Stewart & Stewarts Development, Inc. v. Reuben L. Wright

CourtCourt of Appeals of Texas
DecidedMarch 4, 2025
Docket01-23-00452-CV
StatusPublished

This text of Stewart & Stewarts Development, Inc. v. Reuben L. Wright (Stewart & Stewarts Development, Inc. v. Reuben L. Wright) 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
Stewart & Stewarts Development, Inc. v. Reuben L. Wright, (Tex. Ct. App. 2025).

Opinion

Opinion issued March 4, 2025.

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-23-00452-CV ——————————— STEWART & STEWARTS DEVELOPMENT, INC., Appellant V. REUBEN L. WRIGHT, Appellee

On Appeal from the 129th District Court Harris County, Texas Trial Court Case No. 2020-35465

MEMORANDUM OPINION

Appellee Reuben L. Wright retained Appellant Stewart & Stewarts

Development, Inc. to construct four duplexes on Wright’s property for $420,000.

Wright made a down payment of $42,000 on the contract. After a two-year delay,

Wright sued Appellant Stewart & Stewarts Development, Inc. for breach of the construction contract. After a bench trial, the trial court rendered judgment in

Wright’s favor awarding him $21,000 in damages and $9,746.25 in attorney’s fees.

On appeal, Stewart argues the trial court erred in awarding Wright a portion

of the damage award because Wright’s project manager, acting with apparent

authority, verbally authorized Stewart to retain $11,400 of the $42,000 down

payment. Stewart also argues the trial court erred in failing to file findings of fact

and conclusions of law.

We affirm the trial court’s judgment.

Background

In 2017, Appellee Reuben L. Wright contracted with Appellant Stewart &

Stewarts Development, Inc. to construct four duplexes on property Wright owned in

the City of Needville, Texas (“Project”). The parties agreed on a construction price

of $420,000, and Wright agreed to make a down payment of $42,000. The cover

page of the construction contract, executed by Wright and by Jaqueline Stewart on

behalf of Stewart, identified Stewart as the builder, Jaqueline as Stewart’s project

manager, Wright as the owner, and Robert Neblett as Wright’s project manager.

Articles 3.7.2 and 3.7.3 of the contract require Wright and Stewart to provide

the other with the name of their authorized representative for the Project. Article

3.7.5 states: “All instructions from the Owner or his representative shall be given to

the Builder or his representative in writing.” Article 3.8 required Wright to pay

2 Stewart a down payment of 10% of the total contract price of $420,000 and make

further payments upon completion of different stages of the Project. Aside from the

cover page, the contract does not mention Neblett or define the scope of his

responsibilites as Wright’s project manager and purported representative for the

Project.

Although Wright made the required initial down payment of $42,000 in 2017,

Stewart’s work on the Project was delayed for two years due to permitting issues.

In May 2019, Stewart sent an email to Wright stating it would “no longer be the

building contractor on the West First Street Duplex Project in Needville, Texas,

effective 5/13/2019.” According to Stewart, its work on the Project had been

delayed by two years “due to predevelopment issues unrelated to the construction of

the buildings which had nothing to do with Stewart.” Stewart stated that it was

eventually “allowed to purchase a building permit” in April 2019, but by this time

the “material, cost, and labor associated with the project ha[d] increased, thereby

making it not feasible to continue at the contract cost agreed on 4/11/2017.”

According to Stewart, it had “requested a change order [from Wright] to increase the

total project by 5 percent to help offset the cost associated with the two-year delay,”

but Wright refused the request. Stewart further stated that as a result of the two-year

delay, the Project would have “increased costs associated and [Stewart] did not want

3 to continue working on the project without any agreed change order to prevent

shortages during construction of the project.”

Relevant to the issue on appeal, Stewart’s email further stated:

Stewart & Stewarts received verbal permission from the project manager, Robert Neblett, on 5/13/2019, to deduct amounts from the work completed and costs associated with the project. Costs associated to date includes:

1) Building Permit $1,400.00

2) Framework for 4-slabs – $10,000

For a total of $11,400 to be deducted from the initial down payment of $42,000.

Based on Neblett’s purported “verbal permission,” Stewart retained $11,400 from

Wright’s initial down payment and returned only $30,600 to Wright.

The Lawsuit

Wright sued Stewart for breach of the construction contract. Wright alleged

that Stewart breached the contract by failing to “construct the 4-Symmetric Duplexes

on Concrete Foundation.” According to Wright, Stewart “abandoned the project as

of May 13, 2019 by informing [Wright] that [Stewart] would no longer be the

Building Contractor on the West First Street Duplex Project in Needville, Texas

effective May 13, 2019, unless [Wright] agree[d] to 5% increase in total project

cost.” Wright alleged there were no provisions in the contract permitting Stewart to

increase “the cost of the contract due to delays in the construction of the building.”

4 Wright alleged that, as a result of Stewart’s breach, Wright had to retain a new

builder to complete Stewart’s work on the Project at a higher cost. Wright further

alleged,

In the alternative, [Stewart’s] breach of contract described hereinabove has injured [Wright], causing [Wright] to pay additional monies for the performance of the new contractor due to the breach of contract. Additionally, [Stewart] retained $10,000.00 from [Wright’s] down payment unjustly and when a request for refund was issued, [Wright] refused.

Stewart filed a general denial.1

Trial Testimony

Wright and Jaqueline were the only witnesses that testified during the bench

trial.2

Wright testified that he paid Stewart a down payment of $42,000 when he

signed the contract in April 2017, but Stewart did not begin working on the Project

until 2019 because of permitting issues. When asked if Stewart had performed any

work on the Project, Wright testified that in 2019, Stewart placed two-by-fours

around the area where the buildings’ concrete foundations were to be constructed.

According to Wright, Stewart did not pour concrete or construct the foundations for

the buildings, and the two-by-fours were placed in the wrong location.

1 Stewart also asserted the statute of frauds as an affirmative defense, but this issue was not litigated during the bench trial. See TEX. R. CIV. P. 94. 2 Stewart’s and Wright’s attorneys testified in support of their claims for attorney’s fees.

5 Wright testified that in May 2019, Stewart notified him that it was terminating

the contract. Although Stewart returned to Wright $30,600 of the $42,000 down

payment, Stewart retained $11,400 for costs Stewart purportedly incurred for the

Project, including $10,000 for framework for the four building slabs and $1,400 for

a building permit. He testified that Stewart had merely placed “some little bitty

boards around four blocks of dirt” and had not performed any work for the $10,000

of the down payment it retained. Wright testified that because of Stewart’s wrongful

termination of the contract, Wright had to hire another builder to complete the

Project at a higher price of $498,000, which was $78,000 more than the $420,000

Wright had agreed to pay Stewart.

When asked about Neblett’s role in the Project, Wright testified that Neblett

is “a person who knows people.” Wright testified that the contract identified Neblett

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Stewart & Stewarts Development, Inc. v. Reuben L. Wright, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-stewarts-development-inc-v-reuben-l-wright-texapp-2025.