Williams v. Trail Dust Steak House, Inc.

727 S.W.2d 812, 1987 Tex. App. LEXIS 7167
CourtCourt of Appeals of Texas
DecidedApril 1, 1987
Docket2-85-019-CV
StatusPublished
Cited by1 cases

This text of 727 S.W.2d 812 (Williams v. Trail Dust Steak House, Inc.) 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
Williams v. Trail Dust Steak House, Inc., 727 S.W.2d 812, 1987 Tex. App. LEXIS 7167 (Tex. Ct. App. 1987).

Opinion

OPINION

FENDER, Chief Justice.

This is an appeal from a judgment for appellee C.I.T. Financial Services, plaintiff below, for $34,635.11 plus interest and attorneys’ fees. C.I.T. Financial Services (hereinafter C.I.T.) sued appellant, Elizabeth Williams, on a retail installment contract. Williams had purchased a mobile home from Trail Dust Steak House, Inc., d/b/a Ambassador Homes (hereinafter Ambassador). Wick Building Systems, Inc. (hereinafter Wick) was the manufacturer of the home. The judgment also awarded nothing upon Williams’ counterclaim against C.I.T. and cross-action against Ambassador and Wick for alleged violations of the Deceptive Trade Practices — Consumer Protection Act (hereinafter DTPA).

We reverse and remand on the basis of appellant’s fifth point of error.

Appellant purchased a double-wide mobile home in January, 1982 from Ambassador for $30,055.00 plus a $6,000.00 down payment. Appellant made her first payment of $430.93 in April of 1982. Her last payment was made in August of 1982. Appellant testified that she did not make the rest of the payments on the mobile home because it was defective. She stated that she called C.I.T. and Ambassador several times to notify them of the defects. She further testified that she wrote a letter, dated September 8, 1982, to notify C.I.T. of her complaints.

Appellant’s attorney sent a letter to C.I.T., dated November 12, 1982, demanding that C.I.T. refund all the monies paid by appellant. According to appellant, this letter listed the many complaints concerning the mobile home including the following: the home had shifted after being put together, catching the phone wire between the walls; the walls bulged and popped out in the living room; the molding was loose in various parts of the house; there were no supporting beams so the curtain rods could be put up; there was no ceiling fan fixture/receptacle; the carpet buckled in various parts of the house; the toilet leaked; the heating and cooling vents were inadequate; the sliding glass doors for the showers were never delivered; and, the back door and various doors in the house would not close properly. Appellant testified that no one ever fixed any of these defects.

In her “First Amended Counterclaim And Cross-Action”, appellant listed more than 40 defects existing in the mobile home. She alleged that appellees Ambassador and Wick engaged in an unconsciona *814 ble action or course of action in the manufacturing and sale of the home and in failing to remedy such defects, thereby taking advantage of her lack of knowledge, ability, experience, and capacity in purchasing a mobile home. She further alleged that ap-pellees’ unconscionable actions constitute a DTPA violation. See TEX.BUS. & COM. CODE ANN. sec. 17.50(a)(3) (Vernon Supp. 1987).

The jury affirmatively found that Ambassador and Wick sold the mobile home to appellant in a defective condition. Appellant’s fifth point of error challenges the court’s method of submitting to the jury the question of whether this act constituted an unconscionable action or course of action.

The statement of facts from the trial below indicates that appellant made objections to the charge on the basis of her written request for issues which were offered earlier and denied by the court. Appellant objected at trial and again objects on appeal that the trial court’s method of submitting the unconscionability issue is erroneous. She .argues further that the court’s charge improperly conditions the finding of unconscionability on a finding that the act of selling the home in a defective condition was knowingly committed.

Appellees argue in reply that the court’s method of submitting the issues is essentially the same as appellant’s method. They claim that appellant’s requested special issues also condition the unconsciona-bility question on a finding that the sale of the defective mobile home was made knowingly because appellant asks whether the cross defendant “knew or should have known” the mobile home was defective when sold. Appellees state that appellant cannot complain of the court’s method of submitting these issues since she essentially got what she asked for.

The DTPA defines unconscionable action or course of action as follows:

[A]n act or practice which, to a person’s detriment:
(A) takes advantage of the lack of knowledge, ability, experience, or capacity of a person to a grossly unfair degree; or
(B) results in a gross disparity between the value received and consideration paid, in a transaction involving transfer of consideration.

See TEX.BUS. & COM.CODE ANN. sec. 17.45(5) (Vernon Supp.1987).

The Texas Supreme Court has addressed the question of whether subsection A of this definition conditions the finding of un-conscionability on proof that the accused acted with knowledge. See Chastain v. Koonce, 700 S.W.2d 579 (Tex.1985) (opinion on reh’g). In its discussion of whether the facts in Chastain supported a finding of unconscionability on the basis that the sellers took advantage of the purchaser’s lack of knowledge, ability, experience, or capacity to a grossly unfair degree, the Court stated:

Section 17.45(5) does not expressly require a consumer prove the mental attitude of the defendant in order to recover actual damages. The legislative history of the 1979 amendments to the DTPA supports the conclusion that the legislature did not intend to require proof of intent, knowledge or conscious indifference to support recovery. As originally filed in the Senate, section 17.45(5)(A) would have been amended to read:
“Unconscionable action or course of action” means an act or practice which, to a person’s detriment:
(A) was intended to and did take [takes] advantage of the lack of knowledge, ability, experience, or capacity of a person to a grossly unfair degree.
The intent language was deleted prior to the legislature’s passage of the DTPA amendments. This deletion discloses a legislative intent to reject a scienter requirement. Weitzel v. Barnes, 691 S.W.2d 598, 600 (Tex.1985); Big H Auto Auction, Inc. v. Saenz, 665 S.W.2d 756, 758 (Tex.1984).
Section 17.45(5) is intended to be an objective standard. As the laundry list provisions of section 17.46(b) demonstrate, the legislature knows how to include a scienter requirement when it so *815 chooses. In six of the twenty-three prohibitions listed in section 17.46(b), the legislature incorporated scienter requirements. See Tex.Bus. & Com.Code sec. 17.46(b), (9), (10), (13), (17), (22), (23). The remaining seventeen prohibitions are objective.

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727 S.W.2d 812, 1987 Tex. App. LEXIS 7167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-trail-dust-steak-house-inc-texapp-1987.