Westwind Homes D/B/A Westwind Development, G.P.-Laredo, LLC, and Centerpoint Energy Resources Corp. v. Fernando Ramirez and Minerva Ramirez

Court of Appeals of Texas·Decided March 25, 2020·No. 04-18-00103-CV·Published

Opinion

Fourth Court of Appeals San Antonio, Texas MEMORANDUM OPINION

No. 04-18-00103-CV

CENTERPOINT ENERGY RESOURCES CORP., Appellant

v.

Fernando RAMIREZ and Minerva Ramirez, Appellees

From the 406th Judicial District Court, Webb County, Texas Trial Court No. 2015CVT003262-D4 Honorable Oscar J. Hale, Jr., Judge Presiding

Opinion by: Sandee Bryan Marion, Chief Justice

Sitting: Sandee Bryan Marion, Chief Justice Patricia O. Alvarez, Justice Beth Watkins, Justice

Delivered and Filed: March 25, 2020

AFFIRMED

CenterPoint Energy Resources Corp. appeals a judgment entered against it based on a jury

verdict. The jury found in favor of Fernando and Minerva Ramirez and awarded them damages.

On appeal, CenterPoint contends its tariff precludes liability against it for the Ramirezes’ claims.

Alternatively, CenterPoint contends the evidence is legally and factually insufficient to support the

jury’s findings on the Ramirezes’ negligence and negligent undertaking claims, and the trial court

erred in refusing to disregard the jury’s finding of negligence per se because it was based on the 04-18-00103-CV

City of Laredo’s building ordinances which cannot support a negligence per se claim against

CenterPoint as a matter of law. We affirm the trial court’s judgment.

BACKGROUND

In 2011, Adrian and Graciela Castillo purchased a new house. The Ramirezes were

Graciela’s parents and frequently visited the Castillos’ home. 1 On February 17, 2015, the

Ramirezes were visiting the Castillos. While there, Fernando attempted to repair the electric

clothes dryer at the Castillos’ home when he inadvertently opened the gas valve to an unused gas

line in the utility room. The gas ignited and exploded, severely injuring Fernando.

The City of Laredo’s building ordinances required all gas valves or outlets that do not

connect to an appliance in a house to be “capped gas tight.” In addition, the ordinance provides,

“During the process of turning gas on into a system of new gas piping, the entire system shall be

inspected to determine that there are no open fittings or ends and that all valves at unused outlets

are closed and plugged or capped.” (emphasis in original). In addition to the City’s ordinances,

the provision of natural gas to homes is governed by a tariff. A tariff is a document filed by a

utility with a regulatory agency and governs the relationship between the utility and its customers.

The Ramirezes sued: (1) CenterPoint, the entity that turned on and supplied the natural gas

to the Castillos’ home; (2) WestWind Homes d/b/a WestWind Development, G.P.-Laredo, LLC,

the homebuilder; and (3) Armando Aguilar & Son Contractor, the plumbing subcontractor who

installed the gas lines. As previously noted, the jury found in favor of the Ramirezes and assessed

responsibility as follows: (1) CenterPoint – 34%; (2) WestWind – 60%; and (3) Aguilar – 6%. The

Ramirezes settled with Aguilar before trial and with WestWind while this appeal was pending.

CenterPoint is the only remaining appellant.

1 The Ramirezes passed away while this appeal was pending.

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DOES THE TARIFF PRECLUDE LIABILITY?

In its first issue, CenterPoint asserts its tariff precludes liability against it for the Ramirezes’

claims as a matter of law, pointing to the provisions in the tariff that limit its liability for damage

or loss caused by gas escaping from housepiping and damage or injury resulting from gas or its

use after such gas leaves the point of delivery. The Ramirezes respond: (1) CenterPoint waived

this defense by failing to introduce the tariff into evidence; (2) the tariff does not limit

CenterPoint’s liability to the Ramirezes because they are not CenterPoint’s customers; (3) the rules

in the tariff do not apply because they conflict with a valid municipal ordinance; (4) if the tariff

applies to the Ramirezes, an exception to the limitation on liability applies due to CenterPoint’s

negligence in failing to maintain the meter loop; and (5) if the tariff applies, the limitations on

liability violate the open courts provision of the Texas Constitution.

A. Tariff Provisions

The tariff generally provides, “Unless otherwise expressly stated, these rules apply to all

Consumers.” The tariff contains the following provisions limiting CenterPoint’s liability:

5. SERVICE CONNECTIONS

*** (d) Housepiping. Consumer shall be responsible for installing and maintaining Consumer’s housepiping. Company may refuse service to any consumer whose housepiping is inadequate or unsafe, but Company shall have no responsibility for determining whether or not Consumer has complied with applicable safety codes, inspecting Consumer’s housepiping or in any way establishing or enforcing housepiping specifications. Information relating to piping may be obtained at the Company’s local offices.

***

14. ESCAPING GAS

Immediate notice must be given to Company by Consumer of any escaping gas on Consumer’s premises. No flame shall be taken near the point where gas is escaping and as an added precaution, the gas should immediately be shut off at the meter by

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Consumer. Company shall not be liable for any damage or loss caused by the escape of gas from Consumer’s housepiping or Consumer’s appliances.

17 NON-LIABILITY

(b) Company shall not be liable for any damage or injury resulting from gas or its use after such gas leaves the point of delivery other than damage caused by the Company in the manner of installation of the service lines, in the manner in which such service lines are repaired by the Company, and in the negligence of the Company in maintaining its meter loop. All other risks after the gas left [sic] the point of delivery shall be assumed by the Consumer, his agents, servants, employees, or other persons.

The tariff provides the terms “‘Consumer, Customer and Applicant’ are used

interchangeably and mean a person or organization utilizing services or who wants to utilize

services to CENTERPOINT ENERGY ENTEX.” The tariff defines the term “Consumer’s

Housepiping” to mean “[a]ll pipe and attached fittings which convey gas from the outlet side of

the meter to the Consumer’s connection for gas appliances.” The tariff also defines the term “point

of delivery” to mean “[t]he point where the gas is measured for delivery into Consumer’s

housepiping.” Finally, the tariff provides “these rules apply to all Consumers regardless of

classification, except insofar as they are changed by or are in conflict with any . . . valid municipal

ordinance . . . in which case such . . . ordinance . . . shall control to the extent that it is applicable

to the Consumer(s) in question.”

B. Filed-Rate Doctrine

The Texas Supreme Court has described the filed-rate doctrine as follows:

The “filed-rate doctrine” applies when state law creates a state agency and a statutory scheme under which the agency determines reasonable rates for the service provided. The doctrine holds that a tariff filed with and approved by an administrative agency under a statutory scheme is presumed reasonable unless a litigant proves otherwise. Thus, under the doctrine, filed tariffs govern a utility’s

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relationship with its customers and have the force and effect of law until suspended or set aside.

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Westwind Homes D/B/A Westwind Development, G.P.-Laredo, LLC, and Centerpoint Energy Resources Corp. v. Fernando Ramirez and Minerva Ramirez, (Tex. Ct. App. 2020).

Westwind Homes D/B/A Westwind Development, G.P.-Laredo, LLC, and Centerpoint Energy Resources Corp. v. Fernando Ramirez and Minerva Ramirez (Westwind Homes D/B/A Westwind Development, G.P.-Laredo, LLC, and Centerpoint Energy Resources Corp. v. Fernando Ramirez and Minerva Ramirez) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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