H. Richards Oil Company v. WS Luckie, Inc.

391 S.W.2d 135, 1965 Tex. App. LEXIS 2647
CourtCourt of Appeals of Texas
DecidedMay 19, 1965
Docket11293
StatusPublished
Cited by14 cases

This text of 391 S.W.2d 135 (H. Richards Oil Company v. WS Luckie, 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
H. Richards Oil Company v. WS Luckie, Inc., 391 S.W.2d 135, 1965 Tex. App. LEXIS 2647 (Tex. Ct. App. 1965).

Opinions

PHILLIPS, Justice.

Harry Newton, Inc. was awarded a contract by the Texas Highway Department for a construction project in Milam County, Texas. The amount involved in the contract was $982,982.27. Harry Newton, Inc. was required to execute a bond in the amount of said sum and such a bond was executed with Commonwealth Insurance Company of New York.

Later, W. S. Luckie, Inc. became a subcontractor on this project and purchased from H. Richards Oil Company gasoline and other petroleum products. As of June 7, 1962, W. S. Luckie owed H. Richards Oil Company an alleged balance of $11,181.-16.

On July 3, 1962, H. Richards Oil Company furnished Luckie, Newton, Inc. and Commonwealth sworn accounts to which were attached copies of the invoices and credit memos. These were sent by certified mail, return receipts requested.

The account was not paid and Richards brought suit against Luckie, Harry Newton, Inc. and Commonwealth. Afterwards, by amended pleadings, Newton, Individually, was made a party defendant.

Luckie did not appear and wholly defaulted.

The case was tried on its merits and the jury found in answer to the two special issues submitted that the alleged invoices and credit memos had been attached to the sworn account received by Newton, Inc., Commonwealth and Luckie; the second issue which concerned attorney’s fees was withdrawn from the jury. Before this second issue was withdrawn, the parties hereto agreed that reasonable attorney’s fees in such a case would be $2000.00; however, Harry Newton, individually, Harry Newton, Inc., Luckie and Commonwealth did not agree that they were liable for any such attorney’s fees.

[137]*137The trial court entered a judgment in favor of H. Richards Oil Company against Luckie for $14,187.46, said amount being principal with accrued interest thereon from January 1, 1963, together with $2000.-00 as attorney’s fees and costs; and, against Harry Newton, Inc. and Commonwealth, jointly and severally with Luckie, for $5,-417.19, including attorney’s fees of $2000.-00, accrued interest and costs.

A take nothing judgment was rendered against Richards insofar as its suit against Newton, Individually, was concerned.

While, technically, H. Richards has been designated the appellant here, all parties are actually appellants and assign error to the judgment of the trial court. Where we do not refer to the parties herein by their names we will refer to H. Richards Oil Company as appellant and to Harry Newton, Inc. and Commonweath Insurance Company as appellees.

As we sustain appellees’ first three cross-points, briefed together, and must reverse and remand this case for another trial, we shall discuss these points first.

Appellees’ first three cross-points assign error to the trial court in admitting appellant’s request for admission to W. S. Luck-ie, Inc. and the answers thereto into evidence against the appellees because such admissions were hearsay as to the appellees; that these admissions were not admissible to prove liability of appellees under Article 5160 R.C.S., Vernon’s Ann.Civ.St. art. 5160 and consequently there was no evidence or insufficient evidence of any liability of ap-pellees under such statute.

Appellant had the burden of establishing through evidence that it was a claimant under Article 5160C1 and further that it had fulfilled the requirements of Article 5160B 2 in that it had fulfilled its contract either by performing the work required or delivering the materials ordered; that the work performed or the materials furnished was incident to or used on, the construction project covered by the bond; that its claim remained unpaid after the expiration of sixty days from the filing of the claim.

Appellants purported to fulfill these requirements by introducing certain requests for admissions addressed to W. S. Luckie, Inc. and the answers to such requests. The appellees objected to the introduction of Luckie’s admissions on the ground that they were hearsay and not binding upon or admissible against them, although as against Luckie such admissions would constitute proper evidence. The court overuled the objection.

These admissions of Luckie state, among other things, that Luckie was a subcontractor of Newton, Inc. (the prime contractor on the construction job in question) from December 1, 1961 through June 7, 1962. It is undisputed that Richards furnished petroleum products to Luckie, Inc. during such period. This, including the admissions hereinafter stated, was disputed and put in issue by appellees’ general denial. That [138]*138all such petroleum products furnished by Richards to Luckie during this period were used in connection with the construction of the highway project. That after allowing all credits, Luckie was still indebted to Richards in the amount of $11,181.16 for such petroleum products. That Richards requested Luckie to pay the balance of the account more than thirty days prior to the filing of this suit.

No other evidence was offered pertaining to these required elements of proof under Article 5160B.

It was error for the court to allow the admissions of one defendant as against all defendants where there was no showing that the defendant to whom the admissions were directed was an agent of the other defendants or had any authority to represent them. See Talbott v. Hogg, Tex.Civ.App., 298 S.W.2d 883, error dism. Also, Sanchez v. Caroland, Tex.Civ.App., 274 S.W.2d 114.

We sustain this point and reverse and remand this case for a new trial.

In view of a new trial we deem it necessary to discuss the several additional points of error raised by the parties hereto.

Appellant’s two assignments of error complain of the court’s construction of the notice provisions of Article 5160. Under appellant’s construction of Article 5160, H. Richards Oil Company could have recovered for materials furnished Luckie from March 1, 1962 through June 7, 1962. Under the construction of said Article given by the trial court, his recovery was limited to materials delivered from May 4, 1962 through June 7, 1962.

Appellant maintains that Section B(a) of Article 5160 3 is applicable as to the notices required for unpaid bills which requires a claimant as defined, among other requirements, to give the prime contractor notice within ninety days after the 10th day of the month next following each month in which labor was done or performed or material was delivered.

The trial court held that Section B(b) of Article 5160 applied. This section requires additional notices of claimants who do not have a direct contractual relationship with the prime contractor. It is undisputed that appellant H. Richards Oil Company did not have a direct contractual relationship with the appellee Harry Newton, Inc. His contractual relationship was wholly with W. J. Luckie, Inc. a subcontractor on the job.

We agree with the judgment of the trial court on this point.

Subsection (b) of Section B of Article 5160 is entitled “Additional Notices Required of Claimants Who Do Not Have a Direct Contractual Relationship With the Prime Contractor.”

[139]*139This subsection continues as follows:

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H. Richards Oil Company v. WS Luckie, Inc.
391 S.W.2d 135 (Court of Appeals of Texas, 1965)

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Bluebook (online)
391 S.W.2d 135, 1965 Tex. App. LEXIS 2647, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-richards-oil-company-v-ws-luckie-inc-texapp-1965.