Cocke v. White

697 S.W.2d 739
Court of Appeals of Texas·Decided August 30, 1985·No. 13-84-284-CV·Published·Cited by 31 cases

Opinions

OPINION

KENNEDY, Justice.

This is a suit under the Texas Deceptive Trade Practices Act wherein appellees sued appellant for defects in the home appellees purchased from appellant. The jury returned the verdict in favor of appellees. Damages were trebled pursuant to the 1977 version of this law. We affirm.

The facts of this case are essentially undisputed. On or about August 22, 1979, appellees and appellant executed an Earnest Money Contract for the purchase of a home which at that time was under construction. At the time of the execution of the Earnest Money Contract, the structure and exterior of the home were complete. The interior finishing was in progress. After the Earnest Money Contract was executed, the construction of the home continued. Appellees prepared a list of items needing correction or completion, but the list did not include the defects complained of in this ease. Several inspections were made by the appellees. The listed corrections were not complete at the time of closing, October 26, 1979. On that date, appellees and appellant agreed to place $1,500.00 of the purchase price into an escrow account to pay for the remaining items to be corrected. Subsequent to the closing of the house, work continued on the items needing repair. Later, the appellees discovered several additional defects (the fireplace, roof, rearyard drainage and the improper placement of a rear wall basep-late) which caused leaks, water pooling and water damage to the house.

This lawsuit was filed in 1982. While this suit was pending, the parties entered into a settlement and compromise agreement during May of 1983. Under the terms of this agreement, appellant was to pay the expenses of litigation and to deposit a letter of credit in the amount $30,-000.00 to secure the payment of the repairs. The letter of credit was valid for a period of ninety days from the date of issue. An architect was named to act as an arbitrator and to determine how the defects were to be repaired. That architect refused to serve. A lengthy discussion then ensued between the attorneys regarding the selection of an alternate architect. Apparently, there were communication difficulties between the parties and the architect who was ultimately selected. By the time an agreement was reached, the letter of credit had expired. Despite a number of requests, appellant did not renew the letter of credit, and no work could proceed.

The case was set for trial in February of 1984. At that time, appellant amended his pleadings. In those pleadings, which were the same pleadings upon which trial was had in this cause, the defense of compromise and settlement was not raised.

The case was again set for trial on May 21, 1984, and, at that time, the appellant orally urged the court to abate or to bar the case from going to trial on the grounds that the compromise and settlement agreement barred a trial. This plea in abatement was denied by the trial court, and the case went to trial before a jury. After appellees rested, appellant submitted a trial amendment raising the defense of compromise and settlement which was denied by the trial court. The jury returned a verdict in favor of appellees on the issues of im[742] plied warranty and on damages in the amount of $36,710.00. The trial court determined that this cause was governed by the Deceptive Trade Practices Act, TEX. BUS. & COM.CODE ANN. § 17.50, as in effect between May 23, 1977 and August 27, 1979, and therefore entered a judgment trebling the actual damages found by the jury as a matter of law and also awarding attorney’s fees. From this judgment, appellant brings ten points of error.

By his first through third points of error, appellant complains of the trial court’s action in refusing to permit appellant to raise the compromise and settlement agreement as a bar to the lawsuit by plea in abatement. We will assume without deciding that the settlement complied with TEX.R.CIV.P. 11 and is binding upon the parties. See Burnaman v. Heaton, 150 Tex. 333, 240 S.W.2d 288 (1951). However, such compromise and settlement agreement is an affirmative defense and, as such, must be affirmatively set forth in the pleadings. Burnaman v. Heaton, 240 S.W.2d at 291; Malloy v. Newman, 649 S.W.2d 155 (Tex.App.-Austin 1983, no writ); TEX.R.CIV.P. 94. Appellant’s first through third points of error are overruled.

Appellant, by his fourth and fifth points of error, complains of the trial court’s action in refusing to allow the defendant leave to file his first trial amendment alleging the affirmative defense of compromise and settlement because there was no showing of surprise or prejudice to the plaintiff and in refusing to allow appellant to put on evidence of the compromise and settlement agreement during the trial.

After appellees had rested, appellant filed a motion for leave to file a trial amendment. Trial amendments are governed by TEX.R.CIV.P. 66, which reads in pertinent part:

[I]f during the trial, any defect, fault or omission in a pleading, either of form or substance, is called to the attention of the court, the court may allow the pleadings to be amended and shall do so freely when the presentation of the merits of the action will be subserved thereby and the objecting party fails to satisfy the court that the allowance of such an amendment would prejudice him in maintaining his action or defense upon the merits. The court may grant a postponement to enable the objecting party to meet such evidence.

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Cocke v. White, 697 S.W.2d 739 (Tex. Ct. App. 1985).

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