Hassell Const. Co., Inc. v. Stature Commercial Co.

162 S.W.3d 664, 2005 Tex. App. LEXIS 1994, 2005 WL 608734
CourtCourt of Appeals of Texas
DecidedMarch 17, 2005
Docket14-04-00259-CV
StatusPublished
Cited by55 cases

This text of 162 S.W.3d 664 (Hassell Const. Co., Inc. v. Stature Commercial 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
Hassell Const. Co., Inc. v. Stature Commercial Co., 162 S.W.3d 664, 2005 Tex. App. LEXIS 1994, 2005 WL 608734 (Tex. Ct. App. 2005).

Opinion

*666 OPINION

ADELE HEDGES, Chief Justice.

Appellant Hassell Construction Company appeals a take-nothing judgment following a bench trial against Stature Commercial Company. We reverse.

Background

In mid- to late 2000, Hassell Construction Company subcontracted with Stature Commercial Company, Inc. (SCCI) to perform certain construction work on the building of the Memorial Villages Police Facility. In 2003, the owner of the project, Memorial Villages Police Department, became dissatisfied with SCCI’s performance and discontinued its relationship with SCCI. SCCI’s bonding company took over completion of the project. Hassell sued SCCI, claiming SCCI owed it $40,300.11 for work performed and $22,121.00 in withheld retainage. 1 At trial, over Hassell’s objections, SCCI introduced evidence that it had not been paid by the owner for work done by Hassell. According to SCCI, the contract required that Hassell would not be due funds until SCCI had been paid by the owner. After a one-day bench trial, the trial court issued findings of fact and conclusions of law, including the following:

Findings of Fact
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9. Hassell testified, and the SUBCONTRACT provides, that Hassell had agreed with [SCCI] that “payments shall be due Hassell for work that had been approved by the Owner”. [SIC]
10. Hassell testified, and the SUBCONTRACT provides, that Hassell had agreed with [SCCI] that payments shall be due subcontractor for work “for which payment has been made to [SCCI] by Owner”. [SIC]
11.Hassell testified, and the subcontract provides, that Hassell had agreed with [SCCI] that payments shall be due within ten (10) working days following receipt of payment from Owner by [SCCI].” [SIC]
* * *
Conclusions of Law
* * *
4. [SCCI] has not received any monies from the Owner for the work Hassell performed and seeks payment by its suit.
5. Pursuant to the terms of the subcontract, Hassell is not entitled to any recovery from [SCCI] on its claims.
6. Hassell shall take-nothing on its claims from [SCCI].

Appellant raises seven issues: whether the trial court properly applied Rule 54 of Texas Rules of Civil Procedure; whether the trial court improperly based its findings on evidence disallowed by Texas Rule of Civil Procedure 94; whether the trial court properly applied Texas law regarding contracts, covenants, and conditions precedent; whether sufficient evidence existed for the court’s findings of fact numbers nine, ten, and eleven; whether the court improperly failed to award appellant the retainage owed to it by appellee; and whether the court erred in failing to make a finding of reasonable and necessary attorneys’ fees. Finding insufficient evidence for the trial court’s findings, we reverse.

*667 Rule 94 and Evidence Supporting an Affirmative Defense

We first address appellant’s second issue challenging the trial court’s application of the procedural requirement for specific pleading of certain defensive matters. Under Rule 94 of the Texas Rules of Civil Procedure, parties must plead affirmative defenses such as “payment, release, ... and any other matter constituting an avoidance or affirmative defense.” Tex.R. Civ. P. 94. In a contract dispute, Texas law makes certain requirements of each party, including the specific pleading of excuses for nonperformance:

The burden of proving the happening of a contingency which, by the terms of the contract, would discharge the party from liability, or any default or refusal to perform on the part of the plaintiff that would excuse the performance by the defendant, is on the party who seeks to avoid the contract or excuse a failure to perform it on that ground. As a general rule there must be specific pleading of excuses for nonperformance.

Howell v. Kelly, 534 S.W.2d 737, 740 (Tex.Civ.App.-Houston [1st Dist.] 1976, no writ) (citations omitted).

An affirmative defense is defined as “a denial of the plaintiffs right to judgment even if the plaintiff establishes every allegation in its pleadings.” Bracton Corp. v. Evans Constr. Co., 784 S.W.2d 708, 710 (Tex.App.-Houston [14th Dist.] 1990, no writ). An affirmative defense allows the defendant to introduce evidence to establish an independent reason why the plaintiff should not prevail; it does not rebut the factual proposition of the plaintiffs pleading. Heggy v. Am. Trading Employee Ret. Account Plan, 123 S.W.3d 770, 778 (Tex.App.-Houston [14th Dist.] 2003, pet. denied). All affirmative defenses are waived when the defendant files only a general denial, and, absent trial by consent, failure to plead a matter of affirmative defense will preclude a defendant from asserting it. Bracton Corp., 784 S.W.2d at 710.

In this case, SCCI’s reliance on nonpayment from the owner as a basis for non-liability under the contract is an affirmative defense under Texas Rule of Civil Procedure 94. SCCI’s original answer contained only a general denial and did not enumerate any specific affirmative defenses. At trial, SCCI did not contest the fact that it owed appellant for its completed work and for retainage; however, SCCI argued that it was not legally required to pay appellant. SCCI’s trial counsel’s opening remarks included the following:

It is not a fact of [SCCI] not wanting to pay [appellant], but indeed the subcontracted money was never paid to [SCCI] by the Owner. And therefore, pursuant to the terms of the contract on them face we have no legal obligation to pay this subcontractor unless we are paid by the Owner of the property, and that’s specific in the contract terms which we will go over. That’s why we’re not disputing how much the gentleman is owed, anything like that.

During the trial, appellant’s counsel properly objected when SCCI’s counsel attempted to introduce evidence of: 1) the contract language delaying payment of the subcontractor until the contractor had been paid; and 2) the fact that the contractor had not been paid by the owner. The trial judge overruled both objections. SCCI’s counsel did not request a trial amendment of its original answer. We therefore hold that the trial court erred in admitting the evidence. Appellant’s second issue is sustained.

No Evidence

In his fourth issue, appellant challenges the sufficiency of the evidence to support *668 the trial court’s findings of fact nine, ten, and eleven. In his fifth issue, appellant argues that the trial court erred in failing to award him his retainage.

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Cite This Page — Counsel Stack

Bluebook (online)
162 S.W.3d 664, 2005 Tex. App. LEXIS 1994, 2005 WL 608734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hassell-const-co-inc-v-stature-commercial-co-texapp-2005.