MELDEN & HUNT, INC., Petitioner, v. EAST RIO HONDO WATER SUPPLY CORPORATION, Respondent
No. 16-0078
Supreme Court of Texas.
June 9, 2017
MELDEN & HUNT, INC., Petitioner, v. EAST RIO HONDO WATER SUPPLY CORPORATION, Respondent
No. 16-0078
Supreme Court of Texas.
Argued March 22, 2017
OPINION DELIVERED: June 9, 2017
Brian J. Hansen, Richard W. Fryer, Fryer & Hansen, PLLC, McAllen, Roman Dino Esparza, Esparza & Garza LLP, Brownsville, for Respondent.
Justice Devine delivered the opinion of the Court.
Chapter 150 of the Civil Practice and Remedies Code generally requires that a sworn “certificate of merit” accompany a plaintiff‘s “complaint” in a case that “aris[es] out of the provision of professional services by a licensed or registered professional” named in the statute. See
In this interlocutory appeal, the defendant, an engineering firm to which the statute applies, contends that the trial court erred in not dismissing the plaintiff‘s complaint because the certificate of merit‘s author was unqualified and his affidavit‘s content inadequate. The court of appeals disagreed and affirmed the trial court‘s order denying the defendant‘s motion. 511 S.W.3d 743, 745, 750 (Tex. App.—Corpus Christi-Edinburg 2015). Because we agree that the trial court did not abuse its discretion in determining the certificate of merit sufficient for the plaintiff‘s case to proceed, we affirm as well.
I
East Rio Hondo Water Supply Corp., a member-owned, non-profit, water-supply corporation, contracted with Melden & Hunt, Inc., to provide engineering-design and project-supervision services for a new water-treatment plant in San Benito, Texas. After the project‘s substantial completion, East Rio complained about the water‘s quality, eventually attributing the water-quality issues to the plant‘s design and construction. East Rio subsequently sued the project‘s engineers (hereafter referred to as “Melden“) and others involved with the construction, asserting claims for breach of contract, breach of express and implied warranties, negligence, and negligent misrepresentation.
To comply with the certificate-of-merit statute, East Rio filed the affidavit of Dan Leyendecker, P.E., with its original petition in the case. Leyendecker holds a bachelor of science degree in civil engineering from Texas A&M University, is a registered professional engineer in Texas and eight other states, is the president and principal of LNV Engineering, and claims twenty-three years’ experience in “master planning, detailed design and construction management.” He further swears he has experience designing and analyzing water-treatment plants like East Rio‘s and is familiar with the standard of care an engineer of ordinary knowledge and skill should employ when designing such a project.
Melden objected to Leyendecker‘s affidavit, complaining that the affidavit did not comply with the statute‘s requirements and that Leyendecker did not meet the statute‘s qualifications. After the court of appeals affirmed the trial court‘s order rejecting these same complaints, 511 S.W.3d at 745, Melden filed its petition for review, complaining again about Leyendecker‘s qualifications and the affidavit‘s failure to provide the factual basis required by the statute. Similar challenges are a recurring theme under chapter 150, so we granted Melden‘s petition for review to consider these issues.1
II
Chapter 150 applies to “any action or arbitration proceeding for damages arising out of the provision of professional services” by architects, engineers, land sur-
In this case, the defendant design professional is an engineering firm. The certificate of merit therefore must come from a competent and qualified third-party engineer who can attest to the factual basis of the plaintiff‘s underlying complaint.
