Kennedy Ship & Repair, L.P. v. Pham

210 S.W.3d 11, 2006 WL 2827268
CourtCourt of Appeals of Texas
DecidedNovember 2, 2006
Docket14-05-00363-CV
StatusPublished
Cited by60 cases

This text of 210 S.W.3d 11 (Kennedy Ship & Repair, L.P. v. Pham) 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
Kennedy Ship & Repair, L.P. v. Pham, 210 S.W.3d 11, 2006 WL 2827268 (Tex. Ct. App. 2006).

Opinion

OPINION

J. HARVEY HUDSON, Justice.

Appellant, Kennedy Ship & Repair, L.P. (“Kennedy Ship”), appeals the judgment entered in favor of appellee, Dranson Charlie Pham (“Pham”), on his breach of contract claim. We affirm.

I. Background

On January 4, 2001, Kennedy Ship and Pham entered into a contract under which Kennedy Ship agreed to build a commercial shrimp trawler for Pham for a purchase price of $808,000. The contract provided for a delivery date of June 2001, in time for shrimping season. In January 2001, Pham made a $50,000 down payment on the shrimp trawler. The contract provided that the first payment of $50,000— after the down payment — was due “when hull erection [is] completed,” the second payment of $50,000 was due one month from the date of the first payment, the third payment of $50,000 was due two months from the date of the first payment, and the fourth payment of $608,000 was due “upon completion from bank loan.”

On April 12, 2001, Kennedy Ship wrote Pham that the hull had been erected and Pham was $100,000 overdue on his contract. On April 18, 2001, a $50,000 payment was made to Kennedy Ship on behalf of Pham. On July 23, 2001, Kennedy Ship wrote Pham again that he was $100,000 overdue on his contract and his “hull position has been lost unless payment arrangements have been made and agreed upon in the next fifteen days.” On August 21, 2001, Kennedy Ship informed Pham that it was “proceeding with the construction of the hull for a new purchaser.” In September 2001, Pham tried to make a payment on the shrimp trawler, but was told by Chris Kennedy, the general partner of Kennedy Ship, that the hull had been transferred to another purchaser.

*16 Pham sued Kennedy Ship for breach of contract and Kennedy Ship counterclaimed against Pham for breach of contract. 1 The jury found Kennedy Ship had failed to comply with its agreement to build a commercial shrimp trawler for Pham, and Pham had failed to comply with his agreement to purchase a commercial shrimp trawler from Kennedy Ship. The jury found Pham’s failure to comply was excused by Kennedy Ship’s previous failure to comply with a material obligation of the same agreement, but Kennedy Ship’s failure to comply was not excused. The jury awarded Pham $100,000, which was the amount Pham had paid to Kennedy Ship, on his breach of contract claim.

On appeal, Kennedy Ship claims (1) the evidence is legally and factually insufficient to support the jury’s finding that it breached its agreement with Pham, (2) the jury’s finding that it’s performance of the contract was not excused from performance is against the great weight and preponderance of the evidence, (3) the evidence is factually insufficient to support the jury’s finding that Pham’s performance of the contract was excused, and (4) the trial court erred in not including an instruction on material breach in the jury charge.

II. Kennedy Ship’s Breach

A. Legal Sufficiency

In its first issue, Kennedy ship challenges the legal sufficiency of the evidence to support the jury’s finding that it breached the agreement to build a commercial shrimp trawler for Pham. When reviewing the legal sufficiency of the evidence, we review the evidence in the light most favorable to the challenged finding and indulge every reasonable inference that would support it. City of Keller v. Wilson, 168 S.W.3d 802, 822 (Tex.2005). We credit favorable evidence if a reasonable fact finder could, and disregard contrary evidence unless a reasonable fact finder could not. Id. at 827. The evidence is legally sufficient if it would enable fair-minded people to reach the verdict under review. Id.

Because the appellate court is not the fact finder, it may not substitute its own judgment for that of the trier of fact, even if a different answer could be reached on the evidence. Maritime Overseas Corp. v. Ellis, 971 S.W.2d 402, 407 (Tex.1998); Grey Wolf Drilling Co. v. Boutte, 154 S.W.3d 725, 733-34 (Tex.App.-Houston [14th Dist.] 2004, pet. dism’d by agr.). The amount of evidence necessary to affirm the judgment is far less than necessary to reverse a judgment. Bracewell v. Bracewell, 20 S.W.3d 14, 23 (Tex.App.Houston [14th Dist.] 2000, no pet.).

1. American Bureau of Shipping Standards

Kennedy Ship contends the evidence is not legally to support a finding that it breached the contract because the shrimp trawler was not classed and certified by the American Bureau of Shipping (“ABS”). The American Bureau of Shipping (“ABS”) is a classification society whose purpose is to promote certain standards within the shipping industry.

The contract between Kennedy Ship and Pham provided:

Classifícations and Certificates:

Admeasurement under 200 gross tons. Built to ABS standards.

*17 Although neither party pleaded ambiguity, the trial court determined the above quoted contract term was ambiguous and, accordingly, instructed the jury:

It is your duty to interpret the following language of the agreement: “Classifications and Certificates: Built to ABS standards[.]”
You must decide its meaning by determining the intent of the parties at the time of the agreement. Consider all the facts and circumstances surrounding the making of the agreement, the interpretation placed on the agreement by the parties, and the conduct of the parties and any trade customs. 2

Kennedy Ship argues that the plain language of the contract states it would build the boat to ABS standards, not that the boat would be classified or certified by the ABS as argued by Pham. Even under Kennedy Ship’s interpretation that it was not obligated to have the vessel ABS classed and certified, but only that it would build it to ABS standards, we conclude the evidence is legally sufficient to support a jury finding that Kennedy Ship did not build the shrimp trawler to ABS standards.

Ken Tamura, the manager of the Rules and Standards Department at the ABS, described the process for obtaining ABS classification and certification for a vessel. First, an application of the classification request must be submitted to the ABS, which reviews it to make sure it is appropriate for classification and the ABS issues the verification. The design for the vessel is then submitted to the ABS for its review to make sure it is in compliance with ABS rules and standards. After the ABS approves the design and the vessel is under construction, an ABS surveyor is stationed periodically at the construction site to verify that the construction complies with the approved design and that materials used in the construction meet ABS standards.

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

Related

J&T Legend Homes Abilene, LLC v. Shawn Weekley
Court of Appeals of Texas, 2025
Jose Antonio Nasipak v. the State of Texas
Court of Appeals of Texas, 2022
ARC Designs, Inc. v. Nabors Industrial, Inc.
Court of Appeals of Texas, 2020
Texas Black Iron, Inc. v. Arawak Energy International Ltd
566 S.W.3d 801 (Court of Appeals of Texas, 2018)
Kamisha Davis v. Texas Farm Bureau Insurance
Court of Appeals of Texas, 2015
Superior Broadcast Products v. Doud Media Group, L.L.C.
392 S.W.3d 198 (Court of Appeals of Texas, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
210 S.W.3d 11, 2006 WL 2827268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kennedy-ship-repair-lp-v-pham-texapp-2006.