Hirschfeld Steel Co. v. Kellogg Brown & Root, Inc.

201 S.W.3d 272, 2006 Tex. App. LEXIS 7152, 2006 WL 2345924
CourtCourt of Appeals of Texas
DecidedAugust 15, 2006
Docket14-04-00504-CV
StatusPublished
Cited by72 cases

This text of 201 S.W.3d 272 (Hirschfeld Steel Co. v. Kellogg Brown & Root, 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
Hirschfeld Steel Co. v. Kellogg Brown & Root, Inc., 201 S.W.3d 272, 2006 Tex. App. LEXIS 7152, 2006 WL 2345924 (Tex. Ct. App. 2006).

Opinion

OPINION

KEM THOMPSON FROST, Justice.

This case arises out of the construction of what is now known as Minute Maid Park and involves disputes among the owner of the ball park, the general contractor, and one of its subcontractors. The subcontractor sued the general contractor asserting contract claims for re-tainage and contract damages as well as seeking a declaratory judgment against both the owner and the general contractor that the subcontractor’s ten-year warranty on the park’s retractable roof was void. The general contractor asserted a counterclaim for breach of contract and declaratory relief. The trial court granted summary judgment denying the subcontractor’s claims for declaratory relief against the general contractor and the owner. After a jury trial, the trial court rendered judgment that both the subcontractor and the general contractor take nothing on their claims against each other. On appeal, the subcontractor (1) challenges the legal and factual sufficiency of the jury’s finding that it did not substantially perform its duties under the subcontract, (2) asserts the trial court abused its discretion in admitting evidence regarding the warranty, (3) claims the trial court erred in not rendering judgment in its favor on an allegedly separate and independent contract claim for maintenance work on the roof, and (4) argues the trial court erred in rendering summary judgment dismissing its declaratory-judgment claims. In its cross-appeal, the general contractor asserts the trial court erred in denying it attorney’s fees under provisions of the subcontract allowing the prevailing party in litigation between the subcontractor and the general contractor to recover attorney’s fees. We affirm the trial court’s judgment.

I. Factual and ProceduRal Background

Appellee Harris County-Houston Sports Authority (hereinafter the “Sports Authority”) is the owner of Minute Maid Park, a state-of-the-art professional baseball stadium located in downtown Houston. In December 1997, the Sports Authority and appellee Kellogg Brown & Root, Inc. (“Kellogg”) entered into a contract for the construction of Minute Maid Park (hereinafter the “Construction Contract”). In May of 1998, Kellogg and appellant Hirschfeld Steel Company, Inc. (hereinafter “Hirschfeld”) entered into a subcontract, under which Hirschfeld agreed to provide various metal systems for Minute Maid Park (hereinafter the “Subcontract”). As part of the Subcontract, Hirschfeld agreed to design and build all structural, architectural, electrical, and mechanical components required to provide a complete and working retractable roof system for Minute Maid Park (hereinafter “Roof System”). Under the Subcontract, Hirschfeld *276 also was required to warrant various aspects of the Roof System for ten years.

Performance of First-Year Maintenance Services

Hirschfeld subcontracted with Uni-Systems, Inc. to perform some of the services required under the Subcontract. Uni-Systems provided some first-year maintenance services for the Roof System, but a dispute arose over who was supposed to pay for these services. The Sports Authority asserted that first-year maintenance services were included in the Construction Contract and should be performed at no additional cost to the Sports Authority. Kellogg asserted that these services were not included in the Construction Contract and that Kellogg was entitled to a change order under that contract giving it additional compensation for providing these services. As between the Sports Authority and Kellogg, an arbitration panel eventually ruled against the Sports Authority’s position and determined that Kellogg was not obligated to provide the first-year maintenance services without receiving additional compensation. In any event, Uni-Systems allegedly provided various first-year maintenance services and sought payment from Hirschfeld for these services. Hirschfeld settled with Uni-Systems and then sought payment from Kellogg for the first-year maintenance services allegedly provided on its behalf by Uni-Systems.

Subcontractor’s Suspension of Ten-Year Warranty

On September 22, 2000, Hirschfeld sent a letter to Kellogg stating that Hirschfeld was declaring the ten-year warranty suspended based on the Sports Authority’s alleged failure to perform maintenance on the Roof System allegedly required by the ten-year warranty. Hirschfeld asserted that the warranty would be suspended until Hirschfeld reinstated the warranty based on the occurrence of various events, including completion of all repairs necessitated by the Sports Authority’s failure to perform the required maintenance and the performance of all required maintenance on the roof mechanism. Hirschfeld did not thereafter reinstate its ten-year warranty.

Settlement Agreement Between Owner and General Contractor

Kellogg and the Sports Authority finally resolved all of their differences regarding this project and entered into a settlement agreement effective March 29, 2002. This agreement provided that Kellogg would receive final payment from the Sports Authority by April 26, 2002. In this agreement, Kellogg agreed that the ten-year warranty on the Roof System is in full force and effect and is enforceable directly against Kellogg notwithstanding the purported revocation of this warranty by Hirschfeld.

Litigation

In May 2002, Hirschfeld filed this lawsuit against Kellogg and the Sports Authority. Hirschfeld asserted claims against Kellogg for retainage under the Subcontract and other contract damages. Hirschfeld also sought a declaratory judgment against both the Sports Authority and Kellogg that its ten-year warranty on the retractable roof was void because of an alleged failure to perform required maintenance on the Roof System. Kellogg counterclaimed for breach of contract and declaratory-judgment relief.

The Sports Authority and Kellogg filed motions for summary judgment asserting, among other things, that (1) the trial court lacked subject matter jurisdiction over *277 Hirschfeld’s declaratory-judgment claims regarding the ten-year warranty because the claims were not ripe and (2) as a matter of law, the Subcontract does not make performance of maintenance on the Roof System a condition precedent to the existence of Hirschfeld’s warranty. The trial court granted both motions for summary judgment and dismissed Hirschfeld’s claims for a declaratory judgment that its warranty was void.

The contract claims of Kellogg and Hirschfeld were tried to a jury. The jury found that (1) Hirschfeld did not substantially perform its duties under the Subcontract; (2) $1,259,922 remains unpaid under the Subcontract; (3) remedying or repairing Hirschfeld’s defects and/or omissions would cost $500,000; (4) Hirschfeld performed first-year maintenance through its subcontractor Uni-Systems as directed by Kellogg; and (5) $240,000 is the fair and reasonable value of the first-year maintenance provided by Hirschfeld through its subcontractor Uni-Systems.

The trial court signed a final judgment incorporating its summary-judgment rulings on Hirschfeld’s declaratory-judgment claims and ordering that Hirschfeld and Kellogg take nothing by their claims.

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Bluebook (online)
201 S.W.3d 272, 2006 Tex. App. LEXIS 7152, 2006 WL 2345924, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hirschfeld-steel-co-v-kellogg-brown-root-inc-texapp-2006.