Gilbert Limon and Martha Limon, Individually, and D/B/A Limon Hauling Co. v. J.T.B. Services, Inc.

CourtCourt of Appeals of Texas
DecidedApril 30, 2009
Docket03-07-00453-CV
StatusPublished

This text of Gilbert Limon and Martha Limon, Individually, and D/B/A Limon Hauling Co. v. J.T.B. Services, Inc. (Gilbert Limon and Martha Limon, Individually, and D/B/A Limon Hauling Co. v. J.T.B. Services, Inc.) 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
Gilbert Limon and Martha Limon, Individually, and D/B/A Limon Hauling Co. v. J.T.B. Services, Inc., (Tex. Ct. App. 2009).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN



NO. 03-07-00453-CV



Gilbert Limon and Martha Limon, Individually, and d/b/a Limon Hauling Co., Appellants



v.



J.T.B. Services, Inc., Appellee



FROM THE DISTRICT COURT OF TRAVIS COUNTY, 53RD JUDICIAL DISTRICT

NO. D-1-GN-00-000466, HONORABLE PETER M. LOWRY, JUDGE PRESIDING



M E M O R A N D U M O P I N I O N



Appellants Gilbert Limon and Martha Limon, individually and d/b/a Limon Hauling Co., (1) sued appellee J.T.B. Services, Inc. ("J.T.B.") for breach of contract and fraud. J.T.B. filed a motion for summary judgment, which the trial court granted. Limon Hauling appeals, arguing that the trial court erred in granting J.T.B.'s motion for summary judgment and in denying Limon Hauling's counter-motion for summary judgment. Because we hold that J.T.B. established that it was entitled to judgment as a matter of law, we affirm the order of the trial court.



BACKGROUND

J.T.B., a construction and demolition contractor, submitted a bid to the City of Austin ("the City") for demolition work at Remediation and Demolition Area 8 within Austin-Bergstrom

International Airport ("Area 8"). Prior to submitting its bid, J.T.B. solicited bids from subcontractors for hauling debris from Area 8. Limon Hauling submitted a bid for the subcontract, and J.T.B. used Limon Hauling's bid when submitting its own bid to the City.

As part of its bid, J.T.B. was required to demonstrate compliance with the City's minority-owned and women-owned business enterprises procurement program. (2) J.T.B. submitted a DBE Goal Compliance Plan detailing what percentage of the work on the contract would be subcontracted out to DBEs. (3) J.T.B. listed Limon Hauling as the DBE subcontractor responsible for "transportation and disposal of debris" at a price of $122,408, or 27.3% of the overall contract price.

J.T.B. was awarded the Area 8 project and signed a contract with the City on February 26, 1999 (the "City contract"). (4) On March 2, 1999, the director of the City's Small and Minority Business Resources Department sent a letter to Limon Hauling congratulating it on being awarded a subcontract with J.T.B. J.T.B.'s Project Manager, Steve Traina, testified in his deposition that J.T.B. also gave Limon Hauling verbal notice that Limon Hauling had been awarded the subcontract. According to Limon Hauling, it informed J.T.B. that it could start the job immediately. According to J.T.B., Limon Hauling said it did not have the necessary trucks and equipment to perform the work. J.T.B. then hired Pulido & Sons Trucking ("Pulido"), who had also submitted

a bid but was not a DBE, to perform the hauling work for the Area 8 project. (5) J.T.B. did not request permission from the City to substitute Pulido for Limon Hauling, as required by city ordinance. See Austin, Tex., Code of Ordinances § 2.9A-23 (2008) (governing post submission changes to DBE compliance plan).

According to Limon Hauling, when J.T.B. did not contact it about starting the job, Limon Hauling went to the airport job site and discovered that J.T.B. was using Pulido instead. Limon Hauling then filed a complaint with the City's Small and Minority Business Resources Department. On March 25, the City notified J.T.B. that the City contract would be terminated due to J.T.B.'s failure to comply with the DBE compliance plan--by failing to submit a signed letter of intent for each of its DBE subcontractors and by substituting Pulido for Limon Hauling--unless J.T.B. cured the violations within seven days. (6)

After being admonished by the City, J.T.B. negotiated a written contract with Limon Hauling for the "transportation of concrete, asphalt, structural & misc. steel, spoils, base materials,

and general demolition debris" ("the Limon subcontract"). The Limon subcontract stated that Limon Hauling would "serve as the sole transporter for, subcontract, off-site transportation associated with" the Area 8 project. Limon Hauling was to be paid $57.50 per hour for trucking services, plus $10 per load for recyclable materials not transported by Limon Hauling. J.T.B. and Limon Hauling signed the Limon subcontract on March 30, 1999. The next day, they signed the Letter of Intent (LOI) required by the City, which stated that:



The Prime Concessionaire [J.T.B.] and the DBE listed above [Limon Hauling] hereby agree that upon the execution of a contract for the above-named project between the Prime Concessionaire and the City of Austin, entering into a contract, the DBE will perform the scope of work for the price indicated above.



The "price indicated above" was a lump sum of $122,400.00. The same day that Limon Hauling signed the LOI, it signed a subcontract with Pulido ("the Pulido subcontract"), under which Pulido would perform all of Limon Hauling's duties under the Limon subcontract. Limon Hauling was to pay Pulido $50.00 an hour.

In February of 2000, Limon Hauling filed suit against J.T.B. for breach of contract and fraud and against Pulido for breach of contract, tortious interference with a contract, and fraud. (7) Limon Hauling alleged that J.T.B. continued to use Pulido and pay them directly after signing the Limon subcontract on March 30 and that it did not pay Limon Hauling all that it was owed under the Limon subcontract. In July 2004, Pulido and J.T.B. both filed motions for summary judgment, arguing that the only work that Pulido did for J.T.B. after March 31 was outside the scope of the

Limon subcontract. (8) Limon Hauling counter-claimed for summary judgment on its claims and asserted a new theory of breach--that J.T.B. owed a contractual duty to Limon Hauling before the Limon subcontract was signed and that J.T.B.'s initial hiring of Pulido was a breach of that duty. After a hearing, the trial court granted Pulido's motion for summary judgment in September 2004, but failed to rule on J.T.B.'s motion. Almost a year later, in August 2005, the trial court granted J.T.B.'s motion for summary judgment and denied Limon Hauling's counter-motion for summary judgment. (9)

Limon Hauling now appeals the trial court's order granting summary judgment in favor of J.T.B. and denying Limon Hauling's motion for summary judgment. Limon Hauling contends that J.T.B. failed to conclusively prove it was entitled to judgment as a matter of law. (10)



STANDARD OF REVIEW

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Gilbert Limon and Martha Limon, Individually, and D/B/A Limon Hauling Co. v. J.T.B. Services, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbert-limon-and-martha-limon-individually-and-db-texapp-2009.