Country Village Homes, Inc. v. Patterson

236 S.W.3d 413, 2007 Tex. App. LEXIS 6627, 2007 WL 2332803
CourtCourt of Appeals of Texas
DecidedAugust 16, 2007
Docket01-03-01240-CV
StatusPublished
Cited by19 cases

This text of 236 S.W.3d 413 (Country Village Homes, Inc. v. Patterson) 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
Country Village Homes, Inc. v. Patterson, 236 S.W.3d 413, 2007 Tex. App. LEXIS 6627, 2007 WL 2332803 (Tex. Ct. App. 2007).

Opinion

OPINION

ELSA ALCALA, Justice.

Appellants, Country Village Homes, Inc., B & A Realty, Inc., M.B. Schauer Homes, Inc., Schauer Family Trust, and Monte B. Schauer (collectively Country Village), appeal a judgment, entered in accordance with the jury’s verdict, that awarded $550,000 in damages to appellees, Robert E. and Sherry Patterson, in a dispute over the construction of the Patter-sons’ house. The jury determined that the Pattersons owed Country Village nothing for various “extras” over and above the contract price; that the appellants, though ostensibly separate entities, acted as a single business enterprise (the Single Business Enterprise theory); that Schauer was responsible for the conduct of Country Village Homes, Inc. (the Alter Ego theory); that flaws in the construction of the house breached Country Village’s contract with the Pattersons; that the cost of repair was $300,000; and, that the difference between fair market value of the property had it been built properly and the fair market value of the property if repaired would be $250,000. The trial court entered judgment in favor of the Pattersons against Country Village Homes, Inc., B & A Realty, Inc., M.B. Schauer Homes, Inc., Schauer Family Trust, and Monte B. Schauer, jointly and severally, in the amount of $712,890.41. 1

On appeal, Country Village presents five issues, asserting that:

(1) Under article 2.21 of the Business Corporations Act, (a) any recovery on the common law theory of Single Business Enterprise is preempted; (b) the article’s requirement of actual fraud was not properly presented to the jury in the questions concerning the Pattersons’ Alter Ego and Single Business Enterprise theories; and (c) the evidence is legally and factually insufficient to support the *420 jury’s findings that the Pattersons proved their Alter Ego or Single Business Enterprise theories;
(2) Under the Residential Construction Liability Act, Country Village made a reasonable settlement offer or there was legally and factually insufficient evidence to prove otherwise, and the damages available to the Pattersons were thereby limited;
(8) The evidence generally was legally and factually insufficient to support the jury’s findings on liability and damages;
(4) The absence of certain evidence from the appellate record requires a new trial; and
(5) Country Village’s claim for “extras” was established as a matter of law, or alternatively the jury’s contrary finding was against the great weight and preponderance of the evidence.

We conclude that Country Village only preserved its sufficiency of the evidence arguments for our review. We hold that the evidence is legally and factually sufficient to support the jury’s findings. We affirm.

Background

Country Village Homes, Inc., a Texas corporation owned and operated by Schauer, built custom homes in certain subdivisions in northwest Houston. Schauer also controlled two other Texas corporations: M.B. Schauer Homes, Inc., a building company for other subdivisions; and B & A Realty, a land developer. Schauer was the sole shareholder, director, and president of all three corporations. The Schauer Family Trust was created by Schauer for the benefit of his family.

Robert Patterson and his wife Sherry, in their search for their “dream house,” found the Gleannloch subdivision and chose Country Village to construct their custom home. They selected architect Kirby Fleming, whom Schauer recommended, to design the house to their specifications.

The Pattersons and Country Village signed an earnest money contract in June 1999 for the purchase of the lot and the construction of the house for a total of $719,195 to be paid on a draw schedule. The contract expressly referenced and incorporated Fleming’s plans, and provided that “[i]n the event Purchaser desires any extras, Purchaser shall pay for said extras in advance.” 2 The contract, however, does not precisely match the plans; for example, it includes “Additional Conditions,” the first of which is “Stucco trim around windows,” whereas the plans called for cast stone around the windows. Shortly after signing the earnest money contract, the Pattersons granted Country Village a mechanic’s lien on the property.

The Pattersons actively participated in the construction of their house. They frequently visited the building site, and made many requests for changes in the plans. They requested that a first floor wall be moved to add space to the living area. They opted for eight-foot doors instead of six-foot doors. Sherry and her interior decorator opted for various upgrades from the original plans. Robert, who enjoyed cooking out, asked that a “summer kitchen” be built in the backyard; later, when dissatisfied with Country Village’s efforts, the Pattersons had most of the original summer kitchen demolished and brought *421 in an outside company to redo that part of the project.

In November 1999, the Pattersons asked Schauer what extras and overages they owed on upgrades they had already selected. Schauer presented them with an invoice totaling $11,564.96. Robert gave Schauer a cheek for $15,000 to cover the invoice and the price of a refrigerator that had been ordered but that had not yet been charged to Country Village. The Pattersons asked Schauer how much more they could expect to pay in extras; he told them that they would not owe more than an additional $15,000.

In April 2000, when preparing to close on the house, the Pattersons contacted Schauer again about extras. On April 14, Robert drove to Schauer’s office and received a bill for extras in excess of $100,000. Distraught, Robert called Schauer, who said that he had not yet reviewed the bill. The Pattersons did not pay this bill, and moved into the house on April 19 or 20.

On April 26, Schauer came to the house to meet with the Pattersons. The Patter-sons were joined by their real estate agent and them interior decorator. After arriving, Schauer spent nearly an hour in the backyard talking on his mobile phone. The real estate agent and the decorator left for other clients; after they were gone, Schauer came inside to talk. Schauer went with Robert into Robert’s office, and presented a second bill for extras. The listed extras totaled $88,709.01; after the deduction of certain credits, Country Village claimed that the Pattersons owed $54,854.01. Schauer did not bring any documentation to support the individual charges on the bill. Robert felt the second bill was “still ridiculous,” and included items for which the Pattersons had already paid outside of the boundaries of the contract. Robert believed that many of the items were charges that had accrued before Schauer provided the partial invoice for extras the previous December, but that had not been included in that invoice, which Schauer at the time said included all the charges that the Pattersons then owed. Schauer left without resolving the dispute.

Robert instructed the lender to send the last of the draw schedule payments to him instead of Schauer.

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Bluebook (online)
236 S.W.3d 413, 2007 Tex. App. LEXIS 6627, 2007 WL 2332803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/country-village-homes-inc-v-patterson-texapp-2007.