Louisiana Natural Gas Pipeline, Inc. v. Bludworth Bond Shipyard, Inc.

875 S.W.2d 458, 1994 Tex. App. LEXIS 893, 1994 WL 140625
CourtCourt of Appeals of Texas
DecidedApril 21, 1994
Docket01-93-01026-CV
StatusPublished
Cited by25 cases

This text of 875 S.W.2d 458 (Louisiana Natural Gas Pipeline, Inc. v. Bludworth Bond Shipyard, Inc.) 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
Louisiana Natural Gas Pipeline, Inc. v. Bludworth Bond Shipyard, Inc., 875 S.W.2d 458, 1994 Tex. App. LEXIS 893, 1994 WL 140625 (Tex. Ct. App. 1994).

Opinion

OPINION

HUTSON-DUNN, Justice.

This is an appeal from a summary judgment awarded to Bludworth Bond Shipyard, Inc. (Bludworth), appellee, against Louisiana Natural Gas Pipeline, Inc. (LNGP), appellant. A statement of the uncontroverted facts is necessary before considering appellant’s points on appeal.

In 1991, LNGP hired Bludworth to restore LNGP’S ship, Rhea. After work began, disputes arose, which both parties agreed to arbitrate. The arbitrators issued initial findings awarding Bludworth $57,195.67. Blud-worth collected this award out of a letter of credit that LNGP had secured.

On the request of Bludworth, and after hearing additional testimony from LNGP’s expert witness, the arbitrators amended their original award; LNGP was now liable to Bludworth for $82,057.65. LNGP has refused to pay the $24,861.98, the difference between the first and second arbitration awards.

LNGP then brought the current suit against Bludworth alleging violations of the Deceptive Trade Practices Act (DTPA), breach of express and implied warranties, and breach of contract. Bludworth counterclaimed for the balance due under the amended arbitration award.

Bludworth filed a motion for summary judgment. It argued that by the terms of the arbitration agreement, they had agreed *460 to arbitrate these claims and that all of the claims asserted by LNGP were barred. It also contended that it was entitled to a summary judgment on its counterclaim. As exhibits, Bludworth attached the amended arbitration award, a copy of the American Arbitration Association Commercial Arbitration Rules, and the affidavit of Harold Bludworth, president of Bludworth Inc. The affidavit states that the two parties “agreed to binding arbitration of all disputes between the parties relating to the quality and authorization for repair work done on the vessel ‘Rhea’ and payment therefor.” The arbitration agreement is also part of their motion. It states, “Bludworth and LNGP disagree as to the quality and authorization of the repair work and the amount due therefor.”

LNGP responded to the motion and argued that fact issues existed about whether LNGP’s claims were encompassed in the agreement to arbitrate and the subject matter actually arbitrated, and whether the findings of the arbitrators included the claims. LNGP attached the affidavit of Gary Becker, their attorney, which stated that LNGP did not agree to arbitrate any issues other than the amounts owed for repairs and that it did not assert DTPA or warranty claims at that time. It attached a copy of the arbitration briefs presented to the arbitrators. As to the counterclaim, it contended that there were fact issues regarding Bludworth’s basis of recovery of the additional money awarded by the arbitrators’ amendments because the arbitrators did not have authority to reopen the case. It asserted the doctrines of payment, waiver, ratification, and estoppel also, and attached affidavits asserting relevant facts in connection with these arguments.

Bludworth filed a response arguing that the arbitrators did have authority to change the award and that their counterclaim was not barred by the doctrines of payment, waiver, ratification, and estoppel. It attached the affidavit of David Redford, one of the arbitrators, who stated facts relevant to procedures taken when the award was amended.

The court granted a summary judgment for Bludworth, dismissing LNGP’s claims and awarding Bludworth $24,861.98. LNGP brings 11 points of error in this appeal from the summary judgment.

The standards for reviewing a motion for summary judgment are well established. The movant has the burden of showing that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548 (Tex.1985). A defendant-movant must present summary judgment proof establishing, as a matter of law, that there is no genuine issue of material fact on one or more of the essential elements of the plaintiff’s cause of action. Gibbs v. General Motors Corp., 450 S.W.2d 827, 828 (Tex.1970). If the defendant produces sufficient evidence to establish the right to a summary judgment, the plaintiff must set forth sufficient evidence to give rise to a fact issue to avoid a summary judgment. “Moore” Burger, Inc. v. Phillips Petroleum Co., 492 S.W.2d 934, 936-37 (Tex.1972). Conversely, a counter-plaintiff must establish as a matter of law that no issue of fact exists as to any issue and that it is entitled to judgment as a matter of law on each element of its claim. American Medical Electronics, Inc. v. Korn, 819 S.W.2d 573, 576 (Tex.App.—Dallas 1991, writ denied). On appeal, evidence favorable to the nonmovant will be taken as true; every reasonable inference must be indulged in favor of the nonmovant and any doubts resolved in its favor. Montgomery v. Kennedy, 669 S.W.2d 309, 310-11 (Tex.1984). A summary judgment cannot be affirmed on any grounds not presented in the motion for summary judgment. Hall v. Harris County Water Control & Improvement Dist. No. 50, 683 S.W.2d 863, 867 (Tex.App.—Houston [14th Dist.] 1984, no writ). When a trial court’s order does not specify the grounds relied on for its ruling, the summary judgment will be affirmed if any of the theories advanced are meritorious. Insurance Co. of North America v. Security Ins. Co., 790 S.W.2d 407, 410 (Tex.App.—Houston [1st Dist.] 1990, no writ).

In points of error one through three, LNGP argues that the trial court erred in dismissing its claims against Bludworth because a fact issue exists with regard to whether the parties agreed to arbitrate those *461 claims. At a motion to compel arbitration, a trial court may make a summary decision about the applicability of an arbitration clause. Jack B. Anglin Co. v. Tipps, 842 S.W.2d 266, 269 (Tex.1992). The supreme court stated:

[W]e hold that the trial court may summarily decide whether to compel arbitration on the basis of affidavits, pleadings, discovery, and stipulations. However, if the material facts necessary to determine the issue are controverted, by an opposing affidavit or otherwise admissible evidence, the trial court must conduct an evidentiary hearing to determine the disputed material facts.

Id. at 269.

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Bluebook (online)
875 S.W.2d 458, 1994 Tex. App. LEXIS 893, 1994 WL 140625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-natural-gas-pipeline-inc-v-bludworth-bond-shipyard-inc-texapp-1994.