First, Melden observes that Leyendecker never states he is actively engaged in engineering and argues that neither Leyendecker‘s position as president and principal of an engineering firm nor his statements about past engineering experience demonstrate Leyendecker‘s active engagement. Next, Melden contends that Leyendecker‘s averments of many years of experience “in master planning, detailed design and construction management” and of “education and experience in the design and analysis of water treatment plants, including clarifiers, pumps, filters, piping, controls, and chemical feed systems” are conclusory and thus no evidence that Leyendecker is “knowledgeable” in its practice area. Finally, Melden submits that Leyendecker‘s opinions should be judged like any other expert witness for competency and admissibility because the statutory requirements here mirror those in our rules of evidence. Compare
Our courts of appeals have generally rejected the notion that chapter 150 imposes the same level of scrutiny as that imposed on the admissibility of expert-opinion testimony for summary-judgment or trial purposes. See, e.g., Benchmark Eng‘g Corp. v. Sam Houston Race Park, 316 S.W.3d 41, 47 (Tex. App.—Houston [14th Dist.] 2010, pet. granted, judgm‘t vacated w.r.m.) (contrasting statutory requirements for certificates of merit with standards governing admissibility of trial and summary-judgment evidence); see also Gaertner v. Langhoff, 509 S.W.3d 392, 398 (Tex. App.—Houston [1st Dist.] 2014, no pet.) (holding that the statute‘s focus is on providing the trial court a basis to judge the lawsuit‘s potential rather than on the potential admissibility of expert testimony); Hardy v. Matter, 350 S.W.3d 329, 333 (Tex. App.—San Antonio 2011, pet. dism‘d) (noting that the statute requires only that the affiant hold the specified qualifications and is silent on how and when the expert‘s qualifications must be established). The Third Court of Appeals has interpreted the statute similarly:
What chapter 150 requires, with respect to subject-area expertise, is that the affiant “is knowledgeable in the area of practice of the defendant.”
TEX. CIV. (emphasis added). Chapter 150 does not require that an affiant establish his or her knowledge through testimony that would be competent or admissible as evidence, or even that the affiant explicitly establish or address such knowledge within the face of the certificate—indeed, it imposes no particular requirements or limitations as to how the trial court ascertains whether the affiant possesses the requisite knowledge.PRAC. & REM. CODE ANN. § 150.002(a)
M-E Eng‘rs, Inc. v. City of Temple, 365 S.W.3d 497, 503 (Tex. App.—Austin 2012, pet. denied).
The trial court, of course, cannot merely assume the existence of such knowledge. Thus, we recently held an architect unqualified to provide a certificate because nothing in the record indicated he was knowledgeable in the defendant‘s area of practice. Levinson Alcoser, 513 S.W.3d at 494. The plaintiff argued such knowledge could reasonably be inferred from other statutory qualifications, such as the architect‘s active engagement in the practice under a state-issued license.
The court of appeals concluded that Leyendecker‘s averments about his education and experience “including the ‘design and analysis of water treatment plants, including clarifiers, pumps, filters, piping, controls, and chemical fees systems‘” were “factual statements” supporting the conclusion that Leyendecker was “knowledgeable in Melden‘s area of practice and competent to testify.” 511 S.W.3d at 747. We agree. Other courts have held similar factual statements sufficient.2 The court of appeals also concluded that Leyendecker‘s affidavit included information indicative of an active engineering practice and that the trial court therefore did not abuse its discretion in determining Leyendecker qualified.
III
The statute does not expressly require that the expert‘s qualifications ap-
Melden argues the factual-basis requirement obligated Leyendecker to provide factual support for the elements of each theory or cause of action pled by the plaintiff. Melden contends that, in this respect, the certificate of merit is similar to the preliminary expert report required for health care liability claims under the Medical Liability Act, chapter 74 of the Civil Practice and Remedies Code. See
East Rio responds that the Court has not used chapter 74 as a substantive guide when interpreting chapter 150. Chapter 74 is not relevant, East Rio submits, because the meaning of section 150.002(b)‘s unambiguous text is at issue here rather than an ambiguous term or analogous procedural question as in previous cases.4 East Rio
Chapter 150 describes the certificate of merit as an affidavit from a similarly licensed, third-party expert who is directed to provide a factual basis for the lawsuit. The statute provides, in relevant part, that the expert‘s affidavit
set forth specifically for each theory of recovery for which damages are sought, the negligence, if any, or other action, error, or omission of the licensed or registered professional in providing the professional service, including any error or omission in providing advice, judgment, opinion, or a similar professional skill claimed to exist and the factual basis for each such claim.
The issue is one of statutory construction, a legal question we review de novo. State v. Shumake, 199 S.W.3d 279, 284 (Tex. 2006). When statutory text is clear, we do not resort to rules of construction or extrinsic aids to construe the text because the truest measure of what the Legislature intended is what it enacted. Sullivan v. Abraham, 488 S.W.3d 294, 299 (Tex. 2016). And we endeavor to read statutes contextually to give effect to every word, clause, and sentence. In re Office of Attorney Gen., 422 S.W.3d 623, 629 (Tex. 2013). We also typically give statutory terms their ordinary or common meaning unless context or a supplied definition indicates that a different meaning was intended. Greene v. Farmers Ins. Exch., 446 S.W.3d 761, 765 (Tex. 2014).
