Mathews Construction Co. v. Jasper Housing Construction Co.

528 S.W.2d 323, 1975 Tex. App. LEXIS 3160
CourtCourt of Appeals of Texas
DecidedSeptember 25, 1975
Docket7658
StatusPublished
Cited by33 cases

This text of 528 S.W.2d 323 (Mathews Construction Co. v. Jasper Housing Construction Co.) 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
Mathews Construction Co. v. Jasper Housing Construction Co., 528 S.W.2d 323, 1975 Tex. App. LEXIS 3160 (Tex. Ct. App. 1975).

Opinions

STEPHENSON, Justice.

Mathews Construction Company, Inc., brought this action against Jasper Housing Construction Company (Jasper Housing), New Homes, Inc. (New Homes) and Fireman’s Insurance Company (Fireman’s). The pleadings sought recovery for labor and materials furnished, interest on bank loans, and attorneys’ fees. This appeal is from an order granting motions for summary judgment filed by all three defendants.

[325]*325The summary judgment proof shows plaintiff was paid $11,517.50 by Jasper Housing after this suit was filed, leaving the interest and attorneys’ fees as the only money sought to be recovered.

In the judgment granting such motions, the trial court stated that plaintiff’s claim for interest paid or owed to First National Bank of Jasper, Texas, and attorneys’ fees in connection with such interest claim, is based upon an oral promise and, therefore, barred by the Statute of Frauds and Tex. Bus. & Comm.Code Ann. § 26.01 (1968). A part of that section reads as follows:

“(a) A promise or agreement described in Subsection (b) of this section is not enforceable unless the promise or agreement, or a memorandum of it is
“(1) in writing; and
* * * £ * *
“(b) Subsection (a) of this section applies to
******
“(2) a promise by one person to answer for the debt, default, or miscarriage of another person; ”

In passing upon the points of error raised in this case, we are well aware of the rule stated in a series of cases in which our Supreme Court has held that the burden is upon the movant to establish, as a matter of law, that there is no genuine issue of fact. Gibbs v. General Motors Corporation, 450 S.W.2d 827 (Tex.1970). In the case before us, if the trial court was in error in holding the oral agreement unenforceable because of the Statute of Frauds, then there was a genuine issue of fact as to whether that oral agreement was made.

Plaintiff’s allegations show it was a subcontractor to do the dirt work on a project in which Jasper Housing was the prime contractor. The agreed price for such subcontract was $13,217.50. Plaintiff’s work was completed, but the money was not paid. Plaintiff assigned its lien to the First National Bank of Jasper, Texas, and executed two notes in the total amount of $11,900.75. Jasper Housing guaranteed the payment of such notes, and did in fact pay the Bank $158.61 interest.

Plaintiff attached affidavits to its reply to the motion for summary judgment showing the following: that the work was completed under the subcontract, but the money was not paid. Richard Sarver, president of Jasper Housing, was contacted, and he suggested that plaintiff make a loan from the Bank for sixty days and that Jasper Housing would pay the interest. That the loan was made and Jasper Housing paid $158.61 as interest on such loan.

This point of error is controlled by the law expressed in Gulf Liquid Fertilizer Co. v. Titus, 163 Tex. 260, 354 S.W.2d 378 (1962). The oral agreement made by Jasper Housing to pay the interest upon the notes given by plaintiff to the bank is not barred by the Statute of Frauds. That case tells us we must apply three tests in order to determine that question. First:

“Was there a promise of primary responsibility to pay, or was there a promise of suretyship?”

According to the summary judgment proof, this was not a promise made by Jasper Housing to the Bank to guarantee the payment of a debt owed by plaintiff to the Bank. This was a promise by Jasper Housing to plaintiff, to pay the interest on a loan by plaintiff from the Bank. Second:

“Was there sufficient consideration to support the promise to pay?”

The summary judgment proof was that the money, due plaintiff by Jasper Housing, was past due; and in order to secure more time to make such payment, Jasper Housing agreed to pay the interest on the loan. Third:

“Was the consideration such as to remove the promise from the Statute of Frauds?”

