Eaton Metal Products, L.L.C v. U.S. Denro Steels, Inc. D/B/A Jindal United Steels Corp Jindal Saw Limited Jindal Enterprises Saw Pipes USA Inc And John McLaren

CourtCourt of Appeals of Texas
DecidedSeptember 30, 2010
Docket14-09-00757-CV
StatusPublished

This text of Eaton Metal Products, L.L.C v. U.S. Denro Steels, Inc. D/B/A Jindal United Steels Corp Jindal Saw Limited Jindal Enterprises Saw Pipes USA Inc And John McLaren (Eaton Metal Products, L.L.C v. U.S. Denro Steels, Inc. D/B/A Jindal United Steels Corp Jindal Saw Limited Jindal Enterprises Saw Pipes USA Inc And John McLaren) 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
Eaton Metal Products, L.L.C v. U.S. Denro Steels, Inc. D/B/A Jindal United Steels Corp Jindal Saw Limited Jindal Enterprises Saw Pipes USA Inc And John McLaren, (Tex. Ct. App. 2010).

Opinion

Affirmed and Memorandum Opinion filed September 30, 2010.

In The

Fourteenth Court of Appeals

NO. 14-09-00757-CV

Eaton Metal Products, L.L.C., Appellant

V.

U.S. Denro Steels, Inc. d/b/a Jindal United Steels Corp.; Jindal Saw Limited; Jindal Enterprises; Saw Pipes USA Inc.; and John McLaren, Appellees

On Appeal from the 344th District Court

Chambers County, Texas

Trial Court Cause No. 23322

MEMORANDUM OPINION

Eaton Metal Products, L.L.C. appeals from a grant of summary judgment favoring appellees, U.S. Denro Steels, Inc. d/b/a Jindal United Steels Corp.; Jindal Saw Limited; Jindal Enterprises; Saw Pipes USA Inc.; and John McLaren.  Eaton sued appellees, alleging breach of two contracts to produce steel plates of certain specifications.  Eaton also asserted claims for fraudulent inducement and negligent misrepresentation related to formation of the two alleged contracts.  On appeal, Eaton contends that the trial court erred in (1) striking Eaton’s Second Amended Petition; (2) striking certain summary judgment evidence; and (3) granting summary judgment favoring appellees.  We affirm.

I.  Background

            Eaton manufactures pressure vessels for oilfield applications.  The appellee corporations manufacture steel.  Appellee McLaren is a salesperson employed by Saw Pipes, Ltd.  In September 2004, Eaton’s purchasing manager, Ryan Falliaux, contacted McLaren regarding the manufacture of steel plates to be used in constructing pressure vessels for a customer named CDI.  To meet its contract obligations with CDI, Eaton needed steel of a certain specified grade delivered by a particular date.  According to Falliaux, McLaren stated that he had conferred with metallurgists for the corporate appellees, who had told him that they would be able to timely manufacture steel to meet Eaton’s requirements.  On October 8, 2004, Eaton issued a purchase order to Saw Pipes, Ltd. for six steel plates at $75,881.63, with delivery on November 26, 2004.  Saw Pipes, Ltd. then issued a written acceptance of the order.

On December 21, 2004, Falliaux placed an additional order for more steel plates with McLaren, this time to make pressure vessels for Duke Energy.  No formal acceptance of this order was issued.  On December 28, 2004, McLaren informed Falliaux that the steel plates could not be produced for either order.  Eaton then purchased the steel plates from another manufacturer for less than the price that had been quoted by McLaren.

            On November 11, 2005, Eaton sued appellees.  In its First Amended Petition, Eaton alleged:  (1) fraudulent inducement and negligent misrepresentation against McLaren; (2) vicarious liability for McLaren’s conduct against U.S. Denro Steels; (3) breach of contract against U.S. Denro Steels; (4) vicarious liability against Jindal SAW Ltd., Jindal Enterprises, and SAW Pipes USA for McLaren’s conduct and U.S. Denro Steel’s breach of contract; and (5) promissory estoppel against all of the defendants.  Eaton further made various allegations aimed at piercing the corporate veils of the corporate appellees.

            On March 17, 2009, appellees filed their First Amended Answer, alleging that Eaton had “improperly named defendants” in its petition.  On April 28, 2009, the parties entered into a Rule 11 agreement, setting several deadlines in the case, including a June 5, 2009 deadline for pleading amendments.   Subsequently, on May 13, 2009, the court granted a motion for continuance, moving the trial date from June 17 to August 10.  The court’s order, however, did not address whether the Rule 11 agreement would remain in force.  Appellees filed a Second Amended Answer on June 5, 2009, the last day to amend pleadings under the Rule 11 agreement.  In this pleading, appellees further elaborated on their assertion that Eaton had named the wrong defendants in its petition.  Over the next few weeks, the parties entered into three additional Rule 11 agreements to extend deadlines contained in the original Rule 11 agreement; however, at no point did the parties agree to extend the deadline for amending pleadings.

On July 10, appellees filed their motion for summary judgment, asserting both traditional and no-evidence grounds.  A hearing on the motion was set for July 31.  Eight days before the hearing, on July 23, Eaton filed its response to the motion for summary judgment and a second amended petition.  In the latter pleading, Eaton added SAW Pipes, Ltd. as a defendant, asserting that the failure to previously list that company was a misnomer.  Further, Eaton altered its breach of contract allegations to drop them against U.S. Denro Steels and raise them instead against Jindal SAW, Ltd., SAW Pipes USA, Inc., and SAW Pipes, Ltd.  Eaton further added claims for common law fraud as well as fraudulent non-disclosure against all of the defendants.  Lastly, Eaton added claims for “Contorts (Combinations of Contract and Tort Claims).”  In this category, Eaton alleged that the defendants committed negligence and breached duties of good faith and fair dealing, and to perform the contract and its conditions with care.

Appellees responded with a motion to strike the Second Amended Petition as untimely.  They also filed another motion to strike portions of two affidavits, one by David Bennett and one by Ryan Falliaux, attached as evidence to Eaton’s summary judgment response.  The court held a hearing as scheduled on July 31, 2009 and concluded by granting summary judgment favoring appellees.  Although the motions to strike were mentioned at the hearing, the court did not expressly rule on these motions before granting the summary judgment.  Thereafter, appellees specifically requested a written ruling on the motions.  At an August 27, 2009 hearing, the judge stated that he had read the motions before the summary judgment hearing and had taken them into consideration as part of his ruling.   He then expressly granted the motions and issued written rulings striking down the Second Amended Petition and sustaining all but one of the objections to the summary judgment evidence.

II.  Striking the Second Amended Petition

            In its first issue, Eaton contends that the trial court erred in striking its Second Amended Petition as being untimely.  More specifically, Eaton argues that (1) the amended petition was timely filed because the pleading deadline agreed to by the parties did not survive the court’s continuance of the trial setting; (2) appellees waived their arguments in their motion to strike by not obtaining a ruling prior to the trial court’s grant of summary judgment; and (3) the petition was proper as a trial amendment to conform the issues pleaded with those addressed in the summary judgment proceedings.  We will address each argument in turn.

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Eaton Metal Products, L.L.C v. U.S. Denro Steels, Inc. D/B/A Jindal United Steels Corp Jindal Saw Limited Jindal Enterprises Saw Pipes USA Inc And John McLaren, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eaton-metal-products-llc-v-us-denro-steels-inc-dba-jindal-united-texapp-2010.