Because “factual basis” has no special, technical, or acquired meaning and is not otherwise defined in the certificate-of-merit statute, we interpret the term according to its ordinary meaning.
The certificate-of-merit statute has been amended three times since its enactment in 2003, twice in 2005 and again in 2009.
In 2005, the statute was amended to add registered professional land surveyors to the list of covered design professionals and ostensibly broadened to apply to “any action or arbitration proceeding for damages arising out of the provision of professional services by a design professional” named in the statute. See Act of May 27, 2005, 79th Leg., R.S., ch. 208, § 2, 2005 Tex. Gen. Laws 369, 370; see also Act of May 12, 2005, 79th Leg., R.S., ch. 189, § 2, 2005 Tex. Gen. Laws 348, 348. The statute, however, continued to provide that the affidavit was to “set forth specifically at least one negligent act, error, or omission claimed to exist and the factual basis for each such claim.”
In 2009, the statute was amended and clarified to provide additional detail. See S&P Consulting Eng‘rs, 334 S.W.3d at 395 (discussing changes). As relevant here, the amendment moved the part of the statute pertaining to the certificate of merit‘s content to its own subsection and ceased to tie the certificate to “at least one negligent act, error, or omission” as reflected below:
The affidavit shall set forth specifically for each theory of recovery for which damages are sought, the negligence, if any, or other action, error, or omission of the licensed or registered professional in providing the professional service, “including any error or omission in providing advice, judgment, opinion, or a similar professional skill [] claimed to exist and the factual basis for each such claim.”
Act of May 29, 2009, 81st Leg., R.S., ch. 789, § 2, 2009 Tex. Gen. Laws 1991, 1992 (codified as
Melden, however, interprets the 2009 amendments to have broader implications. Rather than simply clarifying the statute‘s application to any action arising out of the provision of professional services, regardless of the legal theory, Melden interprets the new language—for each theory of recovery for which damages are sought—as expanding the factual-basis requirement to include the various elements of each underlying theory alleged by the plaintiff. We, however, do not interpret the 2009 amendment as enlarging the factual-basis
After considering a similar dispute involving the 2009 amendment, the Third Court of Appeals reached the same conclusion.
Read as a whole, section 150.002, subsection (b), reveals a core focus on ascertaining and verifying the existence of errors or omissions in the professional services provided by a “licensed or registered professional.” In particular, the Legislature has required that the certificate of merit “set forth specifically ... the negligence, if any, or other action, error, or omission of the licensed or registered professional in providing the professional service.”
TEX. CIV. PRAC. & REM. CODE ANN. § 150.002(b) (emphases added). And this statement of the defendant‘s acts or omissions “in providing the professional service” must “includ[e] any error or omission in providing advice, judgment, opinion, or a similar professional skill claimed to exist and the factual basis for each such claim.”Id. § 150.002(b) (emphases added). While appellants ascribe broader implications to the concluding phrase “factual basis for each such claim,” in context “each such claim” plainly refers to the immediately preceding “any error or omission in providing advice, judgment, opinion or a similar professional skill claimed to exist” (emphases added), which is simply the information that a certificate must provide regarding errors or omissions in the professional services at issue. Seeid. This core focus on errors and omissions in professional services is not altered by the first portion of subsection (b), which requires a certificate to provide these facts “for each theory of recovery for which damages are sought.” See
id. The effect of this phrase, which was amended to its current form in 2009, is to emphasize that the certificate must identify and verify the existence of any professional errors or omissions that are elements or operative facts under any legal theory on which the plaintiff intends to rely to recover damages. It thus served to eliminate any continuing debate or uncertainty as to whether prior versions of the certificate-of-merit requirement were triggered by damage claims predicated on professional errors or omissions that were couched in theories other than negligence.
Id. at 505-06 (emphasis in original).
Although the certificate-of-merit statute has evolved and in some respects expanded since its enactment in 2003, the factual-basis requirement‘s core purpose has not changed.5 Before the 2009 amendment,
We accordingly reject Melden‘s interpretation of the statute, which would require the expert‘s affidavit to address the elements of the plaintiff‘s various theories or causes of action. The statute instead obligates the plaintiff to get an affidavit from a third-party expert attesting to the defendant‘s professional errors or omissions and their factual basis.6 The trial court then determines whether the expert‘s affidavit sufficiently demonstrates that the plaintiff‘s complaint is not frivolous. See CTL/Thompson, 390 S.W.3d at 301 (noting that statute provides for dismissal as a sanction “to deter meritless claims and bring them quickly to an end“).
