Yellow Freight System, Inc. v. Hydraulic Products Co.

482 S.W.2d 659, 1972 Tex. App. LEXIS 2619
CourtCourt of Appeals of Texas
DecidedMay 30, 1972
Docket8279
StatusPublished
Cited by4 cases

This text of 482 S.W.2d 659 (Yellow Freight System, Inc. v. Hydraulic Products Co.) 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
Yellow Freight System, Inc. v. Hydraulic Products Co., 482 S.W.2d 659, 1972 Tex. App. LEXIS 2619 (Tex. Ct. App. 1972).

Opinions

REYNOLDS, Justice.

Appellant Yellow Freight System, Inc., has contested the allowance of attorney’s fees in connection with a judgment rendered for appellee Hydraulic Products Co., Inc., for repair of freight damaged in interstate commerce. Affirmed.

Appellee is a Texas corporation based in Lubbock and engaged in the manufacture of hydraulic pumps and related products. Previous to the transaction resulting in this litigation, appellee had sold and shipped merchandise to one Jimmy Rowan in Clovis, New Mexico. Rowan paid the freight charge upon delivery. Each shipment was billed to Rowan by an invoice providing, inter alia:

“Hydraulic Products Co., Inc., assumes no responsibility for loss or damage in transit. When merchandise is receipted for by transportation company it automatically becomes property of purchaser. Inspect this shipment on arrival against possibility of loss or damage. If loss or damage exists, file claim with delivering carrier.”

In September, 1970, appellee sold three hydraulic pumps to Rowan, issued its invoice containing the above quoted printed language, and consigned the shipment to appellant, a common carrier, for delivery, receiving appellant’s bill of lading. The [661]*661bill of lading was not introduced in evidence. The record is silent as to the disposition of the bill of lading; i. e., whether it was retained by appellee or transferred to Rowan. During shipment, one of the pumps was damaged and Rowan refused to accept delivery of that pump. Appellant requested Rowan, the consignee, to file a claim for damages, but Rowan did not do so. Appellant returned the pump to its Lubbock terminal, and the terminal manager contacted appellee’s office about repairing the pump. There were several other places of business in Lubbock that repaired pumps. Upon being advised the pump would have to be inspected for a repair estimate, the terminal manager caused the pump to be delivered to appellee’s place of business. The pump was inspected and appellee’s plant manager informed appellant’s terminal manager that the cost of repairs would be $308.73, and perhaps quoted the price for a new pump. After consideration by appellant’s officers, its terminal manager requested appellee to repair the pump at the price stated. When appel-lee repaired the pump, it was delivered to appellant and transported to Clovis where Rowan accepted delivery.

Appellee’s statement in the sum of $308.-73 for the repairs was submitted to appellant’s terminal manager on the 19th or 20th day of October, 1970. Appellant sent the repair invoice to its Clovis office with the request that it be presented to Rowan and that he file a claim for the damaged merchandise since, as appellant’s terminal manager testified, “it’s always customary for the consignee to file the claim.” Approximately a month later, the repair invoice was returned to the Lubbock terminal manager for payment. He telephoned the Clovis office and was told that it “was supposed” that Rowan had filed a claim. Another month passed without the payment having been made and appellee’s plant manager contacted appellant’s terminal manager about the unpaid account. Appellant took the position that the invoice could not be paid in the absence of a claim for the damaged shipment, contacted Rowan by telephone in an unsuccessful attempt to induce him to file a claim, and then requested appellee to file the claim, sending one of appellant’s employees to appellee’s office to assist in preparing the claim. The claim was filed on or about January 29, 1971. This claim was not introduced in evidence and the form of it was not described. In the interim, appellant had requested appellee to deliver the damaged pump motor to it for salvage, but it developed that the damaged motor had been repaired and there was no salvage available to appellant.

The account had not been paid on March 6, 1971, when appellee’s attorney made a written demand for payment to be made no later than March 12, 1971. No payment was made and appellant filed this suit on March IS, 1971, in the form of an open account for the labor done and materials furnished in making the repairs, and alleged entitlement to and prayed for reasonable attorney’s fees by authority of Vernon’s Ann.Civ.St. art. 2226.1 Appellant answered, admitted liability to the extent of $308.73 only under the Interstate Commerce Act,2 and tendered that sum into the [662]*662registry of the court. Subsequent pleadings solidified appellee’s contention that the controversy arose over and was based on an open account for labor done and materials furnished for which reasonable attorney’s fees were recoverable, and appellant’s position that the controversy arose over merchandise damaged in interstate commerce for which appellant’s liability was limited to the cost of repairs.

Stipulations were filed, including the amounts for reasonable attorney’s fees at various levels of the proceedings, and evidence was heard by the court sitting without a jury. At the conclusion of the hearing, the trial court entered judgment on December 29, 1971, in favor of appellee for the sum of $779.40 — presumably including the $308.73, interest thereon to date of judgment and the stipulated reasonable sum of $450.00 as attorney’s fees in the trial court — bearing interest at the rate of 6% per annum from date of the judgment until paid, and providing for additional stipulated amounts for attorney’s fees through the various stages of appeal that may be taken, up to and including the United States Supreme Court.3 The trial court made and filed findings of fact and conclusions of law in support of its judgment.

The sole issue presented and to be determined on this appeal is whether, under the facts, appellee is entitled to attorney’s fees. Appellant has presented five points of error contending that the award of attorney’s fees was erroneous, and appellee has answered with two counterpoints asserting that the award was correct.

In its points of error numbered three and four, appellant submits that there was no evidence and factually insufficient evidence, respectively, to support the trial court’s finding of fact no. 2 that “the agreement to repair was made and the repairs completed at a time when (appellee) had not and was not asserting any claim against (appellant) for damages to freight.” This finding is supported by the undisputed evidence which, as set forth above, reveals that, pursuant to the agreement to repair, the repairs were completed on October 19, 1970, and no claim for freight damage was made until January 29, 1971, when, at appellant’s insistence and on the representation that a claim was a prerequisite to payment of the repair invoice, a claim was filed. This record does not contain even a suggestion that appellee had made or intended to present a claim for damage caused to the pump by appellant until appellant insisted that such a claim was necessary before the cost of repairs could be paid. Points numbered three and four are overruled.

The most equivocal question is presented by appellant’s points of error numbered one and two. They advance the proposition that the agreement to repair was only collateral to and so intimately connected with the damage incurred in the interstate shipment that the Interstate Commerce Act precludes the recovery of attorney’s fees.

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Yellow Freight System, Inc. v. Hydraulic Products Co.
482 S.W.2d 659 (Court of Appeals of Texas, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
482 S.W.2d 659, 1972 Tex. App. LEXIS 2619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yellow-freight-system-inc-v-hydraulic-products-co-texapp-1972.