Gatx Tank Erection Corp. v. Tesoro Petroleum Corp.

693 S.W.2d 617, 1985 Tex. App. LEXIS 6789
CourtCourt of Appeals of Texas
DecidedApril 24, 1985
Docket04-83-00452-CV
StatusPublished
Cited by30 cases

This text of 693 S.W.2d 617 (Gatx Tank Erection Corp. v. Tesoro Petroleum Corp.) 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
Gatx Tank Erection Corp. v. Tesoro Petroleum Corp., 693 S.W.2d 617, 1985 Tex. App. LEXIS 6789 (Tex. Ct. App. 1985).

Opinion

OPINION

KLINGEMAN, Justice (Assigned).

This is a suit for damages involving alleged deceptive trade practices and breaches of warranty. Tesoro Petroleum Corporation sued GATX Tank Erection Corporation in a District Court of Dimmit County, Texas for damages alleging that GATX misrepresented certain characteristics of two large storage tanks sold by GATX to Tesoro. Trial was to a jury with numerous special issues submitted. All material special issues were found in favor of Tesoro and judgment entered for Tesoro on the basis of such jury findings. The jury found that Tesoro suffered damages in the amount of $56,943.88 which the trial court trebled. Attorney’s fees were also awarded to Tesoro.

Although many of the special issues and much of the testimony pertain to the question of liability, GATX does not appeal from this portion of the judgment, and its appeal is limited to the damages award, including the award of attorney’s fees.

In this opinion GATX will sometimes be referred to as appellant or defendant. Te-soro Petroleum Corporation will be called either Tesoro, plaintiff, or appellee.

In June of 1976, Tesoro requested several companies to bid on the construction of petroleum storage tanks at its refinery in Carrizo Springs. GATX submitted the successful bid. Construction on the tanks was completed in May of 1977. Although GATX built three storage tanks at Tesoro’s refinery, only two of the tanks designated by Tesoro as tanks nos. 23 and 24 are involved in this litigation.

Each of the tanks is designed to hold approximately 50,000 barrels of liquid products. Each has a fixed roof and an internal floating roof. The internal floating roof sits on top of the product, and is designed to rise and fall with the level of the product contained in the tank. Ten vent sections are cut out of the top of each of the tanks. *619 Five of the openings are designed exclusively for air ventilation. The remaining five vents are designed for both air ventilation and product overflow.

In its bid GATX specified that “venting for all tanks (including overflows for covered floating roof tanks) based on 2500 BBLS/Hour, Fill and Emptying Pumping Rates.” This notifies the purchaser that the overflow vents will allow 2500 barrels of products per hour to flow out of the tank, and is used by the purchaser to establish the maximum flow rate of products pumped into the tank. Tesoro contends that the overflow vent on tanks 23 and 24 could not accommodate the 2500 barrel per hour fill rate testified by GATX.

An accident occurred on April 8, 1978 at Tesoro’s Carrizo Springs refinery during the transfer of gasoline into tank 23, when a Tesoro employee overfilled tank 23, causing gasoline to spill out of the tanks through the overflow vents. Once the overflow was discovered, the transfer was stopped and clean-up operations were initiated. Tesoro’s employees subsequently climbed on top of tank 23 and discovered that the internal floating roof was no longer floating on the gasoline. After the tank was taken out of service, an inspection confirmed that the internal floating roof had indeed sunk to the bottom of the tank, causing damage to the tank. There is testimony that subsequent investigations showed that the tank did not have the specified venting protection. Tesoro made modifications and repairs to the tank which it deemed necessary. Tesoro subsequently brought this suit against GATX, claiming that the tanks were not as represented. The ease was tried before a jury and a number of special issues were submitted. The jury found that GATX had committed certain deceptive trade practices and breaches of warranty, and also found the amount of damages. GATX timely perfected its appeal.

After a careful review of the entire record and applicable authorities, we have concluded this case must be reversed because of (a) lack of proof of the reasonableness of the cost of repairs; (b) error of the trial court in awarding Tesoro attorney’s fees.

Since appellant has not assigned any points of error with respect to liability, that part of the judgment has become final. Appellant on his appeal complains only of (a) the award of damages; (b) the award of attorney fees to Tesoro. Appellant also contends that the damages for loss of use are contractually disallowed or in any event are limited in amount. A great deal of the testimony in the record pertains to the liability issues. This is understandable as liability was hotly contested in the trial court, but since appellant does not appeal from that portion of the judgment, we are not concerned with the issue of liability and will not discuss it in this opinion.

As hereinbefore indicated, the evidence as to damages is relatively sparse. The only evidence presented by Tesoro as to the cost of repairs is basically proof of the payment of certain invoices or accounts as to the repairs, without proof as to the reasonableness of such costs. Clearly there is proof as to the necessity of repairs to the tanks involved. However, under established principles of law it is necessary to prove both that such repairs were necessary and that the costs of repairs were reasonable.

It is incumbent upon the parties seeking recovery for the cost of repairs to prove the reasonable value of such repairs. Dallas Railway & Terminal Co. v. Gossett, 156 Tex. 252, 294 S.W.2d 377 (1956); Truck Farm, Inc. v. Allen, 608 S.W.2d 296 (Tex.Civ.App.—Dallas 1980, no writ); Frost National Bank of San Antonio v. Kayton, 526 S.W.2d 654 (Tex.Civ.App.—San Antonio 1975, writ ref’d n.r.e.); Hyatt v. Tate, 505 S.W.2d 373 (Tex.Civ.App.—Houston [1st Dist.] 1974, no writ).

This court in Frost National Bank of San Antonio v. Kayton, supra, held that there was no evidence to support the jury’s award for damages for repairs because there was no competent evidence concerning the reasonable cost of such repairs. In *620 such opinion this court quoted with approval the following holding in Dallas Railway & Terminal Co. v. Gossett, stating:

In some jurisdictions proof of the expenses incurred or paid for the treatment of personal injuries is regarded as presumptive evidence of the reasonable value of the services, provided the unreasonableness of the charges does not appear from other evidence. This rule has never been followed in Texas, and it is now well settled that proof of the amounts charged or paid does not raise an issue of reasonableness, and recovery of such expenses will be denied in the absence of evidence showing that the charges are reasonable.

294 S.W.2d at 382-383.

In Allright Inc. v. Lowe, 500 S.W.2d 190

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693 S.W.2d 617, 1985 Tex. App. LEXIS 6789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gatx-tank-erection-corp-v-tesoro-petroleum-corp-texapp-1985.