Jim Walters Homes, Inc. v. Reed

703 S.W.2d 701, 1985 Tex. App. LEXIS 7182
CourtCourt of Appeals of Texas
DecidedSeptember 5, 1985
Docket13-84-138-CV
StatusPublished
Cited by11 cases

This text of 703 S.W.2d 701 (Jim Walters Homes, Inc. v. Reed) 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 Walters Homes, Inc. v. Reed, 703 S.W.2d 701, 1985 Tex. App. LEXIS 7182 (Tex. Ct. App. 1985).

Opinions

OPINION

KENNEDY, Justice.

This is an action brought by appellees against appellant for violations of the Deceptive Trade Practice Act (DTPA), TEX.BUS. & COMM.CODE ANN. § 17.50 et seq. (Vernon Supp.1985) for misrepresentations regarding a contract for the sale and construction of a house, for breach of contract, for breach of express and implied warranties and for gross negligence in the supervision of the construction of the house.

This action was tried in October 1983. In its verdict, the jury found that appellant [704]*704violated the DTPA, that appellant breached the express warranty of good workmanship in the contract and that appellant was grossly negligent with respect to the supervision of the construction of the house. The jury awarded $11,884 in actual damages, $32,000 in “additional” damages under the DTPA, $500,000 in exemplary damages and attorney’s fees. The trial court rendered judgment on this verdict awarding actual and exemplary damages and attorney’s fees but not “additional” damages under the DTPA. Upon appellant’s Motion for New Trial, the trial court ordered a reduction of the exemplary damages in the amount of $50,000. The appellees agreed to the remittitur. Appellant’s Motion for New Trial was overruled. Appellant brings this appeal complaining in nine points of error of the exemplary damages. Appellant does not complain of the actual damages or attorney’s fees. Appellees bring seven cross-points. We modify the judgment and, as modified, affirm the judgment of the trial court.

Appellant, by his first four points of error, complains that the trial court erred in submitting issues on gross negligence and exemplary damages and awarding exemplary damages because (1) exemplary damages may not be recovered for breach of contract or breach of warranty, (2) the actions of defendant lacked the required tort aspects as a predicate to an award of exemplary damages, (3) there was no evidence of negligence and (4) there was insufficient evidence to support an issue on gross negligence.

Appellant, under these points of error, asserts that appellees’ action in the trial court “sounded in warranty and contract, and not in the tort of negligence.” The general rule is that exemplary damages cannot be recovered in an action for breach of contract or breach of warranty which is not accompanied by a tort. A.L. Carter Lumber Co. v. Saide, 140 Tex. 523, 168 S.W.2d 629, 631 (1943); Canon U.S.A. v. Carson Map Co., 647 S.W.2d 321, 323 (Tex.App.—Corpus Christi 1983, no writ). Appellant urges that exemplary damages may not be recovered in a breach of contract action. We have carefully examined all of the authority cited by appellant and find those eases distinguishable in that in each of them it was held that no separate tort was alleged and proved at the trial. See Amoco Production Co. v. Alexander, 622 S.W.2d 563, 571 (Tex.1981); A.L. Carter Lumber Co. v. Saide, 140 Tex. 523, 168 S.W.2d 629, 631 (1943); Superior Trucks, Inc. v. Allen, 664 S.W.2d 136, 141 (Tex.App.—Houston [1st Dist.] 1983, writ ref’d n.r.e.); Cannon U.S.A. v. Carson Map Co., Inc., 647 S.W.2d 321, 323 (Tex.App.—Corpus Christi 1982, no writ); William B. Roberts, Inc. v. McDrilling Co., Inc., 579 S.W.2d 335, 340 (Tex.Civ.App.—Corpus Christi 1979, no writ).

We believe, however, that the analysis provided in the Superior Trucks case is correct. Under Superior Trucks, exemplary damages may be recovered when the plaintiff pleads, proves, and obtains a favorable finding on each of the elements of a tort. Therefore, in order to prevail on a negligence theory, appellee must have plead, proved and secured a favorable finding on the following elements:

1. that appellant had a duty to appellee;
2. that that duty was breached;
3. that the breach was a proximate cause of injury to appellee; and
4. damages

Producers Grain Corp. v. Lindsay, 603 S.W.2d 326, (Tex.Civ.App.—Amarillo 1980, no writ); Harrison v. Harrison, 597 S.W.2d 477 (Tex.Civ.App.—Tyler 1980, writ ref’d n.r.e.).

We have examined the pleadings and find that they are sufficient to support an action in negligence. Breach of duty, proximate cause and damage issues are not disputed by appellant.

Appellant in its brief asserts: “Any obligation to supervise the construction of the house in question was part and parcel of the contract to construct that house and the warrantees (sic) pursuant thereto.” However, this is a misstatement of the law in the State of Texas. It has long been the [705]*705law that a party to a contract owes a common-law duty to perform with care, skill, reasonable expedience and faithfulness, the thing agreed to be done; and a negligent failure to observe any of these conditions is a tort as well as a breach of contract. Montgomery Ward & Co. v. Scharrenbeck, 146 Tex. 153, 204 S.W.2d 508 (1947). In Texas Industries v. Lucas, 634 S.W.2d 748, 755 (Tex.App.—Houston [14th Dist] 1982), rev’d on other grounds, 27 S.Ct.J. 491 (July 14, 1984), it was held that there was a contractual duty to build the subject matter “in the manner called for by the plans” and that in connection with that contract there was a “duty to exercise ordinary care in the construction called for and to do the work in a good and workmanlike manner.” Likewise,- we find today that the common-law duty to perform the contract with care and skill encompasses the duty to adequately supervise the construction of the house.

In the case before us today, the jury found in response to special issue fourteen that appellant “was grossly negligent with respect to the supervision of the construction of the house in question, and ... such gross negligence (was) a proximate cause of the defects occurring in the house in question.” “Gross negligence” was defined as “that entire want of care which would raise the belief that the act or omission complained of was the result of a conscious indifference to the right or welfare of the person or persons to be effected (sic) by it.” In response to special issue eleven, the jury found actual damages in the amount of $11,857. Therefore, the elements of gross negligence were properly submitted to the jury.

The evidence in this case showed that appellant contracted with appellees to build a house on their land. Shortly after the concrete pier foundation was installed and during the framing of the house, appellees complained to appellant about the quality of the concrete. The concrete was crumbling and could easily be broken off.2 Appellant’s employees assured appellees that there was no problem, that the concrete had been tested and was good quality concrete.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lamar Homes, Inc. v. Mid-Continent Casualty Co.
242 S.W.3d 1 (Texas Supreme Court, 2007)
Lamar Homes, Inc. v. Mid-Continent Cas. Co.
239 S.W.3d 236 (Texas Supreme Court, 2007)
Missouri Pacific Railroad v. Lemon
861 S.W.2d 501 (Court of Appeals of Texas, 1993)
Texas Farmers Insurance Co. v. Soriano
844 S.W.2d 808 (Court of Appeals of Texas, 1992)
Jim Walter Homes, Inc. v. Reed
711 S.W.2d 617 (Texas Supreme Court, 1986)
Jim Walters Homes, Inc. v. Reed
703 S.W.2d 701 (Court of Appeals of Texas, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
703 S.W.2d 701, 1985 Tex. App. LEXIS 7182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jim-walters-homes-inc-v-reed-texapp-1985.