OPINION
This is an appeal from the trial court’s order dismissing with prejudice claims by JJW Development, L.L.C. and John J. Wingfield, Jr. against Strand Systems Engineering, Inc. In two issues, JJW and Wingfield argue that the trial court erred because it interpreted former section 150.002 of the civil practice and remedies code to mean that they had to file a certificate of merit for their breach of contract claim and by dismissing their breach of contract claim on the pleadings.
BACKGROUND
Homeowner Wingfield and builder JJW sued foundation contractor Ramer Concrete, Inc. for negligence, breach of contract, and violations of the Texas Deceptive Trade Practices Act arising from a cracked foundation built by Ramer for
Strand filed a motion to dismiss with prejudice, contending that “[t]he claims against Strand are based upon alleged negligence in the practice of engineering by Strand” and that JJW and Wingfield did not file a certificate of merit with then-second amended petition as required by chapter 150 of the civil practice and remedies code. See id. § 150.002. Strand argued that, under section 150.002(d), “all of Plaintiffs’ claims against Strand should be dismissed with prejudice, as Plaintiff[s] failed to file a Certificate of Merit with their initial pleading against Strand.” See id. § 150.002(d).
JJW and Wingfield filed their third amended petition, alleging only the following breach of contract claim against Strand:
Breach of Contract — SSE
SSE undertook the contractual obligation to conduct a pre-pour inspection of the pad. One required element of the pre-pour inspection is to measure the depth of slab to ensure that when the concrete is placed that the slab will be of the proper thickness as set forth in the applicable plans and specifications. The plans and specifications prepared by SSE required a 4" thick slab. As part of its pre-pour inspection obligations, SSE owed a contractual duty to the Plaintiffs to measure the depth of the slab. This duty arises out of the SSE pre-pour inspection contract (express or implied). SSE did not measure the depth of the slab.
SSE breached the contract by failing to measure the depth of the slab. SSE’s breach caused the Plaintiffs to suffer damages, including cracking to the interior and exterior floors and walls and damage to the plumbing system. Plaintiff [sic] has suffered diminution in value of the residence because of the need for repairs. Plaintiff [sic] will suffer loss of use and other damages due [to] the necessary repairs. The losses and damages sustained by Plaintiffs as a result of SSE’s breach of contract are to the subject matter of the contract, i.e. the foundation and elements related to the foundation.
They alleged that “[i]t [wa]s factually impossible for [Strand] to have actually measured the depth of the slab given the as-built thickness of the concrete.”
In response to Strand’s motion to dismiss, JJW and Wingfield argued that, because they amended their petition and dismissed their negligence claim, Strand’s motion to dismiss was moot. They also contended that the court should deny Strand’s motion to dismiss because chapter 150 applies only to negligence claims, not to claims for breach of contract, so the requirement for a certificate of merit does not apply to JJW and Wingfield’s breach of contract claim against Strand.
Standard of Review
We review an order granting a chapter 150 motion to dismiss under an abuse of discretion standard. Belvedere Condos, at State Thomas, Inc. v. Meeks Design Grp., Inc.,
We review the trial court’s construction and application of a statute de novo. Id.; DLB Architects, P.C. v. Weaver,
Analysis
The parties agree that the following language from the 2005 version of section 150.002 applies:
§ 150.002 Certificate of Merit.
(a) In any action or arbitration proceeding for damages arising out of the provision of professional services by a licensed or registered professional, the plaintiff shall be required to file -with the complaint an affidavit of a third-party licensed architect, registered professional land surveyor, or licensed professional engineer competent to testify, holding the same professional license as, and practicing in the same area of practice as the defendant, which affidavit shall set forth specifically at least one negligent act, error, or omission claimed to exist and the factual basis for each such claim. The third-party professional engineer, registered professional land surveyor, or licensed architect shall be licensed in this state and actively engaged in the practice of architecture, surveying, or engineering.
