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Nobility Homes of Texas, Inc. v. Shivers
539 S.W.2d 190
Tex. App.
1976
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*1 come to the conclusion the future —we Courts of Appeals Civil and is not $500,000 is a reasonable sum and do that reviewable by Supreme Court. Beau point mont, it to be excessive. That not find Ry. S. L. & W. Co. Schmidt, 580, error is overruled. 899, Tex. (1934); S.W.2d Ochoa Co., Winerich Motor Sales 542, Tex. of er remaining points Defendants’ S.W.2d See also my complain presiding judge ror that concurring opinion in Gladden, Collins v. assigning this case a abused his discretion (Tex.Civ.App . —Beau local rules special setting in violation of the mont e.). writ ref’d n. r. County. the District Courts of Harris complaint is also made that it was error Consequently, it would be an exercise in preferential setting not to strike futility cause; to file a dissent in and, grant motions for continuance. defendants’ an articulation of the reasons prompting such dissent would nothing lend ju- us shows counsel for The record before risprudence Thus, of this state. while I do preferential set- plaintiff filed a motion for file a dissent to the affirmation of the April asking ting on 10th judgment, neither do I concur in the affir- 23, 1975. motion setting for June Such mation of the monetary award in this cause. 14, 1975, No April granted. was heard Although I have participated in disposi- hearing. made at that Then record was cause, tion of this myself dissociate 14, 1975, May counsel for defendant Cez- the result reached the majority. asking eaux filed a “vacation letter” that 23,1975, designated the week of June week for him. Then on June

a vacation filed the strike such counsel motion to setting preferential grant and to a mo- for continuance. motion was

tion Such

heard June and overruled. No hearing brought

record of that before

this court for review. TEXAS,

This case NOBILITY HOMES OF proceeded to trial on June INC., Appellant, 1975. Defendants have made no effort demonstrate any harm resulted to them because this case went to trial. There al., Appellees. John W. et SHIVERS suggestion they deprived is no were witness, any testimony they or that No. 7808. put any on their were unable to defense Appeals Court of Civil respect. Beaumont. study

From our of the record before us showing of abuse of discretion there is no July 1976. presiding judge. any part on the Rehearing Aug. Denied event, any evidence of error there is no cause or reasonably which was calculated to of an im- did cause the rendition

probably judgment. Tex.R.Civ.P. 434. Such

proper of error are overruled.

points

AFFIRMED.

Non-Concurring Opinion

KEITH, Justice. judgment is excessive or not

Whether jurisdiction within the peculiarly matter

DIES, Chief Justice. appeals below

Defendant from an ad- judgment verse rendered after a trial to the court, designate will parties and we in they appeared the trial court. Plaintiffs purchased home a mobile from one Marvin Hurley Lakeview Homes, d/b/a Mobile independent Baytown, in dealer who has gone since out business and cannot be Hurley had located. previously purchased defendant, this unit from the manufac- Hurley turer thereof. was not an agent for the defendant. alleged,

Plaintiffs and the trial court found, that the mobile home was defective- constructed; ly that at the Hurley time plaintiffs, delivered it it was not free material; workmanship defects in that it fit for the purposes was not for e., (i. sold place which it was of habita- tion); the difference and that in the reason- thereof at the able market value time of purchase original price contract $8,750. Judgment was rendered for amount from plaintiffs for such which this perfected. appeal has We affirm. been point error, first By defendant’s any asserts it could not be liable for damages plaintiffs because there was no them, privity of between contract only seeking plaintiffs are economic loss. The question of whether there must parties between before purely one for may recover economic dam ages resulting to a and its diminu tion firmly in value has not been answered “Implied this State. Comment Warran ” ties Baylor and ‘Economic Loss’ 24 L.Rev. weight current of authori The ty jurisdiction, as stated the dis sent, re seems to be quired. See, g., Foremost Mobile Homes e. Steele, (Tex. Mfg. Corp. v. 1974, writ); Civ.App. Worth Ther — Fort Asel, Supply mal 1971, no — Austin writ); Corpo General Motors and Cloer ration, (E.D.Tex.1975). F.Supp. 1070 Conroe, appellant. Boyd, W. for Charles The Court of Supreme yet Texas has not Liles, Conroe, appellees. directly ruled on this issue. J. Robert sis, application rather than to test its courts of the intermediate represent personal simply the trend of whether loss of Texas does bargain it re nor does resulted from the breach of the jurisdictions, in other cases True, progressive ap more rule warranty. wiser and war flect gestative stirrings to this writer. had its appears ranty as it proach sup appeal personal landmark case for in recognized greater generally *3 But, existence, is not principle privity in jury of the claim. once port pure in economic loss cases San required operation remedy of the should field of Inc., 44 N.J. Karagheusian, v. A & M tor in a factor.” by not be fenced San There, (1965), brought A.2d 305 Santor Inc., 207 Karagheusian, supra tor v. A and M carpet the manufacturer of against suit at 309. from one of its purchased which he had accepted logical princi court these was be only distributors. equity incorporated with them ples of distributor, which tween and the Santor liability in the substantive law of strict tort. of business. subsequently gone out

