Zion Missionary Baptist Church v. Pearson

695 S.W.2d 609, 1985 Tex. App. LEXIS 12100
CourtCourt of Appeals of Texas
DecidedJune 10, 1985
Docket05-84-00082-CV
StatusPublished
Cited by19 cases

This text of 695 S.W.2d 609 (Zion Missionary Baptist Church v. Pearson) 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
Zion Missionary Baptist Church v. Pearson, 695 S.W.2d 609, 1985 Tex. App. LEXIS 12100 (Tex. Ct. App. 1985).

Opinions

HOWELL, Justice.

Appellee, Bobby G. Pearson, individually and doing business as P & M Air Conditioning and Heating (“Contractor”), sued Zion Missionary Baptist Church (“Owner”) and Oak Cliff Bank and Trust1 to recover the unpaid balance upon a written contract for the installation of air conditioning in Owner's building. In response to a single issue submission,2 the jury found that Contractor [611]*611“did substantially perform.” Based thereon, the trial court entered judgment awarding Contractor his full remaining balance as pleaded,3 of $10,125. Owner’s first and second points (out of eight) are dispositive; therefore, we reverse and remand.

In November of 1978, Owner entered into an agreement for installation of an air conditioning system. Thereafter, Contractor furnished materials and labor, and testified that except for some “minor few things,” he completed the contract. Owner, however, withheld the final payment to Contractor, contending that the system did not work properly. Contractor filed suit and Owner counterclaimed for deceptive trade practices and breach of warranty. The following issue was answered in Contractor’s favor:

1. Do you find ... that the Plaintiff Pearson substantially performed the air conditioning contract in a good and workmanlike manner?

Owner tendered special issues as to the cost of remedying defects and omissions, but the trial court refused to submit them. It further overruled Owner’s objections to the charge, motion to correct the judgment, and motion for new trial.

The jury finding here is similar to the finding in the leading case of Atkinson v. Jackson Brothers, 270 S.W. 848, 850-851 (Tex.Comm’n App. 1925, holding approved), where it was held that the trial court erred in permitting recovery of the full contract price in a case where the jury did not find full performance by the contractor, but instead, only found substantial performance. According to Atkinson, the contractor’s measure of damages in cases where there is a finding of substantial performance, as opposed to full performance, is the contract price less the reasonable cost of remedying the defects and omissions so as to conform the performance to the contract. Atkinson further held that it is the contractor’s burden to provide evidence from which the trier of fact can properly measure the deductions necessary to remedy defects and omissions. 270 S.W.2d at 851; see also, Williams v. Meyer, 629 S.W.2d 257, 259 (Tex.App.—Waco 1982, writ dism’d); BPR Construction & Engineering, Inc. v. Rivers, 608 S.W.2d 248, 250 (Tex.Civ.App.—Dallas 1980, writ ref’d n.r.e.); Treiber v. Schaefer, 416 S.W.2d 576, 579 (Tex.Civ.App.—San Antonio 1967, no writ).

Although Contractor relied upon the theory of full performance in his pleadings and testimony, he did not object to submission of the case solely upon the theory of substantial performance.4 Applying the Atkinson rule, Contractor placed himself in the position of having to present evidence and obtain jury findings on (1) whether he substantially performed and, if so, (2) the cost of remedying defects or omissions necessary to reach complete performance. See also, Williams, 629 S.W.2d at 259. Contractor’s judgment must fail because there is no jury finding on the second part of the substantial performance theory of recovery.

Omission of the second part of the test was not harmless. There was conflicting evidence whether certain defects or omissions existed, to whom they were attributable, and their cost of repair. See Treiber, 416 S.W.2d at 579; see also, Turner, Collie & Braden, Inc. v. Brookhollow Inc., 642 S.W.2d 160, 165 (Tex.1982). Moreover, the trial court cannot be deemed to have made such a finding in light of Owner’s objection to the omission and its tendered issues.

To uphold the judgment, Contractor argues that since a finding of substantial performance entitles Contractor to sue under his contract, Contractor’s damages should be measured by the contract price, with Owner entitled to prove deficiencies [612]*612by way of offset or counterclaim. See BPR, 608 S.W.2d at 251 (Robertson, J., concurring). Inasmuch as Owner only offered evidence that tended to show that defects and omissions existed, and offered no evidence as to the cost of remedying those defects, Contractor argues that it was proper for the trial court to award the full contract balance.

Contractor urges us to re-examine Atkinson, and argues that it imposes an inequitable burden on a contractor — placing him in a position of being required to negate his own claim of full performance by forcing him to offer evidence on the cost of curing deficiencies, the existence of which he denies, or to risk forfeiture of all compensation due. This contention was squarely rejected in Vance v. My Apartment Steak House of San Antonio, Inc., 677 S.W.2d 480, 482-483 (Tex.1984), wherein the Supreme Court reiterated the Atkinson rule:

By definition, this doctrine [of substantial performance] recognizes that the contractor has not totally fulfilled his bargain under the contract — he is in breach. Nonetheless, he is allowed to sue on the contract, but his recovery is decreased by the cost of remedying those defects for which he is responsible. “To allow full recovery without deductions for defects is to award compensation for something ... not done.”

677 S.W.2d at 482 (quoting Atkinson, 270 S.W. at 851). A minority of the Court urged the same contentions here presented by Contractor, but the Court nevertheless reaffirmed the proposition that the burden of proving the reasonable cost of remedying defects is on the contractor. See also, BPR, 608 S.W.2d at 250 (concurring opinions of Guittard, C.J., and Robertson, J.). The contractor’s only alternative is to plead, prove and secure jury findings of full performance.

The doctrine of substantial performance, taken in its present context, has caused recurrent problems. Since 1925, Atkinson has been cited almost 50 times. Many of those cases were suits brought by contractors to recover the unpaid balance under an express agreement for performing improvements to real property. Findings of substantial performance, rather than complete performance, were returned, but the contractor failed to present evidence and/or request findings as to the cost of remedying deficiencies. Citing Atkinson, the courts have reiterated that, in such instances, judgment may not go for the contractor.

We think a principal reason for the recurrence of the problem is a continuing failure of the bench and bar to fully apprehend the established definition of “substantial performance” as applied to the situation in hand.

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Zion Missionary Baptist Church v. Pearson
695 S.W.2d 609 (Court of Appeals of Texas, 1985)

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Bluebook (online)
695 S.W.2d 609, 1985 Tex. App. LEXIS 12100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zion-missionary-baptist-church-v-pearson-texapp-1985.