Community Development Construction Corp. v. Fleetwood Construction Co.

640 S.W.2d 331, 1982 Tex. App. LEXIS 4723
CourtCourt of Appeals of Texas
DecidedJuly 15, 1982
DocketNo. 18068
StatusPublished
Cited by2 cases

This text of 640 S.W.2d 331 (Community Development Construction Corp. v. Fleetwood Construction Co.) 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
Community Development Construction Corp. v. Fleetwood Construction Co., 640 S.W.2d 331, 1982 Tex. App. LEXIS 4723 (Tex. Ct. App. 1982).

Opinion

ON MOTION FOR REHEARING

WARREN, Justice.

This opinion is substituted in place and stead of the original opinion issued on May 20, 1982.

This is an appeal from a jury verdict awarding compensatory and exemplary damages for the breach of a building contract.

[332]*332THE PARTIES

Appellant Community Development Construction Corporation (CDCC) is a construction company which employed appellee Fleetwood Construction Company, Inc. (Fleetwood) by a written subcontract to perform most of the work in the erection of two warehouse buildings in Montgomery County. Woodlands Industrial Building Company, Inc. (Woodlands) and Timberlock Industrial Building Company, Inc. (Timber-lock) are the owners of the two warehouse buildings. United States Fire Insurance Company (U.S. Fire) entered into a bonding indemnity agreement with the owners after liens were filed by Fleetwood and Harry G. Black, d/b/a Parmer Steel Company (Parmer Steel). Parmer Steel, under a subcontract with Fleetwood, erected the steel superstructure necessary to the construction of the two buildings.

THE DISPUTE

On May 1, 1974, CDCC, the prime contractor, entered into a subcontract with Fleetwood whereby Fleetwood would supply all labor, materials, equipment and supervision necessary to the construction of two warehouses located in an area called The Woodlands in Montgomery County. The contract entered into was that type commonly called a “cost plus contract” in the building industry. Fleetwood was to be paid the cost of its construction plus an amount equal to 7% of its cost; such amount was not to exceed $790,242. Payment of 90% of the sums due Fleetwood for completed work was to be made by the 10th day of the following month; the 10% retained was to be paid 30 days after the completion of all work required by the contract. Fleetwood and its subcontractor, Parmer Steel, began the work under the contract and were paid the sum of $411,-832.80. In the early part of September 1974, a dispute arose. CDCC refused to make the payments which Fleetwood claimed it was due for its work performed in August, alleging that Fleetwood failed to perform the work according to its obligations set forth in the contract. As a result Fleetwood ceased construction. On September 9, a meeting was held and as a result thereof an agreement was reached whereby Fleetwood agreed to correct any defects and CDCC agreed to pay the August invoice. Fleetwood resumed construction, but after a few days it left the job permanently because it had not received payment of the August invoice.

THE PLEADINGS AND THE LAWSUIT

Fleetwood sued CDCC, Woodlands, Tim-berlock and U.S. Fire, the indemnitor, for breach of contract and for breach of the oral agreement of September 9, asking for compensatory as well as punitive damages. CDCC denied the breaches and filed a counterclaim against Fleetwood alleging numerous breaches of the contract by Fleetwood. On July 1, 1975, Parmer Steel filed a Plea in Intervention seeking payment of its invoice for its steel work and seeking a foreclosure of the lien it had perfected on the property. On October 12, 1979, an agreement was reached between appellants and Fleetwood whereby the dispute made the basis of the suit would be settled. In accordance with the agreement, appellants paid Fleetwood the sum of $15,000 and Fleetwood executed a written release in full satisfaction and discharge of any claim it had against appellants arising from the subcontract.

On October 12, 1979, a final judgment was entered in this cause decreeing that Fleetwood and Parmer take nothing on their actions against appellants and that CDCC take nothing on its suit against Fleetwood.

On October 30,1979, Parmer Steel filed a Motion for New Trial alleging that there was a mistaken understanding that Parmer Steel’s claim had been satisfied when in fact it had not. On November 5, 1979, an order was signed setting aside the final judgment insofar as it pertained to Parmer Steel’s plea in intervention. This caused the judgment pertaining to the claims between Fleetwood and appellants to become interlocutory.

[333]*333On April 7, 1980, Fleetwood filed a motion to set aside the judgment as it pertained to the claims between it and appellants.

On June 2, 1980, the court entered an order setting aside the judgment of October 12, 1979, as it pertained to Fleetwood and appellants.

On October 17, 1980, appellants filed a supplemental answer wherein it plead the release and payment in accord and satisfaction of the claims asserted by Fleetwood.

The Judge of the 189th District Court heard all motions and signed all orders prior to trial. The Judge of the 11th District Court presided over the trial on the merits and heard all post-trial motions.

At trial, the Release was offered into evidence without objection and Mr. Fleet-wood testified that he executed the Release and was paid the consideration stated therein. However, he further testified that pursuant to the trial court’s order of June 2, 1980, he returned the $15,000 to appellants, and they refused to accept it.

The case was submitted to the jury by 22 special issues inquiring of the jury whether (1)CDCC waived certain portions of the contract, (2) whether CDCC modified the contract, (3) whether CDCC ratified certain changes in the contract, (4) whether CDCC made certain representations to Fleetwood regarding the responsibilities of third parties for certain work and testing, (5) whether Fleetwood relied on these aforementioned representations and whether appellants were estopped to require compliance with the contract by Fleetwood because of the representation, (6) whether Fleetwood performed the required work in a good and workmanlike manner, (7) whether CDCC and Woodlands falsely promised at the September 9 meeting to pay the August invoice, (8) whether this promise was made with the intention of inducing or persuading Fleetwood to return to the jobsite and perform additional work, (9) whether Fleet-wood returned to the job, did additional work and incurred costs in reliance on the aforementioned promise, (10) whether CDCC misrepresented to Fleetwood that it would take responsibility for the proper placement of the fill dirt, (11) whether CDCC intended to induce Fleetwood to rely on the misrepresentation regarding the placement of the fill dirt, (12) whether Fleetwood relied on this misrepresentation and whether Fleetwood’s reliance on the misrepresentation caused it damage, (13) whether Fleetwood was entitled to exemplary damages, and (14) whether Fleetwood breached the contract by failing to complete the work in a manner contemplated by the contract.

Each of the jury’s issues was answered favorably to appellees and unfavorably to appellants.

The jury awarded Fleetwood $100,000 exemplary damages, $137,248.45 for work it completed but for which it was not paid, $30,000 for a bonus it would have earned under the contract had it been allowed to complete the contract and $33,900 for reasonable attorney fees. The jury awarded Parmer Steel $12,675 for attorney fees.

THE APPEAL

Appellants bring 16 points of error which urge that:

(1) It is entitled to judgment as a matter of law by reason of the release which bars appellee’s cause of action,
(2) there is no evidence or alternatively there is insufficient evidence to support the jury’s findings that CDCC made false representations to Fleetwood,

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640 S.W.2d 331, 1982 Tex. App. LEXIS 4723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/community-development-construction-corp-v-fleetwood-construction-co-texapp-1982.