Certified Value, Inc. D/B/A Kidsteam and John Hampton v. Infinite Play Co.

Court of Appeals of Texas·Decided February 4, 2021·No. 13-18-00550-CV·Published

Opinion

NUMBER 13-18-00550-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS CORPUS CHRISTI – EDINBURG

CERTIFIED VALUE, INC. D/B/A KIDSTEAM AND JOHN HAMPTON, Appellants,

v.

INFINITE PLAY CO., Appellee.

On appeal from the 105th District Court of Nueces County, Texas.

MEMORANDUM OPINION

Before Chief Justice Contreras and Justices Longoria and Perkes1 Memorandum Opinion by Justice Longoria

1 The Honorable Gregory T. Perkes, former Justice of this Court, was a member of the panel at the time this appeal was orally argued but did not participate in this decision because his term of office expired on December 31, 2020.

Appellee Infinite Play Co. (Infinite Play) contracted with appellants Certified Value, Inc. d/b/a Kidsteam (Certified Value) and its sole owner and operator, John Hampton, to construct and install indoor play equipment for appellee’s children’s play center in Corpus Christi, Texas. Following multiple alleged complications with the installation process and an unsatisfactory completion, appellee filed suit against appellants, claiming fraudulent inducement, breach of contract, breach of express and implied warranties, violations of the Deceptive Trade Practices Act (DTPA), negligent misrepresentation or negligent omissions, and seeking exemplary damages and attorney’s fees. Appellants filed a counterclaim and partial no evidence and traditional motions for summary judgment, the latter of which were denied by the trial court. At trial, following the denial of appellants’ motion for directed verdict, a jury found in favor of appellee, and appellants’ ensuing motion for judgment notwithstanding the verdict (JNOV) was denied.

By five issues, which we have reorganized and renumbered, appellants assert:

(1) the trial court erred in denying their no-evidence and traditional summary judgment motions; (2) the trial court erred in denying their motions for directed verdict and JNOV; (3)–(4) the trial court abused its discretion in failing to submit a predicate jury instruction on the requirement of a written agreement in a fraudulent inducement claim and including an instruction on a cause of action not pleaded; and (5) the trial court abused its discretion in permitting appellee’s expert witness to testify. We affirm.

I. BACKGROUND

On May 10, 2016, appellee filed suit against appellants. Appellee principally alleged appellants failed to provide a play center that met appropriate safety standards as they represented that they would. Appellants filed their original answer on June 20,

2016, and an original counterclaim on May 18, 2017, asserting appellee had: (1) breached their contract by bringing a suit asserting claims without basis and which it had waived pursuant to the express terms of the written agreement; (2) unlawfully copied and disseminated appellants’ design renderings in violation of copyright laws; and (3) misappropriated trade secrets in its use and disclosure of renderings. Appellants sought damages for unjust enrichment, as well as exemplary damages and attorney’s fees.

On February 1, 2018, appellants filed partial no-evidence and traditional motions for summary judgment arguing: (1) appellee’s DTPA claim failed because appellee had produced no evidence of its “consumer” status; (2) appellee’s fraud and negligent misrepresentation claims failed because there was no evidence of justifiable reliance or a written contract, and appellee’s independent investigation negated reliance; and (3) appellee’s breach of contract claim failed because there was no evidence of a written contract. The trial court denied appellants’ motions, and the case proceeded to trial. A. Trial 1. Tiffany Ybarra Tiffany Ybarra is the sole owner of Infinite Play, which operated an indoor children’s play center in Corpus Christi, Texas from 2015 to 2017. Ybarra testified she created Infinite Play in early 2015 after seeing a need for children-based entertainment in the Corpus Christi area. Ybarra conceded she had no prior experience operating an entertainment or child-centered facility and stated she hired a friend and former co- worker, Celeste Rittgers, to assist her. Ybarra instructed Rittgers to “look for quality, safe playground equipment” for the business. According to Ybarra, Rittgers found Certified

Value’s website, and based on the website, the two women believed Certified Value to be the manufacturer of safe, indoor play spaces. At trial, Ybarra read aloud various portions of Certified Value’s website regarding its’ membership affiliations, 2 compliance with ASTM International (ASTM) safety standards, 3 and design, manufacturing, and installation warranties. 4 Ybarra additionally read several e-mails into the record. In early May 2015, Rittgers and Hampton began exchanging e-mails regarding appellants’ services. Ybarra and Rittgers traveled to Dallas, Texas to meet with Hampton and tour Certified Value’s facility on May 29, 2015. Ybarra testified that, ultimately, as a result of repeated assurances by Hampton, appellee and appellants entered into an oral agreement for the purchase and complete installation of an indoor play center for $119,762.03. On June 8, 2015, Rittgers confirmed via e-mail that the two companies were “[g]etting closer” to coming to an agreement regarding the finalized design. On June 10, 2015, Ybarra received a pro rata invoice via e-mail from Hampton. While a document titled “Terms and Conditions of Sale” was attached to the invoice, and the document contained multiple blanks throughout indicating a purchaser’s signature was required, Ybarra testified she never read or signed

2Certified Value’s website stated it was a member of the International Association for Amusement Parks and Attractions (IAAPA) and ASTM.

3 “[ASTM] is one of the largest voluntary standards developing organizations in the world,”

responsible for “develop[ing] technical documents that are the basis of manufacturing, management, procurement, codes and regulations for dozens of industry sectors.” Frequently Asked Questions, ASTM INT’L, https://www.astm.org/ABOUT/faqs.html (last visited Jan. 29, 2021). Certified Value’s website stated, in part, that it “constantly works to enhance [its] indoor playground material and component specifications so that they meet or exceed applicable U.S. ASTM F918 and EN71 European standards.”

4 The website stated Certified Value “designs, manufactures, and installs turnkey solutions that promote [the] health and overall wellbeing of children,” and its products were “made in North America.” The website also provided the following warranty: “[We are] so confident that our quality meets or exceeds industry standards that we will match any competitor’s written warranty and extend that warranty by one year.”

the terms and conditions nor was she ever asked to do so by Hampton. On June 15, 2015, Ybarra wired $60,000.00 to Certified Value. Hampton sent Ybarra another invoice on June 22, 2015, confirming receipt of the wire transfer; the invoice also contained attached terms and conditions. Ybarra submitted four requests for design modifications after payment; the last request was made on October 9, 2015, the day before the projected start of installation. 5 Installation was completed in November 2015. 6 Ybarra testified she was never billed for any modification requests.

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Certified Value, Inc. D/B/A Kidsteam and John Hampton v. Infinite Play Co., (Tex. Ct. App. 2021).

Certified Value, Inc. D/B/A Kidsteam and John Hampton v. Infinite Play Co. (Certified Value, Inc. D/B/A Kidsteam and John Hampton v. Infinite Play Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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