Oscar Romero III v. D. R. Kidd Company, Inc. D/B/A Kidd Roofing

CourtCourt of Appeals of Texas
DecidedJuly 9, 2019
Docket14-18-00057-CV
StatusPublished

This text of Oscar Romero III v. D. R. Kidd Company, Inc. D/B/A Kidd Roofing (Oscar Romero III v. D. R. Kidd Company, Inc. D/B/A Kidd Roofing) 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
Oscar Romero III v. D. R. Kidd Company, Inc. D/B/A Kidd Roofing, (Tex. Ct. App. 2019).

Opinion

Reversed and Remanded and Memorandum Opinion filed July 9, 2019.

In The

Fourteenth Court of Appeals

NO. 14-18-00057-CV

OSCAR ROMERO III, Appellant V. D. R. KIDD COMPANY, INC. D/B/A KIDD ROOFING, Appellee

On Appeal from the 200th District Court Travis County, Texas Trial Court Cause No. D-1-GN-17-001123

MEMORANDUM OPINION

A homeowner appeals a summary judgment in favor of a roofing company that sued the homeowner for damages after the homeowner allegedly failed to pay for roofing services and disparaged the roofing company’s business in an online review. The homeowner contends that the trial court erred in granting the roofing company’s summary judgment motion and in denying the homeowner’s motion to strike deemed admissions and motion to dismiss the business disparagement claim under the Texas Citizens Participation Act. We reverse and remand. I. BACKGROUND

In March 2017, Appellee D.R. Kidd Company, Inc., d/b/a Kidd Roofing, sued appellant Oscar Romero III in a Travis County district court, asserting claims based on a sworn account, breach of contract, quantum meruit, and business disparagement.1 Kidd Roofing alleged that Romero failed to pay for roofing work provided at Romero’s house as agreed in a written contract and published disparaging words about Kidd Roofing’s business and employees on Angie’s List, a web-based service. Romero timely responded with a general denial.

On June 1, 2017, Kidd Roofing filed and served on Romero a notice of deemed admissions. In the notice, Kidd Roofing asserted that it served a request for admissions on Romero on March 28, 2017, Romero failed to timely respond, and the requested admissions were deemed admitted as required by Rule 198.2 of the Texas Rules of Civil Procedure. When Romero received the notice of deemed admissions, he served Kidd Roofing with his response to the requested admissions that same day. Romero denied all sixteen of the requested admissions.

On August 7, 2017, Kidd Roofing filed a combined traditional and no- evidence motion for summary judgment on its claims. Kidd Roofing supported its motion with Romero’s deemed admissions and late-filed response, as well as other evidence. A hearing on the motion was set for September 18.

On September 7, Romero filed an amended, verified answer. On September 11, Romero timely filed a response to Kidd Roofing’s motion for summary judgment. Romero also filed a motion to strike the deemed admissions attaching a copy of his responses and a motion to dismiss Kidd Roofing’s business

1 Kidd Roofing also sued Romero’s sister but ultimately nonsuited its claims against her.

2 disparagement claim pursuant to the Texas Citizens Participation Act (TCPA),2 The next day, one day after the filing deadline, Romero filed his affidavit in support of his response to the summary judgment motion along with a motion for leave to file the affidavit. In the motion for leave, Romero stated that the affidavit was intended to be included in his summary judgment response but was omitted in the e-filing of the document.

In support of its summary judgment motion, Kidd Roofing relied on a written contract, the unpaid invoice and related correspondence, a copy of Romero’s review on Angie’s List, and the following deemed admissions as evidence of every assertion of fact made in support of its claims:

 “Kidd Roofing and [Romero] entered into a valid agreement for the Work.”  “Kidd Roofing performed its obligations under the contract by supplying the Work.”  “[Romero] breached [his] contract with Kidd Roofing when [Romero] failed to instruct [his] insurance carrier to include DR Kidd as an additional payee on the check issued to pay for Kidd Roofing’s work.”  “[Romero] breached [his] contract with Kidd Roofing when [Romero] failed to pay Kidd Roofing the sum of $6,648.52 due and owing for the Work.”  “Romero published false disparaging words about Kidd Roofing’s business and its employees on Angie’s List with the intent of interfering with Kidd Roofing’s potential clients, business reputation and economic interest.”

Kidd Roofing also relied on the affidavit of its president and the unverified answer Romero originally filed as additional support for its sworn account claim. See Tex. R. Civ. Proc. 185 (providing that if a defendant does not timely file a verified denial, then “he shall not be permitted to deny the claim, or any item therein”). Kidd Roofing prayed for a judgment awarding it $6,548.52 for the amount owed, $10,000.00 for business disparagement, and other relief.

2 See Tex. Civ. Prac. & Rem. Code §§ 27.001–.011.

3 In his response, Romero argued that his affidavit raised fact issues on the breach of contract and related claims. Romero also argued that Kidd Roofing failed to support its business disparagement claim with any evidence of special damages, that Romero acted with malice, or that the published material was false, citing Forbes Inc. v. Granada Biosciences, Inc., 124 S.W.3d 167, 170 (Tex. 2003) (listing elements of a business disparagement claim). Romero further asserted that the lack of evidence of disparagement supported his TCPA motion to dismiss, which he stated was filed separately. Romero did not mention his motion to strike the deemed admissions in his summary judgment response.

On October 9, 2017, the trial court signed an order granting Kidd Roofing’s summary judgment motion without stating the grounds for the ruling. The trial court ordered Romero to pay Kidd Roofing $16,548.52, plus pre- and post- judgment interest. All other requested relief was denied.

Romero filed a motion for new trial in which he again argued that his affidavit raised fact issues precluding summary judgment on each of Kidd Roofing’s claims and that Kidd Roofing was not entitled to a summary judgment. Romero also mentioned having filed the motion to strike deemed admissions but did not expressly argue that it should be granted. In response, Kidd Roofing argued that the trial court had correctly granted Kidd Roofing’s motion for summary judgment “based on Romero’s Deemed Admissions.”

At the hearing on the motion for new trial, Romero’s counsel argued that the case should not be decided based on the deemed admissions because Romero had filed an amended answer, answered Kidd Roofing’s request for admissions, and presented a controverting affidavit in opposition to Kidd Roofing’s summary judgment motion. Kidd Roofing’s counsel maintained that Romero’s response to Kidd Roofing’s request for admissions was untimely and that Romero had failed to

4 show good cause to grant a new trial. Initially, Romero’s counsel mistakenly believed that Romero’s motion to strike the deemed admissions had not yet been filed and asked for a new trial so that the motion could be filed, but Kidd Roofing’s counsel informed the trial judge that the motion had been filed before the summary judgment hearing. Romero’s counsel responded that if filed, Romero’s motion to “un-deem” the admissions should have been heard at the summary judgment hearing and argued that the admissions should be withdrawn so that the case could proceed on the merits. The trial judge, recalling that Romero’s motion to strike the deemed admissions was not raised during the summary judgment hearing, took the matter under advisement. Romero’s motion for new trial was later denied by written order.

Romero appealed the trial court’s judgment to the Austin Court of Appeals, and the case was transferred to this court. See Tex. R. App. P. 41.3.

II. ISSUES ON APPEAL

In his first and fourth issues, Romero contends that the trial court erred in granting the roofing company’s traditional and no-evidence summary judgment motion.

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Bluebook (online)
Oscar Romero III v. D. R. Kidd Company, Inc. D/B/A Kidd Roofing, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oscar-romero-iii-v-d-r-kidd-company-inc-dba-kidd-roofing-texapp-2019.