Easy Living, Inc. v. Cash

617 S.W.2d 781, 1981 Tex. App. LEXIS 3705
CourtCourt of Appeals of Texas
DecidedMay 28, 1981
Docket18460
StatusPublished
Cited by6 cases

This text of 617 S.W.2d 781 (Easy Living, Inc. v. Cash) 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
Easy Living, Inc. v. Cash, 617 S.W.2d 781, 1981 Tex. App. LEXIS 3705 (Tex. Ct. App. 1981).

Opinion

OPINION

HUGHES, Justice.

Dr. Charles E. Cash and Dr. James H. Simmons (hereinafter referred collectively as the plaintiffs) instituted this suit against Easy Living, Inc., G. J. Roberts, Jr., John W. Hastings and Dudley Beadles (hereinafter collectively referred as the defendants) for injunctive relief and for monetary recoveries to which they were allegedly entitled under the Deceptive Trade Practices Act before its amendment in 1979 (Tex. Bus. & Comm.Code § 17.41 et seq., 1977) in connection with a construction contract. Easy Living counterclaimed for the balances allegedly due it under the contract and for foreclosure of its mechanic’s lien. Judgment in the trial court was rendered in favor of the plaintiffs and the defendants have appealed.

We reform the judgment of the trial court and affirm.

In April 1977 Easy Living contracted to remodel the dental offices leased by the plaintiffs at an original contract price of $57,596.00. Easy Living is a Texas Corporation specializing in remodeling jobs. Defendants Hastings and Roberts, respectively, are the president and vice president of Easy Living. The contract contained a schedule of payments based upon certain progress events. The final payment of $15,596.00 was due upon substantial completion. The contract also provided that if Easy Living stopped work “through act” of the plaintiffs, Easy Living could stop work and recover from the plaintiffs payment for all work executed and any loss sustained plus reasonable profit and damages.

The plaintiffs also executed a “Builder’s & Mechanic’s Lien (With Power Of Sale) Note” and a “Builder’s & Mechanic’s Lien Contract (With Power of Sale)”. Defendant Beadles is the named trustee in these instruments.

Pursuant to the terms of the contract certain changes in the contract specifications were made resulting in a net increase in the total contract price. The plaintiffs have paid Easy Living $46,210.00.

As work progressed on the improvements discord developed between the plaintiffs and Easy Living which culminated in the abandonment of the project by Easy Living and its subcontractors.

Easy Living thereafter caused the trustee, Beadles, to send a letter to the plaintiffs alleging substantial completion of the work contracted for and demanding payment of $12,726.70 as the amount due under the original contract and $5,795.40 as the amount due on the allegedly substantially completed changed orders. A foreclosure sale of the leasehold interest was threatened in the event the demand of payment was not satisfied.

The plaintiffs then filed suit against the defendants seeking: (1) damages against Easy Living for the costs necessary to hire another contractor to rework/complete the job attempted by Easy Living and for the loss of use of the facilities; (2) recovery under the DTPA of treble damages against Easy Living (plus costs and attorneys’ fees) arising from Easy Living’s deceptive trade practices, breach of warranty and unconscionable course of conduct — the abandonment of the work and the false unilateral declaration of substantial completion with an accompanying demand for payment and threatened foreclosure in bad faith with the intent of coercing plaintiffs to accept incomplete and defective work at the risk of further disruption of the practice of their profession; (3) recovery jointly and severally against Roberts and Hastings under the DTPA for the assertions made against Easy Living; and (4) injunction of the defendants from foreclosing upon the plaintiffs’ leasehold.

*783 The defendants denied the plaintiffs’ allegations and filed a counterclaim alleging substantial completion of the contract and seeking satisfaction of the demands made in the trustee’s letter to the plaintiffs plus attorneys’ fees, costs and interest.

The case was tried before a jury with 26 special issues submitted. Motions for judgment on the verdict were submitted by the plaintiffs and defendants.

The trial court rendered judgment awarding the plaintiffs $33,000.00 (three times the amount the jury found as the reasonable and necessary expense to plaintiffs to “repair, replace or correct” the work performed by Easy Living), permanently enjoining the defendants from selling the leasehold, denying the relief sought in the counterclaim, awarding attorneys’ fees to plaintiffs under the DTPA and assessing court costs against the defendants (excluding Beadles).

The first point of error is that the trial court erred in holding Easy Living liable for the cost to plaintiffs to complete the contract because the cost to complete was less than the unpaid contract balance.

The jury findings relevant to this point of error are that Easy Living made and breached an express warranty that the work and services to be performed under the contract would be performed in a good and workmanlike manner and the breach was a proximate cause of $11,000.00 of “reasonable and necessary expense to plaintiffs to repair, replace or correct such work” as was performed by Easy Living. The jury also found that the work was not substantially completed.

Easy Living insists that the plaintiffs’ measure of recovery is the excess of the reasonable and necessary costs of completion over and above the unpaid portion of the contract price.

The submission of issues concerning the breach of the express warranty that the work and services would be performed in a good and workmanlike manner and the award based thereupon evinces that the plaintiffs’ recovery was not for the benefit of their bargain to have the building substantially completed but rather to have the work which was completed performed in a good and workmanlike manner.

Obviously there is an intent that the contract be severable in the “Work Stoppage” clause (which provided that payment would be due for “all work executed” in cases which as this) and the payment schedule (which allowed the plaintiffs to withhold payment of $15,596.00 until the work was substantially completed). Easy Living’s measure of recovery treats the contract as an entirety.

We hold that the trial court was justified in awarding the plaintiffs $11,000.00 as actual damages for the expense to repair, replace or correct the work which had been performed. Young v. DeGuerin, 591 S.W.2d 296 (Tex.Civ.App. —Houston [1st Dist.] 1979, no writ). We overrule the first point of error.

It being our holding that actual damages of $11,000.00 were justified we also overrule the second point of error which asserts that the trial court erred in awarding treble damages under the DTPA. Woods v. Littleton, 554 S.W.2d 662 (Tex.1977).

Roberts and Hastings argue that the trial court erred in holding them personally liable for attorneys’ fees because the plaintiffs failed to obtain jury findings establishing that they were damaged or “adversely affected” under the provisions of § 17.50(a) of the DTPA. Although the trial court permanently enjoined all the defendants from foreclosing upon the plaintiffs’ leasehold, no personal liability for actual damages was adjudged against Roberts or Hastings. Beadles was not held accountable for attorneys’ fees.

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Cite This Page — Counsel Stack

Bluebook (online)
617 S.W.2d 781, 1981 Tex. App. LEXIS 3705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/easy-living-inc-v-cash-texapp-1981.