Case Information
*1 R e v e r s e a nd R e nd e r i n p a r t; A ff i r m i n p a r t: O p i n i on h i e d N ov e m b e r 27 , 2012 .
i n T h e G nu r t n f \ pp r a h i . ± F i f t I! D h t r i r t n f x a s a t I z tt 1 a N o . 05 - 11 - 01 468 - C V AD T S E C U R I T Y S E R V I C E S , I N C ., A pp e ll a n t V. VAN P ETE R S ON F I N E J E W ELE R S , A pp e ll ee O n A pp ea l fr o m t h e 191 s t J ud i c i a l D i s t r i c t C ou r t
D a ll a s C oun t y , T e x a s T r i a l C ou r t C a u s e N o . 09 - 12111 O P I N I ON B e f o r e J u s ti ce s M o s e l e y , F it z G e r a l d , a nd M y e r s O p i n i on B y J u s ti ce M o s e l e y T h i s is a n a g r ee d i n t e r l o c u t o r y a pp ea l fr
o m a n o r d e r d e ny i ng AD T S ec u r it y S e r v i ce s , I n c . ’ s t w o m o ti on s f o r s u mm a r y j udg m e n t . I n iti a ll y , t h e t r i a l c ou r t g r a n t e d bo t h o f AD T ’ s m o ti on s , w h i c h d i s po s e d o f all c l a i m s b r ough t by V a n P e t e r s on F i n e J e w e l e r s a g a i n s t AD T . H o w e v e r , Van P e t e r s on f il e d a m o ti on f o r n e w t r i a l , w h i c h t h e t r i a l c ou r t g r a n t e d . I n t h e o r d e r g r a n ti ng V a n P e t e r s on ’ s m o ti on f o r n e w t r i a l , t h e t r i a l c ou r t a l s o d e n i e d AD T ’ s m o ti on s f o r s u mm a r y j udg m e n t .
In f ou r i ss u e s on a pp ea l , AD T a r gu e s t h e t r i a l c o u r t e rr e d b y d e ny i n g i t s m o ti o n s f o r s u mm a r y j u d g m e n t b ec a u s e ( 1 ) V a n P e t e r s o n ca n n o t s h o w A D T w a s r e s p o n s i b l e f o r a n u n kn o w n p e r s o n ’ s c o nd u c t ; ( 2 ) A D T d i d n o t o w e a d u t y t o V a n P e t e r s o n ; ( 3 ) t h e p a r t i e s ’ c o n t r ac t i n c l u d e s a l i m i t a t i o n - o f - li a b ilit y p r ov i s i o n t h a t d e f e a t s V a n P e t e r s o n ’ s c l a i m s f o r b r ea c h o f c on t r ac t , n e g li g e n c e , g r o ss *2 negligence, and negligent misrepresentation and (4) Van Peterson’s subrogated insurer can not pursue a claim under the Texas Deceptive Trade Practices Act.
Because we conclude this appeal may materially advance the ultimate teiirnnation ot the litigation, we consider ADTs arguments. Set Act of’ May 27. 2005. 79th Leg., R.S., ch. 1051, § I 2005 Tcx. (len. Laws 35 12. 35 13 (applyinu to lawsuits tiled on or after September 1, 2005). amended by Act of May 25, 2011, 82d Leg., ch. 203, § 3.01, 201 1 Tex. Gen. Laws 758, 759 (current version at TEx. Civ. PRAc. & REM. CoDE ANN. § 51.014 (West Supp. 2011)). However, for the reasons set forth herein, we reject ADT’s first issue and sustain its third issue. We do not reach the merits of ADT’s second and fourth issues. As a result, we reverse the trial court’s denial of ADT’s traditional motion for summary judgment as to Van Peterson’s claims for negligence, gross negligence, breach of contract, and negligent misrepresentation and render judgment in ADT’s favor on those claims. In all other respects. we afflrm the trial court’s order and remand this case for further proceedings.
