Knowlton v. United States Brass Corp.

864 S.W.2d 585, 1993 WL 312146
CourtCourt of Appeals of Texas
DecidedAugust 19, 1993
Docket01-90-00612-CV, 01-90-00825-CV
StatusPublished
Cited by18 cases

This text of 864 S.W.2d 585 (Knowlton v. United States Brass Corp.) 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
Knowlton v. United States Brass Corp., 864 S.W.2d 585, 1993 WL 312146 (Tex. Ct. App. 1993).

Opinion

OPINION

SAM BASS, Justice. *

In two separate appeals, the plaintiff homeowners 1 and United States Brass Corporation (U.S. Brass) appeal, respectively, from a summary judgment based on the affirmative defenses of res judicata and limitations, and a final judgment based on a jury verdict 2 entered by the court below.

The trial court entered a take-nothing summary judgment against the Knowlton plaintiffs in favor of the defendant companies, U.S. Brass, Shell Oil Company (Shell), and Hoechst Celanese Corporation (Cela-nese), which the Knowlton plaintiffs appeal. The trial court entered judgment on the jury verdict in favor of the Kochie plaintiffs against U.S. Brass, which U.S. Brass challenges. Additionally, the trial court did not award the Kochie plaintiffs double the first $1,000 of actual damages against U.S. Brass, which the Kochie plaintiffs assert as error under the Deceptive Trade Practices Act (DTPA). 3

This suit began when numerous plaintiff homeowners sued U.S. Brass, General Homes Corporation (General Homes), Shell, Celanese, Buckner Boulevard Plumbing Co., Inc. (Buckner), and Vanguard Plastics, Inc. (Vanguard). The plaintiff homeowners alleged these entities were responsible for placing a defective “polybutylene plumbing system” in their homes through either the design, manufacture, marketing, or sale of the plumbing system. The plaintiff homeowners’ complaint alleged theories of negligence, strict liability, and violations of the DTPA.

According to the plaintiff homeowners, U.S. Brass designed and manufactured the plumbing system, including the polybutylene pipe and Celcon insert fittings that are fas *591 tened to the pipe by a crimp ring applied with a special crimp tool; Vanguard designed and manufactured a similar, competing poly-butylene plumbing system that used either Celcon or Delrin (DuPont) insert fittings; Shell produced polybutylene as a by-product of the oil refining process; and Celanese produced the material, Celcon. The plumbing system of some of the plaintiff homeowners contained a mixture of Vanguard and U.S. Brass components. The plaintiff homeowners alleged that the plumbing system was defective, and that the defendants persuaded local code bodies to approve the plumbing system for new home construction, and builders, such as General Homes, to install the system in its homes based on the defendants’ representations about the quality of the system and its component parts. Without such representations, the plaintiff homeowners stated General Homes would not have installed the plumbing system in its homes. The plaintiff homeowners purchased their homes either directly from General Homes, from individuals who had previously purchased their homes from General Homes, or as foreclosures.

After the trial court granted summary judgment in favor of Shell, Celanese, U.S. Brass, and General Homes against the Knowlton plaintiffs, the remaining plaintiff homeowners dismissed their claims against General Homes and Buckner, and nonsuited Shell and Celanese. Trial proceeded to a jury with U.S. Brass and Vanguard as the remaining defendants. The issues on liability for negligence and violations of the DTPA were submitted to the jury; the parties had previously stipulated the amount of actual damages. The plaintiff homeowners settled their claims with Vanguard after the court’s charge had been read to the jury, closing arguments had been made, and the jury had been recessed with instructions to begin deliberating the next day.

The jury made findings favorable to 104 plaintiff homeowners and adverse to 12. 4 The 104 plaintiffs moved for judgment in accordance with the jury’s verdict. Some elected to recover under the DTPA; the others elected to recover under negligence. The trial court signed a final judgment based on the jury findings and the plaintiffs’ election of their theory of recovery. The trial court’s judgment stated, “All other relief not expressly granted herein is denied.” 5

U.S. Brass limited its appeal to 69 plaintiffs, the Kochie plaintiffs, for whom the jury made favorable findings. Of these 69 plaintiffs, 48 elected to recover under the DTPA (the DTPA plaintiffs), 6 and 21 elected to recover under negligence (the negligence plaintiffs). 7

*592 U.S. Brass v. Kochie et al. (Appeal No. 01-90-00825-CV)

U.S. Brass presents eight points of error, complaining generally that the DTPA plaintiffs were not consumers with respect to U.S. Brass; that the DTPA plaintiffs should not have been awarded damages in excess of actual damages because of U.S. Brass’ settlement offer; that U.S. Brass should have been given a judgment credit based on the actual damages attributed to Vanguard, not on the Vanguard settlement amount; and that there was no evidence to support a finding of gross negligence against U.S. Brass. The DTPA plaintiffs present a cross-point of error, that it was error to deny them the mandatory doubling of the first $1,000 of actual damages.

Consumer status

In its first and second points of error, U.S. Brass asserts the trial court erred in entering a judgment for the DTPA plaintiffs because they were not “consumers” to U.S. Brass. According to U.S. Brass, there is no evidence that any of its representations relating to the plumbing system reached the DTPA plaintiffs and induced them to purchase their homes, and the DTPA plaintiffs were required to prove, and did not, that U.S. Brass misrepresented the plumbing system “in connection with” the transactions through which the DTPA plaintiffs purchased their homes.

The DTPA plaintiffs argue all that is required to be a consumer under the DTPA is that: (1) they have sought or acquired goods or services for purchase or lease, and (2) those goods or services must form the basis of their complaint.

To recover under the DTPA, a plaintiff must establish that he is a “consumer,” that there were false, misleading, or deceptive acts or an unconscionable act, and that the act or acts constituted a producing cause of damage. Custom Controls Co. v. MDS Qantel, Inc., 746 S.W.2d 261, 268 (Tex.App.—Houston [1st Dist.] 1987), rev’d, Qantel Business Sys. v. Custom Controls Co., 761 S.W.2d 302 (Tex.1988); Miller v. Soliz, 648 S.W.2d 734, 739 (Tex.App.-Corpus Christi 1983, no writ); Bormaster v. Henderson, 624 S.W.2d 655, 660 (Tex.App.—Houston [14th Dist.] 1981, no writ); Tex.Bus. & Com.Code Ann. § 17.50(a)(1), (3) (Vernon 1987). A “consumer” is “an individual, partnership, corporation, this state, or a subdivision or agency of this state who seeks or acquires by purchase or lease, any goods or services_” Tex. Bus. & Com.Code Ann. § 17.45(4) (Vernon 1987).

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864 S.W.2d 585, 1993 WL 312146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knowlton-v-united-states-brass-corp-texapp-1993.