In this case, Leyendecker swore to “23 years experience in master planning, detailed design and construction management.” More specifically, he averred to his “education and experience in the design and analysis of water treatment plants, including clarifiers, pumps, filters, piping, controls, and chemical feed systems.” He further stated that he was familiar with the standard of care an “engineer of ordinary knowledge and skill should employ in the design of water treatment plants” such as the one at issue in the litigation. After noting his review of available documents, including the engineering plans, construction documents, and equipment specifications of the plant, and his on-site inspections and tests, he concluded that Melden failed to use ordinary care in the performance of its professional duties relating to the plant‘s design and filtration system. Leyendecker then identified Melden‘s negligence and other errors to include (1) the failure “to provide and design a water treatment plant without cross connections,” (2) the failure “to select and design a properly functioning solids contact clarifier,” (3) the failure “to design a filtration system that can be properly backwashed and safely brought into operation without dangerous turbidity spikes,” (4) the failure “to provide adequate assistance and support,” and (5) the failure “to design a proper air filter scour system.”
Leyendecker explained each of these “failures” in greater detail. For example, he explained that cross connections can lead to inadvertent contamination of treated water, posing health risks and related regulatory issues, and that Melden‘s plant design improperly incorporated multiple cross connections. Leyendecker also explained that the plant‘s filtration system was designed to “operate in a regulatory non-compliant manner“:
Melden & Hunt and Booe7 designed the Filter-to-Waste piping, associated valves and control scheme to operate in a regulatory non-compliant manner. When the Filter-to-Waste process is engaged, it creates a hydraulic shock in the filter bank, distorting the filter media, and creating dangerous turbidity spikes in already filtered and treated water. Further, the air filter scour system fails to perform as intended. The whole point of the Filter-to-Waste process is to ease the transition between the filter back-wash cycle and the water treatment process. The Plant is not operating in this manner and this is due to Melden & Hunt‘s and Booe‘s negligent design of the Filter-to-Waste process, including the associated piping, valves, and controls.
The court of appeals connected Leyendecker‘s claims of professional errors or omissions to each of East Rio‘s pled theories. 511 S.W.3d at 749-50.
Melden contends, however, that Leyendecker‘s affidavit ultimately fails to provide an appropriate factual basis because it equivocates in the end, “reserv[ing] the right to modify my opinions if additional information is made available or if additional inspection opportunities reveal additional information.” East Rio responds that this closing statement is included merely to confirm the sources Leyendecker consulted in forming his opinions. In this respect, Leyendecker states that he reviewed the engineering plans and construction documents prepared by Melden, together with the equipment cutsheets, specifications, operations and maintenance manuals. Leyendecker also mentions that he and his staff inspected the Plant, conducted tests, and interviewed East Rio staff.
Rather than equivocation, we view Leyendecker‘s reservation merely as recognition of the preliminary nature of the certificate of merit, which, as the court of appeals observed, must be “filed early in the litigation, before discovery and before other dispositive motions may be available.” 511 S.W.3d at 749 (quoting Couchman, 471 S.W.3d at 26) (internal quotations omitted). Chapter 150 requires only that a similarly licensed professional, knowledgeable of the defendant‘s area of practice, provide a sworn written statement certifying that the defendant‘s professional actions or omissions were negligent or otherwise erroneous and the factual basis for such claims. See Dunham Eng‘g, 404 S.W.3d at 795 (noting that “at the certificate-of-merit stage, before discovery and before other dispositive motions are available, the plaintiff is not required to fully marshal his evidence“) (internal quotations omitted); CBM Eng‘rs, 403 S.W.3d at 346 (noting that statute does not require a plaintiff to marshal his evidence or provide the full range of information that the defendant is entitled to obtain through formal discovery); M-E Eng‘rs, 365 S.W.3d at 504 (noting that statute “reflects a legislative goal of requiring merely that plaintiffs make a threshold showing that their claims have merit“).
* * * * *
The court of appeals held that the trial court did not abuse its discretion by denying Melden‘s motion to dismiss based on the certificate of merit‘s sufficiency. We agree that no abuse of discretion has been
JOHN P. DEVINE
JUSTICE
