Haire v. Nathan Watson Co.

221 S.W.3d 293, 2007 WL 529916
CourtCourt of Appeals of Texas
DecidedMarch 29, 2007
Docket2-06-107-CV
StatusPublished
Cited by24 cases

This text of 221 S.W.3d 293 (Haire v. Nathan Watson Co.) 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
Haire v. Nathan Watson Co., 221 S.W.3d 293, 2007 WL 529916 (Tex. Ct. App. 2007).

Opinion

OPINION

BOB McCOY, Justice.

I. Introduction

In three issues, Mark Haire and Karen Haire (collectively the “Haires”) assert that the trial court erred in granting Fug-ro South, Inc.’s (“Fugro”) and Nathan Watson Company’s (“NWC”) motions for summary judgment.

II. Factual and Procedural Background

This is the case of the floundering foundations. In October 2001, the Haires purchased a home at 6202 Snow Ridge Court in the Hunter Pointe subdivision of Arlington. The Haires bought the residence in “as is” condition from Prudential Relocation. Sovereign Homes Corporation (“Sovereign”) built the residence in question. NWC was the developer of the subdivision and according to NWC, it had no contractual relationship, or any other relationship for that matter, with the Haires, and had no role in the construction of the residence or its foundation. According to the Haires, NWC, as developer, had the duty of preparing the individual lots so that they could adequately support a home. Moreover, the Haires claim that providing these services gave rise to the implied warranty that the Haires’ lot would be prepared in a good and workmanlike manner.

The Haires alleged that in late February and early March 2002, they began having structural problems with their home, including cracks in the walls, uneven floors, and doors that would not close properly. Subsequent investigations revealed excessive swelling of the soils beneath the home, and that the home was not designed and constructed in a manner that would accommodate this excessive swelling. The Haires claimed that because of these design and construction failures, their home sustained major and irreparable damages to its foundation.

Hunter Pointe subdivision contains numerous homes that have likewise experienced serious foundation problems, resulting in substantial and extensive repairs for those homes. Fugro was the geotechnical engineering firm hired to perform soil analysis of the Hunter Pointe subdivision, including the Haires’ residence, in the initial development stages of the subdivision. This professional analysis purported to serve as a basis for the foundation design of the homes within the subdivision.

The Haires’ sales contract contained “as is” language in both the body of the agreement and the attached “rider.” By entering into the sales contract, the Haires agreed in three separate places to purchase the residence “as is.” Also enclosed with the sales contract were (1) the original homeowner’s disclosure, which detailed foundation concerns in the neighborhood, 1 and (2) a copy of a report on the foundation by structural engineer George Purdue noting previous foundation movement and resulting damage to the house. Finally, the Haires retained their own inspector, who examined the foundation and offered his assessment regarding the foundation and the maintenance that would be required.

The language in the Haires’ contract, utilizing a Texas Real Estate Commission (TREC) form, states the following:

PROPERTY CONDITION ...
*297 ... D. ACCEPTANCE OF PROPERTY CONDITION: (check one box only): [ ](1) In addition to any earnest money....
[X] (2) Buyer accepts the Property in its present condition; provided Seller, at Seller’s expense, shall complete the following repairs and treatment: REFER TO PRUDENTIAL RELOCATION RIDER. [Emphasis added.]

The rider incorporated into the Haires’ sales contract contains additional “as is” language. Specifically, section 2 of Prudential’s rider to the purchase agreement (“rider”) states the following:

Condition of Premises: Buyer understands that Seller is a relocation management company.... The Property ... being sold and purchased [is] not new, and [is] being sold “as is” — in [its] present condition. Buyer acknowledges that Buyer is not relying on any representations, statements, guarantees or warranties concerning the Property, made by anyone, prior or subsequent to closing, including but not limited to, representations regarding ... the condition of the Property.... [Emphasis added.]

Further, section 5 of the rider states the following:

Buyer’s Duty to Inspect/Test: Although the Property is being sold “as is” — in its present condition, Buyer has the right to inspect or to have the Property inspected by others on Buyer’s behalf to determine the existence of defects, if any. [Emphasis supplied.]

On September 3, 2003, the Haires filed suit against NWC and Fugro, parties with whom they had no prior relationship. Fugro filed its answer on October 23, 2003, and NWC filed its original answer on January 8, 2004. On February 20, 2004, the Haires filed their second amended original petition in which they alleged that NWC and Fugro were negligent and breached implied warranties under the Texas Deceptive Trade Practices Act (“DTPA”).

Fugro filed its motion for summary judgment on July 12, 2005, and as grounds for the motion argued that “(1) the ‘as is’ language of the sales contract precludes recovery; (2) there is no implied warranty for professional services under Texas law; (3) the DTPA claims are barred by the professional services exemption of section 17.49(c) of the DTPA; and (4) Fugro has no duty to the Haires, thus barring their negligence action.” The Haires filed a response to that motion on October 14, 2005. Following a hearing, the trial court granted Fugro’s motion for summary judgment on November 15, 2005. Fugro’s no-duty ground relating to the negligence claim has not been argued on appeal.

After the granting of Fugro’s motion for summary judgment, NWC filed its own motion for summary judgment on November 15, 2005, and as its single ground for the motion, argued that the “as is” language of the sales contract precluded recovery by the Haires. After a hearing on NWC’s motion, the court granted summary judgment to NWC, and a final order was signed on February 27, 2006. This appeal followed.

III. Standing

Preliminarily, Fugro asserts that the Haires do not have standing in this matter because they did not own the property at the time the alleged injury occurred.

A. Standard of Review

Standing is a necessary component of subject matter jurisdiction. Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 445-46 (Tex.1993); Exxon Corp. v. Bluff, 94 S.W.3d 22, 26 (Tex.App.Tyler 2002, pet. denied). Subject matter *298 jurisdiction is essential to the authority of a court to decide a case. Tex. Air Control Bd., 852 S.W.2d at 445-46. Whether a trial court has subject-matter jurisdiction is a question of law subject to de novo review. See Mayhew v. Town of Sunnyvale, 964 S.W.2d 922, 928 (Tex.1998), cert. denied, 526 U.S. 1144, 119 S.Ct.

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Bluebook (online)
221 S.W.3d 293, 2007 WL 529916, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haire-v-nathan-watson-co-texapp-2007.