Cooper v. Kruse-Reed, Inc.

554 S.W.2d 45, 22 U.C.C. Rep. Serv. (West) 683, 1977 Tex. App. LEXIS 3211
CourtCourt of Appeals of Texas
DecidedJuly 18, 1977
Docket8753
StatusPublished
Cited by2 cases

This text of 554 S.W.2d 45 (Cooper v. Kruse-Reed, Inc.) 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
Cooper v. Kruse-Reed, Inc., 554 S.W.2d 45, 22 U.C.C. Rep. Serv. (West) 683, 1977 Tex. App. LEXIS 3211 (Tex. Ct. App. 1977).

Opinion

ELLIS, Chief Judge.

Kruse-Reed, Inc. brought this action for damages based on an alleged breach of contract for the sale and installation of a grain dryer against Robert Cooper, d/b/a Amarillo Aeration & Temperature Co. Cooper denied breaching the agreement and counterclaimed against Kruse-Reed for an alleged anticipatory breach and for damages based on anticipated profits. Judgment was rendered on a jury verdict favorable to Kruse-Reed. In his appeal, Cooper has challenged the evidentiary support for the jury’s finding of breach and the damages assessed against him. We have concluded that sufficient evidence of probative force was submitted to support the jury’s findings as to breach and for the determination of the damages sustained. Affirmed.

Kruse-Reed, Inc., is a general construction contractor with James Kruse and L. F. Reed each owning 50% of the stock in the corporation. During the summer of 1973, it let subcontracts to Cooper for installation of grain dryers at two jobsites. One of these was at Hart Camp, Texas; the other was at Hill Feedlot in Dimmitt, Texas. The Hill Feedlot contract is the agreement primarily involved in this suit.

The Hill Feedlot contract called for construction of a 550 column dryer rated at 1500 bushels per hour. The dryer was to be delivered, wired and plumbed “as soon as possible.” Payment terms were 80% upon delivery of the dryer to the jobsite, 20% upon completion. The agreed price was $36,500.00. The contract was confirmed in writing and the confirmation was signed on August 21,1973. On that day, the concrete had been poured to meet the specifications of the dryer ordered. The parties apparently had contemplated that the dryer would be installed that fall, but Cooper failed to do so. On May 24, 1974, Cooper notified Kruse-Reed of his refusal to erect the dryer.

The project was completed without Cooper’s dryer. Kruse-Reed purchased a substitute dryer in Saginaw, Michigan, and transported it to the Hill Feedlot. This suit for breach of contract was instituted in December, 1974, and tried to a jury in April, 1976. Both contracting parties claimed damages for the other’s alleged breach.

The jury found that Cooper had breached the contract and assessed Kruse-Reed’s damages at $19,200.00. L. F. Reed was found not to have stated that he was not *47 “putting any more money into the construction of the Hill Feedlot job. At the trial, Cooper had claimed that Reed had made this statement and that such statement constituted a repudiation of the contract. The jury found that Cooper was entitled to no damages. Judgment for Kruse-Reed was rendered for the amount of the verdict plus prejudgment interest from May 24,1974. Cooper has appealed on four points of error.

In his first point, Cooper contends that the evidence produced was legally and factually insufficient to sustain a finding that he breached the contract. In his second point, Cooper contends that the jury’s finding, in response to special issue 2, that L. H. Reed did not state that he was not “putting any more money” into the Hill Feedlot job is against the great weight and preponderance of the evidence. The statement was alleged to have been made on September 4, 1973, when Cooper sent Hines, his agent, to present Kruse-Reed with an invoice on the Hart Camp job. According to Hines, Reed reacted by stating unequivocally that “he was not going to put anymore (sic) money” into the Hill Feedlot job. Reed testified that he told Hines that “until Jim Kruse got out of the hospital there wasn’t going to be anything done.” According to Reed, he did tell Hines, in effect, that he would not pay the bill then, but would defer payment until Jim Kruse had authorized the payment. Reed also testified that he was referring only to the Hart Camp job when he had this conference with Hines.

The evidence showed that in August, 1973, the parties contracted for a dryer to be erected “as soon as possible” at the Hill Feedlot job. Cooper argues that on September 4, 1973, he was prepared to deliver the dryer and L. H. Reed was informed of this fact. Cooper contends that Reed had refused to put any more money into the job. Cooper has taken the position that his readiness to perform constituted an offer or an attempt to perform and that Reed’s alleged refusal to pay frustrated his efforts to comply with the terms of the contract, i. e., to deliver “as soon as possible.” According to Cooper, Kruse-Reed should not be allowed to recover damages because Cooper’s performance was rendered impossible by Reed’s alleged refusal to pay. In our opinion, the evidence does not establish that Cooper was frustrated or impeded in any attempt to perform the contract.

The dryer was to have been installed in September or October, 1973. In September, Kruse notified Cooper he was ready for delivery of the dryer. Cooper informed Kruse that he was having trouble getting perforated metal for screens to be used in the dryer. Also, Cooper contended he could not install the dryer because Kruse-Reed had equipment and material at the jobsite which would interfere with the installation of the dryer, while Kruse-Reed contended that the material and equipment would not interfere with the installation. After October 5, however, nothing at the jobsite would have impeded Cooper’s work, and Kruse-Reed repeatedly urged Cooper to install the dryer. After it became obvious that the dryer would not be installed in time to dry the 1973 corn harvest, Cooper was told that he could erect the dryer in his spare time during 1974. Cooper apparently acquiesced in these terms because he did not protest them in any conversations he had with Kruse during the early part of 1974. Finally on May 24, 1974, Cooper advised Reed of his absolute refusal to erect the dryer. Cooper did not erect the dryer and Kruse-Reed purchased another dryer elsewhere. In our opinion, there is sufficient evidence of probative force to support the jury finding that Cooper breached the contract. Point 1 is overruled.

With respect to the second point, there was conflicting testimony concerning Reed’s conversation with Hines regarding the matter of the plaintiff’s plans to put more money into the Hill Feedlot job. The jury could have believed Hines’ version that Reed unequivocally refused to put more money into the Hill Feedlot job. Alternatively, the jury could have believed Reed’s representation to the effect he refused to pay Cooper’s bill only until Jim Kruse got out of the hospital to inspect the materials *48 and the job as was customary in their method of conducting the business. The jury could also have believed Reed when he testified that his statements concerned only the Hart Camp job. In our opinion, the finding that Reed did not make the statement that he was not “putting any more money” into the construction of the Hill Feedlot job is not against the great weight and preponderance of the evidence. Point 2 is overruled.

In his third and fourth points, Cooper has argued that the evidence was legally and factually insufficient to support submission of the damage issue to the jury or to support the jury’s finding on that issue. The damage issue was submitted in the following form:

“SPECIAL ISSUE NO. _4
“What sum of money, if paid now in cash, do you find from a preponderance of the evidence would fairly and reasonably compensate Kruse-Reed, Inc.

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Bluebook (online)
554 S.W.2d 45, 22 U.C.C. Rep. Serv. (West) 683, 1977 Tex. App. LEXIS 3211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooper-v-kruse-reed-inc-texapp-1977.