had again accept personal inju refused for the loss sought recovery only Santor dichotomy and held that ry/economic loss carpeting. value of the through tort would the burden only posi- of the thorough After a discussion where it placed should concomi- and the of the various states tions product. the maker of the This is be—on views, the divergent tant rationale of because, though initially the breach arose “ privi- held that Jersey Supreme Court New contract, it was a from the sales ‘tortious an action necessary to maintain ty was noncontracting wrong by party’ suable ”. the manufacturer against a consumer Santor, supra [quoting at 312 from Gold loss. The Court an economic redress of for berg Corporation, v. Kollsman Instrument require which do not holdings restated 592, 191 12 N.Y.2d 240 N.E.2d N.Y.S.2d personal recovery in instances for (1863)]. 82 injury and loss of value of the article sold is the [as damage resulting from the breach. ery for breach “But we see no recovery merchantability the existence of sjs personal injury] said: n in the other the claimant thereof just cause for [*] and a regardless of and the exclusion [*] implied simply in the one case right # recognition warranty to recov- [*] only lack jurisdictions: Randy 449 son-Weber, 226 N.Y.S.2d American (1970); Lynne Carol ston Print Works State 1972); Company, 26 (1961); Farm Mut. Kassab v. Central Cyanamid Company, Inc., Cova Mich.App. has been 252 Iowa Co., Auto. Ins. Co. v. Ander 181 N.E.2d 399 Harley Fashions, Inc. v. Cran 453 F.2d 602, 182 N.W.2d 800 Knitwear, Soya, adopted Davidson 1177 11 N.Y.2d 432 Pa. 110 N.W.2d in other Inc. (3d (1962); Motor Cir. Co. Transport (1968); Dealers 246 A.2d 848 standpoint we principle, “From Co., 402 441 Distributing Battery why impli no sound reason perceive Corpo Motors Hiigel v. General (Ky.1965); at cation of reasonable fitness should be Prod (Colo.1975); Air ration, 983 544 P.2d tached to the transaction and be actiona Morse, Inc., Chem., Fairbanks ucts & against the manufacturer where ble (1973) [ap 414 206 N.W.2d 58 Wis.2d defectively-made product per has caused Ander law]; Iacono v. plying Pennsylvania and not actionable when in injury, sonal 88, 326 Corp., 42 Ohio St.2d son put has a worth Concrete adequate manufacture Baughman v. also See the hands of an innocent N.E.2d less article in Homes, Inc., 289 Quality Mobile So.2d paid required price who has purchaser Corp., v. Hertz (La.App.1973); Coleman considerations In such situations for it. (Okl.Ct.App.1975); Hawkins Con itself P.2d 940 a court to interest justice require Co., v. Matthews struction Co. apply and to causes originating (1973). And see 209 N.W.2d 643 on that ba Neb. warranty principle Upon the should be generally “The Assault concerned with sales law and the Liability Consumer)” (Strict application of Citadel Uniform Commercial (1960); Keeton, “Torts,” L.J. 1099 Annot. A.L. 69 Yale Code. Sw.L.J. 1 (1967); and Blum v. Richardson- R.3d 683 In this context is to be noted that (D.Md.1965) Merrell, Inc., F.Supp. writers the Texas version of the Uniform the harshness rule criticizes Commercial Code declined to adopt any of requiring privity. put alternatives which were forth determining privity is not a re- legislature the Code. The thus enacted the for a consumer to seek order quirement following provision as to whether privity against a manufacturer eco- damages was needed within the context of the dis- loss, predicated the cases have recov- nomic cussion before us: basically three theories:1 ery upon “This chapter provide does not whether establishing exceptions general anyone other than a buyer may take ad- *4 rule, of a such as the creation fiction vantage express of an implied or warran- upon privity express al based and/or ty quality of made to buyer the or wheth- See, g., warranties. e. Elanco implied buyer anyone er the or entitled to take Akin-Tunnell, Company v. Products advantage a warranty of made to the (Tex.Civ.App 474 S.W.2d . —Amar buyer may sue a party third other than 1971, writ); no Ford Motor Com illo the immediate seller for deficiencies in Company, Lemieux Lumber pany quality the the goods. of These matters (Tex.Civ.App 418 S.W.2d . —Beau are left to the courts for their determina- writ). mont no tion.” Tex.Bus. & Comm.Code Ann. making flat no privi- 2. statements that (1968). 