Hofer Builders, Inc. v. Links Construction, LLC and the Guarantee Company of North America USA

CourtCourt of Appeals of Texas
DecidedDecember 4, 2025
Docket13-24-00614-CV
StatusPublished

This text of Hofer Builders, Inc. v. Links Construction, LLC and the Guarantee Company of North America USA (Hofer Builders, Inc. v. Links Construction, LLC and the Guarantee Company of North America USA) 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
Hofer Builders, Inc. v. Links Construction, LLC and the Guarantee Company of North America USA, (Tex. Ct. App. 2025).

Opinion

NUMBER 13-24-00614-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

HOFER BUILDERS, INC., Appellant,

v.

LINKS CONSTRUCTION, LLC, AND THE GUARANTEE COMPANY OF NORTH AMERICA USA, Appellees.

ON APPEAL FROM THE 67TH DISTRICT COURT OF TARRANT COUNTY, TEXAS

MEMORANDUM OPINION

Before Chief Justice Tijerina and Justices Cron and Fonseca Memorandum Opinion by Justice Fonseca

Appellant Hofer Builders, Inc. (Hofer) appeals a judgment confirming an arbitration

award via four points of error, two of which seek to overturn the award and two of which

seek to modify the award. We reverse and remand in part to resolve mislabeling of the

projects, to correct some interest, and because the award is ambiguous regarding the arbitrator’s intentions on Hofer’s lien relief. We otherwise affirm the judgment.1

I. BACKGROUND

Hofer appeals from a final judgment confirming an arbitration award awarding

damages to appellees2 arising out of disagreements on two construction projects.

Appellee Links Construction, LLC (Links) is a general contractor that was hired to

complete two construction projects: Burnett Lofts in Fort Worth and Brazos Promenade

in Waco. In 2020, Links hired Hofer to serve as a framing subcontractor on these projects.

Disputes arose during construction regarding certain change orders. These

change orders resulted in a different order of construction for buildings at Brazos

Promenade. This resulted in Links requesting changes to Hofer’s building schedule. Hofer

claimed the schedule changes were unreasonable and eventually refused to commence

work on “Building 1” at the Brazos Promenade project. Links issued several notices before

eventually terminating Hofer from the project (and consequently from Burnett Lofts) and

hiring another framer to finish Hofer’s scope of work. Hofer sought damages in the form

of unpaid invoices while Links sought damages for the cost of the unfinished work. As a

result of the disputes, Hofer filed liens against the Burnett Lofts and Brazos Promenade

properties for the alleged unpaid amounts in the respective counties’ real property

records.

The parties’ subcontracts contained an arbitration agreement encompassing “all

claims, disputes, and other matters in question arising out of or relating to this Agreement

1 This appeal was transferred from the Second Court of Appeals in Fort Worth pursuant to an order

issued by the Texas Supreme Court. See TEX. GOV’T CODE ANN. § 73.001. We are required to follow the precedent of the transferor court to the extent it differs from our own. TEX. R. APP. P. 41.3. 2 Appellee The Guarantee Company of North America USA was the surety for the payment bonds

on the projects but will be otherwise unmentioned throughout this memorandum opinion.

2 or the breach thereof.” The arbitration agreement also specified that judgment would be

entered pursuant to the Texas Arbitration Act. The parties hired a private arbitrator on

February 9, 2023, to resolve their disagreements and signed a separate arbitration

agreement. This agreement stated “[p]ursuant to the terms of each written Construction

Contract, Links and Hofer agree to submit any and all claims arising out of said projects

to binding Arbitration.”

The arbitrator issued an award on January 11, 2024. The award identified the

primary dispute as centering on “a commercial project in Waco, Texas” located on the

banks of the Brazos River that it called “the Project.” It also identified “several residual

issues” stemming from a project located in Fort Worth that it titled “the Brazos Lofts.” The

arbitrator found that Links made several unreasonable demands to Hofer regarding the

scheduling of framing at “the Project,” including demanding Hofer start framing “when

underslab rough plumbing, slabs and foundations were not completed” in violation of

Paragraph 4.2 of the subcontract, and that Links “failed to provide adequate material

staging areas” or “reasonable access to the jobsites.” The arbitrator noted that Hofer’s

work was “excellent.” However, the arbitrator found that none of the delays were a

material breach of the subcontract and that Links and Hofer had each caused construction

delays.

Ultimately, the arbitrator found that Hofer breached the subcontract by refusing to

start “Building 1” and “pulled off” the job after two notices of default and a few hours before

receiving Links’s termination notice. The arbitrator further found that Links was current on

its payments to Hofer at the time of termination but that the last work completed by Hofer

“reflected in Pay Applications 17 and 18” were due to Hofer, “as [was] the Project’s

3 retainage for [Hofer]’s completed work.”

On January 11, 2024, the arbitrator awarded damages to Links in the amount of

$1,263,745.61 to “repair, replace and complete” Hofer’s work and noted that this sum

included a credit for Hofer totaling $251,261.60 “for Retainage and Pay Application 20 for

Brazos Lofts.” The arbitrator also awarded attorney’s fees and costs of $116,147.05, pre-

judgment interest of $254,130, and 8.5% annual post-judgment interest commencing from

the thirty-first day of the award until paid in full. The arbitrator noted a separate credit to

Hofer of $308,049.64 “representing payment of Applications 17 and 18 and the Retainage

from the Project.” On February 23, 2024, the arbitrator modified the award to note that

Hofer completed work “on Buildings 2 through 5” and excluded reference to Hofer

completing work on Building 1.

Appellees subsequently filed for confirmation of the award in the trial court on

February 27, 2024. On April 9, 2024, Hofer filed its motion for modification or correction

of the arbitration award on several grounds. First, Hofer argued that it was improper for

the arbitrator to enter “cost-of-completion” damages against it after not finding

abandonment on Hofer’s part. Second, it argued the award contained mistakes because

it misstated the date Hofer “abandoned” the jobsite and incorrectly stated that it received

two notices of default when it in fact received three. Third, Hofer attacked the award as

contradictory for finding that Hofer breached the subcontract yet also finding that Hofer

was not obligated to start framing Building 1. Fourth, it contended the award incorrectly

stated that Hofer started work on Building 1 when it did not. Both parties filed

supplemental briefing regarding all of these issues.

On June 21, 2024, the trial court held a hearing regarding confirmation of the

4 arbitration award. At the hearing, Hofer presented evidence regarding the alleged

mistakes in the award, namely, several change orders and communications regarding

Hofer being terminated from the project if they did not begin work. Hofer argued this

evidence demonstrated that these items were related to the Brazos Promenade, not the

Burnett Lofts project in Fort Worth. Tom Hofer, the owner of Hofer, testified that his

company did not abandon Brazos Promenade but, rather, that they were terminated and

that they did not start Building 1. There was further testimony regarding the application

numbers as awarded in the arbitration award not existing on the Brazos Promenade

project. Hofer argued that “Pay Application 18” only existed as to the Burnett Project, not

the Brazos Promenade as the award stated.

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