AMS Const. Co., Inc. v. Warm Springs Rehabilitation Foundation, Inc.

94 S.W.3d 152, 2002 Tex. App. LEXIS 8246, 2002 WL 31600256
CourtCourt of Appeals of Texas
DecidedNovember 21, 2002
Docket13-01-286-CV
StatusPublished
Cited by54 cases

This text of 94 S.W.3d 152 (AMS Const. Co., Inc. v. Warm Springs Rehabilitation Foundation, 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
AMS Const. Co., Inc. v. Warm Springs Rehabilitation Foundation, Inc., 94 S.W.3d 152, 2002 Tex. App. LEXIS 8246, 2002 WL 31600256 (Tex. Ct. App. 2002).

Opinion

OPINION

Opinion by

Justice RODRIGUEZ.

Appellant, AMS Construction Co., Inc. d/b/a AMS Staff Leasing (AMS), filed a $14,155.06 mechanic’s lien against a hospital owned by appellee, Warm Springs Rehabilitation Foundation, Inc. (Warm Springs). AMS brought the present lawsuit against Warm Springs seeking to foreclose on the hen. 1 Warm Springs answered and filed a counterclaim against AMS requesting a declaratory judgment and attorneys’ fees. 2 The trial court granted Warm Springs’s motion for partial summary judgment on the liability issues. Following a bench trial, the trial court awarded attorneys’ fees to Warm Springs. The final judgment incorporated the partial summary judgment. 3 By five issues, AMS complains generally that the trial erred in granting Warm Springs’s summary judgment motion. AMS also challenges the competency of Warm Springs’s summary judgment evidence. We reverse and remand.

I. BACKGROUND

Warm Springs hired a general contractor, Coleman-Roth Construction, Inc., 4 to build a hospital in Victoria, Texas. As general contractor, Coleman-Roth hired a subcontractor, Third Coast Mechanical Contractors, Inc. (Third Coast), to install the air conditioning and heating systems. AMS and Third Coast entered into a Professional Employer Organization Services Agreement. AMS claimed, pursuant to the agreement, it was to furnish labor to Third Coast for the construction of the hospital, and Third Coast was to pay AMS the invoice price of the labor furnished. Warm Springs contended AMS only provided administrative services for Third Coast, specifically payroll services.

Warm Springs filed a motion for partial summary judgment asserting AMS did not qualify as a “person entitled to a lien” under section 53.021(a)(1) and (2) of the Texas Property Code. Warm Springs also urged the affirmative defenses of estoppel and payment. As summary judgment evidence, Warm Springs attached the affidavits of Stephen W. Roth, president of Coleman-Roth; Harvey Knezek, an employee of Coleman-Roth; and Johnnie Earl Gra *156 ham, a foreman at the work site. In support of its amended response to Warm Springs’s summary judgment motion, AMS filed the amended affidavit of Charles D. Wood, Jr., president and shareholder of AMS. Declaring the lien invalid, void, and unenforceable, and without stating its reasons, the trial court granted Warm Springs’s motion “in all things.”

II. SUMMARY JUDGMENT EVIDENCE

On appeal, both AMS and Warm Springs complain that the summary judgment evidence of the other party is conclu-sory. “An objection that an affidavit is conclusory is an objection to the substance of the affidavit that can be raised for the first time on appeal.” Haynes v. City of Beaumont, 35 S.W.3d 166, 167 (Tex.App.-Texarkana 2000, no pet.); see Mercer v. Daoran Corp., 676 S.W.2d 580, 583 (Tex. 1984); Lara v. Tri-Coastal Contractors, Inc., 925 S.W.2d 277, 279 n. 3 (Tex.App.Corpus Christi 1996, no writ). Thus, the complaints regarding conclusory statements are properly before this Court.

A. AMS’s Objections to Warm Springs’s Summary Judgment Evidence

By its second issue, AMS objects to the following portions of Roth’s affidavit as being conclusory and “replete with unsubstantiated opinions:”

I have reviewed the contract which AMS produced to be the contract between AMS and Third Coast. I have read it. Under the terms of that written contract AMS did not provide labor under a contract as a subcontractor to improve the real estate in question or to improve or repair the buildings or construction in question.... 5
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These [contract] terms are included within the written contract provided to us by AMS, which is attached hereto as Exhibit “A” to this affidavit and incorporated herein as an admission against interest by the Plaintiff, AMS. In the construction industry, this clearly means that the employees in question who performed the labor were employees of Third Coast, and AMS was functioning much like a personnel department would for a company; thus AMS[’s] services were part of general overhead. AMS[’s] pleadings claim that it provided labor or improved the real estate in question are contrary to its written agreement with Third Coast and contrary to AMS[’s] representations to me. From reviewing the AMS contract, given my experience in the construction industry, it is obvious to me that under this contract the employees of Third Coast remained employees of Third Coast and by this contract they were entitled to direct and control their employees. It is clear to me that the reference in the contract to a “co-employment” situation did not take these employees away from Third Coast, but caused them to remain Third Coast’s employees. For AMS to claim these employees were employees of AMS and that AMS was entitled to a lien would be a sham and a fraud, as this is contrary to what they told us during the job, contrary to what I personally observed, contrary to the written contract and contrary to the facts.
Coleman-Roth and Warm Springs relied upon all the representations and actions of AMS in making payments. Had *157 Third Coast actually had a subcontractor who provided labor for the job, to protect the owner, and for the benefit of the owner, Coleman-Roth would have made sure that the subcontractor was paid, its payment ensured or its potential hen claim released before funds would have been released to Third Coast. Thus, both Coleman-Roth and Warm Springs relied on the actions and representations of AMS based upon the facts as I personally observed on the job site, as I personally know from talking to an AMS representative, and as I personally know from many conversations from Third Coast and its employees, AMS[’s] present claim is a sham.
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AMS had the right and the power to retain those funds or control those funds, but it elected to allow them to be deposited to Third Coast’s account....
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From my conversations it was very clear to me that AMS was serving as a payroll service similar to how it is common in the Victoria area for a company that does not have a bookkeeping staff to hire a local accounting firm or other bookkeeping service to handle their payroll and governmental withholding taxes, deposit their funds for that service and then that service will write the checks both to the employees and to the federal government. This is a mere payroll service. AMS was not directing the work of the employees and was not at the job site.... (Underlining in original.)

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Bluebook (online)
94 S.W.3d 152, 2002 Tex. App. LEXIS 8246, 2002 WL 31600256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ams-const-co-inc-v-warm-springs-rehabilitation-foundation-inc-texapp-2002.