Huntington Corp. v. Inwood Construction Co.

472 S.W.2d 804, 1971 Tex. App. LEXIS 2070
CourtCourt of Appeals of Texas
DecidedOctober 29, 1971
Docket17679
StatusPublished
Cited by10 cases

This text of 472 S.W.2d 804 (Huntington Corp. v. Inwood Construction 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
Huntington Corp. v. Inwood Construction Co., 472 S.W.2d 804, 1971 Tex. App. LEXIS 2070 (Tex. Ct. App. 1971).

Opinion

CLAUDE WILLIAMS, Chief Justice.

This suit was originally filed in 1960 by Huntington Corporation against Inwood Construction Company and Trinity Universal Insurance Company in which Huntington sought damages against Inwood Construction Company arising from a breach of a construction contract. Huntington alleged that Inwood did not perform its contract to provide paved parking areas at Texarkana, Texas and Marshall, Texas in accordance with plans and specifications set forth in the “cost plus” contract between the parties. Upon completion of the paving work Huntington paid Inwood the full consideration due under the contract in the amount of $52,383.86. Credits amounting to $8,042.21 were allowed Inwood by agreement.

This is the third time this case has reached the appellate court. The first appeal was from an order sustaining a plea in abatement which was founded upon an arbitration agreement between the parties. That judgment was reversed by this court. Huntington Corporation v. Inwood Construction Co., et al, 348 S.W.2d 442 (Tex.Civ.App., Dallas 1961).

Upon remand the case was tried before a jury and judgment was rendered, based upon the verdict of the jury, in favor of Huntington. This judgment was appealed and submitted to the Texarkana Court of Civil Appeals. That court, in Inwood Construction Co. v. Huntington Corporation, 400 S.W.2d 372 (Tex.Civ.App., Texarkana 1965, writ ref’d n. r. e.), held that the case had been submitted to the jury upon the wrong theory of the measure of damages. The trial court had submitted the case to the jury on “the theory that the appropriate measure of damage is the reasonable cost of remedying defects and omissions in the asphaltic concrete and flexible base so as to bring the paving into conformity with the contractual specifications.” The appellate court held that the true measure in this case was the “difference between the value of the building as constructed and its value *806 had it been constructed in accordance with the contract,” and order the cause remanded for another trial.

When the case returned to the trial court Huntington filed its fourth amended original petition in which it alleged a difference in market value between the shopping centers, as constructed and had they been constructed according to the contract, in the amount of $60,000. The case was submitted to the trial court, without a jury, upon a stipulation that the trial court could consider the transcribed evidence adduced at the original trial, plus other evidence submitted to the trial court. At this second trial Huntington produced an expert witness, John Mugno, who testified that the difference in market value, as specified and as delivered, of the shopping center at Texarkana was $20,750. He opined that the difference in value of the Marshall project was $47,250.

The trial court made findings of fact and conclusions of law that (1) the thickness of the flexible base material 'laid by Inwood at the Marshall site was substantially less than the six inches required by the contract; (2) that in at least a portion of the paved area at the Texarkana site neither the flexible base nor the asphaltic concrete, met the specifications of the contract. The court found that the samples taken were not sufficient to indicate how much of the paved area at Texarkana was affected by these defects; (3) that failures in the pavement occurred in a number of areas at both sites as early as July, 1960; (4) that some of these failures were the result of defects mentioned in findings (1) and (2) and others were the result of excessive subsurface moisture and excessive traffic by heavy trucks; (5) that Inwood’s performance did not amount to substantial performance of the contract at either site with reference to pavement of the parking areas; (6) that more than half of the paved area at each site was virtually intact after almost ten years of use and that there was no total failure of performance at either site; (7) that Inwood’s partial performance resulted in enhancement of the value of the property at both sites; (8) that Huntington is not entitled to recover the total cost of removing and replacing the pavement; (9) that Huntington is entitled to recover the difference between the market value of the shopping center with pavement as specified and the market value of the shopping center with pavement as installed by the defendant in July, 1960; (10) that no market data is available so that the only method of determining the difference in market value is the cost in July, 1960 of the work necessary to bring the pavement to a condition of as nearly as practical equivalent value in terms of serviceability, economy of maintenance and expected life, and if it cannot be made equivalent, then an allowance should be made for increased future maintenance cost discounted for payment and for shortness of expected life; (11) that under the evidence in this case a pavement of substantially equivalent value could have been accomplished in July, 1960 by excavating and replacing the areas of total failure and applying over the whole area, at both sites, a one-inch overlay of asphaltic concrete. That this finding does not include the areas which were replaced by cement concrete as to which “I find that there was no substantial difference in value between the pavement as specified and the-pavement installed by defendant”; (12) that there is no evidence in the record upon which to determine the cost of the work necessary to bring the pavement to an equivalent value or is there any evidence of increased maintenance cost or shortened expected life, if remedial work such as the above mentioned had been done. “The only testimony in the record concerning difference of value is that of John Mugno, who based his opinion on the assumption that there was potentially a total failure of the pavement so that a prudent investor would have removed and replaced all the asphaltic concrete and flexible base. Since I do not find such a total failure, and since I find that a pavement of substantially equivalent value could have been accomplished without complete replacement, I cannot give *807 any weight to- Mr. Mugno’s opinion concerning the difference in value.” (13) That since there was no evidence in the record to establish the difference in value, other than total replacement cost, plaintiff has failed to prove his damages by a preponderance of the evidence; (14) that plaintiff has established a breach of the contract, but has failed to prove the amount of damages; consequently, judgment is rendered for plaintiff for nominal damages only; (15) judgment is rendered for defendant on its counterclaim in the amount stipulated.

Based upon these findings and conclusions the trial court rendered judgment in favor of Huntington and against Inwood for the sum of $10.00 and judgment in favor of Inwood against Huntington in the sum of $8,042, the stipulated offsets.

In its first seven points appellant assails the trial court’s findings to the effect that there is no evidence to establish the difference in value and that appellant has failed to prove the amount of damages is contrary to the overwhelming weight and preponderance of the evidence. It also attacks the trial court’s award of $10.00 as nominal damages as being contrary to the overwhelming weight and preponderance of the evidence and manifestly too small.

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Bluebook (online)
472 S.W.2d 804, 1971 Tex. App. LEXIS 2070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huntington-corp-v-inwood-construction-co-texapp-1971.