Background Van Peterson operated a retail jewelry store. In 1999, Van Peterson and ADT entered into a contract whereby ADT agreed to provide commercial alarm services to Van Peterson. In its lawsuit, Van Peterson alleges that in 2007 an unidentified man wearing an ADT uniform and driving an ADT van came to the jewelry store and sold Van Peterson a cellular backup device for its alarm system. Van Peterson contends that instead of installing the cellular backup device, the man disabled the alanm
In September 2007, Van Peterson’s store was burgled, the wires for the security alarm were cut, the backup system was destroyed, and approximately $1 million worth of jewelry was stolen. —2— *3 P r o ce du r a l H i s t o r y V a n P e t e r s on s u e d AD T f o r it s d a m a g e s r e s u lti ng fr o m t h e bu r g l a r y . I t a ll e g e d ca u s e s o f ac ti on f o r b r eac h o f c on t r ac t , n e g li g e n ce , g r o ss n e g li g e n ce , n e g li g e n t m i s r e p r e s e n t a ti on . c i v il c on s p i r ac y , fr a ud , a nd v i o l a ti on s o f t h e D ece p ti v e T r a d e P r ac ti ce s A c t ( D T P A ) . i n r e s pon s e . AD T a ss e r t e d t h a t t h e un i d e n ti f i e d m a n w a s no t it s e m p l oy ee , t h a t it d i d no t s e ll V a n P e t e r s on a ce ll u l a r b ac kup d e v i ce , a nd t h a t t h e p a r ti e s ’ c on t r ac t i n c l ud e s a li m it a ti on — o f — li a b ilit y p r ov i s i on t h a t d e f ea t s s e v e r a l o f V a n P e t e r s on ’ s c l a i m s .
AD T f il e d a t r a d iti on a l m o ti on f o r s u mm a r y j udg m e n t; t h e t r i a l c ou r t g r a n t e d t h e m o ti on i n p a r t a nd d i s m i ss e d V a n P e t e r s on ’ s c l a i m s f o r b r eac h o f c on t r ac t , n e g li g e n ce , g r o ss n e g li g e n ce , a nd n e g li g e n t m i s r e p r e s e n t a ti on . AD T t h e n I i l e d a no - e v i d e n ce m o ti on f o r s u mm a r y j udg m e n t on V a n P e t e r s on ’ s D i ’ P A , c i v il c on s p i r ac y , a nd fr a ud c l a i m s , w h i c h t h e t r i a l c ou r t g r a n t e d . T h e c ou r t o r d e r e d V a n P e t e r s on t a k e no t h i ng on it s c l a i m s a g a i n s t AD T .
V a n P e t e r s on f il e d a m o ti on f o r n e w t r i a l a s k i ng t h e t r i a l c ou r t t o r ec on s i d e r AD T ’ s m o ti on s f o r s u mm a r y j udg m e n t . T h e t r i a l c ou r t g r a n t e d t h e m o ti on f o r n e w t r i a l a nd d e n i e d bo t h o f AD T ’ s m o ti on s f o r s u mm a r y j udg m e n t .
P u r s u a n t t o f o r m e r s ec ti on 51 . 014 ( d ) o f t h e T e x a s C i v il P r ac ti ce a nd R e m e d i e s C od e , t h e t r i a l c ou r t t h e n s i gn e d a n o r d e r a ll o w i ng t h e p a r ti e s t o s ub m it t h i s a g r ee d i n t e r l o c u t o r y a pp ea l fr o m it s o r d e r g r a n ti ng V a n P e t e r s on ’ s m o ti on f o r n e w t r i a l a nd d e ny i ng AD T ’ s m o ti on s f o r s u mm a r y j udg m e n t . S ee it ! . T h i s a pp ea l f o ll o w e d .
