Scott Van Dyke v. Builders West, Inc.

565 S.W.3d 336
CourtCourt of Appeals of Texas
DecidedAugust 14, 2018
Docket14-16-00686-CV
StatusPublished
Cited by3 cases

This text of 565 S.W.3d 336 (Scott Van Dyke v. Builders West, 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
Scott Van Dyke v. Builders West, Inc., 565 S.W.3d 336 (Tex. Ct. App. 2018).

Opinion

Affirmed and Opinion filed August 14, 2018.

In The

Fourteenth Court of Appeals

NO. 14-16-00686-CV

SCOTT VAN DYKE, Appellant V. BUILDERS WEST, INC., Appellee

On Appeal from the 113th District Court Harris County, Texas Trial Court Cause No. 2011-54019

OPINION

Scott Van Dyke appeals from a final judgment favoring Builders West, Inc. Builders West sued Van Dyke for breach of contract, among other causes of action, for nonpayment on a home renovation project. Van Dyke counter-sued, alleging Builders West overcharged him and performed faulty work. A jury found for Builders West on all claims, and the trial court rendered judgment in accordance with the verdict, awarding actual damages of $321,368.12. The trial court determined that reasonable fees for Builders West’s attorneys amounted to $590,750 and awarded that sum to Builders West as well.

In his appeal, Van Dyke contends that (1) the evidence was legally and factually insufficient to sustain the jury’s finding that he breached the contract because Builders West failed to offer expert testimony that it performed certain electrical work in a good and workmanlike manner, (2) the trial court erred in refusing to instruct the jury regarding Builders West’s contractual duty to supervise the work of subcontractors, and (3) the trial court erred in awarding attorneys’ fees to Builders West at a rate of $500 per hour when Builders West’s contract with its attorneys required it to pay only $350 per hour unless it was awarded fees at the higher rate by the trial court. In a contingent cross-appeal, Builders West asserts that the trial court erred in refusing to award any fees for work performed by attorneys from a particular firm that represented Builders West.

Because Van Dyke’s first two issues fail to address portions of the jury charge that support the judgment, we overrule those issues. In addition, we conclude that the trial court did not err in awarding attorneys’ fees to Builders West at the rate of $500 per hour because the relevant statute does not limit Builders West’s recovery to fees actually incurred. We therefore overrule Van Dyke’s third issue and need not address Builders West’s contingent cross-appeal. We affirm the trial court’s judgment.

BACKGROUND

In 2008, Van Dyke hired Builders West as general contractor on an extensive home renovation project. The parties’ one-page contract stated that Builders West would be paid for “labor and materials plus Contractor’s Fee of 20% to cover overhead, supervision, and profit.” The contract did not specify the scope of the work to be done or a total price to be paid but instead simply set forth hourly rates for 2 various subcontractors.

The project was to be completed in three phases. After several months of work, Van Dyke requested an estimate for completion of the first two phases, which Builders West provided. Eight months later, Van Dyke refused to pay invoices for work performed in August through November 2009. The unpaid invoices totaled $335,340.65. Van Dyke particularly complained regarding the amount charged for work done by electrical subcontractor Facilities Electric, Inc. (“FEI”).

After negotiations proved fruitless, Builders West left the job and ultimately filed suit against Van Dyke for nonpayment of the invoices. Builders West’s causes of action included breach of contract, substantial performance, and quantum meruit. Van Dyke counter-sued, alleging breach of contract, violations of the Deceptive Trade Practices Act, and breaches of express and implied warranties.

Key points of contention at trial concerned the nature of the “supervision” component of the contract and the sufficiency of Builders West’s performance of that component. Kurt Lobpries, a co-owner of Builders West, testified that he considered five percent of the amount paid under the contract to be for supervision. Day-to-day onsite supervision was actually provided by a carpenter on the job who was paid directly by Van Dyke and not by Builders West. There was evidence, however, that Lobpries acted as project manager, scheduling and coordinating the subcontractors’ work, occasionally making onsite inspections, and communicating with the onsite supervisor.

Another significant dispute at trial concerned the quality of the electrical work performed by subcontractor FEI. Van Dyke called an expert witness to testify specifically regarding perceived deficiencies in the electrical work. Builders West defended the electrical work through several witnesses but did not call its own expert witness to testify on this subject. 3 At the conclusion of trial, the trial court submitted a 22-question charge to the jury that contained each of the causes of action listed above, along with various subsidiary issues. Because our disposition of Van Dyke’s first two issues turns on the structure of the charge, we explain that structure in some detail.

Builders West’s claim for breach of contract was submitted in questions 1, 2, 3, and 6. Question 1 asked whether Van Dyke failed to comply with the parties’ one- page agreement. Question 2 was contingent on a “yes” answer to question 1 and inquired whether Van Dyke’s failure to comply was excused by a prior failure to comply by Builders West. Question 3 asked whether the estimate Builders West provided regarding completion of phases 1 and 2 effectively modified the parties’ agreement. And question 6 was the damages submission for Builders West’s breach of contract claim.

Van Dyke’s claim for breach of contract was submitted in questions 4, 5, and 9. Question 4 asked whether Builders West failed to comply with the agreement. An instruction under question 4 informed the jury that Builders West was required to perform its obligations under the agreement “in a good and workmanlike manner.” As will be discussed in more detail below, it is important to note that question 2— asking whether Van Dyke’s failure to comply was excused by Builders West’s prior noncompliance—did not contain a similar instruction. Additionally, Van Dyke objected to question 4—but not question 2—on the ground that it failed to instruct the jury regarding Builders West’s contractual duty to supervise the work of subcontractors. The trial court overruled the objection. Van Dyke did not object to question 2 on this ground. Question 5 was contingent on a “yes” answer to question 4 and asked whether Builders West’s failure to comply was excused by various theories, including waiver, ratification, and acceptance of benefits. Question 9 was the damages submission for Van Dyke’s breach of contract claim.

4 Builders West’s claim of substantial performance was submitted in questions 7 (“Did Builders West, Inc. substantially perform the Agreement?”) and 8 (damages). Its claim of quantum meruit was submitted in questions 10 (“Did Builders West, Inc. perform compensable work for Scott Van Dyke for which it was not compensated?”) and 11 (damages). Van Dyke’s other claims (DTPA violations and breaches of warranties) were also submitted but play no role in this appeal.

The jury found for Builders West on all claims, found against Van Dyke on his claims and defenses, and found damages to be $321,368.12 as to each of Builders West’s claims for breach of contract, substantial performance, and quantum meruit. The trial court subsequently awarded this amount to Builders West as actual damages in the judgment.

Builders West’s entitlement to attorneys’ fees was tried to the court by agreement. During the litigation, Builders West was represented by lawyers from two different law firms: Rusty Hardin & Associates (“RHA”), with which Builders West had a direct contractual relationship, and Langley & Banack, which was paid by Builders West’s insurer. In this phase of the trial, Van Dyke did not contest the reasonableness of the fees requested for RHA’s services.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
565 S.W.3d 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-van-dyke-v-builders-west-inc-texapp-2018.