Vortek Aviation LLC and Wayne Schmitz v. Zach Krachinski

CourtCourt of Appeals of Texas
DecidedJuly 25, 2019
Docket01-18-00165-CV
StatusPublished

This text of Vortek Aviation LLC and Wayne Schmitz v. Zach Krachinski (Vortek Aviation LLC and Wayne Schmitz v. Zach Krachinski) 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
Vortek Aviation LLC and Wayne Schmitz v. Zach Krachinski, (Tex. Ct. App. 2019).

Opinion

Opinion issued July 25, 2019

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-18-00165-CV ——————————— VORTEK AVIATION LLC AND WAYNE SCHMITZ, Appellants V. ZACH KRACHINSKI AND ARK 84 LLC, Appellees

On Appeal from the 165th District Court Harris County, Texas Trial Court Case No. 2017-58042

MEMORANDUM OPINION

Appellees Zach Krachinski and Ark 84 LLC sued appellants Vortek

Aviation LLC and Wayne Schmitz for breach of contract, fraud, and several other

causes of action, alleging that Vortek and Schmitz had failed to provide repairs to

Krachinski and Ark 84’s aircraft as agreed between the parties. Neither Vortek nor Schmitz filed a timely answer, and the trial court rendered a default judgment in

favor of Krachinski and Ark 84. Vortek and Schmitz filed a motion for new trial

asserting that the judgment did not comport with Krachinski and Ark 84’s

pleadings. The trial court denied the motion for new trial by operation of law.

Now, on appeal, Vortek and Schmitz argue: (1) the judgment rendered by the trial

court did not conform to the pleadings; (2) the trial court failed to hold a hearing

on unliquidated damages; and (3) Krachinski and Ark 84 failed to provide

evidence of unliquidated damages.

We affirm.

Background

Krachinski created Ark 84 LLC as a holding company for his 1984 Piper

PA-46-310P Malibu aircraft (the Aircraft). Krachinski and Ark 84 (collectively,

Krachinski) engaged Vortek to make some repairs to the Aircraft and paid $71,100

in advance. Vortek is an FAA-Certified Repair Station that operates at David

Wayne Hooks Airport in Harris County, Texas, and Schmitz is Vortek’s president.

Krachinski was unhappy with the work ultimately performed by Vortek because

the repairs were incomplete and took many months longer than the time agreed to

by the parties. Krachinski sought redress by engaging an attorney to seek

completion of the repairs and/or return of the Aircraft. Krachinski was ultimately

able to reclaim the Aircraft.

2 Accordingly, on September 5, 2017, Krachinski filed suit against Vortek and

Schmitz. His petition identified Vortek, Schmitz, and a Vortek employee named

Ricardo Santiesteban as defendants.1 Krachinski alleged that, in December 2015,

“pursuant to a written proposal from Vortek (the ‘Agreement’), the parties agreed

that Vortek would install upgraded avionics in the Aircraft” for an “agreed price

[of] $71,100 for parts and labor.” The petition further alleged that “Defendants

required payment of $60,900 immediately, allegedly to take advantage of a

promotion being offered by the manufacturer,” and that Krachinski was “told by

Defendants, in writing, that the project would take ‘6 weeks or less.’” Krachinski

paid the entire $71,100 in advance and left the Aircraft with Vortek. However,

according to the petition, “Defendants did not purchase the equipment [from the

manufacturer] as they said they would.” Krachinski alleged that Vortek and

Schmitz used his money for other projects, causing him to miss the discounted

price associated with the manufacturer’s promotion, and gave “a steady stream of

excuses” as to why the project was not proceeding despite the passage of several

months.

Krachinski alleged that Vortek eventually gave him “a written ‘promissory,’

signed by [Santiesteban] on Vortek letterhead, which was apparently intended to

serve as a written assurance that the Aircraft would be ready ‘by the end of August

1 Santiesteban never answered and is not a party to this appeal. 3 2016.’” Despite this representation by Vortek, the work was not completed by

August 2016, and “the parties agreed to have another facility at the airport perform

an annual inspection, independent of the avionics work allegedly being performed

on the Aircraft” by Vortek.

Krachinski further alleged:

When the inspection was completed and it was time to return the Aircraft to Defendants’ [Vortek and Schmitz’s] facility, for reasons known only to Defendants, they told the inspection facility they did not want the Aircraft back in their hangar because Plaintiffs [Krachinski and Ark 84] were not paying their bills. This blatant lie caused Plaintiffs to have problems with several business at the airport.

Krachinski alleged that, because of the problems that arose due to Vortek’s

“misrepresentations” about him and the extreme delays in completing the agreed-

upon repairs, he retained an attorney. Ultimately, it took Krachinski “20 months

from when the parties made the Agreement until the Aircraft was delivered” to

him, and there were still problems with the work that had been performed.

Krachinski alleged that, among other concerns, he had paid for work that was not

done, he had paid for equipment that was not installed, and some equipment had

been installed incorrectly and had to be corrected.

Based on these facts, Krachinski alleged causes of action for breach of

contract, breach of implied warranty of good and workmanlike performance of

services, fraud, negligent misrepresentation, conversion, defamation, business

4 disparagement, and conspiracy. Regarding his cause of action for breach of

contract, Krachinski alleged:

Plaintiffs had a valid, enforceable written Agreement, supplemented by both written and oral amendments, which Defendants breached. Plaintiffs are the proper parties to sue for the breach of the contract, and have in every respect performed as agreed. Defendant Vortek breached the contract, which caused injury to Plaintiffs.

Krachinski sought actual damages, including:

actual damages for difference in value between the avionics contracted for and avionics installed, lost rebates worth thousands of dollars, hangar expenses incurred by Plaintiffs in Indiana in anticipation of the return of the Aircraft and necessary to avoid forfeiting hangar space, insurance on the Aircraft while in Defendants’ possession, travel expenses for a useless trip to Texas, expenses to perform work that Defendants were paid to do but did not do, expense[s] to correct problems with the avionics installed by Defendants, an annual inspection required because six weeks turned out to be 20 months, value of avionics removed from the Aircraft that are still the property of Plaintiffs, expenses incurred to have pilots repeatedly available to test fly the Aircraft and to diagnose and repair installation problems caused by Defendants, and reasonable attorney’s fees required to convince Defendants that they had to get the project completed when they refused to respond to Plaintiffs’ demands (which still took five more months).

Krachinski also sought exemplary damages under Civil Practice and Remedies

Code chapter 41.003, mental anguish damages, and “reasonable and necessary

costs and attorney’s fees pursuant to Texas Civil Practice and Remedies Code

§ 37.009 and § 38.001.”

In his petition, Krachinski also applied for a temporary restraining order and

temporary injunction. Krachinski alleged, “Plaintiffs have just become aware that

5 Defendants have shut down Vortek and chained the doors to the business. Upon

information and belief, Defendants are in the process of selling Vortek, or the

assets of Vortek, to a foreign entity.” Krachinski sought a temporary restraining

order and temporary injunction to protect Vortek’s assets until a hearing could be

held and he could obtain a judgment.

On September 7, 2017, Vortek was served with the original petition through

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