A n a l y s i s AD T do e s no t c h a ll e ng e t h e t r i a l c ou r t ’ s a u t ho r it y t o r u l e on t h e m o ti on f o r n e w t r i a l . it c h a ll e ng e s t h e t r i a l c ou r t ’ s d e n i a l o f it s m o ti on s f o r s u mm a r y j udg m e n t . *4 i n it s li r s t i ss u e , AD T a r gu e s V a n P e t e r s on ’ s c l a i m s f a il b eca u s e V a n P e t e r s on ca nno t p r ov e AD T i s v i ca r i ou s l y li a b l e f o r t h e c ondu c t o f t h e un i d e n ti f i e d p e r s on w ho a ll e g e d l y ca m e t o V a n P e t e r s on ’ s s t o r e t o upg r a d e t h e a l a r m . i h e r e l o r e , AD T a r gu e s , t h e t r i a l c ou r t e rr e d by d e ny i ng it s m o ti on f o r s u mm a r y j udg m e n t . H o w e v e r , AD T ( li d no t a ss e r t t h i s a r gu m e n t a s a b a s i s f o r s u mm a r y j udg m e n t i n e it h e r o f it s m o ti on s . AD T f i r s t r a i s e d t h i s a r gu m e n t i n it s r e p l y i n s uppo r t o f it s no - e v i d e n ce m o ti on f o r s u mm a r y j udg m e n t . W it hou t ob t a i n i ng V a n P e t e r s on ’ s c on s e n t , AD T w a s no t e n titl e d t o r a i s e a n e w g r ound s f o r s u mm a r y j udg m e n t i n it s r e p l y t o V a n P e t e r s on ’ s r e s pon s e . S ee A ll M e t a l s F a h r i ca ti ng . I n c .
v. P a s t e , G e n . C on t r ac ti ng , I n c ., 338 S . W . 3d 615 , 622 ( T e x . A pp . • - D a ll a s 2011 . no p e t . ) ( c iti ng S a nd c ’ i: v v L ’ a p it o l A r ea C oun c il , 930 S . W . 2d 905 . 911 ( T e x . A pp . — A u s ti n 1996 , no w r it )) . T hu s , w e r e j ec t AD T ’ s f i r s t i ss u e .
I n it s t h i r d i ss u e , AD T a ss e r t s t h e t r i a l c ou r t e rr e d by d e ny i ng it s t r a d iti on a l m o ti on f o r s u mm a r y j udg m e n t , a t l ea s t i n p a r t , b eca u s e t h e p a r ti e s ’ c on t r ac t i n c l ud e s a li m it a ti on — o f — li a b ilit y p r ov i s i on t h a t d e f ea t s V a n P e t e r s on ’ s c l a i m s f o r n e g li g e n ce , g r o ss n e g li g e n ce , b r eac h o f c on t r ac t , a nd n e g li g e n t m i s r e p r e s e n t a ti on . W e a pp l y a w e ll - e s t a b li s h e d s t a nd a r d f o r r e v i e w i ng a t r a d iti on a l s u mm a r y j udg m e n t und e r r u l e 1 66 a ( c ) . S ee TE X . R . C i v . P. I 66 a ( c ) ; N i xon v. M r P r op . M g m t . C o ., 690 S . W . 2d 546 , 548 - 49 ( T e x . 1985 ) . W e r e v i e w a t r i a l c ou r t ’ s s u mm a r y j udg m e n t d e novo . S ee P r ov i d e n t L i/ è & A cc i d e n t I n s . C o . i K no tt , 128 S . W . 3d 211 , 215 ( T e x . 2003 ) . O n ce t h e m ov a n t e s t a b li s h e s it s r i gh t t o s u mm a r y j udg m e n t a s a m a tt e r o f l a w , t h e bu r d e n s h i f t s t o t h e non - m ov a n t t o p r e s e n t e v i d e n ce r a i s i ng a g e nu i n e i ss u e o f m a t e r i a l f ac t , t h e r e by p r ec l ud i ng s u mm a r y j udg m e n t . C it y o f H ou s t on v C l ea r C r ee k B a s i n A u t h ., 589 S . W . 2d 671 , 678 ( T e x . 1979 ) ; T a !f b r d v. C o l u m b i a M e d . C ’ t r a t L a n ca s t e r S ub s i d i a r y , L . P , 198 S . W . 3d 462 , 464 ( T e x . A pp . — D a l l a s , 2006 , no p e t . ) .