[[Image here]]
(d) The plaintiffs failure to file the affidavit in accordance with Subsection (a) or (b) shall result in dismissal of the complaint against the defendant. This dismissal may be with prejudice.3
Strand argues that the trial court correctly dismissed the case because former section 150.002(a) requires a certifí-cate of merit to accompany the first-filed complaint against a professional asserting claims for damages arising out of the provision of professional services, which in this case was the second amended petition. Strand also contends that JJW and Wing-field’s breach of contract claim, which was in the second amended petition, was a recast negligence claim, so that a certificate of merit was required for both the negligence and breach of contract claims. Strand argues that, because JJW and Wingfield did not file a certificate of merit to support these claims when they filed the second amended petition, the trial court correctly dismissed the claims alleged against Strand in the second amended petition.
In response, JJW and Wingfield argue that “the statute’s plain language is grounded by courts’ construction of ‘complaint’ to mean the live pleadings at the time of the trial court’s ruling/dismissal order.” They argue that the court should look at the third amended petition to determine whether the case must be dismissed under section 150.002. They contend that they are entitled to freely amend their pleadings and that, if the court adopts Strand’s argument, they would not be able to amend their pleadings to add claims they discover after they file the original complaint. They argue that any rule that forces them to allege all possible claims in the original pleading promotes frivolous pleading. They also contend that applying the statute to a previous pleading conflicts with the rule of civil procedure that an amended pleading supersedes a previous version and case law holding that causes of action not in an amended pleading are effectively dismissed. See Tex.R. Civ. P. 65; FKM P’ship, Ltd. v. Bd. of Regents of Univ. of Houston Sys.,
Section 150.002 requires a party to file a certificate of merit when it files a complaint that asserts a claim for damages arising out of the provision of professional services by a licensed or registered professional. Tex. Civ. Pra.c. & Rem.Code Ann. § 150.002(a), (b); see Pakal Enters., Inc. v. Lesak Enters., L.L.C.,
The second amended petition, however, was superseded by the third amended petition and the third amended petition was the live pleading when the court ruled on the motion to dismiss. We consider the live pleadings at the time of the trial court’s ruling on the motion to dismiss to determine whether and how section 150.002 applies. See TDIndustries, Inc. v. Rivera,
What Claims Require a Certificate of Merit under Former Section 150.002?
JJW and Wingfield argue that the trial court misconstrued section 150.002 to require a certificate of merit for the breach of contract claim they alleged against Strand in their third amended petition. They argue that the plain language of the former statute requiring that a certificate of merit recite “at least one negligent act, error, or omission claimed to exist and the factual basis for each such claim” means that the requirement for a certificate of merit applies only to negligence claims, and to require a certificate of merit for non-negligence claims would render that statutory requirement meaningless. They contend that a “straightforward reading of that requirement leads to the conclusion that the adjective ‘negligent’ modifies the three nouns ‘act,’ ‘error,’ and ‘omission’ that are connected by the conjunction ‘or.’ ” JJW and Wingfield argue that the trial court apparently misconstrued the statute to (1) reflect legislative intent to “boot the case early” if it does not fit the requirements of the statute; (2) require proof of a written contract to support their breach of contract claim; and (3) authorize the trial court to disregard their breach of contract claim and determine that it is a recast professional negligence claim. They contend that the plain language of section 150.002 does not reflect legislative intent to support any of these three statutory constructions. They argue that if the court construed the statute based on any of these constructions, the court wrongly dismissed their claim against Strand.
Strand argues that JJW and Wingfield’s allegations in their third amended petition triggered a requirement for a certificate of merit because the breach of contract claim in the third amended petition “arose out of Strand’s provision of professional services and implicated Strand’s exercise of professional judgment in connection with the pre-pour inspection.” Strand contends that, because there is no written contract, “the engineer’s obligations as to a pre-pour inspection are governed by industry standards.” Strand argues, and at the hearing on the motion to dismiss, Strand argued and the judge indicated, that because the contract was not a written contract but was an alleged express oral or implied contract, JJW and Wingfield would have to present expert testimony to establish what contract terms were common in the industry so that the court could determine what the terms were here and whether the claim had merit.
