John F. Helm v. Artie G. Kingston

CourtCourt of Appeals of Texas
DecidedDecember 21, 2011
Docket13-10-00224-CV
StatusPublished

This text of John F. Helm v. Artie G. Kingston (John F. Helm v. Artie G. Kingston) 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
John F. Helm v. Artie G. Kingston, (Tex. Ct. App. 2011).

Opinion

NUMBER 13-10-00224-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

JOHN F. HELM, Appellant,

v. ARTIE G. KINGSTON, Appellee.

On appeal from the 319th District Court of of Nueces County, Texas.

MEMORANDUM OPINION Before Chief Justice Valdez and Justices Garza and Benavides Memorandum Opinion by Justice Garza This is an appeal from a judgment awarding damages and attorney‘s fees in a

construction dispute. A jury found appellant, John F. Helm, liable for misrepresentation

under the Deceptive Trade Practices-Consumer Protection Act (―DTPA‖), TEX. BUS. &

COM. CODE ANN. §§ 17.41–.63 (West 2011), and awarded damages of over $75,000, plus $95,000 in attorney‘s fees, to appellee Artie G. Kingston. By seven issues on

appeal, which we reorganize as five, Helm contends: (1) the Residential Construction

Liability Act (―RCLA‖), TEX. PROP. CODE ANN. §§ 27.001–.007 (West Supp. 2010),

applied to Kingston‘s claims; (2) Kingston‘s claims were barred by limitations and

repose; (3) the evidence was insufficient to support the judgment; (4) Helm should have

been permitted to assert the corporate form as a defense and to join necessary third

parties; and (5) the award of attorney‘s fees was contrary to law. Kingston raises one

issue on cross-appeal. We affirm.

I. BACKGROUND

In 1995, Kingston purchased a residential unit in Greenway Townhouses in

Corpus Christi, Texas, from Greenway Development, Inc. (―GDI‖), for $78,300.

Kingston claims that, prior to the purchase, he was advised by Helm, GDI‘s president,

that the unit at issue was an ―extremely well-built‖ two-bedroom townhouse. After

moving in, Kingston discovered what he believed to be defects in the construction of the

unit. Kingston notified GDI of the defects. GDI attempted to repair the defects but

Kingston was not satisfied, so Kingston hired an attorney and sent Helm a DTPA notice

letter on September 24, 1996, requesting $4,356 in damages and $150 in attorney‘s

fees.1 See TEX. BUS. & COM. CODE ANN. § 17.505(a) (generally requiring plaintiff to give

1 The notice letter complained of the following defects:

1. The end of certain shoe moldings are not painted.

2. The front door frame is not properly painted.

3. Sheetrock nails are working out and are exposed.

4. Sheetrock seams which were coming apart have been repaired but not repainted.

2 defendant sixty days‘ written notice before filing suit under the DTPA).

Subsequently, on March 13, 1997, Kingston filed suit, asserting claims of fraud

and negligent misrepresentation as well as various DTPA claims. Kingston named

Helm, GDI, GDI‘s construction manager, Dean Park, and Park‘s company, Construction

and Real Estate Investment Corporation, Inc. (―CREIC‖), as defendants. The original

petition alleged that Helm ―fraudulently induced Kingston to believe that the townhouse

evidenced the highest quality of workmanship when in fact the quality of workmanship

was atrocious.‖ Helm answered and later brought a counterclaim against Kingston for,

among other things, filing a frivolous suit.2 See TEX. PROP. CODE ANN. § 27.0031 (―A

party who files a suit under this chapter that is groundless and brought in bad faith or for

purposes of harassment is liable to the defendant for reasonable and necessary

attorney‘s fees and court costs.‖).3

The case proceeded to trial in 1999. After Kingston presented his case-in-chief,

the trial court granted Helm‘s motion for directed verdict, ruling that the evidence was

5. Utility room is not to specification (too small).

6. The bathtub was constructed with a flaw or damaged prior to or during installation; someone tried to patch the flaw, putting some sort of filler in place of the enamel which was chipped away.

7. The back door frame is not properly painted.

8. There are noticeable dirty fingerprints on ceiling beam left, presumably, by some craftsman.

9. Ceiling fan area not painted where sheetrock repair was done.

10. Defective fireplace floor tile installation (tile broken at time of installation). 2 Helm later filed an amended counter-petition naming CREIC as a counter-defendant. 3 In 1998, Park filed a notice with the trial court indicating that he had filed for bankruptcy and that his debts had been discharged by the bankruptcy court. As a result, Kingston non-suited Park. Additionally, after the 1999 directed verdict in favor of Helm, Kingston non-suited GDI, and Helm non- suited CREIC.

3 insufficient as a matter of law to find Helm liable in his individual capacity. Kingston

appealed, and we reversed. Kingston v. Helm, 82 S.W.3d 755 (Tex. App.—Corpus

Christi 2002, pet. denied). We concluded that Helm‘s status as an agent of GDI did not

insulate him from personal liability for his own tortious conduct. Id. at 758–64. We also

held that article 2.21 of the Texas Business Corporations Act does not require the

corporate veil to be pierced in order to hold a corporate agent individually liable for the

agent‘s own tortious conduct. Id. at 764–67; see Act of June 17, 1983, 68th Leg., R.S.,

ch. 442, 1983 TEX. GEN. LAWS 2566–67 (expired Jan. 1, 2010) (current version at TEX.

BUS. ORGS. CODE ANN. § 21.223 (West Supp. 2010)).

A second trial was not held until 2009. The primary issue at trial was whether,

under the Corpus Christi city code, the unit purchased by Kingston was actually an

apartment—not a townhouse—by virtue of the fact that the unit had a one-hour firewall

rather than a two-hour firewall. The jury found Helm liable on the DTPA

misrepresentation claim, finding that Helm ―engage[d] in [a] false, misleading, or

deceptive act or practice that [Kingston] relied on to his detriment and that was a

producing cause of damages to [Kingston].‖ See TEX. BUS. & COM. CODE ANN. § 17.46.

In a separate question, the jury declined to find that Helm acted ―knowingly‖ in making

the misrepresentations. The jury awarded $75,862.29 to Kingston, representing the

―reasonable and necessary cost to repair‖ the unit at issue so that it is ―the property it

was represented to be.‖ The jury additionally awarded $95,000 in trial attorney‘s fees to

Kingston, as well as $10,000 upon an unsuccessful appeal to this Court and $3,000

upon an unsuccessful appeal to the Texas Supreme Court. The final judgment which

was rendered on the verdict included $48,770.09 in pre-judgment interest as well as five

4 percent post-judgment interest accruing from the date of the judgment until the time the

judgment is paid. This appeal followed.

II. DISCUSSION

A. Residential Construction Liability Act

By his first issue, Helm argues that Kingston failed to satisfy the requirements of

the RCLA. He claims that Kingston‘s failure to ―plead or prove any allegations under the

RCLA‖ ―preempts‖ Kingston‘s claims for statutory fraud and DTPA violations, and that

the application of the RCLA limits Kingston‘s damages.

The version of the RCLA in effect at the time Kingston filed suit expressly applied

to ―any action to recover damages resulting from a construction defect‖ other than

claims for personal injury, survival, wrongful death, or damage to goods. Act of June

18, 1993, 73rd Leg., R.S., ch. 797, § 3, 1993 TEX. SESS. LAW SERV. 3171, 3172

(effective Aug.

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