Courey International v. Designer Floors of Texas, Inc.

CourtCourt of Appeals of Texas
DecidedJanuary 15, 2010
Docket03-09-00059-CV
StatusPublished

This text of Courey International v. Designer Floors of Texas, Inc. (Courey International v. Designer Floors of Texas, 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
Courey International v. Designer Floors of Texas, Inc., (Tex. Ct. App. 2010).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-09-00059-CV

Courey International, Appellant

v.

Designer Floors of Texas, Inc., Appellee

FROM COUNTY COURT AT LAW NO. 2 OF TRAVIS COUNTY, NO. C-1-CV-04-276274, HONORABLE J. DAVID PHILLIPS, JUDGE PRESIDING

MEMORANDUM OPINION

Appellant Courey International (“Courey”) sued appellee Designer Floors of Texas,

Inc. (“Designer Floors”) for failure to pay half of the amount owed on a container of laminate.

Designer Floors counterclaimed that Courey had provided defective vinyl and composition tile in

two other shipments, for which Designer Floors had paid in full. At the bench trial, the parties

stipulated that Designer Floors owed Courey for the amount due on the laminate and tried the

counterclaim to the trial court. The trial court found for Designer Floors on the counterclaim,

awarded damages, and ordered Courey to retrieve the remaining tile from the warehouse of

Designer Floors. In eleven points of error on appeal, Courey argues that the evidence was legally

and factually insufficient to show that the tile was defective and properly rejected by Designer

Floors, that the court exceeded its authority in ordering Courey to retrieve the tile, and that Courey

is owed the amount due for the laminate and attorney’s fees. We affirm the judgment of the

trial court. BACKGROUND

Designer Floors ordered two containers of vinyl and composition tile from Courey.

According to the testimony of Donna Dixon,1 a partner at Designer Floors who oversees the

administrative side of the business, the first container of tile was ordered in November 2002 and

arrived on April 30, 2003. The second container of tile was ordered in January 2003 and arrived

before the first container, on April 11, 2003. Designer Floors also ordered a container of laminate,

which arrived on May 12, 2003. Designer Floors paid Courey for the two containers of tile and made

a payment for half of the amount due on the container of laminate.

In May 2003, Designer Floors began providing the Courey tile to subcontractors for

installation. Donna Dixon testified that, within 30 days of the initial installations, Designer Floors

began receiving warranty complaints from its customers indicating that the tile was “popping up”

and “cupping” due to a failure to adhere to the surface beneath it.2 Designer Floors handled the first

inquiries without contacting Courey, instead sending its subcontractors to correct the work.

However, additional customer complaints regarding installations of Courey tile arrived, coupled with

assertions from the subcontractors that they had done nothing wrong during the initial installations.

Designer Floors alerted Steve Poska, a Courey representative, about a possible defect in the tile

roughly two months after the initial installations. Designer Floors also contacted Erik Nordstrom

1 As the only two witnesses in this case, Donna Dixon and Michael Dixon, have the same last name, they will be referred to by their full names throughout this opinion. The facts recited herein are from their testimony and the exhibits admitted at trial. 2 In addition to the adhesion problems, Michael Dixon testified that each of the pieces of Courey tile exhibited a small imprint in the same shape as a cutout found on the boxes used to ship and store the tile.

2 of Quickstyle, a Courey distributor based in San Antonio, who along with Poska had met with

Designer Floors during initial negotiations regarding purchase of Courey tile.

Courey representatives recommended that Designer Floors use a different kind of

adhesive when installing Courey tile. Michael Dixon, the president and co-owner of Designer

Floors, testified that he felt that the type of adhesive recommended by Courey was improper. To test

this advice, Designer Floors arranged with Courey to perform a special installation at Colony Square,

a location requiring a tile reinstallation due to problems with Courey tile. At Colony Square,

Designer Floors reinstalled Courey tile in two units, using standard adhesive in one unit and adhesive

recommended by Courey in the other. Although Designer Floors had planned for Courey to attend

the installation, no representatives from Courey showed up on the agreed-upon day of the

reinstallation. The reinstalled Courey tile failed to adhere in either unit, “popping up” and “cupping”

regardless of the adhesive used. Four days later, Designer Floors replaced the tile in the Colony

Square units with tile from another manufacturer, receiving no complaints about the new tile.

In addition to consulting with Courey directly, Designer Floors also met with

Nordstrom to discuss the problems with the Courey tile. Nordstrom inspected installations where

the Courey tile was “popping up” and “cupping,” and Designer Floors performed a test at its office

for Nordstrom illustrating the adherence problems with the Courey tile.

After discovering the issues with the Courey tile, Designer Floors performed

numerous tile reinstallations with a different brand of tile. These installations occurred between July

and October of 2003. The reinstallations were done with the same adhesive that had originally been

used with the Courey tile, and in some cases the work was performed by the same subcontractor who

3 had originally installed the Courey tile. Designer Floors received no complaints about the

reinstallations.

On October 23, 2003, Designer Floors sent a fax to Nordstrom which stated that “a

decision was made to discontinue selling the [Courey] Capri tile. We have had problems with

installation of this material and we have also had feedback about installation from people doing their

own.” After indicating the amount of Courey tile still in stock, the fax stated, “We would like to

have the inventory picked up and be reimbursed for what we have and the warranty issues.” Donna

Dixon also sent an email to Nordstrom on December 3, 2003, again detailing the inventory of Courey

tile and stating, “We will accept a credit up to the amount that we owe Courey [for the laminate] but

will need a check on the remainder of the balance due us. We are still getting calls regarding this

tile and I expect that we will continue to get them.” Donna Dixon testified that Courey offered to

give Designer Floors a credit for the tile remaining in the warehouse, but that no credit has

been forthcoming.

Courey filed a suit on a sworn account to recover the unpaid balance on the container

of laminate. Designer Floors counterclaimed for breach of contract due to delivery of defective tile.

At trial, Courey and Designer Floors stipulated that Designer Floors had not paid Courey for half of

the container of laminate. In presenting its counterclaim, Designer Floors offered the testimony of

Donna and Michael Dixon, along with documents reflecting the locations, dates, and cost of the

reinstallations and copies of the fax and email sent to Nordstrom. Courey offered no witnesses or

evidence in defending itself against the counterclaim. The trial court found for Designer Floors on

the counterclaim and entered judgment ordering Courey to pay Designer Floors $27,246.64, a total

equaling the amount paid for the remaining Courey tile that Designer Floors had in its inventory, the

4 cost of making warranty replacements for Courey tile that had already been installed, interest, and

attorney’s fees, minus the amount owed to Courey for the laminate.

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