Dal-Chrome Co. v. Brenntag Southwest, Inc.

183 S.W.3d 133, 2006 Tex. App. LEXIS 741, 2006 WL 305281
CourtCourt of Appeals of Texas
DecidedJanuary 27, 2006
Docket05-03-01643-CV
StatusPublished
Cited by54 cases

This text of 183 S.W.3d 133 (Dal-Chrome Co. v. Brenntag Southwest, 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
Dal-Chrome Co. v. Brenntag Southwest, Inc., 183 S.W.3d 133, 2006 Tex. App. LEXIS 741, 2006 WL 305281 (Tex. Ct. App. 2006).

Opinion

OPINION

Opinion by

Justice MOSELEY.

Dai-Chrome Company bought sulfuric acid from Brenntag Southwest, Inc. for use in its business. Later it sued Brenn-tag under the Deceptive Trade Practices-Consumer Protection Act (“DTPA”), asserting that the acid had been contaminated. Brenntag counterclaimed for unpaid invoices for chemicals it sold to Dal-Chrome. Based on a jury verdict in favor of Dai-Chrome and the parties’ stipulation on Brenntag’s counterclaim, the trial court entered judgment for Dai-Chrome for economic damages, additional damages, prejudgment interest, and attorneys’ fees after offsetting Brenntag’s damages, prejudgment interest, and attorneys’ fees on its counterclaim. Both parties appeal. In three issues, Dai-Chrome asserts the trial court erred by: (1) offsetting Brenntag’s damages from Dal-Chrome’s actual damages before calculating the limit on DTPA additional damages; (2) awarding Brenn-tag attorneys’ fees because the fees were not segregated between fees, incurred in its unsuccessful defense of the DTPA claim and fees incurred in presenting the counterclaim; and (3) awarding post-judgment interest at a lower rate than the rate in effect at the time from which the parties agreed post-judgment interest would be calculated. Brenntag brings three issues arguing the evidence is legally and factually insufficient to support the jury’s findings (1) that Brenntag violated the DTPA, (2) that it did so knowingly, and (3) of the amount of Dal-Chrome’s benefit of the bargain damages. Brenntag’s fourth issue asserts the trial court erred by awarding Dai-Chrome economic damages plus treble damages resulting in an award of quadruple damages.

For the reasons set forth herein, we modify the trial court’s judgment to avoid *137 the award of quadruple damages, and affirm the judgment as modified.

Background

Dai-Chrome sells refurbished and new chrome bumpers for motor vehicles. It uses various industrial chemicals in the chrome plating process. One of those chemicals is 93 percent tech grade sulfuric acid, which it uses to control the pH level in the plating baths. (Tech grade is the lowest grade of sulfuric acid and also the least expensive.) In 1998, Dai-Chrome started buying its sulfuric acid and other chemicals from Brenntag. Thereafter, several bumpers were rejected because the chrome was clouded or hazed after being plated. Other bumpers appeared acceptable, but were later returned after customers reported problems with the chrome peeling or becoming discolored. Over 400 bumpers were affected. Dai-Chrome claimed the sulfuric acid sold by Brenntag was contaminated, causing the plating process to fail. Dai-Chrome sued Brenntag for violations of the DTPA and for breach of warranty. Brenntag counterclaimed for unpaid invoices for chemicals sold to Dal-Chrome.

After resting its case, Dai-Chrome stipulated the invoices comprising Brenntag’s counterclaim were unpaid. After the close of the evidence, Dai-Chrome stipulated that the amounts on the invoices were due and owing to Brenntag; thus the counterclaim was not submitted to the jury.

The jury found that Brenntag had violated the DTPA by misrepresenting the quality and characteristics of the sulfuric acid, engaged in unconscionable conduct, and failed to comply with its warranty, all causing damages to Dai-Chrome. The jury also found Brenntag committed these acts knowingly. The jury determined Dal-Chrome’s actual damages totaled $99,840.55 and awarded $750,000.00 as additional damages based on the knowing finding. The jury also found the reasonable and necessary attorneys’ fees for Dal-Chrome in prosecuting its claim through trial were $165,000, and for Brenntag in prosecuting its claim through trial were $80,000.

Dai-Chrome moved for judgment on the verdict and Brenntag moved for judgment notwithstanding the verdict. The parties agreed to postpone the hearing on the motion for judgment; their agreement stated that “any post-judgment interest awarded shall be calculated beginning May 27, 2003.”

The trial court rendered judgment on October 24, 2003. It calculated the judgment by subtracting Brenntag’s damages on its counterclaim (as stipulated by the parties) from Dal-Chrome’s actual damages (as found by the jury) to arrive at a net actual damage amount for Dal-Chrome. The trial court then trebled this amount to determine the statutory limit on additional damages under the DTPA. Tex. Bus. & Com.Code Ann. § 17.50(b)(1) (Vernon Supp.2005). The judgment then totaled Dal-Chrome’s net actual damages, the limited additional damages, Dal-Chrome’s prejudgment interest, and its attorneys’ fees. From this total, the judgment subtracted Brenntag’s prejudgment interest on the counterclaim and Brenntag’s attorneys’ fees as found by the jury. The judgment awarded post-judgment interest on the net award to Dai-Chrome at the rate of ten percent per annum beginning May 27, 2003 as agreed by the parties.

Brenntag filed a timely motion for new trial. More than thirty days after the judgment was signed, Brenntag filed a motion to modify the judgment to reduce the post-judgment interest rate from ten percent to five percent per annum because the judgment was rendered after the effective date of the recently amended post-judg *138 ment interest statute. Tex. Fin.Code Ann. § 304.003 (Vernon Supp.2005). On January 16, 2004, during the period the trial court retained plenary power over the judgment, the trial court modified the judgment to reduce the post-judgment interest rate from ten percent to five percent, calculated from May 27, 2003. Both parties appeal the modified judgment.

Discussion

1. Sufficiency of the Evidence

We begin with Brenntag’s legal and factual sufficiency issues. Brenntag’s first three issues argue the evidence is legally and factually insufficient to support: (i) any of the liability findings against it; (ii) the “knowing violation” finding; and (iii) one element of Dal-Chrome’s economic damages finding. To evaluate the legal sufficiency of the evidence to support a finding, we must “determine whether the proffered evidence as a whole rises to a level that would enable reasonable and fair-minded people to differ in their conclusions.” Transp. Ins. Co. v. Moriel, 879 S.W.2d 10, 25 (Tex.1994); see also St. Joseph Hosp. v. Wolff, 94 S.W.3d 513, 519 (Tex.2002) (plurality op.). We view the evidence in the light favorable to the verdict, crediting favorable evidence if reasonable jurors could, and disregarding contrary evidence unless reasonable jurors could not. City of Keller v. Wilson, 168 S.W.3d 802, 807 (Tex.2005).

To evaluate the factual sufficiency of the evidence to support a finding, we consider all the evidence and will set aside the verdict only if the evidence supporting the jury finding is so weak or so against the overwhelming weight of the evidence that the finding is clearly wrong and unjust. See Cain v. Bain, 709 S.W.2d 175, 176 (Tex.1986); Dyson v.

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Bluebook (online)
183 S.W.3d 133, 2006 Tex. App. LEXIS 741, 2006 WL 305281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dal-chrome-co-v-brenntag-southwest-inc-texapp-2006.