2.318 § required, in ty apparently pos- is the The effect of this legislative neutral posi ture of an extension of McKisson v. interpreted tion has been differently by the Affiliates, Inc., Sales Texas courts. One school thought of is that (Tex.1967) per- itself involved [which 2.318 demonstrates § an intention that the injuries]. sonal issue be decided according to traditional public 3. policy considerations —some common law rules incorporating privity. on the liability, times basis of strict Lilly Eli and Company v. Casey, 472 S.W.2d see, g., e. San tor v. A and M Kara 1971, writ — Eastland gheusian, supra, Hiigel and dism’d). The other view is that the recov Corporation, supra General Motors ery in such cases is upon based consid (544 983); P.2d but also the basis on erations of law separate sales apart and intermingling proper of an with real from the law of torts. Monsanto Company concepts ty that a war concluding Thrasher, 463 S.W.2d (Tex.Civ. is run ranty product. said to with the App. writ). We decline — Amarillo L.Rev., Baylor supra at 381. See accept either rationale, adopt and the applying liability, In the doctrine of strict view that the legislature is of the opinion have so courts done on the basis of recent unambiguous enunciated —its ex Torts, Hiigel Restatement of 402A. § the pression of neutrality. proceed We from Corporation, Motors supra v. General at position. this particular approach has been completely some writers as by criticized dis opinion is our the interests of regarding the law of sales. “The equity justice and will by best be served Citadel,” 50 accepting Fall of the privity the view that in cases now Minn.L.Rev. authority eminent has One under consideration required. should not be opinion question expressed public Matters of policy dictate that no Baylor discussion the various detailed theories see 24 1. For a more L.Rev. 380-382 not require city between the be accorded treatment should different pipe manufacturer stated: person- suffers where consumer instances property, and damage tendency or to other cases al “[These illustrate] is diminution harm the modern courts from the narrow away where the le- situations galistic and the result- view of necessity itself formal value circumstances immediate of contract in order In both loss. ing economic sector, express for breach public sue of an “injury” there warranty.” Pipe trans- United States & commercial only action Found- whose Waco, ry v. City in the Co. 130 Tex. placed purchase goods action 432, 435 (1937). manufacturer. by the commerce stream goods under maker To-insulate practical supports A consideration also resort to only by can result conditions these advanced today; Court in our longer viable reasoning which is problem litigation. of wasteful present practices economic current Knitwear, quoting Randy justice. sense Cyanamid (226 Company, supra American 399) N.Y.S.2d N.E.2d the Court in on strict ruling our We do base restated: Santor work an the frame in tort within “It is true many that in cases the man specif 402A is Santor § nounced ultimately ufacturer will be held account harm to upon “physical ically predicated able for falsity representations, his (Second) Restatement consumer.” user or only unduly process but after an wasteful adhere to the Torts, (1965). We 402A § *5 Thus, litigation. if the consumer or warranty implied is an that there concept business recovers, ultimate user sues and aas mat product a fitness of reasonable warranty, for breach of from his immedi Annot., 16 A.L. policy.2 See public ter latter, turn, ate seller and if the sues the discussion (1967) and 699 § R.3d against supplier and recovers his in re- concept is not This cited therein. cases and costs, coupment damages of his and even of this state. jurisprudence adverse tually, after separate several actions by dec over three applied was principle The distribution, the those in chain of the contaminated food. respect with to ago ades may finally obliged manufacturer ‘to Sons, Capps, E. Decker & Jacob In the responsibility shoulder should (1942) the Tex. (Ha his in have been the first instance.’ nounegligent a manufactur said that Court Digliani, mon Conn. sells contaminated processes and who er .).” . . A.2d Santor v. A resale for human a retailer for food Inc., Karagheusian, supra (207 Mand consumer for liable to the consumption 310). A.2d at by him under sustained injuries pursuit litigation The wasteful law as a imposed by operation warranty often inadequate which is should not be of the irrespective public policy, matter in this required State. with had no contract consumer that the fact jurisdiction should refrain from original manufacturer. legalistic the “narrow view” that regard law this the trend of the That necessary public may before the recover for requiring reduce the harshness damages towas suffered when the dimin long ago recognized value privity was ishes in becomes and/or worthless permitting workmanship court in this State. of the highest defective the costs of for manufacturer. Defendant’s of Waco to recover Point city being and had 1 is defective Error No. overruled as installing pipe which was without Supreme Court did merit. worthless, become Karagheusian, supra (207 concept recognized by and M Santor. v. A was Santor

