Richard T. Mcconathy v. Dal Mac Commercial Real Estate

Appellant, Richard T. McConathy, brought suit against appellees, Dal Mac Commercial Real Estate, Inc., Richard M. Romano and J. W. Davis under Article 581-33 of the Revised Civil Statutes of Texas seeking recision of his purchase of an interest in the "Pioneer Road Joint Venture," which venture was stated in the agreement to be for the purpose of "holding for investment and capital appreciation" a tract of 23.3 acres of land in Irving, near Dallas, Texas. Appellant alleged that he had purchased a security, that the security had been sold to him by means of misrepresentations or omissions, that the security was required to be but was not registered with the Texas Securities Commissioner, and that the persons making such sale to the appellant were not licensed as security dealers. Appellees defended on grounds that the interest sold was not a security, that if it was a security no misrepresentation had been made by appellees, and that the transaction was exempt from registration by the provisions of Article 581-5 of the Texas Securities Act. At the conclusion of appellants case, Appellee Davis moved for a directed verdict which was granted. The remaining appellees then proceeded with their testimony. At the conclusion of all of the testimony the court granted the appellees motion for instructed verdict and rendered a take-nothing judgment against appellant.