DALWORTH RESTORATION, INC., Aрpellant v. Mrs. Angie RIFE-MARSHALL, Appellee
No. 02-12-00381-CV
Court of Appeals of Texas, Fort Worth
May 15, 2014
435 S.W.3d 773
TERRIE LIVINGSTON, Chief Justice.
IV. Conclusion
We deny the petition for writ of mandamus.
Ernest Reynolds III, Law Office of Ernest Reynolds III, Fort Worth, for Appellee.
PANEL: LIVINGSTON, C.J.; GARDNER and GABRIEL, JJ.
OPINION
TERRIE LIVINGSTON, Chief Justice.
Appellant Dalworth Restoration, Inc. appeals the trial court‘s money judgment in favor of appellee Mrs. Angie Rife-Marshall. In one issue, appellant contends that the trial court erred by not apрlying a settlement credit under
Background Facts2
In 2009, appellee sued Liberty Mutual Insurance Company (Liberty Mutual),
Appеllee assigned blame to the original defendants for causing damage to her home‘s contents, for taking her possessions without her permission, and for failing to provide an inventory for items that were removed from the home. She pled, “As a direct and proximate result of [the original defendants‘] conduct [appellee‘s] furniture and household goods and personal possessions ..., have all been taken or in some cases even destroyed.”3
From the factual allegations in her petition, appellee brought several claims against the original defendants, including breach of contract, negligence, and gross negligence. Appellee attached an engineering report to her petition. The report said that water leakage had caused “structural, electrical, and mechanical problems.” It also stated that after mold had been discovered in the house, Liberty Mutual had hired appellant to make appellee‘s home environmentally safe, but mold remediation work had not been completed. The report concluded by stating that appellee‘s residence had been “adversely affected by 11 months of roof water leakage after a hailstorm.”
The trial court entered a temporary restraining order that prohibited the original defendants from causing appellee to be “put out onto the street,” among other restrictions. The original defendants answered by asserting a general denial and several affirmative defenses. They also pled that the suit should be abated because they had filed a declaratory judgment suit against appellee in federal court before she had filed her state-court petition.
In 2010, appellee added appellant as a defendant. Appellee alleged that appellant had been рaid for remediation work at the house but had not completed the work and had made parts of the house worse. Similarly to her allegations against the original defendants, she also alleged that appellant had taken her personal property and damaged other property.4 She sued appellant for negligence, negligence per se, gross negligence, conversion, and breach of contract. Against appellant, appellee asked for actual and exemplary damages. Also in 2010, appellee settled her claims
Appellant asserted a general denial and pled that “all of the prior [d]efendants” in the litigation were responsible third parties. Appellee objected to appellant‘s attempt to designate responsible third parties. Later, appellant contended that some of the responsible third parties were “settling рarties.” In other pretrial documents, appellant alleged that appellee had settled with the original defendants for approximately $600,000; appellant also informed appellee that it did not want to “exclude the settling parties from the case.”
Later, appellant agreed to an order in which the trial court found that any request for designating a responsible third party was moot. Although the original defendants were no longer formally in the case, appellant asked for the trial court to submit jury questions about whether they had contributed to appellee‘s damages.
In an April 2012 pretrial hearing that concerned discovery matters and other issues, appellant orally informed the trial court5 three times that appellee had settled her claims against Liberty Mutual for $600,000. During that hearing, appellant twice contended that it should receive a credit for the money that Liberty Mutual had paid to appellee; appellant stated that it did not want to wait to raise the settlement-credit issue “at the last moment.”
Later that month at the trial that solely concerned appellee‘s claims against appellant, appellee presented evidence to establish, among other facts, that she had water leakage in her home after the April 2007 hailstorm had damaged its roof;6 that a company specializing in dehumidification but not licensed in mold remediation had found significant mold in the home; and that appellant (which is licensed to remediate mold) had started working in the home in April 2008 upon contact from appellee‘s insurance company. According to appellant‘s general manager, appellant‘s initial duties at the home were to pack and remove its contents; remove sheetrock, carpet, and insulation; clean air ducts; and run thrеe “air scrubbers.” Appellee believed that appellant had agreed to remove “all of [her] items off of the property” and remediate the mold in her home. Several of appellant‘s employees, including temporary employees, worked at the home. They removed some contents from the home but did not immediately provide appellee with an inventory of those items.
