McAllen Independent School District v. Vega Roofing Co., Juan Vega and Commercial Indemnity Insurance Co.

CourtCourt of Appeals of Texas
DecidedAugust 10, 2000
Docket13-98-00342-CV
StatusPublished

This text of McAllen Independent School District v. Vega Roofing Co., Juan Vega and Commercial Indemnity Insurance Co. (McAllen Independent School District v. Vega Roofing Co., Juan Vega and Commercial Indemnity Insurance 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.

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McAllen Independent School District v. Vega Roofing Co., Juan Vega and Commercial Indemnity Insurance Co., (Tex. Ct. App. 2000).

Opinion



NUMBER 13-98-342-CV


COURT OF APPEALS


THIRTEENTH DISTRICT OF TEXAS


CORPUS CHRISTI

________________________________________________________________________

MCALLEN INDEPENDENT SCHOOL DISTRICT

, Appellant,

v.


VEGA ROOFING CO., JUAN VEGA,

AND COMMERCIAL INDEMNITY

INSURANCE COMPANY

, Appellees.

________________________________________________________________________

On appeal from the 139th District Court
of Hidalgo County, Texas.

________________________________________________________________________

O P I N I O N


Before Chief Justice Seerden and Justices Hinojosa and Rodriguez
Opinion by Chief Justice Seerden


McAllen Independent School District appeals a judgment rendered against it in a breach of contract case. We affirm.

Factual and Procedural Background

In June of 1994, McAllen Independent School District ("McAllen") entered into a contract with Vega Roofing Company, Inc. ("Vega Roofing") for roofing repair work at McAllen High School. The roof consisted of a metal deck layered with concrete, tar impregnated felt, gravel, foam, and a final acrylic coating applied on top. Under the contract, Vega Roofing was to remove and replace areas of wet foam as identified by infra-red scan, clean and dry the roof, and apply a new acrylic coating to the roof. McAllen failed to complete payments to Vega Roofing under the contract, and Juan Vega and Vega Roofing filed the underlying action alleging breach of contract against McAllen. McAllen counterclaimed for breach of contract, breach of express and implied warranties, and negligence. McAllen also filed a third party petition against Commercial Indemnity Insurance Company ("Commercial Indemnity"), the bonding company for Vega Roofing, seeking enforcement of the payment and performance bonds and alleging fraud.

At trial, the court granted a directed verdict against Juan Vega regarding his individual claims, a directed verdict for Commercial Indemnity regarding the fraud claim against it, and a directed verdict against McAllen on its negligence cause of action against Vega Roofing.

According to the jury's findings, McAllen failed to comply with the contract and its failure to comply was not excused. Vega Roofing did not breach the contract, it substantially performed its obligations under the contract, and it did not breach its warranty to repair the roof in a good and workmanlike manner. The jury found that Commercial Indemnity did not breach its performance bond.

The trial court entered judgment for Vega Roofing for actual and consequential damages of $100,171.40, and $92,000.00 in attorney's fees, plus attorney's fees on appeal. Neither Juan Vega nor Commercial Indemnity are parties to this appeal.

McAllen appeals the judgment against it by seven issues.

Substantial Performance

By its first issue, McAllen asserts that Vega Roofing cannot recover on a theory of substantial performance because it failed to prove the appropriate credit due McAllen under the contract. Vega Roofing responds that it performed its part of the contract completely and McAllen was not entitled to a credit on the contract price.

The doctrine of substantial performance allows a party to a contract, who is himself in breach but who nevertheless substantially completed performance, to recover damages for that performance. Dobbins v. Redden, 785 S.W.2d 377, 378 (Tex. 1990). A party that has substantially performed a building contract is entitled to recover the full contract price less the cost of remedying those defects which are remediable. Id.; Vance v. My Apartment Steak House of San Antonio, Inc., 677 S.W.2d 480, 481 (Tex. 1984); Sheldon L. Pollack Corp. v. Falcon Ind., 794 S.W.2d 380, 382 (Tex.App.­Corpus Christi 1990, writ denied). In such cases, the party seeking to recover on the contract has the burden of proving that he substantially performed under the contract, the consideration due to him under the contract, and the cost of remedying the defects due to his errors or omissions. Vance, 677 S.W.2d at 483; Sheldon L. Pollack Corp., 794 S.W.2d at 380. The doctrine of substantial performance is inapplicable to non-breaching parties. Tacon Mechanical Contractors v. Grant Sheet, 889 S.W.2d 666, 670 (Tex. App.­Houston [14th Dist.] 1994, writ denied)(refusing to apply substantial performance doctrine to bar recovery by non-breaching party); see Dobbins, 785 S.W.2d at 377-78 (substantial performance allows defaulting party to recover on contract).

McAllen argues that Vega Roofing's recovery was predicated on substantial performance because Vega Roofing failed to submit an issue on full performance and the jury was asked about substantial performance rather than full performance. McAllen further argues that because Vega Roofing failed to present evidence regarding the reasonable and necessary cost of repairing, correcting, or completing the work to achieve final completion, Vega Roofing failed to carry its burden to establish any credit due to McAllen, thus barring recovery under substantial performance. Ultimately, McAllen contends that the deficiency under the substantial performance standard is fatal to Vega Roofing's recovery because McAllen assumes that the jury's negative answer to the question of whether Vega Roofing breached the contract does not satisfy Vega Roofing's burden to prove complete performance.

We disagree with McAllen's assumption that Vega Roofing's recovery was based on substantial performance. Vega Roofing's pleadings do not invoke the substantial performance doctrine, but rather allege breach of contract. At trial, Juan Vega testified that all the work required by the contract documents was performed; that he believed that the proper insurance was provided and accepted; that none of the reported leaks were related to the roof; and that all defective materials or workmanship was corrected. Vega Roofing further objected to the submission of the substantial performance issue.

The jury found that McAllen failed to comply with the contract; that McAllen's breach of contract was unexcused; that Vega Roofing did not breach the contract; that Vega Roofing did not breach its warranty to repair the roofs in a good and workmanlike manner; and that Vega Roofing substantially performed its obligations under the contract. These fact findings necessarily imply that Vega Roofing performed its obligations under the contract. This conclusion is essentially acknowledged by McAllen in its second point of error, which states: "the jury found that Vega Roofing did not breach the subcontract." Moreover, "substantial performance" means that the essential elements of a contract have been performed and is the legal equivalent to full performance. Anderson v. Vinson Exploration, Inc., 832 S.W.2d 657, 666 (Tex.App.­El Paso 1992, writ denied).

Vega Roofing was a non-breaching party, and the doctrine of substantial performance is inapplicable to non-breaching parties. Tacon Mechanical Contractors, 889 S.W.2d at 670; see

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McAllen Independent School District v. Vega Roofing Co., Juan Vega and Commercial Indemnity Insurance Co., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcallen-independent-school-district-v-vega-roofing-texapp-2000.