2. This 310). A.2d at 8-12, purchase price. nal By Points of Error Nos. defendant Points Error Nos. complains that there is insufficient evidence 8-12 are without merit and are overruled. that support finding the mobile home We find no merit to defendant’s remain- defective workman- was constructed with ing points, they and are likewise overruled. ship; that there is insufficient evidence and judgment of The the trial court is affirmed. support finding that the difference in AFFIRMED. value time of the reasonable market at the original purchase price and the $8,750. KEITH, (dissenting).

was Justice majority, employing variety The evidence shows that the roof had of the deep pocket theory, spliced been had fixes resulting upon and the leaks damages manufacturer of a mobile home caused to the bathroom and one of when there bedrooms; is no privity of contract between parties that floor seams had begun separate gaps person property. and there were be- floors; jurists speak French deep tween some of the there of this pocket that joists theory risgue floor as “le support; were no for créé.”1 wet, any got when floors there I extremely find it difficult to generate support plaintiffs’ expert at all. The sympathy manufacturer of a defec- further stated that various doors and win- tive mobile home relying wholly upon the properly dows were not installed and Yet, doctrine of as its defense. leaked; and that some of the cabi- kitchen join decline to in this departure solidly pulling away from nets were the walls and precedent established Texas simply because countertops that some of the were bowed. plaintiff our has made a bad deal opinion was his value purchase of a mobile home. This is another present mobile in its home condition was example of apt “hard cases ‘are to introduce $1,000. approximately worth ”2 bad law.’ attempted The defendant to show that In my approach dissent, to this I invoke repairs the cost of would not amount to the language used Justice Oran M. Rob- *6 $1,000 but has not contested the fact that erts in v. Magette, 245, Duncan 25 Tex. 253 the above defects existed. defend- was (1860): ant’s that the various leaks from justice “The act of moulding into a pipes and faucets could have been by caused system of capacity rules detracts from its the transportation of the home that the of adaptation particular abstract in each defendant used the same basic materials as case; law, applied and the rules of when other manufacturers of mobile homes and case, usually to each are most but adequately tested the same. The home was Still, justice. mankind approximation to originally purchased $22,168.75, includ- have better to generally thought it have taxes, ing charges, license, finance and in- by rights system their determine such a surance. rules, by of the sense of abstract than man, or justice, by any one as determined There was sufficient evidence that men, may duty set of whose it have been the home was constructed in an unwork- adjudge to them. manship-like manner and that value the of the home was considerably below the origi- [*] [*] [*] [*] [*] [*] Donnelly, Wright, supra, Cf. S. “After the Fall the Cita- v. was case the Winterbottom del,” Syracuse 1, (1967). 19 rule; and, Law Rev. 31 privity at least which established suggested was one court has rule Mitchell, 2. See United States v. U.S. 403 Linton, v. F.2d based on Anderson 178 dictum. 406, 417, 91 S.Ct. 29 L.Ed.2d fn. 6 1949). (7th 307 Cir. (1971), attributing to Baron observation Wright, Rolfe in Winterbottom v. M W 10 & Eng.Rep. 152 406 196 justice, of bargain, profits. dictates of when or loss of These

