Tarbox v. John Q. Hammons Co. (In Re Ferguson)

183 B.R. 122, 9 Tex.Bankr.Ct.Rep. 155, 1995 Bankr. LEXIS 806, 1995 WL 358217
CourtUnited States Bankruptcy Court, N.D. Texas
DecidedJune 12, 1995
Docket19-30805
StatusPublished
Cited by5 cases

This text of 183 B.R. 122 (Tarbox v. John Q. Hammons Co. (In Re Ferguson)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tarbox v. John Q. Hammons Co. (In Re Ferguson), 183 B.R. 122, 9 Tex.Bankr.Ct.Rep. 155, 1995 Bankr. LEXIS 806, 1995 WL 358217 (Tex. 1995).

Opinion

MEMORANDUM OF OPINION ON CONTRACT

JOHN C. AKARD, Bankruptcy Judge.

Max R. Tarbox (Trustee), Trustee in Bankruptcy for Douglas Ferguson and Amber Ferguson (Debtors) seeks to recover for pre-petition services rendered by Mr. Ferguson to the John Q. Hammons Company d/b/a Holiday Inn Lubbock Plaza (Hammons). 1 *124 The court finds that the Trustee should recover $11,945.27 from Hammons. 2

FACTS

On May 5, 1994, Mr. Ferguson d/b/a Fer-gusons made a proposal to Hammons as follows:

The Removal & Installation of 10,000' Bordering $12,894.02 Installation Cpt. on 69 Stairs 345.00

The work was to be “completed in a substantial workmanlike manner for the sum of ... $13,239.02” with payment to be made upon completion to Shadow Hills National Bank. On May 3, 1994, the proposal was accepted by Hammons. After completing some of the work, the Debtors filed for relief under Chapter 7 of the Bankruptcy Code on July 27, 1994. Hammons was not listed as a creditor in the bankruptcy and did not become aware of the bankruptcy until about September 29, 1994.

The Trustee asserts that Mr. Ferguson completed the installation of the bordering and acknowledges that the stair installation was not done. The Trustee believes that the contract is divisible and that the Trustee should recover $12,894.02 for the work done. In the alternative, the Trustee claims that the cost of completion incurred by Hammons is unreasonably high.

Hammons acknowledges that the bordering was completed. It asserts that the contract is not divisible and that it is entitled to recover the $3,500.50 it paid another carpet installer to do the stairs. The last work done by Mr. Ferguson for Hammons was just prior to the bankruptcy filing on July 27, 1994. About ten days later, Hammons sought to locate Mr. Ferguson but was unsuccessful. Hammons contacted the bank which advised him to have someone else complete the job. It is Hammons’ practice to get two or three bids before having work of this type done. Several bids were received before the job was initially awarded to Mr. Ferguson. At the time Hammons discovered that Mr. Ferguson was not going to complete the job, Hammons was anxious to have the work completed in order to meet deadlines established in converting the hotel to a Holiday Inn franchise. No bids for the completion were solicited. Julio Alvarado d/b/a Julian’s Carpet Installation was called in to complete the work. His September 12, 1994 bill for the work was:

Scaffold Rental $ 200.00

Take Up 700.00

Installation 2,000.00

5-gal glue 500.00

Haul off trash 150.00

Total $3,500.50 3

Hammons believes it can deduct the $3,500.00 charged for completion from the $13,239.02 contract price and offered $9,739.02 4 to the Trustee.

ENTIRE OR DIVISIBLE CONTRACT

A divisible contract is one “which is in its nature and purposes susceptible of division and apportionment, having two or more parts in respect to matters and things contemplated and embraced by it, not necessarily dependent on each other nor intended by the parties to be.” Black’s Law DICTIONARY 479 (6th Ed.1990). “A contract is divisible when the performance by one party consists of several distinct and separate items and the price paid by the other party is apportioned to each item.” Johnson v. Walker, 824 S.W.2d 184, 187 (Tex.App. — Fort Worth 1991, no writ); Accord, Hamilton v. Texas Oil & Gas Corp., 648 S.W.2d 316, 320 (Tex.App.—El Paso 1982, writ ref'd n.r.e.) (citing Chapman v. Tyler Bank & Trust Co., 396 S.W.2d 143 (Tex.Civ.App.—Tyler 1965, *125 writ ref d n.r.e.). No one test or rule of law is determinative of this question. Hamilton, 648 S.W.2d at 320. Determination of the issue depends primarily on the intention of the parties, the subject matter of the agreement, and the conduct of the parties. Walker, 824 S.W.2d at 187; see also Chapman, 396 S.W.2d at 146-47; St John v. Barker, 638 S.W.2d 239, 243 (Tex.App.—Amarillo 1982), aff'd as modified, Durham v. St. John, 645 S.W.2d 261 (Tex.1983) (per curiam) (holding that the trial court should determine actual damages). Most courts find the intent of the parties as shown by the contract terms to be the most determinative factor in deciding whether the contract is divisible. Lake LBJ Mun. Util. Dist. v. Coulson, 771 S.W.2d 145, 153 (Tex.App.—Austin 1988) (citation omitted), rev’d and remanded on other grounds, 781 S.W.2d 594 (Tex.1989), rev’d and remanded on other grounds, 839 S.W.2d 880 (Tex.App.—Austin 1992); King v. Whatley, 236 S.W.2d 186, 191 (Tex.Civ.App.—Eastland 1951, writ refd n.r.e.).

If there is a single assent to a whole transaction involving several things, a contract is entire. If there is a separate assent to each of the several things involved, it is divisible. St. John, 638 S.W.2d at 243. Where the subject matter of the contract is divisible and the consideration is apportioned, these qualities are consistent with and indicative of a severable contract. However, they are not conclusive on that point. King, 236 S.W.2d at 191.

A case similar to the case at bar is St. John v. Barker, supra. In that case, St. John, a contractor, and Durham contracted to remodel Mr. Durham’s house. The contract provided that Durham must approve all jobs before commencement, and that St. John would complete work in a “substantial and workmanlike manner.” Subsequently, St. John subcontracted with Barker to build some cabinets. Durham was dissatisfied with the cabinets and refused to pay St. John. Consequently, St. John refused to pay Barker. The importance of this case is the treatment afforded the contract between St. John and Durham. 638 S.W.2d at 240-41.

On appeal, St. John challenged the trial court’s finding that the contract between Durham and St. John to build and install cabinets was divisible from the rest of the remodeling contract. This argument was not raised as a point of error but he says in his brief that there was “no basis in law” to support the finding.

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183 B.R. 122, 9 Tex.Bankr.Ct.Rep. 155, 1995 Bankr. LEXIS 806, 1995 WL 358217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tarbox-v-john-q-hammons-co-in-re-ferguson-txnb-1995.