the Velvet Snout, LLC v. Vernon E. Sharp, Jr., Individually and D/B/A Sharp Floors and James Sharp, Individually and D/B/A Sharp Floors
441 S.W.3d 448
Tex. App.2014Background
- The Velvet Snout, LLC engaged Sharp Floors to install rubber flooring in December 2006.
- Problems with seams appeared in 2007; Sharps resealed but issues persisted, causing lifting and water intrusion into adjacent walls.
- Velvet Snout claimed Sharps were contacted about further issues but Sharps did not inspect or repair; Velvet Snout funded third-party repairs.
- Velvet Snout filed suit January 26, 2011 for breach of contract and fraud; bench trial resulted in a take-nothing judgment for Sharps.
- Trial court signed findings of fact and conclusions of law on May 4, 2012; Velvet Snout appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are deemed admissions valid against breach claim? | Velvet Snout argues admissions are vague and merit-preclusive. | Sharps contends admissions are broad but admissible to prove breach. | Issue overruled; admissions cannot support merit-preclusive effects. |
| Was the evidence legally and factually sufficient to prove breach and damages? | Velvet Snout asserts proof of breach, causation, and damages. | Sharps contends no sufficient proof of breach or damages. | Evidence legally and factually sufficient; judgment affirmed. |
Key Cases Cited
- Lucas v. Clark, 347 S.W.3d 800 (Tex.App.--Austin 2011) (merit-preclusion of deemed admissions)
- Wheeler v. Green, 157 S.W.3d 439 (Tex. 2005) (due process concerns with merit-preclusive admissions)
- Sanders v. Harder, 227 S.W.2d 206 (Tex. 1950) (admission practice not to admit ground of action)
- In re Rozelle, 229 S.W.3d 757 (Tex.App.--San Antonio 2007) (merit-preclusion concerns with deemed admissions)
- Birdo v. Hammers, 842 S.W.2d 700 (Tex.App.--Tyler 1992) (admit or deny each live pleading allegation)
- Mead v. Johnson Group, Inc., 615 S.W.2d 685 (Tex. 1981) (causation and damages framework in contract cases)
- Nelson Cash Register, Inc. v. Data Terminal Systems, Inc., 671 S.W.2d 594 (Tex.App.--San Antonio 1984) (causation standard in contract damages)