Hernandez v. Koch MacHinery Co.

16 S.W.3d 48, 2000 WL 210413
CourtCourt of Appeals of Texas
DecidedApril 27, 2000
Docket01-98-00768-CV
StatusPublished
Cited by43 cases

This text of 16 S.W.3d 48 (Hernandez v. Koch MacHinery 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
Hernandez v. Koch MacHinery Co., 16 S.W.3d 48, 2000 WL 210413 (Tex. Ct. App. 2000).

Opinion

OPINION

FRANK C. PRICE, Justice

(Assigned).

Appellants, Jose Luis Hernandez and his wife, Carmen Hernandez (collectively Hernandez), appeal the granting of the motion for summary judgment by appellee, Koch Machinery Company (Koch), that was based on the statute of repose and “no evidence” that the machine was unreasonably dangerous. In the event there is an adverse ruling on the statute of repose, Koch appeals the trial court’s decision to grant Hernandez’s bill of review. We reverse the granting of Koch’s motion for summary judgment, reverse the granting of Hernandez’s motion for partial summary judgment, and hold Hernandez was not entitled to bill of review relief.

FACTUAL SUMMARY

In 1983, Hernandez’s arm was severed while he was working on a steel slitter. This machine cut raw rolled sheet metal into specified widths and lengths and then rolled the freshly cut metal. Hernandez alleged there was a design defect in the re-rolling process that caused his injury. His petition was filed against the Cincinnati-Forte Company and Koch, based on theories of recovery for products liability, negligence, and breach of warranty.

In 1969, the Cincinnati-Forte Company, a subsidiary corporation of Cincinnati Incorporated, sold a slitting line machine to Steiner Realty Company. The machine was constructed and installed by Cincinnati-Forte at the Schill Steel plant in Houston. This slitting line was an improvement installed at the plant to process and cut sheet metal. Koch is a Texas corporation that acted as Cincinnati-Forte’s agent and marketer of the slitting line in Texas. Koch, representing Cincinnati-Forte, would actively pursue potential buyers and then put the customers in contact with Cincinnati-Forte. Koch received a finders’ fee for each sale resulting from a contact it established. Koch did not participate in the negotiations between Cincinnati-Forte and Steiner Realty Company for the sale of the slitting line.

There is no evidence of any defect or problem with the slitting line at the time of the sale in 1969, or for the next 13 years. James Philip Davis, the chairman of the board of Schill Steel Company and President of Steiner, testified that in 1978 or 1979, the slitting fine was purchased by a machinery equipment dealer from Detroit who contracted with someone else to disassemble and reconstruct the slitter. The slitter was moved to another warehouse at Schill Steel, which ultimately was the site of the injury in question.

PROCEDURAL HISTORY

Judge William Powell rendered summary judgment in favor of Cincinnati Incorporated based on the statute of repose. Hernandez appealed the judgment, and in an unpublished opinion, the Fourteenth Court of Appeals dismissed the appeal, *51 holding that the judgment was not final because it did not dispose of all the parties. Hernandez v. Cincinnati, Inc., No. A14-88-00274-CV (Tex.App. — Houston [14th Dist.] Dec.15, 1988, writ granted) (not designated for publication), 1988 WL 133265. The Texas Supreme Court, in another unpublished opinion, agreed the judgment was not final, but remanded the case back to the trial court, holding that the court of appeals improperly dismissed the appeal. Cincinnati, Inc. v. Hernandez, 32 Tex. Sup.Ct. J. 463 (June 14, 1989) (not designated for publication.) On remand, Judge Powell severed the cause of action against Cincinnati Incorporated, and the summary judgment became final on April 6, 1990.

On November 6, 1990, the trial court sent notice of its intent to dismiss the remaining litigation for want of prosecution. Thirty days later, the case was dismissed.

On March 26, 1991, Hernandez filed a motion to reinstate, which the trial court granted on April 5, 1991. Koch opposed the motion and order, contending the trial court no longer had jurisdiction over the matter.

In October, 1991, Koch filed its motion for summary judgment based on the statute of repose. In addition, Koch argued it could not be liable under strict products liability, because it never placed the improvement into the stream of commerce. Koch further asserted it did not design, assemble, or manufacture the steel slitter; therefore, no duty could be imposed. With respect to the warranty cause of action, Koch stated it made no actionable misrepresentations. The trial court never expressly ruled on this motion.

The trial court dismissed the Hernandez’s personal injury lawsuit on December 15, 1993, because it found, in light of Levit v. Adams, 850 S.W.2d 469, 470 (Tex.1993), it never had jurisdiction to reinstate the case. On March 9, 1994, Hernandez filed a bill of review. In the bill of review, Hernandez said he did not receive notice that his personal injury lawsuit was going to be dismissed and that his case had been dismissed. He further asserted the dismissal was not due to any intentional misconduct or conscious indifference on his part, but was actually an official mistake or accident. Finally, he said the reinstatement of the case, more than 10 years after the original injury, would not result in any delay or injury to Koch. The same three theories of recovery for strict products liability, negligence, and breach of warranty were alleged on the merits.

After the bill of review was filed, Koch moved for summary judgment on three additional grounds: (1) the statute of repose barred Hernandez’s claims in their entirety; (2) because Hernandez’s own negligence contributed to the earlier dismissal of his lawsuit, he was barred from seeking bill of review relief; and (3) there was no evidence Koch’s negligence proximately caused Hernandez’s injuries.

Hernandez filed his own motion for summary judgment contending, as a matter of law, he established his right to seek bill of review relief. In a second motion, he added that his lawsuit was not barred by the statute of repose. Upon Hernandez’s motion, the court entered an order that it would consider all the “contents of the court’s files for the purpose of determining the summary judgment motions that are pending before the court.”

The trial court granted Hernandez’s motion for partial summary judgment, holding he was entitled to pursue bill of review relief. In addition, the trial court granted Koch’s motion for summary judgment, holding the statute of repose barred Hernandez’s claims in their entirety. Hernandez appeals this adverse ruling, and if we reverse on that issue, Koch, conditionally, appeals the ruling on the bill of review.

SUMMARY JUDGMENT STANDARD OF REVIEW

A party moving for summary judgment has the burden of proving there is no genuine issue of material fact and the mov- *52 ant is entitled to judgment as a matter of law. Nixon v. Mr. Property Mgmt. Co., Inc., 690 S.W.2d 646, 548 (Tex.1985). When deciding whether there is a disputed material fact issue precluding summary judgment, evidence favorable to the non-movant will be taken as true. Id. 548-49. Every reasonable inference must be indulged in favor of the nonmovant and any doubts resolved in its favor. Id.

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