Great State Petroleum, Inc. v. Arrow Rig Service, Inc.

706 S.W.2d 803, 1986 Tex. App. LEXIS 12566
CourtCourt of Appeals of Texas
DecidedApril 2, 1986
Docket2-85-050-CV
StatusPublished
Cited by6 cases

This text of 706 S.W.2d 803 (Great State Petroleum, Inc. v. Arrow Rig Service, 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
Great State Petroleum, Inc. v. Arrow Rig Service, Inc., 706 S.W.2d 803, 1986 Tex. App. LEXIS 12566 (Tex. Ct. App. 1986).

Opinion

OPINION

HOPKINS, Justice.

This is a suit for damages to a drilling rig resulting from its derrick having been dropped while it was being transported.

We reverse and remand.

The drilling rig was owned by Great State Petroleum, Inc. (hereinafter Great State), and was damaged while it was being transported by Arrow Rig Services, Inc., d'/b/a Arrow Trucking Company (hereinafter Arrow Rig). Lincoln Insurance Company (hereinafter Lincoln), Great State’s insurance carrier, brought suit in Great State’s name to recover its subrogated claim based upon the casualty payment to Great State. Lincoln’s suit alleged causes of action in negligence, breach of contract of bailment, and sought recovery under the Texas Deceptive Trade Practices Act — Consumer Protection Act (hereinafter “D.T.P. A.”, or “the Act”), TEX.BUS. & COM. CODE ANN. sec. 17.50 (Vernon Pamph. *805 Supp.1986). Lincoln later added a claim against Great State for indemnity and mutual mistake in the settlement of the insurance claim for damages to the rig in question. Additionally, Arrow Rig filed a counterclaim seeking recovery from Great State for monies due, plus attorney’s fees, for other unrelated trucking services rendered by Arrow Rig to Great State.

The case was submitted to the jury upon special issues. The jury found that Great State should recover total actual damages of $50,414.18 from Arrow Rig ($33,235.84 for repair of the derrick, $12,500.00 for down time so as to repair the derrick, and $4,678.34 for damage to the rotary hose). Additionally, the parties stipulated that Great State owed Arrow Rig $51,427.46 on Arrow Rig’s counterclaim regarding its suit on account (minus $6,887.49 if a specified invoice was found to have been improperly charged to the account of Great State), and that Lincoln had paid Great State $44,581.18 on its insurance claim relating to this accident. The jury also found that $28,400.00 would compensate Great State’s attorneys as fees for their preparation and trial of this cause, but in response to the questions inquiring about the amount of attorney’s fees at the appellate level, the jury answered “-0-”. Lastly, the jury found that Lincoln’s payment to Great State was based upon mutual mistake on the part of both of those parties, and the extent of the overpayment was $9,167.00.

In its judgment, the trial court specifically stated that Great State was a consumer under the D.T.P.A., but that inasmuch as no net recovery was had by Great State, the court was not going to allow the doubling factor provided for by the D.T.P.A.; however, the court did award Great State attorney’s fees from Arrow Rig under the Act. The court’s judgment further allowed Lincoln recovery from Arrow Rig in the sum of $27,386.72 for damages to the rig, and awarded Lincoln a recovery against Great State in the sum of $17,194.46, plus pre-judgment interest. Costs were taxed against both Great State and Arrow Rig, both of whom have appealed portions of the trial court’s judgment.

We initially note that although the judgment makes no specific award of attorney’s fees, a careful mathematical computation of the total damages awarded by the jury and those which the court found were agreed to by the parties, indicates that a breakdown of the damage award is as follows:

(1) GREAT STATE
Owes: $44,581.18 to Lincoln (subrogation)
+ 51,427.46 to Arrow Rig (on counterclaim)
$96,008.64 Total Owed
Recovers: $50,414.18 from Arrow Rig (actual damages)
+ 28,400.00 from Arrow Rig (attorney’s fees at trial)
$78,814.18 Total Recovery
Net amount owed by Great State: $17,194.46 (This is the exact amount provided for in the judgment.)
(2) ARROW RIG
Owes: $50,414.18 to Great State (actual damages)
+ 28,400,00 to Great State (attorney’s fees at trial)
$78,814.18 Total Owed
Recovers: $51,427.46 from Great State (on counterclaim)
Net amount owed by Arrow Rig: $27,386.72 (This is the exact amount provided for in the judgment.)
(3)LINCOLN
Recovers: $44,581.18 from Great State (subrogation) (This is the exact amount provided for in the judgment: $17,194.46 from Great State, and $27,386.72 from Arrow Rig.)

*806 There does not appear to be any provision in the judgment regarding the jury’s finding that Lincoln overpaid Great State in the amount of $9,167.00.

The evidence revealed that Great State contracted with Arrow Rig to transport a drilling rig owned by Great State, which was insured by Lincoln. It is undisputed that on December 16,1981, while transporting the drilling rig in question, Arrow Rig dropped the derrick which is a part of the drilling rig, and that after the accident the derrick was damaged to the extent that it was unsafe and dangerous and could not be erected. The rotary hose was also damaged in the accident.

The evidence is conflicting with regard to both the amount which Great State would be required to expend so as to repair the damaged derrick, and the amount of time required to effectuate these repairs. Great State’s expert witness testified that he evaluated the damage to the derrick almost immediately after it was damaged, and the estimated repair cost was anywhere from $40-$50,000, and would require two to three week’s repair time in the shop. Arrow Rig’s expert witness testified that the repair work would only cost $15,000 and could be done in the field; this repair would take two and one half to three days. This witness further stated that to rebuild the entire thirty-year-old derrick would cost $35,400 and, according to this witness, the additional cost was attributable to repairing prior damage unrelated to the accident in question; the repair work to totally rebuild the derrick would take two to two and one-half weeks.

Great State’s president, Edward Blanchard, testified that Great State was losing approximately $5,000 a day for each day the derrick (and therefore the drilling rig) was not in use, and Great State might have been in jeopardy of losing its drilling contract with the lease holder if drilling had not commenced immediately after the accident. He stated that instead of repairing the derrick, Great State made a business decision and chose to acquire a new derrick for a purchase price of $81,900. The total actual drilling time lost by Great State as a result of these events was three days and five hours.

On April 12, 1982, Great State was paid $44,581.18 by its insurance company, Lincoln, in settlement of the property damage claim arising out of this incident.

Great State’s points of error one, two, three, six and seven all raise alleged error regarding the trial court’s special issue submission concerning Great State’s damages resulting from the damage to the derrick of the drilling rig.

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Bluebook (online)
706 S.W.2d 803, 1986 Tex. App. LEXIS 12566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-state-petroleum-inc-v-arrow-rig-service-inc-texapp-1986.