American Baler Co. v. SRS Systems, Inc.

748 S.W.2d 243, 1988 Tex. App. LEXIS 93, 1988 WL 23946
CourtCourt of Appeals of Texas
DecidedJanuary 21, 1988
Docket01-86-00907-CV
StatusPublished
Cited by32 cases

This text of 748 S.W.2d 243 (American Baler Co. v. SRS Systems, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Baler Co. v. SRS Systems, Inc., 748 S.W.2d 243, 1988 Tex. App. LEXIS 93, 1988 WL 23946 (Tex. Ct. App. 1988).

Opinions

DUNN, Justice.

This is an appeal of a judgment based on jury findings, awarding damages against two defendants on four different causes of action: Deceptive Trade Practices Act (DTPA) violation, fraud, breach of contract, and negligent misrepresentation. All four causes of action relate to the sale and/or installation of a baler and conveyor in the fall of 1979 to appellee SRS Systems (SRS), a commercial trash hauling operation owned by Doug Looney. Appellant American Baler Company (Baler), is the manufacturer of the baler, and appellant Miner Associates, Inc. (Miner), is the sales representative who sold appellee SRS both the baler and the conveyor.

From the first day of operation, appellee had problems with the baling system. After many unsuccessful attempts by appellants to remedy the problems, appellee contends that he was forced to expend considerable money adding a shredder, which he was told was not necessary with this partic[245]*245ular baler, and modifying the entire system, including the building in which it was housed. Furthermore, the landfill he purchased was losing money due to the less than predicted volume of garbage baled. Appellee further contends that because of the inability of the baler to process certain materials, even after modification, he had to cancel many of his accounts, and eventually was forced to sell his business to Browning Ferris, Inc.

Appellee brought suit against Baler, Miner, and Mayfran Conveyor Company (May-fran), manufacturer of the conveyor, for damages sustained from the purchase and installation of the baling system (baler and conveyor). He pleaded DTPA violations, breach of contract, fraud, and negligent misrepresentation. Appellee’s main allegation was that appellants misrepresented that the system could bale materials in appellee’s waste stream. The damages sought from the three co-defendants totaled almost $10 million, (including treble damages under DTPA), plus attorney’s fees. Mayfran failed to answer, and a default judgment was rendered against it.

The jury awarded SRS damages under all four causes of action against appellant Baler, and under all except breach of contract against appellant Miner, plus attorney’s fees, but no punitive damages. The court rendered judgment for the total amount found by the jury under all causes of action, plus pre-judgment interest, as follows:

Miner Baler
DTPA 70,271 163,964
Mandatory additional damages (2 x 1st $1,000) 2,000 2,000
Breach of Contract 0 6,010
Fraud 35,136 122,973
Negligent Misrepresentation 35,135 40,991
TOTAL $142,543 $335,938
Attorney’s fees, jointly and severally $70,000

In point of error four, appellants argue that the trial court erred in entering judgment against defendants for cumulative damages for inconsistent and concurrent causes of action arising out of the same acts and practices, because appellee was required to elect its remedy. Appellants had filed a request, which was denied, to require appellee to elect his remedy. Appellants argue that entering judgment upon the DTPA, fraud, and negligent misrepresentation causes of action resulted in double recovery of actual damages. Appellants do not challenge any possible double recovery under the DTPA and breach of contract causes of action, which were based on different acts. Appellants further argue that appellee pleaded these causes of action in the alternative, and thus, judgment must be rendered accordingly.

Appellee contends that the three causes of action were based on different acts. However, the special issues on the DTPA violations, fraud, and negligent misrepresentation were all based on alleged misrepresentations surrounding the sale of the baler system. Therefore, we find that they were all based on the same acts. The main question then becomes whether the DTPA allows double recovery for actual damages under inconsistent or concurrent causes of action based on the same acts.

The cumulative remedies section of the DTPA, section 17.43, was amended in 1979, and now reads:

The provisions of this subchapter are not exclusive. The remedies provided in this subchapter are in addition to any other procedures or remedies provided for in any other law; provided, however, that no recovery shall be permitted under both this subchapter and another law of both actual damages and penalties for the same act or practice. (Added language underlined.)

Tex.Bus. & Com.Code Ann., sec. 17.43 (Vernon 1987).

Both parties cite several cases in support of their arguments regarding double recovery for actual damages under the DTPA. However, we find the supreme court decision, and its implications, in Mayo v. John Hancock Mutual Life Ins. Co., 711 S.W.2d 5 (Tex.1986) to be controlling.

[246]*246The Mayo court reversed a summary judgment that barred a DTPA action against an insurance company for deceptive trade practices in the sale of an insurance policy. The lower court had granted the summary judgment because the plaintiffs had already recovered actual and punitive damages from the insurance company for failing to pay within 30 days a claim the jury found valid, pursuant to article 21.21, section 16 of the Texas Insurance Code. Holding that the lower court misinterpreted the revised section 17.43, the Mayo court held that “the statute merely limits a plaintiff from recovering actual and punitive damages for a specific act under one law and then recovering actual and punitive damages for the very same act under the provisions of the DTPA.” Id. at 6. Because the two claims were based on different acts, the court held that the second suit should be allowed. The Mayo court explained, however, that should plaintiffs prevail in the second trial, their judgment should be offset by the amount of actual damages recovered in the prior trial. Id. at 7. Therefore, while the Mayo court held that the DTPA allowed prosecution of two causes of action and double recovery for punitive damages based on different acts, it made clear that double recovery for any actual damages would not be allowed, even though caused by different acts. Therefore, double recovery for actual damages caused by the same acts would not be allowed by the DTPA. See also Kish v. Van Note, 692 S.W.2d 463 (Tex.1985).

Appellee contends that the supreme court allowed double recovery for the inconsistent theories of DTPA violation and negligence in Shell Oil Co. v. Chapman, 682 S.W.2d 257 (Tex.1984). However, in Shell, a negligence and DTPA cause of action had been pleaded in the alternative against Shell and one of its dealers. Shell was found liable for negligence, and the dealer for DTPA violation. The supreme court refused to rule on the complaint by the dealer about the double recovery that would result if the negligence damages were awarded jointly and severally against both defendants. The court found that the dealer had not preserved error by failing to object to the special issue on damages for negligence, which was based on the acts of both defendants. Id.

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Bluebook (online)
748 S.W.2d 243, 1988 Tex. App. LEXIS 93, 1988 WL 23946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-baler-co-v-srs-systems-inc-texapp-1988.