159-160 (Tex.1977). However, the Court concludes that the evidence Griffin Industries offered did not negate Villegas’ prima facie case. 934 S.W.2d at 351. The Court reaches this conclusion by reweighing the evidence and by reevaluating the witnesses’ credibility. In reaching this conclusion, the Court exercises discretion it does not possess and acts contrary to well established principles of mandamus law. I respectfully dissent.

I. STANDARD OF REVIEW

In a mandamus proceeding, we review the trial court’s decision for an abuse of discretion. Johnson v. Fourth Court of Appeals, 700 S.W.2d 916, 917 (Tex.1985). To determine if there is an abuse of discretion, we review the entire record. See Simon v. York Crane & Rigging Co., 739 S.W.2d 793, 795 (Tex.1987). Our focus remains on the trial court’s order regardless of the court of appeals’ decision. Johnson, 700 S.W.2d at 918. The party challenging the trial court’s decision must establish that the facts and law permit the trial court to make but one decision. Johnson, 700 S.W.2d at 917. An appellate court may not reverse for an abuse of discretion merely because it disagrees with the trial court’s decision, if that decision was within the trial court’s discretionary authority. Beaumont Bank, N.A v. Buller, 806 S.W.2d 223, 226 (Tex.1991). In a mandamus proceeding, the reviewing court must give deference to the district court’s resolution of a factual issue, and cannot set that decision aside unless it is clear from the record that the trial court could have reached only one decision. Walker v. Packer, 827 S.W.2d 833, 839-40 (Tex.1992).

In a nonjury trial or hearing, the trial court is the sole judge of the witness’ credibility and the testimony’s weight. Tate v. Commodore County Mut. Ins. Co., 767 S.W.2d 219, 224 (Tex.App. — Dallas 1989, writ denied). The trial court, as the fact-finder, has the right to accept or reject all or any part of any witness’ testimony. Hood v. Texas Indem. Ins. Co., 146 Tex. 522, 209 S.W.2d 345, 346 (1948). The trial comrt may believe one witness and disbelieve others. McGalliard v. Kuhlmann, 722 S.W.2d 694, 697 (Tex.1986). The trial court may resolve inconsistencies in any witness’ testimony. McGalliard, 722 S.W.2d at 697.

The reviewing court is not a fact-finder and cannot pass upon a witness’ credibility or substitute its judgment for that of the fact-finder even if there is conflicting evidence that would support a different conclusion. Cain v. Bain, 709 S.W.2d 175, 176 (Tex.1986). The trial court as the fact-finder is exclusively in a position to observe the witnesses and to evaluate their testimony and credibility. Glassman & Glassman v. Somoza, 694 S.W.2d 174, 176 (Tex.App. — Houston [14th Dist.] 1985, no writ).

Opinion testimony does not establish any material fact as a matter of law. See Hood, 209 S.W.2d at 346. As this Court stated in Hood:

that character of testimony [opinion testimony] is but evidentiary and is never binding upon the trier of facts.

Hood, 209 S.W.2d at 346.

A reviewing court cannot consider an interested witness’ uncontradicted testimony as doing more than raising a fact issue unless that testimony is clear, direct, and positive and there are no circumstances in evidence tending to discredit or impeach such testimony. McGalliard, 722 S.W.2d at 697; Anchor Cas. Co. v. Bowers, 393 S.W.2d 168, 169 (Tex.1965).

An appellate court may not deal with disputed factual matters in a mandamus proceeding. Hooks v. Fourth Court of Appeals, 808 S.W.2d 56, 60 (Tex.1991); Dikeman v. Snell, 490 S.W.2d 183, 186-87 (Tex.1973). An abuse of discretion does not exist if the trial court bases its decision on conflicting evidence and some evidence reasonably supports the trial court’s decision. Davis v. Huey, 571 S.W.2d 859, 862 (Tex.1978). An abuse of discretion does not exist if some evidence in the record shows the trial court followed guiding rules and principles. Morrow, 714 S.W.2d at 298.

