Foundation Assessment, Inc., D/B/A Engineering Design & Assessment, and Suraj K. Choudhury v. Suzanne O'Connor
426 S.W.3d 827
Tex. App.2014Background
- Plaintiff Suzanne O’Connor owned a Fort Worth rental property and alleged Perma Pier contracted to repair its foundation; Foundation Assessment and engineer Suraj K. Choudhury produced initial and final engineering reports stating they had inspected the site.
- O’Connor sued Perma Pier and Foundation Assessment/Choudhury alleging multiple claims, specifically asserting fraud and civil conspiracy against appellants based on alleged false statements in the engineering reports.
- Appellants filed answers and otherwise limited participation in the case (responses to requests for disclosure, one deposition attended, agreed to scheduling and expert-deadline extensions) but conducted little affirmative discovery over ~22 months.
- Nearly two years after the petition, one month before trial, appellants moved to dismiss under Tex. Civ. Prac. & Rem. Code §150.002 for failure to file a certificate of merit with the complaint.
- The trial court denied the motion; on interlocutory appeal the court of appeals reviewed whether appellants waived the §150.002 dismissal right, whether §150.002 applied, and whether laches barred dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether appellants waived §150.002 dismissal right by delay | O’Connor: appellants waited ~2 years and litigated, so they waived the right | Appellants: delay alone does not constitute waiver; they took no actions inconsistent with relying on dismissal right | No waiver; delay alone insufficient where defendant didn’t substantially invoke the process (motion timely despite 22-month wait) |
| Whether §150.002 applies to O’Connor’s claims | O’Connor: claims (fraud re: not performing inspection) are not outside statute because they don’t involve professional services | Appellants: their engineering reports are professional services and misrepresentations arise from those services | §150.002 applies because alleged misrepresentations arose out of provision of engineering services |
| Whether laches bars dismissal | O’Connor: laches/ prejudice from delay prevents dismissal | Appellants: no detrimental change in position shown; laches not established | Laches not proved—O’Connor failed to show detrimental reliance or impairment |
| Whether trial court abused discretion in denying motion to dismiss | O’Connor: court acted within discretion given facts | Appellants: denial was erroneous because statutory dismissal required | Court abused its discretion; reversal and remand for entry of dismissal under §150.002 (with determination re: prejudice) |
Key Cases Cited
- CTL Thompson Tex., LLC v. Starwood Homeowner’s Ass’n, 390 S.W.3d 299 (Tex. 2013) (explaining certificate-of-merit purpose and statutory construction principles)
- Murphy v. Gutierrez, 374 S.W.3d 627 (Tex. App.—Fort Worth 2012) (discussing when extensive litigation activity can constitute waiver of §150.002 dismissal right)
- Palladian Bldg. Co. v. Nortex Found. Designs, Inc., 165 S.W.3d 430 (Tex. App.—Fort Worth 2005) (holding defendant did not waive dismissal right by filing answers before seeking dismissal)
- Pro Plus, Inc. v. Crosstex Energy Servs., L.P., 388 S.W.3d 689 (Tex. App.—Houston [1st Dist.] 2012) (delay alone does not necessarily waive §150.002 dismissal right)
- DLB Architects, P.C. v. Weaver, 305 S.W.3d 407 (Tex. App.—Dallas 2010) (holding no waiver after a significant delay when no evidence of intent to waive)
- Jernigan v. Langley, 111 S.W.3d 153 (Tex. 2003) (defining waiver as intentional relinquishment of known right)
