Pelco Construction Co. v. Chambers County

495 S.W.3d 514, 2016 WL 2936403, 2016 Tex. App. LEXIS 5047
CourtCourt of Appeals of Texas
DecidedMay 12, 2016
DocketNO. 01-14-00317-CV
StatusPublished
Cited by7 cases

This text of 495 S.W.3d 514 (Pelco Construction Co. v. Chambers County) 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
Pelco Construction Co. v. Chambers County, 495 S.W.3d 514, 2016 WL 2936403, 2016 Tex. App. LEXIS 5047 (Tex. Ct. App. 2016).

Opinions

OPINION ON REHEARING

Laura Carter Higley, Justice

Peleo Construction Company filed suit against Chambers County, Texas, Kurt Amundson, and Amundson Consulting, Inc. over a construction contract. Chambers County counter-sued. The trial court granted summary judgment on liability in favor of Chambers County and Amundson Consulting on all claims in the suit. The parties then proceeded to trial on Chambers County’s damages for its breach of contract claim. The jury awarded Chambers County $151,879.50. The trial court granted Chambers 'County’s motion for judgment notwithstanding the verdict and rendered a verdict of $404,179.31 in damages. In five issues on appeal, Peleo argues the trial court erred by (1) granting summary judgment in favor of Chambers Coúnty on both parties’ breach of contract claims as well as on Pelco’s Prompt Payment Act-claim, (2) granting the judgment notwithstanding the verdict, (3) refusing to include a proper mitigation question in the jury charge, (4) granting summary judgment on Pelco’s claims against Amundson Consulting, and' (5) awarding attorneys’ fees.

After this Court issued its opinion on September 3, 2015, all of the parities filed motions for rehearing. We deny Chambers County’s motion for rehearing as well as Amundson and Amundson Consulting’s motion for rehearing. We grant Pelco’s motion for rehearing, withdraw our prior opinion and judgment, and issue this opinion and a new judgment in their place.

We reverse and remand for a new trial.

Background

In 2008; Hurricane Ike landed on the Texas coast. Among the damage, the Oak Island firehouse was destroyed. Chambers County developed plans to rebuild the firehouse based on funding from the Federal Emergency Management Agency (“FEMA”). Chambers County solicited bids. As a part of that process, officials from Chambers County along with representatives of its architect, Dannenbaum Engineering Corp., and representatives of Amundson Consulting met with representatives of Peleo to discuss the project. Peleo alleges that, during that meeting, Amundson represented that FEMA' had approved funding for the construction project.

Peleo bid on the project and was awarded the contract. During construction of the. firehouse, Peleo submitted two applications for payment based- on money it had already expended and earned. More than two months after Peleo submitted the first application for payment, Dannenbaum certified 90% of the application for payment. Chambers County paid the certified amount three days before certification. Over one month after Peleo submitted the second application for payment, Dannenb-aum certified 90% of the application for payment. Chambers County paid the certified amount seven days after-' certification. ' ' ‘

On October 28, 2010, Amundson called Peleo, instructing them to stop work on the project. According to Peleo, Amund-son stated that FEMA had ordered the work to stop due to the project plans not being approved for funding. That same day, Dannenbaum sent a letter to Peleo instructing Peleo to stop work on the pro[519]*519ject. Dannenbaum explained in the letter that “[t]he ceasing of the construction operation is required while required administrative paper work for the construction of the project is reviewed and approved by FEMA.” Dannenbaum said it would inform Peleo when work could resume. •

Forty days later, Dannenbaum sent Pel-eo a letter instructing it to resume construction on the project. Peleo sent Dan-nenbaum a letter in response giving notice of its termination of the contract based on a certain provision of the contract.

Peleo subsequently filed suit against Chambers County, Dannenbaum, Amund-son Consulting, and Amundson. The trial court dismissed Dannenbaum from the suit based on Pelco’s failure to file a certificate of merit, and we affirmed.1 Peleo asserted, among other things, a breach of contract claim and a Prompt Payment Act claim ' against Chambers County. Peleo asserted fraudulent misrepresentation and negligent misrepresentation claims against Amundson and Amundson Consulting. Chambers County asserted a breach of contract counter-claim'against Peleo,

In the course of litigation, the parties filed multiple motions for summary judgment. Ultimately, the trial court granted summary judgment against Peleo on its breach of contract and Prompt Payment Act claims. It also granted summary judgment on liability in favor of Chambers County on its breach of contract claim. Subsequently, the trial court granted summary judgment in favor of Amundson and Amundson Consulting' on Pelco’s fraudulent misrepresentation and negligent misrepresentation claims.

After all of the motions for summary judgment, the only issue remaining was Chambers County’s damages on its breach of contract claim. After a jury trial, the trial court granted a motion notwithstanding the verdict and awarded Chambers County its full claim for damages- and attorneys’ feés.

Summary Judgment

In its first issue, Peleo asserts that the trial court erred by granting summary judgment on liability against Peleo and in favor of Chambers County on both parties’ breach of contract claims. It also asserts that the trial court erred by granting summary judgment against it on its Prompt Payment Act claim.. In its fourth issue, Peleo -asserts that .the trial court erred by granting, summary judgment against Peleo on its, fraudulent misrepresentation and negligent misrepresentation claims against Amundson and Amundson Consulting.

A. Standard of Review

The summary-judgment movant must conclusively establish its right to judgment as a matter of law. See MMP, Ltd. v. Jones, 710 S.W.2d 59, 60 (Tex.1986). Because summary judgment is a question of law, we review a trial court’s summary judgment decision de novo. See Mann Frankfort Stein & Lipp.Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex.2009).

To prevail on a “traditional” summary-judgment motion asserted under Rule 166a(c), a movant must prove that there is no genuine issue regarding any material fact and that it is entitled to judgment as a matter of law. See Tex.R. Civ. P. 166a(c); Little v. Tex. Dep’t of Criminal Justice, 148 S.W.3d 374, 381 (Tex.2004). A matter is conclusively established if reasonable people could not differ as to the conclusion to be drawn from the evidence. See City [520]*520of Keller v. Wilson, 168 S.W.3d 802, 816 (Tex.2005).

When it moves for summary judgment on a claim for which it bears the burden of proof, a party must show that it is entitled to prevail on each element of its cause of action. See Parker v. Dodge, 98 S.W.3d 297, 299 (Tex.App.-Houston [1st Dist.] 2003, no pet.). The party meets this burden if it produces evidence that would be sufficient to support an instructed verdict at trial. Id.

In contrast, a party moving for traditional summary judgment on a claim for which it does not bear the burden of proof must either (1) disprove at least one element of the plaintiffs cause of action or (2) plead and conclusively establish each essential element of an affirmative defense to rebut the plaintiffs cause. See Am. Tobacco Co., Inc. v.

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Bluebook (online)
495 S.W.3d 514, 2016 WL 2936403, 2016 Tex. App. LEXIS 5047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pelco-construction-co-v-chambers-county-texapp-2016.