Checker Bag Co. v. Washington

27 S.W.3d 625, 2000 Tex. App. LEXIS 6052, 2000 WL 1238899
CourtCourt of Appeals of Texas
DecidedAugust 30, 2000
Docket10-98-332-CV
StatusPublished
Cited by122 cases

This text of 27 S.W.3d 625 (Checker Bag Co. v. Washington) 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
Checker Bag Co. v. Washington, 27 S.W.3d 625, 2000 Tex. App. LEXIS 6052, 2000 WL 1238899 (Tex. Ct. App. 2000).

Opinion

OPINION

BILL VANCE, Justice.

Lee Washington, as Country Fair Confections, manufactured and sold pre-pack-aged cotton candy to retailers. He bought the bags in which he packaged his cotton candy from Checker Bag Company. In early 1996, a problem developed with the shelf-life of his cotton candy. Washington blamed the problem on the bags which he bought from Checker Bag and sued, alleging violations of the Texas Deceptive Trade Practices Act (DTPA) and breach of contract. He sought damages for lost profits, injury to business reputation, and the value of the defective bags. A jury found that Checker Bag had violated the DTPA and breached its contract with Washington. After Washington elected to recover on the DTPA theory, the court awarded him a judgment for damages in the amount of $1,396,000, attorney’s fees of up to $130,000 (depending on how far an appeal was pursued), and pre- and post-judgment interest. Checker Bag brought this appeal.

In considering the twenty-four issues Checker Bag has presented for our review, we will determine that (1) Checker Bag’s attacks on the legal and factual sufficiency of the evidence to support the judgment are unavailing, (2) Washington’s recovery for both lost profits and injury to his business reputation does not necessarily constitute an impermissible double recovery, (3) the difference between the amount of damages found by the jury on the same element of damages in response to different theories of liability does not constitute an irreconcilable conflict in the verdict, and (4) Checker Bag’s failure to request that the jury be instructed to disregard a cross-examination question which contained an alleged attack on the integrity of its attorney forfeits its right to complain about that issue on appeal. Because we find no error, we will affirm the judgment.

I. BACKGROUND

Lee Washington operated a candy distributorship. At a customer’s suggestion, he began Country Fair Confections in his father-in-law’s garage in March, 1992. Washington concentrated on two main efforts — the manufacture and sale of prepackaged cotton candy and the sale of bulk-popped popcorn. This appeal involves the cotton candy “arm” of Country Fair.

Country Fair’s main business: the manufacture of cotton candy

Cotton candy is made of sugar and flossing, which is a coloring and flavoring additive for the sugar. The ingredients are combined together in a machine, referred to as a “tornado,” which melts the sugar into a liquid and spins it out into a pan. The spinning of the sugar causes it to cool into a light, fluffy string-like fiber along the edge of the pan. Workers physically *631 collect an individual-sized portion of the cotton candy from the pan -with a wand and place it into a plastic bag. The plastic bag containing the cotton candy is then placed on a conveyer belt which carnes it to a sealer machine. At the sealer machine, another worker feeds the open end of the bag into the machine to seal it closed. As the bags come off the sealer they are loaded into boxes for shipping.

Because cotton candy is made of melted sugar, it is highly sensitive to moisture. A cotton candy production line operates optimally within a narrow range of temperature and humidity. Washington attempted to keep the production area’s temperature between 40 and 50 degrees and its humidity level between 35 and 45 percent. If the humidity rose above 50 percent, production had to stop. This sensitivity to moisture does not end after the cotton candy is produced. If the candy is exposed to moisture after production it absorbs the moisture, dissolving the fibrous structure and ultimately resulting in the candy’s shrinking to a hard, powdery ball.

Cotton candy’s susceptibility to moisture requires that a special emphasis be placed on the bag in which it is packaged. All plastic bags allow a certain amount of moisture to penetrate. Apparently, the concern with pre-packaged cotton candy is limiting that amount to an acceptable level to give the product a reasonable shelf-life in the retailer’s store.

Country Fair’s search for a bag

One of the first decisions Washington faced was the choice of a bag in which to package his product. Originally, Washington copied the bag one of his competitors was using. However, he soon discovered why he had been asked to replace that competitor: the bag did not adequately protect the cotton candy from the moisture in the air as it sat on the shelf. Thus, he began a search for a new bag. In this search he contacted Checker Bag and spoke to Richard Wall. Wall recommended two different plastics to attempt to address the moisture problem. Ultimately, Washington began using a bag made from Mobil 150ASBX plastic film. From October 1992 until the summer of 1995, Washington bought the ASBX bag from Checker Bag for packaging his cotton candy.

Shortly after he started using the ASBX bag, though, Washington experienced some problems with it. In particular, the bag had a tendency to tear open around the hole at the top from which it was hung on display racks at the stores where it was sold. Wall recommended that Washington switch from the ASBX bag to a laminated bag, assuring Washington that it would provide the same moisture protection as the ASBX bag. According to Washington, he switched from the ASBX bag to a laminated bag, the 1200PP/60UBS bag (the 120 bag), to correct the problem with the marketing hole. A desirable side-effect of the change, though, was that the graphics on the bag could be enhanced. However, the 120 bag was too expensive for Washington to use, and he asked Wall to help him find another replacement bag.

Wall first suggested that Washington switch to a 700P/100CP laminated bag, again assuring Washington that it would provide the same moisture protection. However, Checker Bag had difficulty producing bags for Washington made from this material, and Wall told Washington that he would have to switch materials yet again. Wall suggested that Washington try a bag made out of some material which Checker Bag had acquired to manufacture a bag for another customer. After receiving assurances that bags from this material would also perform as the others had, Washington accepted the suggestion and began purchasing the new bags, the model 48PET. He received the first shipment of these bags on November 4,1995.

Country Fair’s search for a market

Early on in the life of Country Fair, Washington determined that he would seek to become the cotton candy supplier for the Blockbuster Video rental chain. When he contacted the corporation in *632 1992, he was told that he needed to “grow” his business before he would be considered for that role. He was advised, however, that he could seek to market his product to individual franchises, ie. stores that were not owned and controlled by the Blockbuster corporation. Even before Washington first spoke to Rich Wall about finding a better bag, he was supplying cotton candy to a Blockbuster franchise chain of between 25 and 30 stores. Washington used referrals from the first Blockbuster customer to get his cotton candy into other stores, ultimately selling directly to somewhere between 150 and 200 Blockbuster franchise stores.

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Bluebook (online)
27 S.W.3d 625, 2000 Tex. App. LEXIS 6052, 2000 WL 1238899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/checker-bag-co-v-washington-texapp-2000.