Tarrant County Hospital District v. GE Automation Services, Inc.

156 S.W.3d 885, 2005 Tex. App. LEXIS 699, 2005 WL 182960
CourtCourt of Appeals of Texas
DecidedJanuary 27, 2005
Docket2-04-065-CV
StatusPublished
Cited by31 cases

This text of 156 S.W.3d 885 (Tarrant County Hospital District v. GE Automation Services, 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
Tarrant County Hospital District v. GE Automation Services, Inc., 156 S.W.3d 885, 2005 Tex. App. LEXIS 699, 2005 WL 182960 (Tex. Ct. App. 2005).

Opinion

OPINION

DIXON W. HOLMAN, Justice.

Appellant Tarrant County Hospital District d/b/a John Peter Smith Hospital appeals from a summary judgment granted to Appellees 1 in a suit brought by Appellant against Appellees alleging various causes of action arising out of a transaction between the parties in 1996. We affirm.

BACKGROUND

Appellant is a unit of local government that provides health care services to individuals and families in Fort Worth, Tar-rant County, Texas. See Tex. Health & Safety Code Ann. §§ 281.001-.002 (Vernon 2001 & Supp.2004-05). In 1995-96, Appellant contracted with Appellees to design, supply, and install a power supply system for John Peter Smith Hospital (“the Hospital”). This work was completed by December 31,1996.

On April 1, 2002, Appellant filed the underlying lawsuit against Appellees, alleging various causes of action as a result of the alleged failure of Appellees’ materials, which were used to construct in the Hospital an electrical system called a bus duct system. 2 Appellant contended that Appellees designed defective joint covers for the bus duct system; bus duct joints connect bus duct segments, and the joint covers protect the bus duct joints from the elements, including moisture infiltration. Appellant alleged that the defective joint covers were not weatherproof and allowed water to infiltrate the bus duct system, causing electrical shorts and damage to *888 the bus duct system. 3 Appellant sought damages for breach of contract, breach of express and implied warranties, products liability, negligence, and gross negligence. 4

Appellees answered asserting, among other things, that Appellant’s contract and warranty causes of action are barred by the affirmative defense of limitations (without citing a specific limitations provision) and that Appellant’s tort causes of action are barred under the “economic loss rule” 5 because Appellant is seeking to recover losses resulting from an alleged breach of the parties’ contract.

Appellant filed a motion for partial summary judgment claiming Appellees’ statute of limitations affirmative defense is not applicable to Appellant, a governmental entity. Appellant’s motion specifically discussed the limitations provision of section 16.061 of the Texas Civil Practice and Remedies Code. 6

Appellees then filed a traditional motion for summary judgment claiming Appellant’s non-tort claims are barred by the four-year limitations provision of section 2.725 of the Texas Business and Commerce Code. See Tex. Bus. & Com.Code Ann. § 2.725 (Vernon 1994). Appellees’ motion also contended that Appellant’s tort causes of action are barred by the economic loss rule. Appellees’ motion further alleged as a ground for summary judgment that even if some sort of immunity from limitations applied to Appellant, Zurich is not immune to the statute of limitations. Appellees Automation and Supply additionally filed a no-evidence motion for summary judgment asserting that Appellant had no evidence to support any element of any of its causes of action.

Appellant responded to Appellees’ traditional motion for summary judgment by stating that the governing statute of limitations is section 16.061 of the Texas Civil Practice and Remedies Code, rather than section 2.725 of the Texas Business and Commerce Code; therefore, Appellant contended that it, and Zurich, were immune from any statute of limitations defense. Appellant further claimed that Ap-pellees had failed to meet their burden of proof regarding the economic loss rule, which Appellant labeled an affirmative defense. Lastly, Appellant filed objections to the no-evidence motion for summary judgment filed by Appellees Automation and Supply, contending the use of such a motion to challenge each element of each cause of action asserted by Appellant was prohibited and the no-evidence motion was untimely.

On February 6, 2004, the trial court signed a judgment granting Appellees’ motion for summary judgment, 7 ordering that Appellant take nothing by its action against Appellees, and denying Appellant’s *889 motion for partial summary judgment and Appellant’s objections.

APPELLANT’S ISSUES ON APPEAL

Appellant brings four issues on appeal. In its first issue, Appellant contends the trial court erred in ruling that Appellant, a Texas governmental entity, is not immune from the applicable contract and warranty statutes of limitations. Appellant’s second issue asserts the trial court erred in holding that Zurich does not have the same rights as the Tarrant County Hospital District with respect to governmental immunity from the statute of limitations. Appellant’s third issue alleges the trial court erred in ruling that the economic loss rule bars Appellant’s tort claims. In its fourth issue, Appellant claims the trial court erred in ruling there is not more than a scintilla of evidence to support each element of Appellant’s causes of action against Automation and Supply and by ruling that their no-evidence motion did not violate the procedure set forth in civil procedure rule 166a(i). 8

THE PARTIES’ STIPULATIONS

Appellant filed the current suit on April 1, 2002. The parties subsequently agreed upon four written stipulations of fact:

1. All products or goods complained of by Plaintiff in the above-styled lawsuit were sold to the Hospital no later than December 31,1996.
2. Tender of delivery to the Hospital of the products or goods complained of by Plaintiff in the above-styled lawsuit occurred no later than December 31, 1996.
3. Installation of the “products, which comprise the Spectra Series TM Busway (‘Busway System’)” complained of by Plaintiff in the above-styled lawsuit was completed by December 31, 1996.
4.All breaches of contract alleged by Plaintiff in the above-styled lawsuit occurred no later than December 31, 1996.

STANDARD OF REVIEW

A. Traditional Motion

When a trial court’s order granting summary judgment does not specify the ground or grounds relied on for its ruling, summary judgment will be affirmed on appeal if any of the theories presented to the trial court and preserved for appellate review are meritorious. Provident Life & Accident Ins. Co. v. Knott, 128 S.W.3d 211, 216 (Tex.2003); Star-Telegram, Inc. v. Doe, 915 S.W.2d 471, 473 (Tex.1995); Harwell v. State Farm Mut. Auto. Ins. Co., 896 S.W.2d 170, 173 (Tex.1995).

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Bluebook (online)
156 S.W.3d 885, 2005 Tex. App. LEXIS 699, 2005 WL 182960, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tarrant-county-hospital-district-v-ge-automation-services-inc-texapp-2005.