The trial court order does not indicate the basis on which the court granted Strand’s motion to dismiss. Although the parties present various suppositions as to how the court may have construed or misconstrued section 150.002, we focus on the narrower question of whether the breach of contract claim in the third amended petition is a claim requiring a certificate of merit under the statute. See TDIndustries,
We follow the majority of Texas courts of appeals and conclude that, because the 2005 version of the statute requires a certificate of merit to “set forth specifically at least one negligent act, error, or omission[,]” that version of section 150.002 requires a certificate for negligence claims, and not for non-negligence claims. See Sanders v. Wood,
Although the Austin Court of Appeals previously concluded — like other Texas courts of appeals — that section 150.002 applied only to negligence claims, that court recently reversed its position to hold that the statute requires a certificate of merit for negligence and non-negligence claims. S & P Consulting,
The Austin court concluded that decisions by other courts of appeals limiting the certificate of merit requirement to negligence cases were incorrect, and overruled its previous holding in Consolidated Reinforcement, L.P. v. Carothers Executive Homes, Ltd.,
We agree with the Texarkana Court of Appeals in its conclusion that the reasons stated by the Austin court for its decision are not persuasive. Sanders,
Is This a Negligence or Breach of Contract Claim?
Because we conclude that section 150.002 applies to negligence claims and not to claims for breach of contract, we must determine whether JJW and Wing-field’s claim is based on Strand’s alleged negligence or on Strand’s alleged contractual obligations to JJW and Wingfield. See Sanders,
The parties agree that there was no written contract. A claim for breach of contract that does not require a certificate of merit may be founded on an oral agreement. See id. at 260-61. We are not bound by the label used by JJW and Wingfield in their pleading, but look to their pleading to determine if the claim is a negligence claim. See Ustanik v. Nortex Found. Designs, Inc.,
To determine whether the allegation is a contract or a negligence claim, we must consider (1) the source of the duty owed and (2) the nature of the remedy sought. Formosa Plastics Corp. USA v. Presidio Eng’rs & Contractors, Inc.,
Was the Claimed Duty Imposed by Law or by Contract?
In their third amended petition, JJW and Wingfield alleged that Strand had a “contractual obligation to conduct a pre-pour inspection of the pad” and alleged that Strand “owed a contractual duty to the Plaintiffs to measure the depth of the slab” — a “duty [that] arises out of the [Strand] pre-pour inspection contract (express or implied).” They further alleged that Strand “did not measure the depth of the slab” and that Strand “breached the contract by failing to measure the depth of the slab.”
Their allegation was not that Strand performed the inspection improperly; they alleged that Strand did not perform its claimed contractual obligation at all. As the'Fort Worth Court of'Appeals stated:
Appellee agreed to perform professional services for Appellants, and by so doing, Appellee took on the duty to exercise the degree of care, skill, and competence that reasonably competent architects would exercise under similar circumstances. The breach of that duty would give rise to a tort action. But Appellee also made promises to perform specific acts in the contract. If Appellee breached a specific provision of the contract, that breach would also give rise to a breach of contract action. Appellants pursued a contract action, as was their right. Because Appellants brought a breach of contract action, and because section 150.002 only applies to negligence actions, we hold that Appellants were not required to file a certificate of merit in this case.