*356II. Proof of Indigency

A party asserting indigency bears the burden to sustain the allegations of her affidavit. See Tex.R.App.P. 40(a)(3)(D). The party must prove and the trial court must determine whether she would be unable to pay “if she really wanted to and made a good faith effort to do so.” Allred v. Lowry, 597 S.W.2d 353, 355 (Tex.1980); Pinchback v. Hockless, 139 Tex. 536, 164 S.W.2d 19, 20 (App.1942).

A trial court can consider a number of factors when determining the validity of a challenge to an indigency affidavit. Some of these factors include whether the litigant is dependent upon public charity afforded through various welfare programs, Goffiiey, 554 S.W.2d at 159-60; the litigant’s credit rating, Pinchback, 164 S.W.2d at 19; the value of the litigant’s claim and whether it could afford the basis for security of a loan, Wallgren v. Martin, 700 S.W.2d 28, 30 (Tex. App. — Dallas 1985, orig. proceeding); the litigant’s employment history, Goffney, 554 S.W.2d at 160; and that the litigant cannot secure a bona fide loan to pay the costs, Pinchback, 164 S.W.2d at 20. Today the Court holds an additional factor the trial court can consider is the fee agreement between an attorney and an indigent client to determine if the litigant is able to pay costs on appeal. 934 S.W.2d at 354.

III. Application of Law to Facts

Proof that a litigant is dependent upon public charity afforded through welfare programs is, by itself, prima facie evidence that the person is financially unable to pay the court costs or give security therefor. Goff-ney, 554 S.W.2d at 159-60. It is true in this case that Villegas established that welfare programs were her only income source. The Court concludes that Griffin’s evidence does not negate Villegas’ prima facie case. In reaching this conclusion, I believe that the Court disregards established mandamus law and, to reach the result it desires, it reweighs the evidence and rejudges the witness’ credibility.

The Court notes that Griffin offered evidence that in the past Villegas may have misrepresented her marital status to obtain AFDC benefits for her children. The Court notes that Villegas no longer receives those benefits because her children have reached majority and these expired benefits are not part of her prima facie ease. The Court concludes that whether she once misrepresented her marital status to obtain these benefits is irrelevant. Next, the Court observes that Griffin offered Villegas’ testimony from the underlying trial indicating she may also have been untruthful about her marital status or whether her husband lived with her to the doctors who treated her for the illnesses forming the basis for her com-pensable disability. The Court notes that Griffin offered no evidence that any of Ville-gas’ misrepresentations to her doctor about her marital status were financially motivated or otherwise material to a ruling that she was disabled and in need of welfare benefits. The Court concludes that the evidence conclusively established that her marital status was irrelevant to her qualification for government benefits.

The Court brushes aside Griffin’s argument that Villegas’ alleged fraud in obtaining benefits is at least relevant to her credibility. The Court notes the only evidence about Villegas’ disability is her testimony that she is too ill to work or even to care for her grandchild, that she has dizzy spells and bouts of nausea, that medication she takes prevents her from working, and that one of her doctors has questioned whether she will be able to hold down by attending vocational school. The Court observes that Griffin did not controvert this evidence.

For the Court to conclude that Griffin’s evidence about Villegas’ misrepresentations is irrelevant is to reweigh the evidence. This Court does not possess the discretion to exercise that prerogative. That discretion rests solely in the trial court. Cain, 709 S.W.2d at 176; Tate, 767 S.W.2d at 225.

For the Court to conclude that Villegas’ evidence about her disability is irrelevant to credibility because it is uncontroverted is to rejudge the witness’ credibility. This Court does not possess the discretion to exercise that prerogative. That discretion rests sole*357ly in the trial court. Cain, 709 S.W.2d at 176.

