Industrial Structure & Fabrication, Inc. v. Arrowhead Industrial Water, Inc.

888 S.W.2d 840, 1994 WL 486873
CourtCourt of Appeals of Texas
DecidedAugust 4, 1994
Docket01-93-01111-CV
StatusPublished
Cited by12 cases

This text of 888 S.W.2d 840 (Industrial Structure & Fabrication, Inc. v. Arrowhead Industrial Water, 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
Industrial Structure & Fabrication, Inc. v. Arrowhead Industrial Water, Inc., 888 S.W.2d 840, 1994 WL 486873 (Tex. Ct. App. 1994).

Opinion

OPINION

DUGGAN, Justice.

This is the appeal of a take-nothing summary judgment in a breach of contract case in favor of appellees, Arrowhead Industrial Water, Inc. (Arrowhead) and Air Products and Chemicals, Inc. (Air Products), and *842 against appellant, Industrial Structures and Fabrication, Inc. (Industrial). We affirm.

Air Products retained the services of Arrowhead, a general contractor, to make improvements to its plant in Pasadena, Texas. Arrowhead then contracted on February 7, 1991, with Industrial, a subcontractor, to erect two buildings and a tank pad at Air Products’ Pasadena facility. The original contract price for completion of the project was $62,300. However, Industrial’s Purchase Order Confirmation provided that all terms and conditions would be in accordance with Industrial’s proposal, which stated:

Prices stated herein are firm for the duration of the contract, but may be adjusted to reflect changes in the scope if such changes are subsequently agreed to in writing as an addendum to this contract.

By agreement, Arrowhead and Industrial amended their contract on May 7, 1991, to reflect the additional cost of design and construction of some of the project’s load-bearing supports. The amended contract price was $72,930. On June 3, 1991, Arrowhead tendered the last of three payments to Industrial, totaling $72,930. On June 7, 1991, Industrial sent Arrowhead a demand letter requesting an additional $29,994.18. This amount had not been agreed to in writing as required by the terms of Industrial’s proposal.

On June 10, 1991, Industrial filed a mechanic’s and materialman’s lien against Arrowhead for the balance allegedly due on the improvements made at Air Products’ facility in Pasadena. On September 10,1991, Industrial sued Arrowhead for breach of contract and both Arrowhead and Air Products for quantum meruit and implied contract and attempted to foreclose on its lien.

Air Products moved for summary judgment on the foreclosure action on the basis that Industrial’s lien on Air Products’ real property was invalid for failure to comply with Tex.PROP.Code Ann. § 53.001, et seq (Vernon 1984) 1 . Air Products also sought a declaratory judgment to remove the cloud on title created by the invalid lien. Arrowhead moved for summary judgment and sought a declaratory judgment that it had fully performed under the terms of the contract with Industrial.

Both summary judgments were granted. The final judgment held that the contract between Industrial and Arrowhead had been fully performed and that Industrial take nothing. The judgment declared Industrial’s lien against Air Products’ Pasadena facility to be null, void, and unenforceable, and awarded attorney’s fees of $13,560.80 to Arrowhead and $7,483.17 to Air Products.

In its first and second points of error, Industrial contends the trial court erred in granting the summary judgment and declaring the lien null, void, and unenforceable for failure to comply with the Property Code.

Under Tex.R.Civ.P. 166a(c), summary judgment is proper only when a mov-ant establishes that there is no genuine issue of material fact and that the movant is entitled to judgment as a matter of law. Williams v. Glash, 789 S.W.2d 261, 264 (Tex.1990). In reviewing the granting of a motion for summary judgment, this Court must take as true all evidence favorable to the nonmovant. Nixon v. Mr. Property Management, Inc., 690 S.W.2d 546, 548-49 (Tex.1985). Every reasonable inference must be indulged in favor of the nonmovant and any doubts resolved in its favor. Continental Casing Corp. v. Samedan Oil Corp., 751 S.W.2d 499, 501 (Tex.1988).

When a lien claim arises, as here, from an original contractor’s alleged debt, a subcontractor must give notice of the unpaid balance to the owner of the property. Tex. Prop.Code Ann. § 53.056(c). This notice must inform the owner that if the bills remain unpaid, the owner may be personally liable and the owner’s property subjected to a lien unless the owner withholds payment from the contractor to pay the subcontractor’s bill or the bill is otherwise paid or settled. § 53.056(d). The notice to the owner must be sent by registered or certified mail. § 53.056(e). ■ For the lien to be valid, a claimant must comply with all of the requirements of § 53.056. § 53.056(a).

*843 The summary judgment evidence shows that Industrial, the subcontractor, gave Air Products, the owner, no notice of Industrial’s claim of contractor Arrowhead’s unpaid balance. Air Products’ materials manager testified by deposition that Air Products never received notice of a dispute between Industrial and Arrowhead via registered or certified mail as required by the statute. Attached to Air Products’ motion for summary judgment was a copy of a letter from Industrial, the subcontractor, to Air Products, the owner of the facility, stating that Industrial was under no legal obligation to inform Air Products of this dispute because it believed Arrowhead, the general contractor, was the owner of the property, not Air Products. Industrial’s letter states that it sent a copy of the hen affidavit to Air Products only as a courtesy, not as an attempt to comply with the governing statutes.

In its response to Air Products’ motion for summary judgment, Industrial did not allege it gave Air Products proper notice. Instead, Industrial argued it was not required to do so because it believed Arrowhead was the “owner or reputed owner” of the property and that Industrial was the original contractor, not a subcontractor. However, the summary judgment record contains numerous references in the contracts between Industrial and Arrowhead that establish Industrial had at least constructive if not actual knowledge that the plant was owned by Air Products, not Arrowhead, and that Arrowhead was the original contractor. These references include the following:

1. In a purchase order confirmation sent by Industrial to Arrowhead: “We, at Industrial Structures and Fabrication, Inc., are pleased that you have elected to use our services for your projects at Air Products and Chemicals in La Porte, Texas.”
2. In correspondence from Industrial to Arrowhead regarding an amendment to the proposal: “Subject: ISFI Proposal 5077— Amendment. Design and Installation of Concrete Pads and Buildings for Air Products and Chemicals in LaPorte, Texas.”
3. In an Industrial Amended Proposal: “Delivery and Installation of two buildings with Foundations, and one tank pad for Air Products and Chemicals, LaPorte.”
4. In an Industrial “Scope of Supply and Work” correspondence: “ISFI Proposal 5077 — Amended ... for Air Products and Chemicals.”
5. In an invoice from Industrial dated May 7, 1991: “To provide supervision, labor, and equipment to erect ...

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888 S.W.2d 840, 1994 WL 486873, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-structure-fabrication-inc-v-arrowhead-industrial-water-texapp-1994.