Crisp Analytical Lab, L.L.C. v. Jakalam Properties, Ltd.

422 S.W.3d 85, 2014 WL 117415, 2014 Tex. App. LEXIS 339
CourtCourt of Appeals of Texas
DecidedJanuary 13, 2014
Docket05-12-01311-CV
StatusPublished
Cited by19 cases

This text of 422 S.W.3d 85 (Crisp Analytical Lab, L.L.C. v. Jakalam Properties, Ltd.) 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
Crisp Analytical Lab, L.L.C. v. Jakalam Properties, Ltd., 422 S.W.3d 85, 2014 WL 117415, 2014 Tex. App. LEXIS 339 (Tex. Ct. App. 2014).

Opinion

OPINION

Opinion by

Justice O’NEILL.

A jury found appellant Crisp Analytical Lab, L.L.C. (“Crisp”) liable for breach of an oral agreement and awarded appellee Jakalam Properties, Ltd. (“Jakalam”) $513 in damages. On appeal, Crisp argues (1) the trial court erred by entering judgment against it because, as a matter of law, an enforceable contract did not exist between the parties; (2) if an agreement existed, the evidence established Crisp did not breach it; and finally, (3) the trial court erred by entering an award of attorney’s fees based on the breach of the alleged contract. We affirm the trial court’s judgment.

Background

Jakalam buys warehouses, renovates them, and then leases them to tenants. In 2009, Jakalam bought a building, referred to as the Boyington Property. It was built in 1984. Like its other properties, Jaka-lam planned to renovate and lease it to tenants.

Jakalam hired Bullard Construction as the main contractor of the Boyington Property renovation. Jakalam also hired Pinnacle Environmental (“Pinnacle”) to gather samples from the Boyington Property for asbestos testing. The samples were then given to Crisp for testing. The original report from Crisp indicated the presence of asbestos in the building. Crisp gave the report to Pinnacle, who in turn provided the report to Jakalam.

Once Jakalam learned of the presence of asbestos, it shut down the Boyington project for proper abatement procedures. Jakalam contacted Bullard Construction and Bullard providing notice to all its subcontractors to stop work. Jakalam also contacted its attorney at Carrington, Coleman, Sloman & Blumenthal, L.L.P. to determine the legal requirements in such situations.

Jakalam’s attorney advised it to hire a firm to oversee the asbestos removal. Jakalam hired ATC, an asbestos abatement consultant service, to perform its own independent testing and removal of any asbestos. After ATC retested the property, it told Jakalam the property did not contain asbestos. ATC advised Jaka-lam to contact Crisp and ask that “specific point counts on specific samples” from the Boyington Property be tested. Crisp agreed to conduct the point counting.

Upon further testing, it was discovered that Crisp made a mistake in its initial testing of samples from the Boyington Property, and the building did not contain *88 asbestos. Crisp immediately contacted Pinnacle and informed it of the error. The error resulted in the Boyington project being on hold for four weeks.

Crisp has never denied that it made a mistake in the testing of the building; however, it disputes the conversations and alleged agreement between it and Jakalam to correct the error. Jakalam’s position is that the parties entered into an enforceable oral contract because Crisp agreed to make Jakalam “whole.”

Mike Cohen, the principle owner of Jakalam, testified at trial that he told Lee Crisp he estimated the damages caused by the mistake to be between $12,000 and $20,000. Cohen admitted no specific dollar amount was agreed upon because at the time, he was unsure of the exact damages caused by the delay. Cohen further testified that he understood Crisp’s agreement to make Jakalam “whole” to mean Crisp would reimburse for expenses incurred because of the mistake, even if Crisp disagreed or questioned the claims.

Lee Crisp testified Cohen told him the estimated damages would be between $10,000 and $12,000. Crisp further claimed he told Cohen he would look at any submitted reimbursement requests and pay what was legitimate and reasonable. He did not recall agreeing to make Jakalam “whole” and claimed ignorance to what that meant. The parties did not discuss a method or make an agreement as to what would happen if a dispute regarding the reasonableness of a request arose. Crisp testified he never intended to enter into a contract with Jakalam. He was merely trying to make it right “within reason.”

Based on Cohen’s understanding of the agreement, he submitted Jakalam’s first reimbursement request for $6,329.65 to Crisp. The invoice stated, “Not all expenses have been yet accounted for and given to Crisp Analytical for reimbursement.” Cohen noted on the fax cover sheet, “I will send you the other expenses as soon as I get them.” Crisp immediately sent a check for the requested amount, without any complaints. Cohen testified Crisp’s immediate payment fit within his understanding of the agreement.

Cohen later called Crisp regarding a second invoice. He told Crisp it “should be” the final invoice, told him the amount, and told him what the expenses covered. Cohen followed up by sending a written request for the discussed amount of $9,977.79.

In response to the second reimbursement request, Crisp called Cohen because he wanted an explanation for the Bullard Construction charges. Later, Crisp sent a check for $3,500 with a “Release Form ” letter explaining its position. The letter stated that the $3,500 covered the Bullard Construction estimate, but Crisp would not pay for Jakalam’s expenses to ATC, which covered the second asbestos survey because “[Jakalam] will have to pay some asbestos survey-it is required by law.” Crisp contended that Jakalam had already hired Pinnacle as its environmental consultant and paid $2,200 for its work, which Pinnacle later paid back to Jakalam. Crisp argued there was no reason for Jakalam to later hire ATC and spend another $2,700 because ATC and Pinnacle performed the same work.

Jakalam contended Pinnacle and ATC were hired to do different jobs, despite both being environmental consultants. Jakalam hired Pinnacle to conduct the general environmental survey when the Boyington project began, whereas Jakalam hired ATC to execute procedures to remove the asbestos only after asbestos was mistakenly identified on the property.

*89 Jakalam never cashed the second check because it did not want to release Crisp from its obligation to pay the full amount. When Cohen tried to discuss the difference in the amounts, Crisp refused and directed Cohen to talk to his lawyer.

Jakalam filed suit against Crisp, and the case was tried before a jury. Jakalam asked the jury to find that the parties entered into an enforceable contract, which Crisp breached, and award $9,478.44 in damages. The jury agreed with Jakalam, but awarded $513 in damages. This amount appears to represent the extra money Jakalam paid ATC over the amount it had originally paid Pinnacle.

Crisp appeals the jury’s determination that it breached an enforceable agreement. It also challenges whether Jakalam prevailed on its contract claim and was entitled to $49,500 in attorney’s fees.

Did the Parties Enter Into an Enforceable Contract?

In its first issue Crisp argues the trial court erred by entering judgment in favor of Jakalam on its breach of contract claim because the evidence established, as a matter of law, that an enforceable oral contract did not exist because the parties did not sufficiently define the essential terms of the alleged agreement. Jakalam responds that while the parties did not establish specific contractual terms, the terms were sufficiently definite to enable a court to fix the parties’ obligations and liabilities; therefore, the “lenient test for enforceability” is easily satisfied.

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Cite This Page — Counsel Stack

Bluebook (online)
422 S.W.3d 85, 2014 WL 117415, 2014 Tex. App. LEXIS 339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crisp-analytical-lab-llc-v-jakalam-properties-ltd-texapp-2014.