Mid Continent Lift & Equipment, LLC v. J. McNeill Pilot Car Service

537 S.W.3d 660
CourtCourt of Appeals of Texas
DecidedDecember 15, 2017
DocketNO. 03-16-00290-CV
StatusPublished
Cited by14 cases

This text of 537 S.W.3d 660 (Mid Continent Lift & Equipment, LLC v. J. McNeill Pilot Car Service) 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
Mid Continent Lift & Equipment, LLC v. J. McNeill Pilot Car Service, 537 S.W.3d 660 (Tex. Ct. App. 2017).

Opinion

OPINION

Bob Pemberton, Justice

This cause presents competing single-issue appeals challenging a final judgment, following a jury trial, that ordered J. McNeill Pilot Car Service to-pay property damages, including lost profits, to Mid Continent Lift & Equipment, LLC. McNeill appeals the judgment award of lost profits, urging that sufficient supporting evidence is lacking, while Mid Continent appeals evidentiary and jury-charge rulings that precluded it from recovering on a claim for attorney’s fees also. We sustain only McNeill’s issue. Accordingly, we will reverse the judgment award of lost profits, render judgmént that Mid Continent take nothing on that claim, and affirm the judgment that Mid Continent take nothing on its claim for attorney’s fees.

BACKGROUND

Mid Continent, the claimant, is an Oklahoma-based business that buys, sells, and rents used forklifts chiefly in Oklahoma, Texas, and surrounding states. Its inventory has typically consisted of forklifts having a lift capacity of less than 20,000 pounds. However, in April 2009, Mid Continent invested in a forklift of considerably grander scale—a 2002 Australian-made Omega 54D that weighs 137,000 pounds and has a lift capacity exceeding 110,000 pounds—which it purchased for $255,000, the most expensive forklift in its inventory. But ensuing advertisements by Mid Continent did not elicit a buyer, and its attempts to rent the machine—first directly, then through a Texas-based forklift dealer—were impeded by persistent repair and maintenance issues and did not'yield it any profit. Ultimately, in 2012, Mid Continent entered into an arrangement with a Texas-based dealer who specializes in large-capacity forklifts—Clinton Wood—to house the Omega at his business’s San Antonio-area yard and market it for rental following additional repairs. Wood also hired a trucking company to arrange transport for the Omega to his yard (the machine was then at a location near McGregor), and it was during this shipment that the underlying litigation arose. While headed southward on 1-35 through Austin, the truck driver attempted to pass the load under the Stassnéy overpass despite having insufficient ground clearance. The ensuing collision damaged both the overpasé and the forklift.

Mid Continent subsequently sued the trucking company that Wood had hired, LBJ Fleet Services, Inc., and two entities that had been retained to operate pilot cars in connection with the shipment, cross-appellant McNeill and Gypsy Pilot Car.1 From- the inception of the case, Mid Continent asserted claims for property damages under negligence theories,2 but eventually added a claim for attorney’s fees, under color of Civil Practice and Remedies Code § 38.001(5),3 as trial approached. -

Mid Continent ultimately settled its claims against LBJ and Gypsy, leaving McNeill as the sole defendant. The mase proceeded to trial in February 2016.: At trial, McNeill did not contest that its negligence had been a proximate cause of the collision, and the proceedings centered on the respective responsibilities of McNeill versus'the-two settling defendants and the proper measure and amount of damages. As relevant to the appeals, Mid Continent’s claimed damages consisted of reasonable repair costs, plus lost profits that Mid Continent maintains it -would have derived from rentals of the Omega through Wood, absent the collision, between the time -of the collision (July 2012) and trial (February 2016), a period of approximately 43 months. Upon submission of these issues to the jury, the jury found that the negligence of- McNeill, LBJ, and Gypsy had each proximately caused the damage in question, apportioned 22 percent of the responsibility to McNeill,4 and determined that Mid Continent had incurred $143,349 in repair costs and $80,000 in lost profits.

Mid Continent’s claim for attorney’s fees did not make it to the jury, however. Prior to and later at trial, McNeill raised eviden-tiary objections founded on the assertion that Mid Continent had failed to timely designate an expert-to testify on attorney’s fees or to produce its fee invoices, thereby implicating the automatic exclusion under Rule of Civil Procedure 193.6.5 The district court excluded Mid Continent’s evidence of attorney’s fees at trial and ultimately refused Mid Continent’s proposed submission of that claim to the jury.

The net effect of the jury’s verdict was that Mid Continent was entitled to recover from McNeill twenty-two percent of the repair costs and lost profits found by the jury, $31,539 and $17,600 respectively, for a total of $49,139 in damages. Based on the jury’s verdict, and following application of a $14,500 subrogation right that had been assigned to McNeill, the district court rendered judgment awarding Mid Continent a total of $34,639 from McNeill, plus interest and court costs, and denying it any further relief. The respective appeals followed.

LOST PROFITS (McNeill’s appeal)

At trial, the district court submitted, and the jury awarded, “lost profits, if any, that in reasonable probability [Mid Continent] sustained for the period of time that would have been reasonably required to repair the forklift.” “Lost profits” were defined as “the net profits—meaning income from a business activity less the expenses associated with the activity—that Mid Continent would have made on the forklift during the period of time reasonably required to repair the forklift.” As Mid Continent presented its theory of recovery at trial, the relevant business activity consisted of anticipated rentals of the Omega through Wood that purportedly would have been realized, absent the collision, during the 43-month period between the collision and trial, which Mid Continent viewed as the reasonable period of repair. While not appearing to contest on appeal that the jury could have found this 43-month period to be the reasonable period of repair, McNeill urges that Mid Continent failed to present legally sufficient evidence that it incurred lost profits from forgone rentals during that period. We agree with McNeill.6

We must sustain a challenge to the legal sufficiency of evidence where (1) there is a complete absence of evidence of a vital fact, (2) the court is barred by rules of law or evidence from giving weight to the only evidence offered to prove a vital fact, (3) the evidence for a vital fact is no more than a mere scintilla, or (4) the evidence conclusively establishes the absence of a vital fact.7 We indulge every reasonable inference from the evidence in favor of the jury’s finding, crediting favorable evidence if reasonable jurors could, and disregarding contrary evidence unless reasonable jurors could not.8 And with respect to the sufficiency of evidence supporting an award of lost profits in particular, we are guided by some additional familiar principles.

Although the loss need not be “susceptible to exact calculation,”9 “lost profits damages can be recovered only when both the fact and amount of damages is proved with reasonable certainty.”10

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Cite This Page — Counsel Stack

Bluebook (online)
537 S.W.3d 660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mid-continent-lift-equipment-llc-v-j-mcneill-pilot-car-service-texapp-2017.