First Texas Bank v. Chris Carpenter

491 S.W.3d 729, 59 Tex. Sup. Ct. J. 1142, 2016 Tex. LEXIS 482, 2016 WL 3212497
CourtTexas Supreme Court
DecidedJune 10, 2016
DocketNO. 15-0172
StatusPublished
Cited by7 cases

This text of 491 S.W.3d 729 (First Texas Bank v. Chris Carpenter) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Texas Bank v. Chris Carpenter, 491 S.W.3d 729, 59 Tex. Sup. Ct. J. 1142, 2016 Tex. LEXIS 482, 2016 WL 3212497 (Tex. 2016).

Opinion

Chief Justice Hecht

delivered the opinion of the Court.

Chapter 95 of the Texas Civil Practice and Remedies Code limits a property owner’s liability for injuries to a contractor “who constructs, repairs, renovates, or modifies an improvement to real property”. 1 The court of appeals held that a person cannot be a contractor without an “actual” contract to perform specific work for stated compensation. 2 We disagree. In the context of Chapter 95, a contractor is simply someone who works on an improvement to real property. Here, however, the contractor was not engaged in the work covered by the statute. Accordingly, we affirm the court of appeals’ judgment but for different reasons.

First Texas Bank asked Chris Carpenter to investigate a leak in the Bank’s roof. For years, Carpenter was the Bank’s “go-to guy” for roof repairs. Carpenter reported that the roof had hail damage. The Bank decided to make an insurance claim and use the proceeds to repair the damage, and possibly make other repairs as well. The Bank 'asked Carpenter to show the insurance adjuster the damage. As Carpenter later testified:'

Q. - So the general plan was to make an insurance claim, get the adjuster out there, point out to him all the damages and at least make the immediate hail-related damage repairs, and if possible, make some of these [other repairs] that you had previously proposed?
A. Possibly take — right, maybe take the insurance proceeds. They may kick in more money to get the roofs completely redone. .'
Q. And it was your understanding you were going to be the guy to be making those repairs. That’s why they had you up there, correct?
A. That made sense, yes, sir.

The Bank’s roof has two tiers.. Carpenter and the adjuster climbed to the first tier using Carpenter’s ladder, then used a ladder the Bank had stored there to climb to the second tier. While descending from the second tier, Carpenter fell, crushing two vertebrae.

Carpenter sued the Bank, alleging that its ladder was defective. The Bank invoked Chapter 95, which “applies only to a claim: (1) against a property owner .,, for personal injury ... to ... a contractor ...; and (2) that arises from the condition or use of an improvement to real property where the contractor ... constructs, repairs, renovates, or modifies the improvement.” 3 Section -95.003 provides in part:

A property owner is not liable for personal injury ... to a contractor, subcontractor, or an employee of a contractor or subcontractor who constructs, repairs, renovates, or modifies an improvement to real property ... unless:
*731 (1) the property owner exercises or retains, some control over the manner in which the work' is performed ..!; and
(2) the property owner had actual knowledge of the danger or condition ... and failed to adequately warn. 4

The Bank contended that it could not be liable for Carpenter’s injuries because it did not control his work or know of any defect in its ladder. In response, Carpenter argued that Chapter 95 is inapplicable because he had no contract with the Bank and was therefore not its contractor, and because he was not engaged in the work described by the statute at the time he was injured. , The trial court granted summary judgment for the Bank.

The court of appeals reversed, holding that “Carpenter was not a ‘contractor’ as contemplated by the statute.” 5 The court reasoned that “the ordinary meaning of ‘contractor’ requires that there be an actual contract-' under which one party (the contractor) has agreed to perform a specific kind of work or task and be compensated therefor by another party.” 6 The'record did not' establish,- the court continued,

that the parties had entered into a contract for Carpenter to make any particular repairs or perform any work on the roof, whether to repair the leak Carpenter initially identified or.to repair the hail damage Carpenter discovered while investigating the leak. In fact, Carpenter testified that in discussing with Bank personnel a “plan” to file an insurance claim to fund the roof repairs, it was left undetermined whether the roof would be completely redone, depending on the amount of insurance proceeds received. Although Carpenter testified that he be.lieved he would be the person to make whatever repairs the .Bank decided to undertake, the parties had not yet gotten to the point of specifying what those repairs, would entail, whether Carpenter would indeed be the person to do them, and what the term's of compensation would be. 7

The court did not reach Carpenter’s argument -that Chapter 95 is .also inapplicable because he was not injured while performing any of the work described in the statute. 8 The court remanded for further proceedings,. -

-We granted the Bank’s petition for -review. 9

Chapter 95 does not define “contractor”, so we .give the word its ordinary meaning unless a more precise meaning is apparent from the- context of the statute, 10 Black’s Laiv Dictionary defines “contractor” generally as “[a]-party to a contract”, supporting the court of appeals’ conclusion and Carpenter’s argument,., but then adds, “[m]ore specif., one who contracts to .do work for or supply goods to another ... <a roofing contractor;^’, supporting the Bank’s argument. 11 Other dictionaries *732 give the same general and more specific definitions. 12

Chapter 95 is not a statute regulating contracting in general but one prescribing the conditions under which an owner is liable to someone working on improvements to real property. Its applicability turns on the kind of work being done, not on whether an agreement for the work to be done is written, or formal, or detailed. Many agreements for such work are informal. In Carpenter’s words, he was a “handshake guy” and worked for the Bank without “16 pages of contracts to paint or fix something.” The statute covers not only contractors who have agreements with owners, but their employees, subcontractors, and their subcontractors’ employees, none of whom would ordinarily have a contract with the owner. The statute cannot fairly be read to cover only contractors with formal written contracts, but still cover subcontractors and employees with no contracts at all with the owner.

As used in Chapter 95, a “contractor” is someone who makes improvements to real property. Carpenter was, by his own admission, the Bank’s roofing contractor. As a matter of law, he was a “contractor” under Chapter 95.

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491 S.W.3d 729, 59 Tex. Sup. Ct. J. 1142, 2016 Tex. LEXIS 482, 2016 WL 3212497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-texas-bank-v-chris-carpenter-tex-2016.