Court denies appeal of more than $138,000 ruling against Shoshana Diamonds wholesaler

By Elizabeth Alt | Nov 29, 2018

HOUSTON – The Texas 1st District Court of Appeals affirmed a Harris County trial court judgment awarding more than $100,000 to Diamond Collection Co. for diamonds and jewelry sent to Shoshana Diamonds that allegedly were never paid for.

Justices Terry Jennings, Michael C. Massengale and Laura Carter Higley wrote the court order, issued on Nov. 15, affirming the Harris County Civil Court at Law No. 2's ruling in favor of Diamond Collection Co. The court denied Levy’s appeal that she should not have been held personally liable in the suit.

"The record includes evidence supporting a finding of Levy’s individual liability,” the ruling states.

The ruling states that Diamond Collection met Levy’s son while they were all working in the jewelry industry. Through their relationship, Diamond Collection would send Levy, direct retailer, wholesaler and designer of Shoshana Diamonds, jewelry with invoices for purchase. Each of the shipments came with a memo or invoice that included the value and details of the diamonds and jewelry and the terms of sale or consignment.

When Levy had not paid for or returned several orders of jewelry, Diamond Collection filed a lawsuit claiming breach of contract. After a bench trial, Diamond Collection was awarded $138,894.98, interest and attorney’s fees, jointly and severally against both Levy and Shoshana Diamonds.

Levy appealed, stating that “'[t]he only question presented in this appeal is whether there is evidence sufficient to satisfy the statute of frauds' to establish her guarantee of purchases by Shoshana Diamonds," the court noted. Levy claimed that “without a writing sufficient to satisfy the statute of frauds to support her guarantees, the trial court erroneously imposed liability on her,” the ruling states.

The justices stated that Levy did not challenge the imposition of direct contact liability against her, and the evidence submitted by Diamond Collection shows that Levy “asked for credit individually as part of the transactions,” agreeing with Diamond Collection’s argument that the evidence proved that Levy was individually liable even if “no writing sufficient to satisfy the statute of frauds establishes Levy’s personal guarantee of the purchases.”

The court order denied the appeal, stating that because the trial court did not enter findings of fact, the appellate court must “accept the validity of this independent ground and overrule her appellate challenge.”

Court of Appeals for the 1st District of Texas case number 01-17-00202-CV

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