Hunt v. Ellisor & Tanner, Inc.

739 S.W.2d 933, 1987 Tex. App. LEXIS 8862
CourtCourt of Appeals of Texas
DecidedOctober 15, 1987
Docket05-86-01029-CV
StatusPublished
Cited by34 cases

This text of 739 S.W.2d 933 (Hunt v. Ellisor & Tanner, 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
Hunt v. Ellisor & Tanner, Inc., 739 S.W.2d 933, 1987 Tex. App. LEXIS 8862 (Tex. Ct. App. 1987).

Opinion

WHITHAM, Justice.

The issues in the present case center on the architect’s obligation under his contract *935 with the owner to observe the progress of the work and to endeavor to guard the owner against defects in the work. The owner-appellants, W.H. Hunt and A.P. Stephens, doing business as Hunt-Stephens Investments, a partnership, appeal from a judgment on the jury’s verdict in favor of the architect-appellee, Ellisor & Tanner, Inc. We conclude that the contract does not exculpate Ellisor & Tanner from liability. We conclude further that the trial court erred in asking the jury to compare the architect’s breach of its contract with the owner against the general contractor’s breach of its contract with the owner to build in accordance with the contract documents. We find no merit in Hunt-Stephens’ challenge to the adequacy of the $41,500.00 jury damage award. Accordingly, we reverse and render judgment in favor of Hunt-Stephens for $41,500.00.

The controversy arises from the construction of a shopping center and office complex. Hunt-Stephens sued Ellisor & Tanner, in its capacity as structural engineer, the general contractor, various subcontractors and material suppliers, and the architects. By agreement Hunt-Stephens substituted Ellisor & Tanner for the original architects in performing certain duties of the architects. Thus, for the purposes of this opinion Ellisor & Tanner becomes the contractual architect on the project. We emphasize that Ellisor & Tanner's work as structural engineer is not at issue in this appeal. The general contractor joined additional subcontractors as third-party defendants. Before trial, Hunt-Stephens settled with all parties other than Ellisor & Tanner. Once the settlement occurred, the sole issues to be tried concerned whether Ellisor & Tanner negligently designed the parking deck and whether Ellisor & Tanner breached its contractual obligations contained in the below-quoted contractual provision. The jury found that the parking deck was not negligently designed, but that Ellisor & Tanner breached its contractual obligations in its substituted role as the architect. The parties agree that the negligence issue is now moot. The jury found that the defects in construction diminished the value of the project by the sum of $41,500.00 and that the general contractor caused ninety-five (95%) percent of these damages and that Ellisor & Tanner (as architects) caused five (5%) of these damages. Both parties filed motions for judgment notwithstanding the verdict. The trial court declined to grant either motion and rendered judgment against Ellisor & Tanner for $2,075.00, five (5%) percent of the damage award.

The general conditions contain paragraph 2.2.4 which is at the heart of the appeal. The first three sentences of the paragraph provide the contractual duties imposed on the architect upon which Hunt-Stephens relies. The reader, however, must note the fourth sentence of the paragraph. The fourth sentence includes the exculpatory language that Ellisor & Tanner insists relieves it of liability as argued under its counter-point. The critical paragraph reads:

The Architect will make periodic visits to the site to familiarize himself generally with the progress and quality of the Work and to determine in general if the Work is proceeding in accordance with the Contract Documents. On the basis of his on-site observations as an architect, he will keep the Owner informed of the progress of the Work, and will endeavor to guard the Owner against defects and deficiencies in the Work of the Contractor. The Architect will not be required to make exhaustive on-site inspections to check the quality and quantity of the Work. The Architect will not be responsible for the construction means, methods, techniques, sequences or procedures, or for the safety precautions and programs in connection with the Work, and he will not be responsible for the contractor’s failure to carry out the Work in accordance with the Contract Documents.

(emphasis added).

At trial, Hunt-Stephens did not seek to impose liability upon Ellisor & Tanner for *936 the general contractor’s breach of its contract with Hunt-Stephens. Instead, Hunt-Stephens alleged that Ellisor & Tanner breached its written contract which obligated it to make periodic visits to the site, to determine in general if the quality of workmanship was sufficient under the contract documents, to keep the owner informed, and to endeavor to guard the owner against defects in the work of the general contractor. In this connection, the jury found that Ellisor & Tanner “breached its duties to observe the progress of the work and to endeavor to guard [Hunt-Stephens] against defects in the work of the [general contractor].” The trial court, however, over Hunt-Stephens’ objection, asked the jury to compare Ellisor & Tanner’s breach of contract to observe and endeavor to guard against defects against the general contractor’s breach of contract to build in accordance with the contract documents. As mentioned, the jury found that the general contractor’s acts or omissions caused ninety-five (95%) percent of Hunt-Stephens’ injuries and that Ellisor & Tanner’s acts or omissions caused five (5%) percent of Hunt-Stephens’ injuries.

The jury’s comparison produced a damage award as follows. Hunt-Stephens sought to recover the diminution in value of the shopping center and office complex. Hunt-Stephens argues that it proved a diminution in value after all remedial work by the general contractor had been completed of between $2,500,000.00 and $3,000,000.00. The remedial work occurred pursuant to the settlement agreement between Hunt-Stephens and the general contractor. Nevertheless, the jury found a diminution in value of $41,500.00. Applying the jury’s five (5%) percent fault assessment against Ellisor & Tanner, the trial court rendered judgment in favor of Hunt-Stephens in the amount of $2,075.00.

At this point, we outline the Hunt-Stephens settlement agreement with parties other than Ellisor & Tanner. In that settlement, Hunt-Stephens settled with parties other than Ellisor & Tanner for $1,200,000.00 and for the general contractor’s promise to remedy the structural defects in controversy. In addition, Hunt-Stephens assumed the defense of Ellisor & Tanner’s cross-actions and agreed to reduce its recovery against Ellisor & Tanner by any amount to which Ellisor & Tanner was found to be entitled against them. In return, those parties promised to keep their personnel available to Hunt-Stephens and agreed not to allow their expert witnesses to testify for Ellisor & Tanner.

Ellisor & Tanner’s Exculpatory Defense

In its sole cross-point, Ellisor & Tanner denies responsibility for the general contractor’s failure to carry out the work in accordance with the contract documents. Ellisor & Tanner makes two points in support of its denial.' First, Ellisor & Tanner notes that the jury found that the general contractor “produced work not of good quality, not free from faults and defects, and not in conformance with the contract documents.” Second, Ellisor & Tanner remarks on the fourth sentence in the above-quoted critical paragraph contained in the general conditions. For convenience, we repeat that language:

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Bluebook (online)
739 S.W.2d 933, 1987 Tex. App. LEXIS 8862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-v-ellisor-tanner-inc-texapp-1987.