C.S.R., Inc. v. Industrial Mechanical, Inc.

698 S.W.2d 213, 1985 Tex. App. LEXIS 7225
CourtCourt of Appeals of Texas
DecidedSeptember 19, 1985
Docket13-84-344-CV
StatusPublished
Cited by22 cases

This text of 698 S.W.2d 213 (C.S.R., Inc. v. Industrial Mechanical, 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
C.S.R., Inc. v. Industrial Mechanical, Inc., 698 S.W.2d 213, 1985 Tex. App. LEXIS 7225 (Tex. Ct. App. 1985).

Opinion

OPINION

SEERDEN, Justice.

This is an appeal from a judgment entered in a suit involving a contract dispute. Suit was initially filed by Mobile Crane, Incorporated against appellants for nonpayment for work performed by Mobile as a subcontractor to appellant, C.S.R. Appellant, U.S. Fidelity, as surety on C.S.R.’s performance bond, was named as a defendant in this suit. Mobile Crane’s claim against appellants was eventually severed out of this cause of action.

Appellants answered Mobile’s petition by way of a general denial. They also brought a cross-action against appellee and two additional cross-defendants. In their cross-action appellants alleged that C.S.R. had entered into a contract for the construction of three (3) microwave towers. C.S.R. thereafter contracted with appellee, at a cost of $255,763.00, for the prefabrication of component parts for the microwave towers. As part of this action, appellants asserted a D.T.P.A. 1 claim in which they alleged that appellee had misfabricat-ed many of the component parts and thereby caused C.S.R. to incur additional expenses. Appellants sought recovery of both damages and attorneys’ fees based upon a breach of warranty and a failure by appellee to fabricate the microwave components in a good and workmanlike manner.

Appellee filed a cross-action which, in part, sought recovery from appellant, U.S. Fidelity, as surety on the performance bond, for indebtedness under appellee’s contract with C.S.R. Appellee also filed an amended answer wherein it asserted that C.S.R.’s D.T.P.A. cause of action against it was both groundless and brought in bad faith, therefore making appellants liable to appellee for attorneys’ fees pursuant to § 17.50(g) of the D.T.P.A.

The trial court granted a directed verdict against appellants on their D.T.P.A. and breach of warranty causes of action. Based upon its directed verdict and the jury’s answers to special issues discussed hereafter, the trial court entered judgment for appellee both for damages and attorneys’ fees. We reverse.

In their first four points of error, appellants contend that there is an irreconcilable conflict between the jury’s answers to the first three special issues and their answer to special issue number six. We do not find such a conflict to exist. In response to the first three issues, the jury found that appellee 1) failed to deliver microwave components on the dates agreed; 2) misfabri-cated microwave components; and 3) such late delivery and/or misfabrication caused damage to appellant. By their answer to special issue number six, the jury found that appellee substantially performed its contract with appellant.

In the case of an alleged conflict, the reviewing court must consider each of the answers claimed to be in conflict and, disregarding the alleged conflicting answer, but taking into consideration all of the rest of the verdict, if one of the answers would require a judgment in favor of the plaintiff and the other would require a judgment in favor of the defendant, then the answers are fatally in conflict. Little Rock Furniture Manufacturing Co. v. Dunn, 222 S.W.2d 985 (Tex.1949), qualified by Bradford v. Arhelger, 340 S.W.2d 772 (Tex.1960). However, “[wjhere the jury findings are reasonably susceptible of two constructions, one of which would reconcile the findings in favor of the judgment, such reconciliation is mandatory in favor of the judgment that was rendered on the jury verdict.” Godde v. Wood, 509 S.W.2d 435, 442 (Tex.Civ.App.—Corpus Christi 1974, writ ref’d n.r.e.).

*216 The trial court defined substantial performance as:

One “substantially performs” a contract when there has been no willful departure from the terms of the contract, and no omission in essential points, and the contract has been honestly and faithfully performed in its material and substantial particulars, and the only variance from the strict and literal performance consists of technical or unimportant omissions or defects.

In construing building and construction contracts, where substantial performance of a contract is at issue, the measure of recovery is the contract price less the cost of completing or repairing the building to contract specifications. Warren v. Denison, 563 S.W.2d 299, 309 (Tex.Civ.App.—Amarillo 1978, no writ). See Hunter v. State, 570 S.W.2d 590 (Tex.Civ.App.—Waco, 1978, no writ); Ryan v. Thurmond, 481 S.W.2d 199 (Tex.Civ.App.—Corpus Christi 1972, writ ref’d n.r.e.). The jury found that $13,614.21 would compensate C.S.R. for its damages for “the late delivery and/or misfabrication” by appellee of the microwave components. Appellants plead that the value of the contract between C.S.R. and appellee was $255,763.00.

We hold that the jury was entitled to find both that appellee substantially performed under the contract and that appellant C.S.R. was entitled to $13,614.21 as compensation for its damages for “completing or repairing” the components to contract specification. We find no irreconcilable conflict between special issues one, two and/or three and special issue six. Appellants’ first four points of error are overruled.

Appellants next challenge the sufficiency of the evidence to support the jury’s finding to special issue 6. In considering a "no evidence” or “insufficient evidence” point of error, we will follow the well established test set forth in Glover v. Texas General Indemnity Company, 619 S.W.2d 400 (Tex.1981); Garza v. Alviar, 395 S.W.2d 821 (Tex.1965); Allied Finance Company v. Garza, 626 S.W.2d 120 (Tex.App.—Corpus Christi 1981, writ ref’d n.r.e.); CALVERT, No Evidence and Insufficient Evidence Points of Error, 38 Tex.L.Rev. 361 (1960).

We have reviewed the record in its entirety and find the evidence sufficient to support the jury’s finding. Appellants’ fifth point of error is also overruled.

In their sixth and seventh points of error appellants assert that an irreconcilable conflict exists between the jury’s answer to special issue 8 and their answers to special issues two and three. In their answer to issue eight, the jury failed to find that the components delivered by appellee were not merchantable and would not pass without objection in the trade. A finding that appellee misfabricated some of the microwave components does not per se establish that these misfabricated components were unfit for their intended purposes or that they were unmerchantable.

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Bluebook (online)
698 S.W.2d 213, 1985 Tex. App. LEXIS 7225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csr-inc-v-industrial-mechanical-inc-texapp-1985.