T h e p a r t i e s e n t e r e d i n t o a C o mm e r c i a l S a l e s P r opo s a l / A g r ee m e n t , i mm e d i a t e l y a bov e t h e s i gn a t u r e li n e f o r V a n P e t e r s on ’ s r e p r e s e n t a ti v e , t h e c on t r ac t s t a t e s : “ A TTE N T I ON i S D I R E C TE D — 4 - *5 T O T il E W A RR AN T Y L I M I T O F L I A B I L F 1 ’ Y AND OU t E R C OND I T I ON S ON T H E R E V E R S E S I D E . ” U nd e r t h e h ea d i ng “ TE R M S AND C OND I T I ON S ” on t h e f o ll o w i ng p a g e . t h e c on t r ac t s t a t e s :
I T I S UND E R S T OOD T HA T AD T I S NO T AN I N S U R E R , T HA T I N S U I t N C Ii. I F N \ 511 L I H F . O B I 1 N E D B \ I H E ( U S [ O M E R AND
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HA T T H E A M OUN T S P AYA B LE T O AD T H E R E UND E R A R E B A S E D U P ON I I- U i . ‘s L U L 01 I il L SF R i C E S AN !) I H E S C O PF O F I I A B 1 L I 1 V A S H E R E I N S E I F O R 1 H AND A R E UN R EL A I E D T O I H E VA L U E O F I H E ( I J S T O M E R ’ S P R O P E W I \ O R P R O P E R T Y O F O T H F R S L O C AU D I N C U S T O M E R ’ S P R E M I S E S . C U S T O M E R AG R EE S T O L OOK E X C L I J S I V EL V T O C U S T O M E R ’ S I N S U R E R T O R E C OV E R F O R I N J U R I E S O R DA M AG E i N T H E E V E N T O F ANY L O SS O R i N J U R Y AND R ELE A S E S AND W A I V E S A LL R I GH r O F R E C OV E R Y AGA I N S T A D T A R i S I NG B Y W AY O F S U BR OGA T I ON AD T M AK E S NO GUA R AN I F E O R W ’ RR AN I \ , [‘ C I UD L N C AN I M P I l E D W A RR AN I’’ O F M E RC HAN T A B I L I T Y O R F i T N E SS , T HA T T H E S Y S TE M O R S E R V I C E S S U PP L i E D , W I LL AV E R T O R P R E V E N T O CC U RR E N C E S O R T H E C ON S E QU E N C E S I H E R E F R O M , W H I C H T H E S Y S TE M O R S E R V I C E S I S D FS I GN F 1 ) 10 I) ETE C 1 T H E C U S 1 O M E R DO E S NO T D E S I R F T ill S C ON T R A C T T O P R OV I D E F O R F U LL L I A B I L I T Y O F AD T AN I) AG R EE S T HA T A I) T S h A LL B E E X E M P T F R O M L I A B i L I T Y F O R L O SS ,
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M AG E O R I N J U R Y DU E D I R E C TL Y O R I ND I R E C TL Y T O O CC U RR E N C E S , O R C ON S E QU E N C E S T H E R E F R O M , W H I C H T H E SF R V I C E O R S Y S ] E M I S D E S I GN E D T O D E l E C T O R AV E R T
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T HA T T il E P R OV I S I O f S O F T H I S P A R AG R A P H S HA LL A PP L Y I F L O SS , DA M AG E O R I N J U R Y , I RR E SP E C T I V E O F C AU S E O R O R I G I N , R E S U LT S D I R E C TL Y O R 1 ND 1 R E C TL Y T O P E R S ON O R P R O P E R T Y
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R O M P E R F O R M AN C E O R NON P E R F O R M AN C E O F O B L I GA T I ON S I M P O S E D B Y T H I S C ON T R A C T O R F R O M N E G L i G E N C E , A C T I V E O R O T H E R W I S E , S T R I C T L I A B I L I T Y , V I O L A T i ON O F ANY A PP L I C A B LE C O ? S U M E R P R O TE C T I ON L A W O R ANY O T H E R A LLE G E D F AU LT ON T H E P A R T O F AD T , I T S AG E N T S O R E M P L OY EE S . V a n P e t e r s on a r gu e s t h e D T P A vo i d s li m it a ti on - o f- li a b ilit y p r ov i s i on s li k e t h i s on e .