Appellant worked at the home for four to five weeks before another contractor worked there later in 2008. Appellant did not replace the sheetrock it had removed from walls and ceilings, nor did it install new carpet or insulation after removing some of those items. According to appellant‘s general manager, however, appellant had not been hired to install new carpet or sheetrock; he testified that appellant had performed all of the work that Liberty Mutual had assigned to it. Also, appellant did not return all of the personal property that it had removed from the home, deeming some of the property to be unsalvageable.
According to appellee‘s father, some of the items that appellant returned to appellee were in poor condition. Appellee testified that appellant had never returned many items to her—including a turkey roaster, boots, coats, and jewelry—and had moved other items (including furniture) to a garage, where they were damaged and
In the middle of the trial, before the submission of the case to the jury, appellant informed the trial court that it wanted to offer proof of appellee‘s settlement with the original defendants for the purpose of receiving a credit. Later, after the parties rested and closed but before they presented closing arguments, they offered a written stipulation to the trial court concerning the settlement. The stipulation, which, on its face, included objections made by appellee but denied by the trial court,9 stated, in part,
COME NOW both parties ... to make this statement of the proposed evidence with which this document deals ...:
(1) There has been a prior settlement made between Liberty Mutual ... and [appellee], which was actually made in mediation proceedings ordered by a federal court in connection with a separate case, at a mediation thаt occurred late in November of 2009, and prior to the time when [appellant] had been named a party to this state court case ....
(2) In connection with the said settlement, ... funding was provided by Liberty Mutual, ... and the settlement funding was paid to [appellee], and her deposition testimony in this case as taken by [appellant‘s counsel] in a deposition in January, 2012, indicates the settlement amount at $600,000.00.
(3) The federal court ordered that the settlement proceedings be confidential, and the documents pertaining to settlement did themselves indicate that the settlement would be confidential, but in connection with this document it is noted that testimony at deposition as to amount has been given ... and it is also noted that as a result of the settlement agreement, ... the claims against Liberty Mutual, and against Mr. Larry Pitman, and against Mr. Noel Najera, brought in this state court action were dismissed fully and finally.
(4) [Appellee] states [and [appellant] does challenge]10 that in connection with the settlement it wаs the intention and agreement of the parties to the settlement that any third party claims ... that [appellee] might have were not being settled ...; and, as has been testified to in this case ..., she made the settlement with Liberty Mutual so that she could rebuild her house and accomplish, thereby, the necessary structural repairs to move back into it; but the parties to the settlement agreed and understood
that the settlement did not embrace or contemplate a settlement of any claims not before the federal court save and except for the agreement to release and dismiss with prejudice Liberty Mutual and Mr. Larry Pitman and Mr. Noel Najera from the state court proceedings in this instant case. [Emphasis added.]
While admitting the stipulation, the trial court expressed understanding that its purpose was to determine a settlement credit. The court also stated,
It‘s my further belief, based upon, I think, discussions that we‘ve engaged in informally, that [appellant‘s counsel] does not—although I don‘t know this for certain—but I don‘t think he has a copy of the settlement agreement, because it was a confidential document that existed between [appellee] and Liberty Mutual Insurance Company. So it‘s my belief that [appellant‘s counsel] is just trying to get this evidence before the Court in the best manner that he can.
On appellant‘s request and despite appellee‘s objection, the trial court included a question in the jury charge about whether Liberty Mutual, Pitman, and Najera were responsible for any of the damages that appellee had incurred.11 After listening to the parties’ closing arguments, the jury found that appellant‘s negligence had proximately and solely caused an injury to appellee. A non-unanimous jury awarded appellee $101,000 in damages related to her personal property and $50,000 for mental anguish.
Apрellee filed a motion for judgment on the verdict. Appellant also filed a motion for judgment, contending that appellee had not “recovered in excess of the [settlement] credit.” Appellee objected to the court‘s application of any credit, contending that appellant had not pled for or proved grounds for a credit. Appellee characterized appellant‘s request for a settlement credit as an affirmative defense. Appellant replied by arguing that it was not required to plead for a credit and that it could have asked for a credit for the first time after the jury‘s verdict.
