Watson Co. v. Shaw

47 S.W.2d 474
CourtCourt of Appeals of Texas
DecidedJanuary 23, 1932
DocketNo. 10833
StatusPublished
Cited by1 cases

This text of 47 S.W.2d 474 (Watson Co. v. Shaw) 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
Watson Co. v. Shaw, 47 S.W.2d 474 (Tex. Ct. App. 1932).

Opinions

LOONEY, J.

The Terminal Building Corporation of Dallas, as owner, contracted with Watson Company for the erection of certain office and warehouse structures in the city of Dallas. Watson Company sublet the brick, cement, stone, concrete, and masonry work to C. L. Shaw, the plastering to George W. Blue and H. G. Pittman (Blue & Pittman), and contracted with Lyle Clapper and Leland Clapper (Standard Concrete Tank Company) to provide and erect in place, -and remove after being used, all necessary forms for the concrete work.

Alleging full performance of their respective subcontracts, Shaw, as plaintiff and Blue & Pittman and Standard Concrete Tank Company, as interveners, sued Watson Company, general contractor, and its surety, the American Surety Company of New York, also the Terminal Building Corporation, owner, to recover interest that accrued on the principal sums due them, during the time payments were delayed.

Watson Company urged general denials and special pleas, setting up specific provisions of the subcontracts to the effect that, during the periods of delay, the architect, under whose supervision the buildings were erected, failed to acc.ept the work of the subcontractors, and that the Terminal Building Corporation, owner, failed to indicate the amounts it was willing to pay for and on account of their work, wherefore said defendant was not liable. In a cross-bill, Watson Company alleged that, if the principal sums due subcontractors were not paid when and as they m&tured, such failure was due to the fault of the Terminal Building Corporation, and against the latter only should recovery, if any, be permitted; therefore Watson Company prayed for judgment over against the Terminal Building Corporation for the amount of the recovery, if any, against it. The American Surety Company adopted the pleadings of Watson Company.

The Terminal Building Corporation’s answer to the subcontractors, consists of general demurrers, general and special pleas, to the effect that, while it contracted with Watson Company for the construction of said work, it entered into no contractual relations whatever with the subcontractors, and by general [476]*476demurrers and denials answered the pleas over against it by its codefendants;

The issues were submitted to a jury on plaintiff's and interveners’ theory that their causes of action were based upon tort. The answers of the jury were favorable to plain-, tiff and interveners, and may be summarized as follows: They found that plaintiff and in-terveners were delayed in receiving payment of the principal sums due them under their respective' subcontracts; that this delay was occasioned by the acts or omissions of Watson Company and the Terminal Building Corporation; that the default of Watson Company was caused by the acts or omissions of the Terminal Building Corporation; and that such delay resulted in the accrual of interest as damages to plaintiff and interveners at the rate of 6 per cent, on the principal sums from a period 60 days after date of their respective completions, to wit, February 12, 1926; and on special' request a finding was made to the effect that the work of plaintiff Shaw was accepted in writing by the architect on December 14, 1925.

Upon these findings, judgments were rendered against all defendants, jointly and severally, in favor of plaintiff C. Tl. Shaw for $8,669.46, in favor of interveners Blue & Pittman for $3,185.98, in favor oí intervener Standard Concrete 'Tank Company for $1,-179.39, and in favor of Watson Company and American Surety Company of New York over against the Terminal Building Corporation for any part or partjs of the judgments in favor of plaintiff or interveners that it might become necessary for either Watson Company or the surety company to pay.

The Terminal Building Corporation, Watson Company, and the surety company have appealed.

Plaintiff and interveners will be referred to as plaintiffs, Watson Company by its name, American Surety Company of New York as surety, and the Terminal Building Corporation as owner.

The record is voluminous, and the briefs lengthy, containing numerous propositions and counter propositions, a discussion of which would require an opinion of undue length; however, we will state our analysis of the case and rulings on all material issues, giving reasons for same, as tersely and briefly as practicable.

The pleadings alleged and the evidence disclosed all pertinent provisions of the written contracts between the parties; that is to say, the general contract between the owner and Watson Company, the subcontracts between Watson Company and plaintiffs, also the bond given by Watson Company and the surety ,to the owner for the faithful performance of the general contract. Excerpts from these will be quoted in the course of the discussion, as the occasion demands.

The Owner’s Appeal as against Plaintiffs.

Plaintiffs make no contention that there exists privity of contract between them and the owner, but base their rights to recover against it on the tort theory. Their position in this respect is shown by the following excerpt from their brief; they say: “It should be borne in mind from the outset that plaintiff’s cause of action was a damage suit wherein the measuré of damage was interest. The allegations of plaintiff’s petition were based upon tort and not upon contract.” The question for decision is, Was the owner’s liability either shown or the issue of liability raised by the evidence on the theory that an actionable tort was committed by the owner that delayed plaintiffs in collecting the amounts due them from Watson Company under their respective subcontracts?

The owner insists that the court erred in refusing, on request, to direct a verdict in its favor against plaintiffs, for that (a) the causes of action .urged by plaintiffs are in essence ex contractu, in that they are based alone upon alleged breaches of contracts, which, as between the owner and plaintiffs, did not exist; (b) but, even if plaintiffs’ allegations were sufficient to allege causes of action against the owner on the tort theory, the evidence failed to show that it owed any duty to either pay or to see that Watson Company paid plaintiffs the principal sum upon which they seek recovery of interest.

These contentions challenge the sufficiency of the evidence to show or even to raise an issue as to the owner’s liability to plaintiffs. The concrete question presented is, Did the owner owe plaintiffs any duty to pay Watson Company, to enable the latter to pay them? If it is found that no such duty existed, it will not be necessary to inquire further as to whether or not the owner exercised reasonable diligence in the premises. We recognize the rule that the existence of privity of contract is not necessary to support an action of damages for negligent breach of duty, although such duty be connected with the subject-matter of a contract, but, if the owner in the instant case owed plaintiffs no duty, they must fail in the suit because its liability, if it exists at all under the facts and circumstances, must be based upon the negligent breach by it of a noncon-tractual duty owing plaintiffs. 1 Sherman and R. on Negligence, § 8; Texas C. Ry. Co. v. Harbison, 98 Tex. 490, 493, 85 S. W. 1138; National, etc., Co. v. Hunt, 312 Ill. 245, 143 N. E. 833, 34 A. L. R. 63; 45 C. J, 649, § 22,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

American Surety Co. of New York v. Shaw
69 S.W.2d 47 (Texas Commission of Appeals, 1934)

Cite This Page — Counsel Stack

Bluebook (online)
47 S.W.2d 474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watson-co-v-shaw-texapp-1932.