H o w e v e r , t h e D T P A p r ov i s i on V a n P e t e r s on c it e s a dd r e ss e s a p a r t y ’ s a tt e m p t e d w a i v e r o f a c l a i m b r ough t und e r t h e D T P A . S ee TE x . B u s . & C 0 M . C OD E § 17 . 42 . T h e li m it a ti on - o f- li a b ilit y p r ov i s i on i n t h e c on t r ac t w a i v e s on l y V a n P e t e r s on ’ s c l a i m s f o r n e g li g e n ce , g r o ss n e g li g e n ce , b r eac h o f c on t r ac t , a nd n e g li g e n t r n i s r e p r e s e n t a t i o n — n o t i t s D T P A c l a i m . T h u s , S ec t i o n 17 . 42 d o e s n o t *6 i nv a li d a t e t h e li m it a ti on p r ov i s i on . 5 cc .1 r tli u r ‘.c ( J a r ug c , Inc. v R u ca I C h ii 1 I j Sec. S r s .. I n c ., 997 S . W . 2d 803 , 810 ( T e x . i\ pp . — D a ll a s 1999 , no w r it ) ( p a r ti e s ’ a g r ee m e n t t o li m it li a b ilit y f o r f u t u r e n e g li g e n ce w a s e n f o r cea b l e a nd f a vo r e d by pub li c po li c y ) .
T h e li a b ilit y w a i v e r in AD T a nd Van P e t e r s on ’ s c on t r ac t p r ov i d e s \ ‘ i n P e t e r s on w ill l ook on l y t o it s i n s u r e r t o r ec ov e r f o r i n j u r i e s o r d a m a g e s in t h e e v e n t o f l o ss , i n c l ud i ng l o ss e s a tt r i bu t a b l e t o AD T ’ s p e rf o r m a n ce o r nonp e rf o r m a n ce o f it s ob li g a ti on s und e r t h e c on t r ac t o r fr o m n e g li g e n ce . B eca u s e V a n P e t e r s on c on t r ac t u a ll y a g r ee d t o s ee k r ec ov e r fr o m it s i n s u r e r , a nd on l y it s i n s u r e r , i n t h e e v e n t o f a l o ss du e t o b r eac h o f c on t r ac t o r n e g li g e n ce , a nd b eca u s e Van P e t e r s on no w s ee k s t o r ec ov e r t ho s e d a m a g e s fr o m AD T , t h e t r i a l c ou r t e rr e d by d e ny i ng AD T ’ s t r a d iti on a l m o ti on f o r s u mm a r y j udg m e n t on Van P e t e r s on ’ s c l a i m s f o r n e g li g e n ce , g r o ss n e g li g e n ce , b r eac h o f c on t r ac t , a nd n e g li g e n t m i s r e p r e s e n t a ti on . W e s u s t a i n AD T ’ s t h i r d i ss u e .
B eca u s e w e s u s t a i n AD T ’ s t h i r d i ss u e , w e n ee d no t a dd r e ss AD T ’ s s ec ond i ss u e in w h i c h it a r gu e s AD T d i d no t o w e Van P e t e r s on a du t y t o m on it o r o r m a i n t a i n it s a l a r m s y s t e m a nd , t h e r e f o r e , c ou l d no t b e h e l d li a b l e f o r d a m a g e s und e r t h e o r i e s o f n e g li g e n ce , g r o ss n e g li g e n ce , o r n e g li g e n t m i s r e p r e s e n t a ti on . TE x . R. APP. P. 47 . 1 .
AD T ’ s f ou r t h i ss u e s t a t e s : “ V a n P e t e r s on ’ s s ub r og a t e d i n s u r e r ca nno t pu r s u e a c l a i m und e r t h e D T P A b eca u s e it i s no t a ‘ C on s u m e r . ” AD T a r gu e s “ t h e t r i a l c ou r t e rr e d i n a ll o w i ng [ t h e i n s u r e r] t o pu r s u e it s D T P A c l a i m . ” V a n P e t e r s on ’ s i n s u r e r m a y b e i nvo l v e d i n t h i s liti g a ti on , bu t is no t a p a r t v t o t h i s liti g a ti on . O n l y V a n P e t e r s on s u e d AD T f o r d a m a g e s . T h e i n s u r e r d i d no t j o i n AD T a s a p l a i n ti ff a nd t h e i n s u r e r h a s no t b ee n s u e d a s a t h i r d p a r t y . T h e r e f o r e , a ny op i n i on fr o m t h i s C ou r t r e g a r d i ng w h e t h e r t h e i n s u r e r c ou l d pu r s u e a c l a i m und e r t h e D T P A w ou l d b e a dv i s o r y .