We have held opinion testimony does not establish any material fact as a matter of law. See Hood, 209 S.W.2d at 346. The reviewing court cannot consider an interested witness’ uncontradicted testimony as doing more than raising a fact issue unless the testimony is clear, direct and positive and there are no circumstances in evidence tending to discredit or impeach such testimony. McGalliard, 722 S.W.2d at 697. I submit that this record shows there are circumstances that tend to discredit or impeach Villegas’ testimony. It was the trial court’s prerogative, as the fact finder, to accept or reject all or any part of Villegas’ testimony. Hood, 209 S.W.2d at 346. The trial court, as the fact finder, could resolve any inconsistencies in her testimony. McGalliard, 722 S.W.2d at 697. Because opinion testimony does not establish any material fact as a matter of law, the trial court could completely disbelieve her testimony that she was disabled. Hood, 209 S.W.2d at 346; McGalliard, 722 S.W.2d at 697.

Additionally, Griffin pointed out that Vil-legas’ counsel judicially admitted at the in-digency hearing that his client had not sought or obtained employment while she was receiving disability benefits because the Administration’s rules prohibit disability benefits recipients from working. The Court observes that the trial court could draw no inference from these facts. The Court concludes that Villegas’ counsel accurately informed the trial court of nothing more than the Social Security Administration’s rales. However, in reaching this conclusion, the Court does nothing more than reweigh this evidence and reach its own conclusion about its weight. The trial court, as the fact finder, could infer that Villegas chose not to work because if she did so she would no longer receive disability income.

Villegas testified that her only income source was from government assistance programs and totalled about $490.00 a month. She said she was on Medicare and Medicaid and had applied for food stamps. She said she was disabled and unable to work. She said she had no substantial assets except a non-working automobile worth about $500.00. She admitted she had not tried to get a bank loan or sell an interest in her lawsuit to pay for costs of appeal. She testified she had attended college full-time from 1993 to 1995. After 1995, she was taking only four hours of classes a week and her remaining time was free time. She testified she had no problems completing her classwork and she made the Dean’s List in the past. She testified that she had not tried to obtain employment for the past two and one-half years. She admitted she misrepresented her marital status to federal authorities to receive government benefits in the past.

Additionally, the trial court properly considered the nature of the fee agreement between Villegas and her attorney. The fee agreement is ambiguous about whether the attorney agreed to loan Villegas funds to pay costs or whether he agreed to an interest rate if he later agreed to loan her funds to pay costs. Therefore, the trial court properly considered extrinsic evidence of the parties’ intent, including their earlier actions under the contract. See Trinity Universal Ins. Co. v. Ponsford Bros., 423 S.W.2d 571, 575 (Tex.1968); Webster v. U.S. Fire Ins. Co., 882 S.W.2d 569, 572 (Tex.App. — Houston [1st Dist.] 1994, writ denied). Under this agreement, the trial court could properly consider whether Villegas’ attorney was a potential source of funds to pay the court costs.

Based on the entire record before the trial court, I cannot say that the trial court’s decision was so unreasonable and arbitrary that it was a clear and prejudicial error of law. See Walker, 827 S.W.2d at 839. In my view, this case involves factual disputes and questions of witness credibility. It is inappropriate for this Court to substitute its judgment for the trial court’s. Walker, 827 S.W.2d at 839-40; Davis, 571 S.W.2d at 862.

IV. ConClusion

This Court’s precedent requires that, under an abuse of discretion standard of review, we may not reverse because we merely disagree with the trial court’s decision. Beaumont Bank, N.A., 806 S.W.2d at 226. We must give deference to the trial court’s resolution of factual issues and we cannot set aside the tidal court’s decision unless it is clear from the record that the trial court could have reached only one decision. Walker, 827 S.W.2d at 839-40. If the evidence *358conflicts and some evidence reasonably supports the trial court’s decision, no abuse of discretion exists and we may not set aside the trial court’s decision. Davis, 571 S.W.2d at 862. The Court ignores the limitations on a reviewing court under established precedent and substitutes its judgment for the trial court’s. The Court reweighs the evidence and rejudges the witness’ credibility. This is an inappropriate exercise of nonexistent discretion. Walker, 827 S.W.2d at 889-40. I respectfully dissent.