U.S. Ply, Inc. v. ARCI, Ltd.

CourtCourt of Appeals of Texas
DecidedApril 25, 2019
Docket09-17-00128-CV
StatusPublished

This text of U.S. Ply, Inc. v. ARCI, Ltd. (U.S. Ply, Inc. v. ARCI, Ltd.) 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
U.S. Ply, Inc. v. ARCI, Ltd., (Tex. Ct. App. 2019).

Opinion

In The

Court of Appeals Ninth District of Texas at Beaumont ____________________ NO. 09-17-00128-CV ____________________

U.S. PLY, INC., Appellant

V.

ARCI, LTD., Appellee

_______________________________________________________ ______________

On Appeal from the 284th District Court Montgomery County, Texas Trial Cause No. 14-03-03055-CV ________________________________________________________ _____________

MEMORANDUM OPINION

This appeal involves a dispute between a roofing subcontractor that installed

roofs on two apartment buildings in Montgomery County and the entity that

manufactured the roofing materials the subcontractor used to build the roofs.

Following a bench trial, the trial court found in the subcontractor’s favor and

awarded damages. The manufacturer appealed and filed a brief, which raises ten

issues for our review. We conclude the manufacturer’s issues are either without

1 merit or were not properly preserved for appellate review. Thus, we affirm the

judgment the trial court signed following the trial.

Background

The appellant, U.S. Ply, Inc., manufactures and sells an array of roofing

materials used on commercial buildings. The performance of one of its products—

RapidGRIP—is the product that lies at the heart of the parties’ dispute. The evidence

in the trial shows that RapidGRIP comes in rolls and that commercial roofing

contractors use it in several applications to build commercial roofs. One of these

involves using RapidGRIP as the middle layer of a three-ply roofing system.

RapidGRIP is useful for this purpose because when correctly installed, it firmly

bonds with the other two layers of roofing material. When finished, this category of

roof is known as a three-ply, modified-bitumen roof.

ARCI, Ltd. is the subcontractor that purchased RapidGRIP and used it on the

roofs that were the subject of the trial. The parties tried the case to the bench. By its

verdict, the trial court found that the manufacturer misrepresented the qualities of

the RapidGRIP to the subcontractor in connection with its purchase of RapidGRIP,

that the manufacturer violated express and implied warranties associated with the

sales, and that the repairs the subcontractor performed to correct the problems on the

roofs, allegedly associated with the RapidGRIP’s failure to create a sufficient bond

2 to the ply that it covered, were reasonable and necessary. The trial court also found

that the subcontractor did not fail to store the RapidGRIP properly before using it or

fail to follow any of the manufacturer’s instructions and industry standards that were

material to properly installing the modified-bitumen roofs.

U.S. Ply’s product information sheet for RapidGRIP describes the product as

a “SBS (Styrene-Butadiene-Styrene) self-adhering membrane[,] [m]anufactured

with a strong fiberglass mat that is saturated and coated with a premium quality,

‘high tack’ asphaltic bitumen that is combined with durable SBS elastomers and

protected by a poly release film for easy installation.” The label indicates that

RapidGRIP, in some roofing systems, may be “cold applied, SBS torch applied and

SBS mop applied assemblies where applicable.” In January and February 2013,

ARCI used RapidGRIP as the middle layer of a three-ply, modified-bitumen asphalt

roofing system on two apartment buildings that were built in Montgomery County.

ARCI performed the work as a subcontractor working for the general contractor on

the project, Construction Supervisors, Inc. The parties refer to the construction

project as “Sunningdale,” as do we.

The testimony in the trial shows that before building the roofs at Sunningdale,

ARCI had over thirty years of experience installing roofs on commercial buildings,

which included successfully building between 2,500 and 3,000 modified-bitumen

3 roofs using a self-adhering roofing membrane manufactured by one of U.S. Ply’s

competitors. Before using RapidGRIP at Sunningdale, however, ARCI had never

used that brand of roofing membrane. The testimony from the trial shows that before

ARCI decided to use RapidGRIP on its project at Sunningdale, ARCI’s president,

Jody Born, contacted Shawn Walker, a representative for U.S. Ply. Jody and Walker

met to discuss using U.S. Ply’s roofing products on the modified-bitumen roofs

ARCI planned to build at Sunningdale. Jody testified that he told Walker about the

products ARCI traditionally used to build modified-bitumen roofs, and that the

roofing membrane they were using could be applied cold—that is, without using a

torch. Jody explained that Walker told him that RapidGRIP was “as good or better”

than the brand of roofing membrane ARCI had been using for this type roof.1

By late January or early February 2013, ARCI finished installing the

RapidGRIP on roofs it built on the apartments at Sunningdale. As ARCI’s work

neared completion, the project’s architect hired Building Exterior Solutions, L.L.C.

(BES) to inspect the roofs to determine whether they were substantially complete.

BES inspected the roofs in mid-February 2013 and then issued a report. In its report,

BES noted five types of deficiencies in the roofs, including “[u]n-adhered laps in the

1 Walker did not testify in the trial, and Jody’s testimony is the only testimony in the record explaining what he and Walker discussed that led ARCI to switch from the products it had been using to U.S. Ply’s products for these roofs. 4 adhered base sheet.” The testimony and documents in evidence show the RapidGRIP

membrane did not bond with the ply it was used to cover over large areas on both

apartment’s roofs.

In early April 2013, U.S. Ply signed an agreement with ARCI defining the

scope of repairs and materials required to correct the problems associated with the

RapidGRIP on one of the apartment buildings at Sunningdale. The parties refer to

that building as building two. They refer to the building that U.S. Ply never agreed

to repair as building one.

Under the repair agreement, U.S. Ply agreed to pay ARCI $57,524 for the

labor required to repair the roof on building two with roofing materials that were

supplied by U.S. Ply. BES recommended repairs due to problems with the

RapidGRIP on both roofs. ARCI proceeded to repair the roofs on both buildings

even though U.S. Ply only agreed to pay for the repairs to building two. On building

two, ARCI replaced the roof under the terms of its repair agreement with U.S. Ply.

To repair the roof on building one, ARCI added two additional layers of roofing

material over the existing roof pursuant to the recommendation by BES to repair the

roof that way.

Although ARCI provided the labor to repair the roof on building two, U.S.

Ply never paid for the repairs based on the requirements of the written agreement

5 covering that building. In March 2014, U.S. Ply placed a check for $57,524 into the

registry of the district court and sued ARCI seeking a declaratory judgment stating

that it owed ARCI nothing for repairing the two roofs. U.S. Ply asked the trial court

to declare the parties’ rights. In response to the suit, ARCI counterclaimed, alleging

that U.S. Ply was guilty of deceptive trade practices, had misrepresented the qualities

of the RapidGRIP, and breached implied and express warranties accompanying

ARCI’s purchases of the RapidGRIP it used at Sunningdale. ARCI’s live pleading

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