CTTI Priesmeyer, Inc. v. K & O LTD. PARTNERSHIP

164 S.W.3d 675, 2005 Tex. App. LEXIS 3397, 2005 WL 1034051
CourtCourt of Appeals of Texas
DecidedMay 5, 2005
Docket03-04-00051-CV
StatusPublished
Cited by61 cases

This text of 164 S.W.3d 675 (CTTI Priesmeyer, Inc. v. K & O LTD. PARTNERSHIP) 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
CTTI Priesmeyer, Inc. v. K & O LTD. PARTNERSHIP, 164 S.W.3d 675, 2005 Tex. App. LEXIS 3397, 2005 WL 1034051 (Tex. Ct. App. 2005).

Opinion

OPINION

BEA ANN SMITH, Justice.

The owner of an office and warehouse, K & 0 Limited Partnership, sued the general contractor, CTTI Priesmeyer, Inc., and others for cracks that developed in the concrete slab foundation of its building. 1 Prior to trial, K & 0 settled with all defendants except CTTI and Duke Garwood Architects, Inc. The jury found CTTI liable for breach of contract, and Garwood hable for its negligence. During trial, K & 0 entered into a high-low settlement agreement with Garwood. The trial court entered judgment on the verdict against CTTI and denied any settlement credits.

CTTI raises five issues urging that, as a matter of law, the parties’ subsequent contract regarding repair of the cracks in the slab was a novation of the original contract warranting the building, or in the alternative, that the jury’s failure to find novation was against the great weight and preponderance of the evidence. CTTI also relied on the “one satisfaction rule” to claim that it was entitled to settlement credits. We hold that the novation issue was properly submitted to the jury and that the great weight of the evidence does not preponderate against the jury’s verdict. Furthermore, we rely on the supreme court’s ruling in Crown Life Ins. Co. v. Casteel, 22 S.W.3d 378 (Tex.2000), to hold that the trial court properly denied the settlement credits because tortfeasors cannot be jointly and severally liable for contract damages, and that other contract defendants are only jointly and severally liable for breaches of contracts to which they are a party or that promise the same performance. We affirm the judgment of the district court.

BACKGROUND

In 1997, K & 0 entered into a contract with CTTI for the construction of an office and warehouse building. K & 0 also entered into a contract with Duke Garwood Architects, Inc. to serve as the architect on the project. As such, Garwood’s plans and specifications were incorporated as part of the overall contract documents. The source of the controversy in this case is the building’s slab foundation that CTTI poured in the summer of 1997. Construc *679 tion was substantially completed in October 1997, and K & 0 moved into the facility at the end of that month.

Cracks in the slab appeared as early as late August 1997, and continued to increase in both size and number as the building was occupied and used. K & 0 consulted with CTTI, Duke Garwood, and John Buford, the project’s engineer, regarding the cracks; they were told that the cracks were typical for a slab of that size. Buford recommended that K & 0 contact a concrete repair expert. The repair expert confirmed that the cracks were the typical result of concrete shrinkage and recommended that K & 0 wait about four to five months for the slab to cure completely. The expert recommended that after the slab had cured, epoxy be applied to repair the cracks. K & 0 obtained an estimate of $182,000 as the cost to complete such repairs.

Pursuant to the expert’s report and recommendations, K & O and CTTI entered into a new agreement in April 1998, in which CTTI agreed to make the recommended epoxy repairs in return for K & O’s final completion payment. Whether this new repair agreement was a novation of the original agreement is at issue on appeal. The agreement detailed the necessary repairs to the slab floor, and provided, in pertinent part:

“The work of this Agreement is subject to all terms of the General Conditions of the Contract for Construction (a part of the Construction Contract between the parties) (the “General Conditions”) with the exception of the payments provision of such General Conditions.” and
“Notwithstanding the terms of the parties’ Construction Contract dealing with resolution of disputes, it is the parties’ agreement that this Agreement shall govern the resolution of their dispute
regarding correction of cement floor slab problems in lieu of arbitration. All other terms of such Construction Contract shall apply to the extent practical.”

CTTI repaired a test area in December 1998, but never repaired the entire slab. As the slab continued to deteriorate, K & O became convinced that the recommended repairs would not stop the deterioration. K & O again consulted a concrete repair expert regarding the condition of the slab. This time the engineers and experts agreed that the slab had been improperly designed and constructed. The testimony at trial indicated that multiple factors contributed to the problems with the slab. Some of the problems were design related, such as the improper spacing of control joints and insufficient designated concrete strength. Other factors were related to the construction of the slab, such as misplacement of rebar and the use of materials other than those designated in the plans and specifications.

K & O filed suit in October 1999 against CTTI, Garwood, Commercial Indemnity Insurance Company (the surety on the repair contract), and MLA Labs, Inc. (the geotechnical firm that had performed testing on the site). K & O later joined Bums Construction, Inc., the subcontractor who provided the fill material for the slab base. CTTI joined John Buford, the project engineer, as a third-party defendant. Prior to trial, K & O settled with the surety, the geotechnical firm, and the fill subcontractor, and such settlements were read into the record at trial. Trial proceeded against CTTI, Garwood and Buford in April 2008. K & O alleged that CTTI breached both the original construction contract and the subsequent repair contract. K & O reached a high-low settlement agreement with Garwood before the case was submitted to the jury.

*680 Nine questions were submitted to the jury, of which four are the subject of this appeal: Question 1 — Did CTTI fail to comply with the construction contract; Question 2 — Was CTTI’s failure to comply excused by a new agreement; Question 3— What damages flow from a positive answer to question 1 and a negative answer to question 2; and Question 6 — What reasonable attorneys’ fees arise from a finding of breach of contract. Although K & 0 alleged in its pleadings that CTTI had breached the repair agreement, a question as to that breach was not submitted to the jury, and K & 0 did not object to such omission.

The jury found that CTTI had breached the construction contract, that CTTI’s breach was not excused by the repair agreement, and that Buford and Garwood were negligent. On the basis of its findings the jury awarded K & 0 $561,750 for CTTI’s breach of contract and $400,000 for attorneys’ fees. The jury also awarded K & O $187,250 for Garwood and Buford’s negligence, and further determined that 70% of the negligence that caused the damages was attributable to Garwood and 30% attributable to Buford. However, under the high-low agreement, K & O settled with Garwood for $190,000 for negligence damages.

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Cite This Page — Counsel Stack

Bluebook (online)
164 S.W.3d 675, 2005 Tex. App. LEXIS 3397, 2005 WL 1034051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ctti-priesmeyer-inc-v-k-o-ltd-partnership-texapp-2005.