The trial court signed a final judgment in favor of appellee for $163,080 ($151,000 plus $12,080 in prejudgment interest). The court did not award a settlement credit to appellant. Appellant filed a motion for new trial in which it again raised the settlement-credit issue, cited
Appellant‘s Entitlement to a Settlement Credit
In its only issue, appellant contends that it is entitled to the application of a settlement credit under
As we have explained,
A trial court‘s determination of the existence or amount of a settlement credit is reviewed for an abuse of discretion. To determine whether a trial court abused its discretion, we must decide whether the trial court acted without reference to any guiding rules or рrinciples; in other words, we must decide whether the act was arbitrary or unreasonable. An appellate court cannot conclude that a trial court abused its discretion merely because the appellate court would have ruled differently in the same circumstances.
Ramsey v. Spray, No. 02-08-00129-CV, 2009 WL 5064539, at *2 (Tex. App.-Fort Worth Dec. 23, 2009, pet. denied) (mem. op.) (footnotes omitted); see Tex. Capital Sec., Inc. v. Sandefer, 108 S.W.3d 923, 925 (Tex. App.-Texarkana 2003, pet. denied) (“A trial court‘s determination of the existence of, or the amount of, a settlement credit is reviewed for an abuse of discretion.“) (citing Goose Creek Consol. ISD v. Jarrar‘s Plumbing, Inc., 74 S.W.3d 486, 504 (Tex. App.-Texarkana 2002, pets. denied)); see also Columbia N. Hills Hosp. Subsidiary, L.P. v. Alvarez, 382 S.W.3d 619, 623 (Tex. App.-Fort Worth 2012, no pet.) (cautioning that a trial court has no discretion in determining what the law is or in applying the law to facts).
Under
The supreme court has outlined a burden-shifting framework for determining a nonsettling defendant‘s entitlement to a settlement credit under
If the plaintiff does not offer a settlement agreement that allocates damages, the “nonsettling party is entitled to a credit equaling the entire settlement amount.”12 Ellender, 968 S.W.2d at 928; see also RSR Corp. v. Int‘l Ins. Co., 612 F.3d 851, 862 (5th Cir.2010) (stating that under Ellender, when a “settling party fail[s] to allocate its settlement, the nonsettling party [is] entitled to a credit equaling the entire settlement amount“). When the settlement-credit amount exceеds the plaintiff‘s recovery against the nonsettling defendant, the court must enter a take-nothing judgment. See Galle, Inc., 262 S.W.3d at 573; Goose Creek, 74 S.W.3d at 504.
Texas courts have repeatedly applied Ellender‘s burden-shifting framework. In Ramsey, we stated,
A nonsettling defendant has the burden to prove the existence and amount of a settlement credit, and may do so by placing the settlement agreement or some other evidence of the settlement amount in the record. The burden then shifts to the plaintiff to show that all or
a portion of this settlement amount should not be credited. ... [A] nonsettling defendant may only claim a credit based on the damages for which all tortfeasors are jointly liable. However, if settlement monies were also paid on claims for which there is no joint and several liability, it is the plaintiff‘s burden to establish any reduction in a settlement credit by tendering a settlement agreement that allocates the settlement amount between sole and joint liability claims. Otherwise, the nonsettling defendant is entitled to the full credit.
