Denmax Energy Services, Inc. and Battle River Holdings, Inc. v. Lightpoint Engineering, LLC

CourtCourt of Appeals of Texas
DecidedMarch 7, 2024
Docket09-22-00120-CV
StatusPublished

This text of Denmax Energy Services, Inc. and Battle River Holdings, Inc. v. Lightpoint Engineering, LLC (Denmax Energy Services, Inc. and Battle River Holdings, Inc. v. Lightpoint Engineering, LLC) 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
Denmax Energy Services, Inc. and Battle River Holdings, Inc. v. Lightpoint Engineering, LLC, (Tex. Ct. App. 2024).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

__________________

NO. 09-22-00120-CV __________________

DENMAX ENERGY SERVICES, INC. AND BATTLE RIVER HOLDINGS, INC., Appellants/Cross-Appellees

V.

LIGHTPOINT ENGINEERING, LLC, Appellee/Cross-Appellant

__________________________________________________________________

On Appeal from the 284th District Court Montgomery County, Texas Trial Cause No. 19-05-06401-CV __________________________________________________________________

MEMORANDUM OPINION

Appellants Denmax Energy Services, Inc. (“Denmax”) and Battle River

Holdings, Inc. (“BRH”) (collectively “Appellants” or “Defendants”) appeal from a

jury verdict and final judgment rendered in favor of Appellee LightPoint

Engineering, LLC (“Appellee,” “Plaintiff,” or “LightPoint”). Before trial,

Defendants filed a motion for summary judgment, and the trial court granted partial

summary judgment in favor of the Defendants on Plaintiff’s claims for breach of

1 contract, declaratory judgment, and suit on a sworn account. Plaintiff’s remaining

equitable claims for quantum meruit and unjust enrichment were tried to a jury, and

the jury rendered judgment in favor of the Plaintiff.

On appeal, Appellants argue that: the express contract rule precludes an award

for quantum meruit or unjust enrichment; the evidence is legally insufficient to

support an award for quantum meruit or unjust enrichment; the trial court erred by

denying Appellants’ attorney’s fees that were awarded by the jury; the trial court

erred by awarding Appellee its attorney’s fees because there was no evidence or

insufficient evidence of presentment and because Appellee failed to segregate its

fees; and the trial court erred by finding Denmax and BRH jointly and severally

liable for damages and attorney’s fees. On cross-appeal, Appellee argues that the

trial court erred by requiring Appellee to elect remedies and by granting the

Appellants’ pretrial summary judgment on Appellee’s claim for breach of contract,

and Appellee argues that Defendants did not properly prove their attorney’s fees. As

explained below, we conclude that the trial court erred by granting Defendants’

pretrial motion for summary judgment on LightPoint’s breach of contract claim, and

we reverse and remand for a new trial.

2 Background 1

Denmax is a construction company owned by Trevor King (“King”), and

BRH is a separate entity owned by King that was created in February 2018 to

purchase the 32-acre tract of land located in Willis, Texas, which is involved in this

lawsuit. DMX Investments, LLC (“DMX”) is an entity owned by Denmax for

investments. 2 Denmax planned to build a commercial facility, maintenance and

fabrication shop, and equipment yard on the 32-acre site, subject to approval from

the City of Willis. The 32-acre site chosen by Denmax had previously been used as

a racetrack. Denmax anticipated that there would be 7 to 10 additional lots within

the 32-acre site that would be available for sale or lease for others to build offices

on. Denmax needed an engineering firm to draw up plans for the project.

On December 13, 2017, Denmax entered into a Professional Services

Agreement (“PSA”) with LightPoint, an engineering firm, for “preliminary

engineering services” for the Denmax project. The PSA defines Denmax as the

“client,” and it describes the services as including “Client Representation,

Consulting, and Land Planning[.]” The PSA states that LightPoint will charge a lump

1 Because our disposition of the case turns on Appellee’s second cross-point, which deals with the trial court’s partial grant of Appellants’ summary judgment motion, we will focus primarily on the record as it relates to that motion. See, e.g., Giant Res., LP v. Lonestar Res., Inc., No. 02-21-00349-CV, 2022 Tex. App. LEXIS 5070, at *2 (Tex. App.—Fort Worth July 21, 2022, no pet.). 2 LightPoint nonsuited DMX Investments, LLC (“DMX”) at trial, but DMX was still a party when the competing motions for summary judgment were filed. 3 sum of $3,500 for “Preliminary Engineering” for the development of the 32-acre

site. The PSA describes “Preliminary Engineering” to include “Client

Representation, Consulting, and Land Planning services.” The PSA also provides

that LightPoint shall invoice the Client monthly for time and materials, and a fee

schedule is attached to the PSA with an hourly billing rate for engineers, land

planner, administrative support, and in-house plotting. The PSA provides that the

Client’s failure to pay in accord with the PSA “shall constitute a material breach of

this AGREEMENT and shall be cause for termination” by LightPoint. Otherwise,

the PSA allows either party to terminate the agreement with written 30-day notice,

or “should either party fail to perform any material obligations.”

LightPoint’s Petition

LightPoint filed an Original Petition on May 9, 2019, against Denmax, BRH,

and DMX Investments, LLC. Thereafter, LightPoint filed amended petitions, and

the Fourth Amended Petition was the live pleading when the parties filed their

respective motions for summary judgment and at the time of trial. In the Fourth

Amended Petition, LightPoint alleged that in December 2017, it had entered into a

written contract with Denmax for “a preliminary engineering consultation” (the

PSA) regarding a former racetrack site (which is also referenced as a 32-acre site)

located in Willis, Texas. According to the petition, the preliminary engineering was

to help Denmax determine the prospects for commercial development at the site and

4 to help Denmax decide whether to purchase the site. Thereafter, BRH purchased the

site, although BRH was not a party to the PSA.

LightPoint alleged that at some later date, Defendants “Denmax and/or DMX”

also hired Plaintiff “to render full engineering, design, and coordination services to

the Site[.]” According to LightPoint, at a meeting in February of 2018, Denmax

offered LightPoint “one of the proposed lots on the Site in exchange for LightPoint’s

full engineering and design services[,]” and LightPoint called this agreement the

“Final Engineering Agreement[.]” LightPoint alleged that, in exchange for a lot,

LightPoint was to provide “full engineering and design services, which was to

include, [] signed and sealed construction drawings, drainage reports with

calculations, managing the approval of plans and the permitting process, and

coordinating with the City of Willis regarding development of and access to utilities

on the Site[.]” LightPoint further alleged that it completed its obligations under the

Final Engineering Agreement over a 14-month period.

LightPoint’s petition alleges that at some point, it became apparent that the

City of Willis might not allow a second building on the site. LightPoint had hoped

to use a lot at the site for its new headquarters, and if LightPoint could not construct

a building on the site, the land-for-services agreement would be “without value” to

LightPoint. The petition further alleges that Denmax made it clear that it still needed

LightPoint’s services and that LightPoint would be paid for its work. LightPoint

5 alleges that “Defendants requested that Plaintiff generate an invoice addressed to

BRH for the entirety of [Plaintiff’s] services so that payment could be made[,]” after

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Denmax Energy Services, Inc. and Battle River Holdings, Inc. v. Lightpoint Engineering, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denmax-energy-services-inc-and-battle-river-holdings-inc-v-lightpoint-texapp-2024.