Pavecon, Inc. v. R-Com, Inc.

159 S.W.3d 219, 2005 Tex. App. LEXIS 1292, 2005 WL 375188
CourtCourt of Appeals of Texas
DecidedFebruary 17, 2005
Docket2-04-114-CV
StatusPublished
Cited by32 cases

This text of 159 S.W.3d 219 (Pavecon, Inc. v. R-Com, 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
Pavecon, Inc. v. R-Com, Inc., 159 S.W.3d 219, 2005 Tex. App. LEXIS 1292, 2005 WL 375188 (Tex. Ct. App. 2005).

Opinion

OPINION

JOHN CAYCE, Chief Justice.

In this construction bond case, Pavecon, Inc. appeals from a take-nothing judgment for International Fidelity Insurance Company (IFIC), the surety on the bond. 1 In three issues, Pavecon complains that the trial court improperly granted IFIC judgment on Pavecon’s claims and denied Pavecon’s motion for new trial because the law, stipulated facts, and other evidence show that Pavecon is entitled to recover from IFIC on the bond. We will affirm.

The facts of this case are largely undisputed. At trial, the parties stipulated to the following facts:

During May through December 2001, Pavecon, pursuant to a contract with R-Com, furnished concrete services and materials 2 to R-Com worth in excess of $200,000. R-Com paid for some of these services and materials, so that Pavecon’s records reflected an outstanding principal balance of $97,960.26.

Meanwhile, on or about July 12, 2001, IFIC issued a payment bond with R-Com as principal and ASCI Network Technologies as obligee. The penal sum of the bond was $1,772,800. 3

Between August 15 and December 17, 2001, Pavecon properly performed work requested for and authorized by R-Com referenced in eleven different invoices totaling $85,183.26. Pavecon contends that all of the August through December 2001 invoices represent work covered by the IFIC bond; IFIC agrees that eight of the invoices, totaling $66,272.12, reflect work on R-Com jobs covered by the IFIC bond. On April 17, 2002, Pavecon first notified IFIC that Pavecon was owed for work covered by the IFIC bond. Pavecon made a claim for $85,183.26 on the IFIC bond, which IFIC has not paid.

In addition to the stipulated facts, the record also shows the following: Pavecon repeatedly asked R-Com for a copy of the bond or for information about the bond and the jobs it covered, but R-Com did not provide any information until January 23, 2002 — three months before Pavecon first provided IFIC notice of R-Com’s nonpayment. When IFIC refused to pay Pave-con’s claims against the bond, Pavecon *222 sued to collect them. IFIC asserted as an affirmative defense to Pavecon’s claims Pavecon’s alleged failure to comply with the bond terms and the notice provisions of chapter 53 of the property code. After a bench trial, the trial court rendered a take-nothing judgment for IFIC. Pavecon also filed a motion for new trial, which the trial court denied. This appeal followed.

In three issues, Pavecon complains that the judgment for IFIC is against the great weight and preponderance of the evidence and is contrary to law.

No findings of fact or conclusions of law were filed in this case; therefore, the trial court’s judgment implies all findings of fact necessary to support it. Pharo v. Chambers County, 922 S.W.2d 945, 948 (Tex.1996). But where, as here, a reporter’s record is filed, these implied findings are not conclusive, and Pavecon may challenge them by raising both legal and factual sufficiency of the evidence issues. BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789, 795 (Tex.2002). In reviewing an issue asserting that a finding is against the great weight and preponderance of the evidence, we must consider and weigh all of the evidence and set aside the finding only if the evidence is so weak or the finding is so contrary to the great weight and preponderance of the evidence as to be clearly wrong and unjust. Dow Chem. Co. v. Francis, 46 S.W.3d 237, 242 (Tex.2001); In re King’s Estate, 150 Tex. 662, 244 S.W.2d 660, 661 (1951). If our review of the record shows that the implied fact findings are supported by the evidence, it is our duty to uphold the trial court’s judgment on any theory of law applicable to the case. Worford v. Stamper, 801 S.W.2d 108, 109 (Tex.1990); Point Lookout W., Inc. v. Whorton, 742 S.W.2d 277, 278 (Tex.1987).

IFIC’s bond provides that, because ASCI, the property owner, required R-Com to furnish the bond

in order to comply with sections 53.201 et seq. of the Texas Property Code, all rights and remedies under this bond shall inure solely to [claimants for labor, subcontracts, and materials] and shall be determined in accordance with the provisions, conditions and limitations of said Property Code to the same extent as if they were copied at length herein. [Emphasis supplied.]

The parties’ dispute centers around their interpretation of the language italicized above and chapter 53 of the property code.

Common law contract principles apply to surety bonds and questions relating to a surety’s liability. Great Am. Ins. Co., 908 S.W.2d at 420, 427. 4 Therefore, the intent of the parties to a surety bond, as well as the liability of the surety, are normally determined by the language of the bond. Geters v. Eagle Ins. Co., 834 S.W.2d 49, 50 (Tex.1992); Howze v. Stir. Corp. of Am., 584 S.W.2d 263, 266 (Tex.1979); Beard Family P’ship v. Commercial Indem. Ins. Co., 116 S.W.3d 839, 846 (Tex.App.-Austin 2003, no pet.). We are to interpret a contract in such a manner that none of its provisions will be rendered meaningless. MCI Telecomms. Corp. v. Tex. Utils. Elec. Co., 995 S.W.2d 647, 652 (Tex.1999). When possible, we will avoid a construction that is unreasonable, inequitable, or oppressive, or would lead to an absurd result. Reilly v. Rangers Mgmt., Inc., 727 S.W.2d 527, 530 (Tex.1987); Lane v. Travelers Indem. Co., 391 S.W.2d 399, 402 (Tex.1965).

*223 Property code section 58.205, which is incorporated by reference into IFIC’s bond, provides that the bond protects only those persons whose claims are (1) perfected in the manner prescribed for fixing a hen under subchapters C and K of the property code or (2) perfected in the manner prescribed by section 58.206. Tex. PROP.Code Ann. § 53.205(a) (Vernon Supp. 2004-05).

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Bluebook (online)
159 S.W.3d 219, 2005 Tex. App. LEXIS 1292, 2005 WL 375188, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pavecon-inc-v-r-com-inc-texapp-2005.