Scott Equipment, LLC, a Limited Liability Company v. Syed Raza

Court of Appeals of Texas·Decided August 21, 2025·No. 01-23-00862-CV·Published

Opinion

Opinion issued August 21, 2025

In The

Court of Appeals

For The

First District of Texas

signed a written contract for the sale, delivery, and installation of the equipment. Scott Equipment sued Raza individually to recover payment. Raza asserted that he was not individually liable under the contract because he ordered the equipment on behalf of the hotel and disclosed to Scott Equipment that he was acting on behalf of the hotel. The trial court rendered a final take-nothing judgment after a bench trial. The court also signed findings of fact and conclusions of law.

In four issues on appeal, Scott Equipment argues that: (1) the trial court erred by rendering a take-nothing judgment on the breach of contract claim because Raza signed the contract individually without identifying a principal that was a business entity; (2) Raza waived his right to deny the allegation that he was doing business as Holiday Inn Willowbrook because he did not file a verified denial; (3) the evidence is insufficient to support all the trial court’s findings of fact; and (4) the trial court erred by rendering judgment against Scott Equipment on its claims for breach of contract and attorney’s fees. We affirm.

Background

In November 2018, Raza worked for a construction company that was building Holiday Inn Willowbrook, a hotel in northwest Houston.1 As part of his job, Raza ordered nearly $47,000 worth of commercial laundry washers and dryers from

1 Various pleadings and documents admitted at trial identify the hotel as Holiday Inn Willowbrook and Holiday Inn & Suites Willowbrook. The parties do not distinguish between these entities on appeal, and we presume they are the same hotel.

Scott Equipment to be delivered to and installed at the hotel. Raza signed a contract, which listed both Holiday Inn Willowbrook and Raza in the “Quote To” and “Ship To” portions of the contract. Scott Equipment delivered the equipment and installed it at the hotel.

At the time of the sale, Scott Martin owned Scott Equipment.2 The day after Raza signed the contract, Scott Equipment sent Raza an invoice at the address of the construction company where he worked. Raza testified at trial that he disputed the invoice with Martin and asked, “[W]hy is this billed to me?” Martin then “fixed the owner,” and Raza did not receive further invoices. Sometime after the sale, Martin sold Scott Equipment to Ryan Smith. Scott Equipment then sent demand letters to both Raza and Holiday Inn Willowbrook for payment under the contract. Scott Equipment did not receive payment.

Scott Equipment sued Raza seeking damages on the unpaid contract, interest, and attorney’s fees. The live petition named Raza “individually, . . . who, at the time of the obligation made the basis of this lawsuit was incurred was doing business as Holiday Inn & Suites Willowbrook, Holiday Inn Willowbrook and Mom’s Washateria.” The petition asserted a cause of action for suit on a sworn account and

2 When Martin owned Scott Equipment, the company was organized as a corporation.

Sometime after the transaction at issue in this appeal, Scott Equipment was reorganized as an LLC. This distinction is not relevant to our analysis, and the opinion does not distinguish between the two entities.

alternative causes of action for unjust enrichment, quantum meruit, and breach of contract. For reasons that are unclear from the record, the case was tried only on the breach of contract and quantum meruit claims. On appeal, Scott Equipment characterizes its lawsuit as asserting only a breach of contract claim, and our analysis adopts this characterization.

Raza filed a verified answer generally denying the allegations and asserting several affirmative defenses. Relevant here, the defenses included: (1) other responsible parties—“the incident in question was proximately caused or solely proximately caused by the negligent and/or wrongful conduct of third-parties outside the control of [Raza], namely Holiday Inn & Suites Willowbrook”; (2) improper party—Scott Equipment “only entered a[n] agreement to deliver the referenced goods with Holiday Inn & Suites Willowbrook”; and (3) improper capacity.

Raza attached a verification to his live answer. In it, he stated that he was a manager of a construction company called New Classic Investments, Inc. d/b/a Classic Construction Company, which was hired by Holiday Inn Willowbrook. Raza identified the owner of the hotel as Noman Qamar. Raza denied that he was an owner, manager, or officer of Holiday Inn Willowbrook. He stated that Scott Equipment’s own invoices and an internal memorandum listed Holiday Inn Willowbrook as the customer to the equipment transaction. Raza stated that he is not

a proper party to the lawsuit, he did not agree to pay for the washers and dryers, and he did not receive them.

At a bench trial, the parties’ central dispute was whether Raza was individually liable under the contract or whether he acted as an agent of Holiday Inn Willowbrook. The trial court admitted into evidence several documents concerning the disputed transaction, including the contract, sales orders, an invoice, other internal documents maintained by Scott Equipment, a bill of lading, a text message from Raza, and demand letters.

The contract reflects that Raza signed it without indicating that he was doing so in a representative capacity. But the contract listed both Holiday Inn Willowbrook and Raza as “Quote To” and “Ship To” parties. Several unsigned sales orders and an invoice listed Raza alone as the “Buyer” and “Bill To” person. But other internal documents listed only Holiday Inn Willowbrook as Scott Equipment’s “Customer,” and the bill of lading was “[c]onsigned to Holiday Inn.” The invoice was addressed to Raza at the construction company’s address. In the text message, Raza gave a Scott Equipment representative delivery instructions and a choice between two proposals of equipment. The demand letters requesting payment for the equipment were sent to Raza and Holiday Inn & Suites Willowbrook.

Scott Equipment called two witnesses to testify. Ryan Smith testified first. He did not introduce himself or testify about his connection to Scott Equipment or the

transaction at issue. Raza later testified, however, that sometime after the transaction, Smith bought Scott Equipment from Scott Martin.

Smith testified about the contents of the documents admitted at trial. He testified that Raza ordered the laundry equipment and signed the contract, Scott Equipment delivered the equipment to Holiday Inn Willowbrook and installed it there, and no one rejected or paid for the equipment.

Smith also testified that Raza agreed to be personally liable under the contract.

But Smith conceded on cross-examination that he had no personal knowledge of the transaction, never spoke to Raza, and never contacted Holiday Inn Willowbrook or its owner Qamar to inquire about payment for the equipment. Rather, Smith testified that all his knowledge about the transaction was from the documents themselves and conversations with an unidentified salesman who did not testify.

When Raza asked Smith about Scott Equipment documents identifying Holiday Inn Willowbrook as the customer to the transaction, Scott Equipment objected on the ground that Raza had waived any dispute about whether he does business as Holiday Inn Willowbrook because he did not file a verified pleading denying the fact. In response, Raza’s counsel read the affidavit attached to Raza’s live verified answer, and the trial court overruled the objection.

Smith also testified that Scott Equipment had installed washers and dryers in hotels other than Holiday Inn Willowbrook. He said it is not uncommon for a

construction company and an equipment vendor to coordinate with each other concerning the order and delivery of necessary equipment for a given project. He also said that Scott Equipment “knew that [Raza] was employed by [the construction company], but he took it on personally.”

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Scott Equipment, LLC, a Limited Liability Company v. Syed Raza, (Tex. Ct. App. 2025).

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