In making the meaning of this third question clear, the Supreme Court at Page 386 quotes from 2 Corbin, Contracts (1950 Ed.) 284 § 368, partially as follows:

[326]*326“ ‘In order to take his promise out of the statute, he [the promisor] must be bargaining for a consideration that is beneficial to himself and that constitutes his primary object of desire.’ ” (Emphasis omitted.)

As stated above Jasper Housing agreed to pay the interest as a benefit to itself, in order to defer payment of its obligation. All these questions must be answered in the affirmative. It was error for the trial court to hold the oral agreement made by Jasper Housing to be barred by the Statute of Frauds.

Plaintiff argues that it is entitled to recover attorneys’ fees in connection with its claim of interest. The law is well settled that attorneys’ fees are not recoverable either in an action in tort or in a suit upon a contract unless provided by Statute or by contract between the parties. New Amsterdam Casualty Co. v. Texas Industries, Inc., 414 S.W.2d 914 (Tex.1967). There is no summary judgment proof that a contract provides for attorneys’ fees, and Tex.Rev.Civ.Stat.Ann. art. 2226 makes no provision for collections of attorneys’ fees in connection with a suit for interest.

Plaintiff has a point of error that it is entitled to collect attorneys’ fees because its pleadings show a cause of action based upon a sworn account. The pleadings and summary judgment proof in the case before us demonstrate that the suit is not founded upon a sworn account within the meaning of art. 2226. Plaintiff’s account is not one in which there is a sale upon one side and a purchase upon the other, whereby title to personal property passes from one to the other. Tenneco Oil Company v. Padre Drilling Company, 453 S.E.2d 814, 818 (Tex.1970).

Plaintiff contends that it is entitled to recover its attorneys’ fees under Tex.Rev. Civ.Stat.Ann. art. 2226, because this is an action for services rendered, labor done, material furnished. Art. 2226 reads in part as follows:

“Any person, corporation, partnership, or other legal entity having a valid claim against a person or corporation for services rendered, labor done, material furnished, . . . may present the same to such persons or corporation . . . ; and if, at the expiration of 30 days thereafter, the claim has not been paid or satisfied, and he should finally obtain judgment . . . , he may, if represented by an attorney, also recover, in addition to his claim and costs, a reasonable amount as attorney’s fees. . . . ” Tex.Rev.Civ.Stat.Ann. art. 2226 (Supp. 1971) (Emphasis supplied.)

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

Related

In the Interest of D.D.M.
116 S.W.3d 224 (Court of Appeals of Texas, 2003)
In Re DDM
116 S.W.3d 224 (Court of Appeals of Texas, 2003)
in the Interest of D. D. M., a Child
Court of Appeals of Texas, 2003
Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1995
Wichita County v. Hart
892 S.W.2d 912 (Court of Appeals of Texas, 1994)
Texas Department of Transportation v. Ramming
861 S.W.2d 460 (Court of Appeals of Texas, 1993)
Maley v. 7111 Southwest Freeway, Inc.
843 S.W.2d 229 (Court of Appeals of Texas, 1992)
Opinion No.
Texas Attorney General Reports, 1990
Gill Sav. Ass'n v. International Supply Co. Inc.
759 S.W.2d 697 (Court of Appeals of Texas, 1988)
Twin Island Development Corp. v. Winchester
512 A.2d 319 (Supreme Judicial Court of Maine, 1986)
Direlco, Inc. v. Bullock
711 S.W.2d 360 (Court of Appeals of Texas, 1986)
Haden Co., Inc. v. Mixers, Inc.
667 S.W.2d 316 (Court of Appeals of Texas, 1984)
Armstrong v. Harris County
669 S.W.2d 323 (Court of Appeals of Texas, 1983)
Skinny's, Inc. v. Hicks Brothers Construction Co. of Abilene
602 S.W.2d 85 (Court of Appeals of Texas, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
528 S.W.2d 323, 1975 Tex. App. LEXIS 3160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mathews-construction-co-v-jasper-housing-construction-co-texapp-1975.