Jim Walter Homes, Inc. v. Gonzalez

686 S.W.2d 715
CourtCourt of Appeals of Texas
DecidedFebruary 20, 1985
Docket04-83-00342-CV
StatusPublished
Cited by31 cases

This text of 686 S.W.2d 715 (Jim Walter Homes, Inc. v. Gonzalez) 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
Jim Walter Homes, Inc. v. Gonzalez, 686 S.W.2d 715 (Tex. Ct. App. 1985).

Opinions

OPINION

TIJERINA, Justice.

This case concerns alleged violations of the Texas Deceptive Trade Practices — Consumer Protection Act, TEX.BUS. & COM. CODE ANN. § 17.41, et seq., for defective construction of a house. The jury verdict, based on special issues, awarded appellee treble damages in the sum of $18,000.00; the court entered judgment accordingly.

The record indicates that appellee visited appellant’s business premises and expressed an interest in buying a house. While there he saw their sample house and was shown pictures of other Jim Walter homes. Appellee selected from the photographs the model labeled “President” as the house he wanted constructed. Appellant thereafter contracted to build for ap-pellee a ninety percent (90%) completed residential home. After the house was completed appellee discovered structural defects, including defects in the siding, floors, and roof.

Appellant initially complains that the trial court erroneously refused to submit to the jury his requested special issue on an alternate measure of damages: the difference between the value of the house as promised and as delivered. Specifically appellant wants the damages ascertained by “diminution in market value.” Under the Deceptive Trade Practices Act, “actual damages are those recoverable at the common law.” Rotello v. Ring Around Products, Inc., 614 S.W.2d 455, 460 (Tex.Civ.App. — Houston [14th Dist.] 1981, writ ref’d n.r.e.). In cases concerning defective construction issues, Texas courts generally allow damages based on cost of repairs if repairs are feasible and do not involve economic waste. Greene v. Bearden Enterprises, Inc., 598 S.W.2d 649, 652 (Tex.Civ.App. — Port Worth 1980, writ ref’d n.r.e.). If the repair of the defects requires that the structure in whole or in material part be changed or would impair the structure as a whole, the proper measure of damages would be the difference in value of the structure as constructed and its value had it been constructed without defects. Hutson v. Chambless, 157 Tex. 193, 196-97, 300 S.W.2d 943, 945 (1957). However, where the repair of defects will not impair the structure as a whole, the remedial cost is the correct measure of damages. Rogowicz v. Taylor & Gray, Inc., 498 S.W.2d 352, 354 (Tex.Civ.App. — Tyler 1973, writ ref’d n.r.e.). More recently, the supreme court addressed this precise question in Turner, Collie & Braden, Inc. v. Brookhollow, Inc., 642 S.W.2d 160, 164 (Tex.1982), and declared that the remedial measure of contract damages applies only when the contractor has substantially complied with the contract; the difference in value measure is applicable where there has not been substantial compliance.

In this case, the record evidence establishes that appellant substantially complied with the contract. Appellee’s house was constructed and completed for a total cost of $39,870.00. Robert Koimm, an architect, testified that all the defects could be repaired for a low of $9,889.00 and a high of $11,435.00, which was a fraction of the cost. Appellant’s expert witness gave a lower estimate. The jury found that the sum of $5,000.00 was the reasonable cost of repairs necessary to restore the house to [718]*718the condition it was represented to be in. There was no issue requested or submitted on substantial compliance; however, appellant neither objected to the omitted issue nor requested findings on it. “Upon appeal all independent grounds of recovery or of defense not conclusively established under the evidence and upon which no issue is given or requested shall be deemed as waived.” TEX.R.CIV.P. 279. Presumed findings provisions of this rule provide that if no written findings are made, omitted issues are deemed to have been found by the court in such manner as to support the judgment. Harmes v. Arklatex Corp., 615 S.W.2d 177, 179 (Tex.1981). Additionally, the record in this case reflects that the repairs of the defects were feasible without impairing the structure in whole or in part and without incurring unreasonable expenses. Point of error one is overruled.

Secondly, appellant complains that there was no evidence, or insufficient evidence, that the representations were knowingly made. The standard for reviewing a no evidence point requires that we consider only the evidence favorable to the judgment and must sustain the judgment if there is evidence of probative force to support it. Freeman v. Texas Compensation Insurance Co., 603 S.W.2d 186, 191 (Tex.1980); Garza v. Alviar, 395 S.W.2d 821, 823 (Tex.1965). In determining a question on the sufficiency of the evidence, we consider and weigh all the evidence in the case and set aside the judgment only if we conclude that it is clearly wrong and unjust. In re King’s Estate, 150 Tex. 662, 665, 244 S.W.2d 660, 661 (1951).

A knowing misrepresentation is one made with actual awareness of the falsity, and “actual awareness may be inferred where objective manifestations indicate that a person acted with actual awareness.” TEX.BUS. & COM.CODE ANN. § 17.45(9) (Vernon Supp.1985). In this case, appellant represented by contract that they would build, construct, and complete the house in question in a good, substantial, and workmanlike manner. Appel-lee’s expert testified as to numerous incidents of substandard building materials and procedures used by appellant in violation of the Southern Building Standards Code. The Code sets out the minimum requirements for building construction. Appellee’s expert witness testified that “any tradesman involved in building construction ... should be very familiar with these standards.” A knowledge of industry standards as codified can be imputed to appellant, who is in the business of building houses.

This case was predicated on DTPA § 17.46(b)(7) which provides, viz:

(B) [T]he térm ‘false, misleading, or deceptive acts or practices’ includes, but is not limited to, the following acts:
(7) representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.

It appears that the material misrepresentations made by appellant in the mechanic’s lien contract were in violation of this section of the DTPA. See Jim Walter Homes, Inc. v. Chapa,

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686 S.W.2d 715, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jim-walter-homes-inc-v-gonzalez-texapp-1985.