Conann Constructors, Inc. v. Muller

618 S.W.2d 564
CourtCourt of Appeals of Texas
DecidedJune 17, 1981
Docket12913
StatusPublished
Cited by22 cases

This text of 618 S.W.2d 564 (Conann Constructors, Inc. v. Muller) 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
Conann Constructors, Inc. v. Muller, 618 S.W.2d 564 (Tex. Ct. App. 1981).

Opinion

PHILLIPS, Chief Justice.

Appellees, Mr. and Mrs. Lawrence Kol-bert, agreed to purchase a house from appellant Conann Constructors, Inc., in 1970. Their next-door neighbor, appellee Dale E. Muller, purchased a lot from Conann and had another contractor build his house in 1972. The Kolberts’ house had a septic system in the front yard but it never worked properly. Effluence from the septic system ran from the Kolberts’ lawn onto Muller’s lot and down the street. Muller filed suit against the Kolberts for nuisance in April, 1975. The Kolberts then filed a third-party action against Conann for indemnification and for damages for breach of warranty, strict liability, fraud, and violation of the Deceptive Trade Practices Act (DTPA), 1973 Tex.Gen.Laws, ch. 143, § 1, at 322. The 1979 amendments to the DTPA, Tex.Bus. & Comm.Code Ann. § 17.50 (Supp. 1980-81), which modified the trebling of damages are not applicable to this case.

The jury found that the leakage of effluence from the Kolbert property onto the Muller property was a temporary nuisance. Muller was awarded $10,000 for nuisance and $7,125 for lost rental value against the Kolberts. The jury also found that Conann had breached an implied warranty by failing to provide a septic system suitable for the purpose for which it was intended. The Kolberts were awarded $17,125 against Co-nann for indemnification of Muller’s award. For the breach of the implied warranty they were awarded $10,000 for cost of repairs, $4,200 for increased maintenance costs, $2,000 for several trees that will be lost when the septic system is repaired, and $5,000 for mental anguish. This sum, $21,-200, was trebled under the Deceptive Trade Practices Act. The Kolberts were also awarded $18,500 for attorney’s fees. The total judgment against Conann was $99,225.

Conann contends that the two-year statute of limitations is applicable on the claim for breach of warranty, and that the statute of limitations had expired before the Kolberts filed their third-party action against them. We do not agree.

The Kolberts signed the Contract to buy the house in January, 1970. Muller filed suit in April, 1975. The Kolberts filed a third-party action against Conann in June, 1975. The Kolberts proved that they entered into a written contract with Conann who was to build the house and septic system. The Kolberts are not alleging that Conann failed to build something that was agreed to orally but that the septic system, which was part of the house that was contracted for in writing, was not fit for the purpose intended. The Texas Supreme Court has held “that a warranty which the law implies from the existence of a written contract is as much a part of the writing as the express terms of the contract, and the action to enforce such a warranty is governed by the statute pertaining to written contracts.” Certain-Teed Products Corp. v. Bell, 422 S.W.2d 719, 721 (Tex.1968). 1841 Tex.Gen.Laws, An Act of Limitations § 1, at 163, 2 H. Gammel, Laws of Tex. 627 (1898) 1 provided for a four-year statute of limitations for actions based on written contracts.

Kolberts’ cause of action arose in August or September, 1971, when they discovered that the septic system did not work properly. Richman v. Watel, 565 S.W.2d 101 (Tex. *567 Civ.App.), writ ref’d n. r. e., per curiam, 576 S.W.2d 779 (Tex.1978). Summers v. Bransford-Hinds Building Co., 388 S.W.2d 947 (Tex.Civ.App.1964, writ ref’d n. r. e.). From the time that the Kolberts discovered the defect in the septic system, to June 1975, when they filed a third-party action against Conann, is less than four years. The Kolberts are not barred by the statute of limitations.

Conann’s claim that the implied warranty was replaced with an oral express warranty does not change the statute of limitations. A modification or exclusion of an implied warranty on a new house must be in writing. MacDonald v. Mobley, 555 S.W.2d 916 (Tex.Civ.App.1977, writ ref’d n. r. e.).

Conann also contends that the septic system is not defective. They argue that the same type of system has worked in many other areas and that if the Kolberts’ septic system had been installed in another lot, it would work perfectly. The fact that a septic system could work properly on another lot is immaterial. The question is whether this system was fit for its intended purpose—a sewage disposal system for the Kolberts’ house and lot. There is evidence in the record that effluence from the Kol-berts’ septic system rose to the surface on their lawn and ran onto Muller’s property and down the street. This would not occur if the system worked properly. The system Conann sold to the Kolberts was intended to dispose of the sewage from the Kolberts’ house. There was testimony that it did not do so. There was sufficient evidence to support the finding that the implied warranty of fitness for the intended purpose was breached.

We affirm the judgment of $10,000 for repairs to the septic system, $4,200 for additional costs for maintenance of the septic system, and $2,000 for several trees that will be lost when the septic system is repaired.

Conann also claims that the Deceptive Trade Practices Act was not violated, but if it was violated, the trial court improperly trebled the damages that occurred before the DTPA was enacted. As stated above, the jury found that the Kolberts’ septic system was not suitable for the purpose intended. They also found that Conann, after July 1,1973, failed to disclose that the septic system could be repaired. This failure to disclose was found to be false, misleading, and unconscionable and was found to have adversely affected the Kolberts.

The DTPA became effective on May 21, 1973. Even though a house was purchased and defects were discovered before the effective date of the DTPA, a buyer may recover damages which result from a violation of the DTPA. Woods v. Littleton, 554 S.W.2d 662 (Tex.1977). There was testimony that the septic system never worked properly since the time the house was sold to the Kolberts in 1971. The cost of repairs, increased maintenance and the potential loss of several trees are damages that resulted from the failure of the septic system to function properly. They did not result from any acts or omissions occurring after the effective date of the DTPA and therefore cannot be trebled under the DTPA. The trial court erred in trebling the $16,200 in damages that resulted from the breach of the implied warranty.

The Kolberts point to two short pieces of testimony that they claim show that they suffered mental anguish as a result of the nondisclosure. Mr. Kolbert testified as follows:

“Q Now, about how many years has this problem been going on, Mr. Kolbert?
A Well, this being 1978, we bought the house in ’71.
Q So, roughly six or seven years?
A Yes, sir.

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