—6-- *7 S ec g e n e r a /li S ea t e r m i ’ s ., LL C . v l % e r j ee , 358 S . W 3d 841 , 44 ( T e x , A pp . - D a ll a s 2012 , no p e t . ) ( c iti ng D a ll a s fr a n II o i ’ tli I n ! 1 AU [7] ) O I’ t 8 ( 1 . v AN S H [0] / T h ii ca b O p e r a t o r s , U S ’ A . 335 S . W . 3d 361 , 364 ( T e x . A pp . — D a ll a s 2010 , no p e t . ) . W e d ec li n e t o a dd r e ss AD T ’ s f ou r t h i ss u e .
C on c i U S i () II W e r e v e r s e t h e t r i a l c ou r t ’ s d e n i a l o f AD F ’ s t r a d iti on a l m o ti on t b r s u mm a r y j udg m e n t a s t o V a n P e t e r s on ’ s c l a i m s f o r n e g li g e n ce , g r o ss n e g li g e n ce , b r eac h o f c on t r ac t , a nd n e g li g e n t m i s r e p r e s e n t a ti on a nd r e nd e r j udg m e n t i n AD T ’ s f a vo r on t ho s e c l a i m s .
I n a ll o t h e r r e s p ec t s , w e a ff i r m t h e t r i a l c ou r t ’ s o r d e r a nd r e m a nd t h i s ca s e f o r f u r t h e r p r p eee d i ng s . 1 / I I / / / , / / J 1 MM O S ELE Y ’ J y l ’ S T I C E
11 1468 F . P 05 t O u r op i n i on do e s no t a dd r e ss t h e t r i a l c ou t ’ s d e n i a l o f A D T ” s m o ti on s f o r s u mm a ’ j udg m e n t w it h r e s p ec t t o \ n P e t e r s on ’ s c l a i m s f o r c i v il c on s p i r a c y , fr a ud , o r v i o l a ti on s o f t h e D T P A . *8 n f A pp r a t a F i f t I i J it r i r t ti f I i x w tt U a 11 a
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UDG M E N T A li T S E C U R I T Y S E R V I C E S , I N C ., A pp ea l fr o m t h e C ou r t N a m e 19 1st J ud i c i a l A pp e ll a n t D i s t r i c t C ou r t o f D a ll a s C oun t y , T e x a s . ( T r . C t . N o , C a u s e N o . D C - 09 - 12 I I l - i ) . No. ( b -I l - 01468 - C V V. O p i n i on d e li v e r e d by J u s ti ce M o s e l e y . J u s ti ce s F it z G e r a l d a nd M y e r s p a r ti c i p a ti ng . VAN P ETE R S ON F I N E J E W ELE R S , A pp e ll ee
In acc o r d a n ce w it h t h i s C ou r t ’ s op i n i on o f t h i s d a t e , t h e J u l y 29 , 2011 , o r d e r o f t h e t r i a l c ou r t is R E V E R S E D I N P A R T a nd j udg m e n t is R E ND E R E D g r a n ti ng AD T S ec u r it y S e r v i ce s , I n c . ’ s t r a d iti on a l m o ti on f o r s u mm a r y j udg m e n t a s t o V a n P e t e r s on F i n e J e w e l e r s ’ c l a i m s f o r n e g li g e n ce , g r o ss n e g li g e n ce , b r eac h o f c on t r ac t . a nd n e g li g e n t m i s r e p r e s e n t a ti on . W e A FF i R M t h e t r i a l c ou r t ’ s o r d e r w it h r e s p ec t t o a ll o t h e r c l a i m s a dd r e ss e d i n AD T S ec u r it y S e r v i ce s . I n c . ’ s t r a d iti on a l m o ti on f o r s u mm a r y j udg m e n t a nd AD T S ec u r it y S e r v i ce s , I n c . ’ s no e v i d e n ce m o ti on f o r s u mm a r y j udg m e n t , W e R E M AND t h i s ca s e t o t h e t r i a l c ou r t f o r f u r t h e r p r o cee d i ng s .
It is O R D E R E D t h a t eac h p a r t y b ea r t h e i r o w n c o s t s o f a pp ea l . J udg m e n t e n t e r e d N ov e m b e r 27 , 2012 .