Parker Cnty.,2009 WL 3938051 , at *5 (footnotes omitted). See Sanders,348 S.W.3d at 260 (although there was no written contract, pleadings alleging that plans by engineer made project economically unfeasible and were unusable “appear to be of a contractual nature” where there were no allegations that “the plans were prepared negligently or without due care” and engineer “performed the job based solely on the agreement of the parties”); see also Ustanik,320 S.W.3d at 417 (finding breach of contract claim constituted professional negligence claim when claim based on designing inadequate foundation plans and failing to properly perform a pre-pour inspection); Ashkar,2010 WL 376076 , at *8-10 (concluding breach of contract claim founded in negligence when based on failure to adequately engineer, design, test and oversee construction, and involved quality of the professional services). We conclude that JJW and Wingfield’s claim “is for the breach of a duty arising out of a contract either express or implied.” See Formosa,960 S.W.2d at 45 (quoting Int’l Printing Pressmen,198 S.W.2d at 735 ).
We also disagree with Strand’s argument that, because the contract was not a written contract, it was necessary to have a certificate of merit in this case to determine what Strand’s obligations and failures were under industry standards. JJW and Wingfield did not allege that Strand did not conduct an inspection according to industry standards; they alleged that there was an agreement for Strand to perform the inspection, and Strand did not do so. See Parker Cnty.,2009 WL 3938051 , at *6 (concluding a certificate of merit from an architect was not necessary to determine whether a party “failed to adequately perform under [a] contract”). What Remedy Do They Seek?
Next we determine if the nature of the remedy sought is economic loss to the
Strand contends that these alleged damages, including physical damage, diminution in value, and loss of use, are all tort damages and that JJW and Wingfield “did not allege any economic loss to any alleged contract itself.” JJW and Wingfield argue in reply that their “requested relief, e.g. repair costs, diminution in value, are ‘benefit of the bargain’ and ‘economic loss’ damages that indicate a breach of contract claim.” We agree with JJW and Wing-field. The alleged damages are claimed consequences of the alleged failure of Strand to perform a pre-pour inspection. See Sanders,
Because both the source of the duty owed and the nature of the remedy requested are based in contract, we conclude that no certificate of merit was required for JJW and Wingfield’s breach of contract claim in the third amended petition and the trial court erred in dismissing JJW and Wingfield’s claim against Strand.
Because of our disposition of JJW and Wingfield’s first issue, we do not reach their second issue. See Tex.R.App. P. 47.1.
Conclusion
We reverse the trial court’s order and remand for further proceedings consistent with this opinion.
Notes
. The 2005 version of section 150.002 applies here. Act of June 2, 2003, 78th Leg., R.S., ch. 204, § 20.01, 2003 Tex. Gen. Laws 847, 896-97, amended by Act of May 12, 2005, 79th Leg., R.S., ch. 189, § 2, 2005 Tex. Gen. Laws 348, 348 (effective May 27, 2005), and Act of May 18, 2005, 79th Leg., R.S., ch. 208, § 2, 2005 Tex. Gen. Laws 369, 369-70 (effective September 1, 2005). In 2009, the legislature again amended section 150.002. Act of May 29, 2009, 81st Leg., R.S., ch. 789, §§ 2-4, 2009 Tex. Gen. Laws 1991, 1991-92 (effective September 1, 2009). But, because this case was filed prior to the effective date of the 2009 amendments, those amendments do not apply. All references in this opinion to section 150.002 are to the 2005 version of the statute.
. JJW and Wingfield do not argue on appeal that section 150.002(b) applies.
. Act of June 2, 2003, 78th Leg., R.S., ch. 204, § 20.01, 2003 Tex. Gen. Laws 847, 896-97, amended by Act of May 12, 2005, 79th Leg., R.S., ch. 189, § 2, 2005 Tex. Gen. Laws 348, 348 (effective May 27, 2005), and Act of May 18, 2005, 79th Leg., R.S., ch. 208, § 2, 2005 Tex. Gen. Laws 369, 369-70 (effective September 1, 2005) (amended 2009).
. Strand also argues that, because JJW and Wingfield later provided the trial court with the pre-pour inspection report that Strand prepared, their introduction of the report shows that the "real issue" is not whether Strand performed the inspection or not, but whether it conducted the pre-pour inspection adequately. JJW and Wingfield discussed this report in and attached the report to their motion for reconsideration, and also stated in
