the Glidden Company D/B/A ICI Paints, Appellant/Cross-Appellee v. CDNE, Inc. D/B/A All Pro Services, Appellee/Cross-Appellant

CourtCourt of Appeals of Texas
DecidedFebruary 28, 2011
Docket12-09-00283-CV
StatusPublished

This text of the Glidden Company D/B/A ICI Paints, Appellant/Cross-Appellee v. CDNE, Inc. D/B/A All Pro Services, Appellee/Cross-Appellant (the Glidden Company D/B/A ICI Paints, Appellant/Cross-Appellee v. CDNE, Inc. D/B/A All Pro Services, Appellee/Cross-Appellant) 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.

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the Glidden Company D/B/A ICI Paints, Appellant/Cross-Appellee v. CDNE, Inc. D/B/A All Pro Services, Appellee/Cross-Appellant, (Tex. Ct. App. 2011).

Opinion

NO. 12-09-00283-CV

IN THE COURT OF APPEALS

TWELFTH COURT OF APPEALS DISTRICT

TYLER, TEXAS

THE GLIDDEN COMPANY d/b/a § APPEAL FROM THE 7TH ICI PAINTS, APPELLANT/ CROSS-APPELLEE

V. § JUDICIAL DISTRICT COURT OF

CDNE, INC. d/b/a ALL PRO SERVICES, APPELLEE/CROSS-APPELLANT § SMITH COUNTY, TEXAS

MEMORANDUM OPINION The Glidden Company d/b/a ICI Paints appeals the trial court’s judgment and award of $189,739.93 entered in favor of CDNE, Inc. d/b/a All Pro Services and an award of attorney’s fees of $118,000.00. All Pro cross-appeals the trial court’s judgment and award of $71,218.65 entered in favor of Glidden. Glidden raises four issues on appeal. All Pro raises three issues in its cross-appeal. We reverse and remand in part and affirm in part.

BACKGROUND All Pro was awarded a contract to paint a new Wal-Mart Super Center in Tyler, Texas. All Pro purchased “1582” paint from Glidden for the Wal-Mart job, which it commenced on June 2, 2006. By the next day, it became apparent that the 1582 paint was defective, and All Pro notified Glidden about the failed paint. Glidden immediately acknowledged that the 1582 paint had failed and began testing a replacement product. On June 15, 2006, Glidden delivered a replacement paint to All Pro at the job site. However, before All Pro began to apply the replacement paint, it insisted that Glidden agree in writing to pay for the remediation work that was necessary because of the failed 1582 paint. On June 16, 2006, Jim Echols, All Pro’s attorney, and Mike Brooks, Glidden’s regional sales manager, exchanged the following e-mails, which constitute the parties’ agreement (the 1582 Agreement):

1 ----Original Message---- From: [Jim Echols] Sent: 06/16/2006 06:54 PM To: [All Pro Services] Cc: Mike Brooks Subject: Re: Walmart Super Center; Tyler, TX All Pro Paint

ICI agrees to the org proposal as amended as follows, to wit:

1) ICI will wire transfer $30,000 to All Pro Services: provide All Pro $30,000 immediate credit for invoices on the Walmart Tyler, Tx job; and give All Pro a credit of $13,000 for product on any future job. This consideration to be pd for the time, materials, labor, equipmt, and other remediation expense incurred by All Pro (through 6/15/06) resulting from the failure of ICI’s dry- fall product on the Walmart Tyler job, and for any loss of future opportunity cost which may result therefrom. 2) ICI will also fully re-emburse[sic] All Pro for any future costs associated with the continued remediation and preparation for application of dry-fall product, and the additional cost associated with time, overhead, equipment, labor, material, other expenses above and beyond the costs which would have been incurred by All Pro in completeing[sic] the Walmart Tyler job, had there not been a product failure. These costs are to be documented weekly and presented to ICI. ICI agrees to provide immediate payment of these expenses in cash and not in additional credit. The documentation required to be provided by All Pro will be in a form generally explaning[sic] the nature and the extent of the expenses. Items #2 and #3 of the org proposal remains the same.

If this is your agreement please indicate by your return e-mail.

