Beau McBeth and Erica McBeth v. Servpro Industries, Inc. and S&R Operations, Inc. D/B/A Servpro of the Woodlands/Conroe

CourtCourt of Appeals of Texas
DecidedDecember 19, 2024
Docket09-22-00272-CV
StatusPublished

This text of Beau McBeth and Erica McBeth v. Servpro Industries, Inc. and S&R Operations, Inc. D/B/A Servpro of the Woodlands/Conroe (Beau McBeth and Erica McBeth v. Servpro Industries, Inc. and S&R Operations, Inc. D/B/A Servpro of the Woodlands/Conroe) 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.

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Beau McBeth and Erica McBeth v. Servpro Industries, Inc. and S&R Operations, Inc. D/B/A Servpro of the Woodlands/Conroe, (Tex. Ct. App. 2024).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

________________

NO. 09-22-00272-CV ________________

BEAU MCBETH AND ERICA MCBETH, Appellants

V.

SERVPRO INDUSTRIES, INC. AND S&R OPERATIONS, INC. D/B/A SERVPRO OF THE WOODLANDS/CONROE, 1 Appellees ________________________________________________________________________

On Appeal from the 457th District Court Montgomery County, Texas Trial Cause No. 20-02-02639-CV ________________________________________________________________________

MEMORANDUM OPINION

Beau and Erica McBeth (collectively “the McBeths;” singularly “Beau” and

“Erica”) sued SERVPRO Industries, Inc. (“Servpro”) and its franchisee, S&R

Operations, Inc. d/b/a SERVPRO of the Woodlands/Conroe (“S&R”), claiming that

S&R’s alleged failure to properly identify and remediate mold in their house caused

1Although many documents in the record spell Defendants as “Servepro,” we

have corrected the spelling to “Servpro.” 1 them and their children to sustain personal injuries and property damage. 2, 3, 4 The

McBeths claim Texas Deceptive Trade Practices Act (“DTPA”) violations, in

addition to alleging breach of contract, fraud, negligence, and gross negligence

against these Defendants. See Tex. Bus. & Com. Code Ann. § 17.46.

The jury answered some liability and damage questions in the McBeths’ favor

and the trial court accepted the verdict. More specifically, the jury answered liability

questions in the McBeths’ favor as to negligence and the DTPA, only. However, the

jury found in Servpro’s and S&R’s favor as to fraud and gross negligence. Although

the jury found that Servpro and S&R knowingly violated the DTPA, they did not do

so intentionally.

Servpro and S&R filed a Motion for Judgment Notwithstanding the Verdict,

arguing that the economic loss rule applied to the case and that the McBeths

presented legally insufficient evidence to support their favorable verdict and

specifically mentioned the lack of evidence of causation. The trial court granted the

Motion but did not specify the basis of its ruling.

2In their Second Amended Petition, Plaintiffs also sued the Aggie Inspector

Group, LLC (the mold assessor they initially retained to evaluate the condition of their house) and EMSL Analytical, Inc., (the laboratory that analyzed the samples from that initial assessment) but nonsuited these defendants before trial. 3Plaintiffs abandoned their personal injury claims and proceeded to trial on

their property damage claims. 4For ease of reference, we use Beau and Erica McBeth’s first names.

2 The McBeths now appeal the trial court’s judgment, arguing that the trial court

erred in granting a judgment non obstante veredicto (“JNOV”) after the jury returned

a verdict in their favor. Specifically, they contend that (1) the record contained

“competent uncontroverted evidence” to sustain the jury’s verdict and (2) that the

economic loss rule did not apply to their DTPA claim. Appellees Servpro and S&R

raised cross-points, but our disposition of the McBeths’ arguments renders it

unnecessary to address those cross-points. See Tex. R. App. P. 47.1.

Finding no reversible error, we affirm the trial court’s judgment for Appellees.

I. Background Information and Trial Evidence

Servpro is an international franchisor that contracts with individual franchisee

companies like S&R that are in the business of cleaning or remediating flood

damage, fire damage, mold damage, and the like. S&R, like many of these

individually owned franchises, also offers general cleaning services.

In late June 2017, the McBeths purchased a house in The Woodlands. They

planned to update the flooring, among other things, before moving into the house.

For that reason, their flooring contractor, Daniel Lanni, was removing the old carpet

and carpet padding shortly after the McBeths closed on the property. When Lanni

removed the padding, he discovered a “mud-like substance” on the subfloor, and

notified Beau McBeth that he could not continue to work until the McBeths 3 addressed this problem. Neither the McBeths nor S&R scientifically tested this

substance; consequently, it was never identified with certainty. We therefore refer to

it as a “mud-like substance,” or an “unknown substance,” which is the terminology

used throughout much of the record. Due to this mud-like substance, Beau contacted

Servpro, and his information was transmitted to Servpro’s local franchisee, S&R.

Beau described the problem, and the following day, June 29, 2017, S&R personnel

cleaned the “mud-like substance” from the subfloor. Pursuant to S&R’s standard

procedure, its crew also sprayed the cleaned areas with Sporicidin, a disinfecting,

antimicrobial, and antifungal agent.

Although there is some disagreement about what services Beau sought when

he spoke with S&R on June 28, 2017, he testified that he had not seen mold before,

and he told them based on the pictures, “it was some substance that looked like

mud[.]” The service contract did not indicate any services or charges for mold testing

or remediation. The parties agreed that S&R did not provide either mold assessment

or mold remediation. Sometime after moving into the house, and about sixteen

months after Servpro cleaned the mud-like substance off the subfloors, the McBeths

and their children began experiencing various health problems. In October 2018, the

McBeths questioned whether their health problems might be due to mold exposure;

they consequently retained a mold assessment company to evaluate the mold levels

in their home. That assessment company found low levels of mold but did not 4 indicate that the mold was hazardous to the McBeths’ health. In June 2019, two years

after S&R cleaned the McBeths’ subfloors, a different mold assessment company,

Texas Mold Inspectors (“TMI”), found high mold levels in the house and advised

the McBeths to move out immediately, which they did. Since TMI indicated that the

McBeths’ furniture, clothing, and other belongings would be contaminated with

mold, they left those items behind in the house they vacated. The estimated cost of

mold remediation exceeded the value of the house.

The McBeths therefore sold the property at a loss and eventually bought a

different house. 5 They allege Servpro and S&R are responsible for their loss because

S&R did not look for, identify, or warn them of any mold problem in the house in

June 2017.

We summarize below the testimony relevant to this appeal.

A. Joshua Rachal’s Testimony

Joshua Rachal (“Rachal”), described his construction and sales experience

before becoming a licensed mold assessor, recalling that he was a construction

laborer for two years, and “had a remodeling company” that gained him five years’

experience. He testified that his construction experience made him a more effective

5The McBeths sold the house to a buyer who performed his own mold remediation for a lower cost than was estimated for the McBeths, and who later resold the house at a profit. 5 mold assessor because understanding how a house is constructed and “how a home

is working as a system[,]” enables him to understand whether there are construction

defects that could allow mold to form. At another time, Rachal worked as an outside

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Beau McBeth and Erica McBeth v. Servpro Industries, Inc. and S&R Operations, Inc. D/B/A Servpro of the Woodlands/Conroe, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beau-mcbeth-and-erica-mcbeth-v-servpro-industries-inc-and-sr-texapp-2024.