Top Cat Ready Mix, LLC v. Alliance Trucking, L.P. and TXI Operations, LP D/B/A Martin Marietta

Court of Appeals of Texas·Decided January 22, 2019·No. 05-18-00175-CV·Published

Opinion

AFFIRM in Part, REVERSE in Part, and REMAND; Opinion Filed January 22, 2019.

In The Court of Appeals Fifth District of Texas at Dallas No. 05-18-00175-CV

TOP CAT READY MIX, LLC, Appellant V. ALLIANCE TRUCKING, L.P., Appellee

On Appeal from the 191st Judicial District Court Dallas County, Texas Trial Court Cause No. DC-15-07419

MEMORANDUM OPINION Before Justices Myers, Molberg, and Osborne Opinion by Justice Molberg The trial court granted summary judgment in favor of Alliance Trucking, L.P. (Alliance)

on its suit on a sworn account against Top Cat Ready Mix, LLC (Top Cat) and awarded Alliance

$315,087.21 in actual damages, $198,739.63 for “contractual pre-judgment interest,” attorney’s

fees of $70,000 in the trial court and $25,000 for an unsuccessful appeal by Top Cat to this Court,

and post-judgment interest on actual damages “at the contractual rate of 18% per annum.”

In two issues, Top Cat contends the trial court erred by awarding Alliance (1) the

“contractual [interest] rate of 18% per annum” because the summary judgment evidence did not

conclusively establish Top Cat agreed to pay the interest rate and the interest rate awarded is

usurious, and (2) attorney’s fees because Top Cat is not an entity subject to an attorney’s fees award under section 38.001 of the civil practice and remedies code and Alliance failed to

conclusively establish it was entitled to the amount of fees awarded by the trial court.

Top Cat has not challenged the trial court’s grant of summary judgment in favor of Alliance

on its suit on a sworn account and on Top Cat’s counterclaims against Alliance. Accordingly, we

affirm the trial court’s summary judgment that Alliance recover from Top Cap $315,087.21 in

actual damages on its suit on a sworn account and Top Cat take nothing on its counterclaims. We

reverse the trial court’s summary judgment to the extent it awards Alliance eighteen percent per

annum pre-judgment and post-judgment contractual interest and attorney’s fees and remand those

issues to the trial court for further proceedings.

Procedural Background

Alliance is a trucking company that provides commercial transportation and delivery

services for construction industry materials. Top Cat is a concrete mixing company. Top Cat

contracted with Alliance to source, purchase, and deliver aggregate materials needed to make

concrete.1 From approximately July 7, 2013, to October 13, 2013, Alliance mailed twelve invoices

to Top Cap for purchases and deliveries of aggregate materials. Each invoice stated, “Interest will

accrue at the rate of 1.5% per month starting 60 days from INVOICE DATE.” Top Cat made

partial payment on the first invoice, but made no subsequent payments.

Alliance sued Top Cat on a sworn account and for breach of contract, or alternatively

quantum meruit. Alliance sought to recover $391,087.21, consisting of the unpaid balance of the

invoices and contractual interest, and attorney’s fees. Top Cat filed a verified denial that Alliance

had applied “all lawful offsets, payments, and credits” to the account. Top Cat specifically asserted

that, because Alliance delivered substandard or defective materials, Top Cat was forced to

purchase replacement materials. Top Cat also raised the affirmative defenses of offset, discharge

1 Aggregates are the raw materials needed to make concrete, such as gravel, sand, and limestone.

–2– due to Alliance’s material breach of contract, and express contract. Top Cat brought counterclaims

against Alliance for breach of contract, fraud by nondisclosure, and breach of implied warranties.

Alliance filed an amended third motion for no-evidence and traditional summary judgment

(motion for summary judgment). Alliance moved for traditional summary judgment on its sworn

account suit and for no-evidence and traditional summary judgment on Top Cat’s counterclaims.

Finding there was no genuine issue of material fact as to the claims between Alliance and Top Cat,

the trial court granted Alliance’s motion for summary judgment; awarded Alliance $315,087.21 in

actual damages, $198,739.63 in “contractual pre-judgment interest,” post-judgment interest on

actual damages at an annual “contractual rate of 18%,” post-judgment interest on all other damages

at “the rate of 5% per annum,” $70,000 in attorney’s fees through entry of summary judgment, and

$25,000 in attorney’s fees in the event of an unsuccessful appeal by Top Cat to this Court; and

ordered Top Cat take nothing on its counterclaims against Alliance.

Standard of Review

In this appeal, Top Cat challenges only the trial court’s award of contractual interest and

attorney’s fees, issues on which Alliance moved for traditional summary judgment. We review

the trial court’s ruling on a motion for summary judgment de novo. Lujan v. Navistar, Inc., 555

S.W.3d 79, 84 (Tex. 2018). To prevail on a traditional motion for summary judgment, the movant

has the burden to demonstrate there is no genuine issue of material fact and it is entitled to

judgment as a matter of law. See TEX. R. CIV. P. 166a(c); Lujan, 555 S.W.3d at 84. Once the

movant produces sufficient evidence to establish its right to judgment, the burden shifts to the non-

movant to come forward with competent controverting evidence sufficient to raise a genuine issue

of material fact. Lujan, 555 S.W.3d at 84.

In reviewing a summary judgment, we consider the evidence in the light most favorable to

the non-movant, making every reasonable inference and resolving all doubts in the non-movant’s

–3– favor. Id. We credit evidence favorable to the nonmovant if a reasonable factfinder could, and

disregard contrary evidence unless a reasonable factfinder could not. Samson Exploration, LLC v.

T.S. Reed Props., Inc., 521 S.W.3d 766, 774 (Tex. 2017). Evidence raises a genuine issue of fact

if reasonable and fair-minded jurors could differ in their conclusions in light of all the summary

judgment evidence. Lakshmi Realty, LLC v. Firewheel Brokerage PLLC, No. 05-17-00142-CV,

2018 WL 1602583, at *2 (Tex. App.—Dallas Apr. 3, 2018, no pet.).

Interest Rate Award

In its first issue, Top Cat argues the trial court erred by awarding Alliance contractual

interest because the interest rate is usurious and the summary judgment evidence does not

conclusively establish Top Cat agreed to pay an interest rate of eighteen percent per annum.

Usury

Usury as a matter of avoidance should be pleaded as an affirmative defense. Apodaca v.

Rios, 163 S.W.3d 297, 305 (Tex. App.—El Paso 2005, no pet.); see also TEX. R. CIV. P. 94; Roark

v. Stallworth Oil & Gas, Inc., 813 S.W.2d 492, 494 (Tex. 1991). Further, rule of civil procedure

93 requires an affirmative defense of usury to be verified by affidavit. TEX. R. CIV. P. 93(11);

Apodaca, 163 S.W.3d at 305. “[P]arties who do not follow rule 93’s mandate waive any right to

complain about the matter on appeal.” Nootsie, Ltd. v. Williamson Cty. Appraisal Dist., 925

S.W.2d 659, 662 (Tex. 1996). Top Cat did not file a verified answer asserting the affirmative

defense of usury. Therefore, it failed to preserve its complaint on appeal that the interest rate

charged by Alliance was usurious. See id.2

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Top Cat Ready Mix, LLC v. Alliance Trucking, L.P. and TXI Operations, LP D/B/A Martin Marietta, (Tex. Ct. App. 2019).

Top Cat Ready Mix, LLC v. Alliance Trucking, L.P. and TXI Operations, LP D/B/A Martin Marietta (Top Cat Ready Mix, LLC v. Alliance Trucking, L.P. and TXI Operations, LP D/B/A Martin Marietta) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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