Org proposal: #1 ICI immediately wire transfer $61,000 into All Pro’s acct to help cover All Pro’s additional out of pocket expenses to date; #2 All Pro test the new paint under the supervision of a ICI rep and Gen Contractor Ledcor: #3 ICI agrees to indemnify and hold harmless All Pro and Ledcor for any failures that may occur with the new product; #4 ICI agrees to re-emburse[sic] All Pro for all of its additional damages and expenses incurred as a result of this incident.

From: [Mike Brooks] To: [Jim Echols], [All Pro Services] Cc: [Bill Krueger] Subject: Re: Walmart Supper Center; Tyler, TX All Pro Paint Date: Fri, 16 Jun 2006 23:22:37 +0000

Chris and I talked. We are good with this proposal as long as we document expenses.

All Pro began applying the replacement paint on June 17, 2006, and the project was ultimately completed to Wal-Mart’s satisfaction. Glidden, who had not charged All Pro for the failed paint, billed All Pro for the replacement paint. All Pro did not pay, but instead, billed Glidden for its remediation work pursuant to the 1582 Agreement. Glidden, likewise, did not pay.

2 On July 10, 2007, Glidden filed suit against All Pro for the materials it furnished. All Pro filed a counterclaim for services rendered under the 1582 Agreement. Following a bench trial, the trial court entered judgment for Glidden and awarded it $71,218.65 in damages. The trial court also entered judgment in All Pro’s favor on its counterclaim and awarded it $189,739.93 in damages and $118,000.00 in attorney’s fees. Thereafter, the trial court entered findings of fact and conclusions of law. Glidden and All Pro timely filed their respective appeal and cross- appeal.

INTERPRETATION OF THE 1582 AGREEMENT In its first issue, Glidden argues the trial court’s award to All Pro was erroneous because it was improperly based on All Pro’s time and materials (T&M) rates of $32.50 per hour, which Glidden was not obligated to pay under the terms of the 1582 Agreement. Specifically, Glidden contends that the agreement provides only that All Pro is entitled to be reimbursed for its actual out of pocket costs. All Pro responds that a reasonable interpretation of the agreement is that it was entitled to be reimbursed at its $32.50 per hour T&M rate. Applicable Law Whether a contract is ambiguous is an issue of law, which we review de novo. See Bowden v. Phillips Petroleum Co., 247 S.W.3d 690, 705 (Tex. 2008); see also Progressive County Mut. Ins. Co. v. Kelley, 284 S.W.3d 805, 808 (Tex. 2009) (court can consider issue of contractual ambiguity sua sponte). Our primary concern in interpreting a contract is ascertaining the true intent of the parties. Heritage Res., Inc. v. NationsBank, 939 S.W.2d 118, 121 (Tex. 1996); XCO Production Co. v. Jamison, 194 S.W.3d 622, 627 (Tex. App.–Houston [14th Dist.] 2006, pet. denied). We examine the writing as a whole in an effort to harmonize and give effect to all the provisions of the contract so that none will be rendered meaningless. Coker v. Coker, 650 S.W.2d 391, 393 (Tex. 1983); Jamison, 194 S.W.3d at 627. We presume that the parties to a contract intend every clause to have some effect. Heritage Res., 939 S.W.2d at 121. We give terms their plain, ordinary, and generally accepted meaning unless the contract shows the parties used them in a technical or different sense. Id. A contract is not ambiguous if it can be given a certain or definite meaning as a matter of law. Universal Health Servs., Inc. v. Renaissance Women’s Group, P.A., 121 S.W.3d 742, 746 (Tex. 2003); Columbia Gas Transmission Corp. v. New Ulm Gas, Ltd., 940 S.W.2d 587, 589 (Tex. 1996). Lack of clarity does not create an ambiguity. Universal Health Servs., 121 S.W.3d at 746; Forbau v. Aetna Life Ins. Co., 876 S.W.2d 132, 134 (Tex. 1994). Further, a contract is not ambiguous simply because the parties advance conflicting interpretations. Columbia Gas Transmission Corp., 940 S.W.2d at 589; Forbau, 876 S.W.2d at 134. Rather, a contract is 3 ambiguous if it is subject to two or more reasonable interpretations after applying the pertinent rules of construction. Universal Health Servs., 121 S.W.3d at 746; Columbia Gas Transmission Corp., 940 S.W.2d at 589. If a contract is ambiguous, a fact issue exists on the parties’ intent.

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