2009 WL 5064539, at *2-3 (footnotes omitted); see also Utts v. Short, 81 S.W.3d 822, 828 (Tex.2002) (“Once the nonsettling defendant demonstrates a right to a settlement credit, the burden shifts to the plaintiff to show that certain amounts should not be credited because of the settlement agreement‘s allocation.“); Crown Life Ins. Co. v. Casteel, 22 S.W.3d 378, 392 (Tex.2000) (op. on reh‘g) (applying Ellender); Valley Grande Manor v. Paredes, No. 13-11-00752-CV, 2013 WL 3517806, at *2 (Tex. App.-Corpus Christi July 11, 2013, pet. denied) (mem. op.) (“Once the defendant demonstrates its right to a settlement credit, the burden shifts to the plaintiff to show that certain amounts should not be credited because of the settlement agreement‘s allocation.“); Cohen v. Arthur Andersen, L.L.P., 106 S.W.3d 304, 310 (Tex. App.-Houston [1st Dist.] 2003, no pet.) (“If the nonsettling party meets [the burden to prove a settlement amount], the burden shifts to the plaintiff to tender a valid settlement agreement allocating the settlement between (1) damages for which the settling and nonsettling defendant are jointly liable, and (2) damages for which only the settling party was liable. If the plaintiff cannot satisfy this burden, then the nonsettling party is entitled to a credit equaling the entire settlement amount.” (citation omitted)); Goose Creek, 74 S.W.3d at 504 (”Ellender provided that although the defendant is only entitled to credit for ... common damages, the dеfendant should not be disadvantaged by being unable to prove such allocation. ... [I]f the plaintiff fails to meet [the burden to show separate damages], the defendant will receive a credit for the entire amount of the settlement ....“).
Applying
Without citing any part of
Ellender, the plaintiff, contended to the Beaumont Court of Appeals that
The supreme court did not disturb or question this holding, but instead analyzed Mobil‘s request for a settlement credit on its merits. Ellender, 968 S.W.2d at 926-29. In doing so, the supreme court held that a defendant “seeking a settlement credit has the burden of proving its right to such a credit,” but the supreme court did not state that the defendant has the burden to plead for a credit in its answer. See id. at 927.
Furthermore, we conclude that relative provisions within
Next, we note
Finally, one purpose underlying
For all of these reasons, we conclude that the trial court‘s duty to apply the “mandatory” settlement credit under
Appellee also contends that appellant should have submitted evidence relating to its request for a settlement credit to the jury and that jury findings on the settlement-credit issue were required. Relying on
Neither
Next, appellee argues that there is “no way to make any argument that anything was settled by and between [appellee] and any other party that would relate to the claims made, and tried, by [appellee] against [appellant], or would relate to the damages awarded by the jury in this case.” Appellee argues that there is no connection between “(1) issues that were tried and found by the jury in the instant case at the state trial court, and (2) the other federal court proceedings which were resolved in a settlement situation that did not have any impact ... upon [appellant] or its liability.” Appellee asserts that the parties’ stipulation “simply shows that in a separate case, pending in a federal ... court, in which [appellant] was not a party, [appellee] made a settlement with an insurance company ... of contractual claims for purposes of obtaining means to repair structural damage to her home ....” Finally, appellee contends that a “defendant seeking credit or offset must prove not only a settlement amount, but that it was in fact the settlement of the very same claim.”
These arguments are precluded by the authority discussed above. Once appellant presented evidence of the amount of appellee‘s settlement that resulted in the dismissal of claims against the original defendants in the trial court, appellee was required to tender the settlement agreement to establish that the settled claims were separate frоm the remaining claims. See Utts, 81 S.W.3d at 828; Ellender, 968 S.W.2d at 927-28; Goose Creek, 74 S.W.3d at 501; see also Galle, Inc., 262 S.W.3d at 573 (“Although it is theoretically possible that some of the damages the Pools sought to recover ... may have been separate ..., it was the Pools’ burden to offer evidence allocating the settlement between actual damages for which only Allstate was liable and those for which Allstate and Galle were jointly liable, in order to limit the credit to the former.” (emphasis added)). Although appellee refers us to evidence presented at trial in an effort to show that the settled and tried claims were separate, we cannot consider the evidence because it is extrinsic to the settlement agreement. See Ellender, 968 S.W.2d at 929 (limiting plaintiffs’ ability to prove allocation to that which is “expressly stated in a valid settlement agreement“); Goose Creek, 74 S.W.3d at 503. Moreover, contrary to appellee‘s arguments, as explained in our recitation of the facts above, the record confirms that some of the settled and tried claims, as pled, overlapped to the extent that the claims commonly sought damages related to appellee‘s personal possessions.
Appellee also contends that appellant “should not be permitted to proceed at all” in this appeal because it “failed to bring forth a complete record” and thus violated
In September 2012, appellant‘s counsel sent a letter to the court reporter, asking for a record of the trial that occurred from April 16 to 20, 2012 and the motion for new trial hearing that occurred on August 17, 2012. Appellee contends that this record, comprising nine volumes filed in this court, is “partial” because it does not include “most of the pre-trial hearings.” But to support this contention, appellee refers us only to the trial court‘s docket sheet.18
For two reasons, we cannot conclude that the docket sheet creates a presumption that omitted portions of the reporter‘s record support the trial court‘s judgment. First, we have explained that docket sheets are inherently unreliable and that we will not examine them on appeal for reasons unrelated to clarifying clerical errors. Guyot v. Guyot, 3 S.W.3d 243, 247 n. 2 (Tex. App.-Fort Worth 1999, no pet.); see also In re Bill Heard Chevrolet, Ltd., 209 S.W.3d 311, 315 (Tex. App.-Houston [1st Dist.] 2006, orig. proceeding) (“A docket-sheet entry ordinarily forms no part of the record that may be considered; rather, it is a memorandum made for the trial court and clerk‘s convenience.“).
Second, even if we were to consider the docket sheet for substantive purposes, it does not establish that any recorded pretrial hearing that has not been made a part of our record was evidentiary in nature or in any way concerned the narrow issue of whether appellant is entitled to a settlement credit.19 We decline to apply the presumption under such circumstances. See
Next, appellee contends that appellant “invited error” by asking for the original defendants to be included in the jury charge and that the jury‘s finding that appellant was completely responsible for the harm to appellee precludes the application of a settlement credit. The invited error doctrine prevents a party from asking for relief from the trial court and later complaining on appeal that the trial сourt gave it. Yaquinto v. Britt, 188 S.W.3d 819, 829 (Tex. App.-Fort Worth 2006, pet. denied). But appellant does not complain about the language in the jury charge or the jury‘s finding that it was completely liable for the harm caused to appellee. Thus, the cases cited by appellee relating to invited error are inapposite. See, e.g., Mora v. Chacon, No. 13-05-00182-CV, 2005 WL 2562616, at *7 (Tex. App.-Corpus Christi Oct. 13, 2005, pet. denied) (mem. op.) (applying the doctrine of invited error when appellants asked a trial court to disregard a jury‘s answer and later complained about the court‘s doing so).
More importantly, the jury‘s finding under
Appellee also argues that the statement of facts in appellant‘s brief violates
Finally, appellee argues that the рarties’ stipulation—the trial court‘s exhibit 2—was improperly admitted over her objections. “A trial court‘s rulings in admitting or excluding evidence are reviewable under an abuse of discretion standard. An appellate court must uphold the trial court‘s evidentiary ruling if there is any legitimate basis in the record for the ruling.” Farlow v. Harris Methodist Fort Worth Hosp., 284 S.W.3d 903, 927 (Tex. App.-Fort Worth 2009, pet. denied) (citation omitted).
On appeal, appellee contends that the trial court should not have admitted the exhibit because appellant had not pled for
We have already addressed and rejected appellee‘s arguments regarding pleading of the settlement credit and proof of the settlement agreement to the jury. Appellee‘s argument concerning relevance appears to be connected with her argument concerning pleading. She contends, “[T]here was an objection on the ground of relevance because the proposed ‘evidence’ was not properly relevant to any issue properly pleaded, or for which there was a proper pleading predicate in the case.” To the extent that appellee argues that the stipulation was not relevant simply because appellant did not plead for a settlement credit, we overrule the argument for the reasons explained above. Finally, if appellee‘s argument can be broadly construed to challenge the exhibit‘s relevanсe generally, we conclude that the trial court did not abuse its discretion by admitting the exhibit because the existence and amount of appellee‘s settlement with the original defendants was a fact “of consequence” in this case. See
Conclusion
For all of these reasons, we hold and conclude that under the circumstances presented here, the trial court abused its discretion by not applying a $600,000 settlement credit under
Notes
[W]ouldn‘t it be nice to have the settlement agreement out there, so it would be clear and we could all know exactly what it is? ... I think that the Court was at a very unfair [dis]advantage, because the settlement agreement was never placed before it.
... I believe the answer [to the settlement-credit issue] is contained within that settlement agreement that nobody wants me to see. [Emphasis added.]