“To follow the courts law, must be harmony with have held that where there is to law, the rules of but to follow pleasure; person or property the case at bar— —as conse- spirit, to whatever in their true recovery an action for of economic loss is lead, duty. is a quences they may requires contractual in nature and thus establishing well rules reme- to applies Hous.L.Rev., of contract. 11 supra, establishing rights.” dios, as those at 1061. is majority opinion weakness of the decisions the Texas Courts are it cannot the confession that exemplified by contrary holding the majority. tor from New Jer- decision follow San Judge Steger in Cloer v. General Motors Restate- 402A the cannot follow sey; § it Corporation, F.Supp. 1071-1072 is (Second) the latter ment of Torts (E.D.Tex.1975), synthesized holdings upon ‘physical harm predicated “specifically the Texas courts in this manner: ” Then is reference or consumer.’ to user “The Plaintiff’s suit is for economic warranty of reasonable made to only, loss and does not involve harm to public as a matter of a fitness person property of another. Sons, E. Decker & Inc. citing Jacob policy, Therefore, governed this suit is to be 828, 142 Tex. 164 S.W.2d Capps, v. pure contract law. Pioneer Hi-Bred In A.L.R. 1479 ternational, Inc. Talley, v. “An the article entitled Overview 1973); (Tex.Civ.App. Amarillo, Thermal — Texas,” Sales, 11 Liability in J. Tort Strict Texas, Asel, Supply of Inc. v. 468 S.W.2d (1974), says: the author Hous.L.Rev. 1971). — Austin court’s conclusion “The Decker] [in “Under the contract law the ‘broad principle premised squarely express recover for breach of and im human health policy protect public ” warranties, plied it is essential that there be quotation The inside and life.’ between the Plain reported opinion, 164 S.W.2d found deep tiff and support the Defendant. Foremost Mobile 829. Decker lends Steele, majori- Mfg. now embraced Homes v. pocket theory Corp. 506 S.W.2d thus, follow Decker majority Worth, cannot ty; 1974); 649 (Tex.Civ.App. — Ft. either. Lilly Company, Veretto Eli (N.D.Tex.1974); Pioneer F.Supp. 1254 Hi- decision wherein The landmark International, Talley, supra Bred the Restatement adopted provisions of 608; Lilly Company Casey, at Eli 402A, (Second), McKisson Torts § (Tex.Civ.App. Eastland, S.W.2d Affiliates, Inc., (Tex. Sales — Dism’d); Melody App. Home Manu 1967).3 doing, In so the Court made clear *7 Morrison, facturing Company v. 455 applied personal inju to only that the rule ries, (Tex.Civ.App. (1st opinion S.W.2d 825 saying: “We are further of the — Houston Contra, Dist.), 1970); Motor logical proposition, Compa that as a the rule stated Ford de applicable in Decker should be held to ny Company, v. Lemieux Lumber 418 products cause harm physical fective (Tex.Civ.App. Beaumont, 909 S.W.2d — persons.” (emphasis supplied) 1967). that the The Court observes Lem- ieux case was a tort case and Lumber did courts, obvious despite purely not involve contract law. There as expansion liability of strict trend toward fore, by the the broad statements made excep- recovery, almost without ground concerning privity of Court therein con expand the doctrine tion have declined inapplicable tract are Mr. Cloer’s cause recovery consequential losses permit action, solely loss which is based con product, of the use of the loss 402A, Ray, Liability development see R. § 3. “Products For a detailed chronicle of the —A (1965). Symposium,” 1 19 Sw.L.J.

197 tract (with law. See Foremost Mobile Homes Texas decisions the possible exception Corp. Steele, Mfg. supra Lemieux, v. at 648-649.”4 and, supra); it also in accord with leading some of the scholars in the Chief Lilly Justice McCloud Eli See, field. g., e. W. “Fall of the Casey, 598, v. Company 472 S.W.2d 599 (Strict Citadel Liability Consumer),” 1971, dism’d), writ — Eastland 791, 50 Minn.L.Rev. 821-822 It also quoted extensively Supply from Thermal “comports prevailing with the view in other Asel, (Tex.Civ. v. Inc. jurisdictions.” Hous.L.Rev., 11 supra, at 1971, writ). App. adopt no I this — Austin 1062. part opin as a dissenting rationale of this ion. Justice Bateman in v. Emmons Dura Under the it law as in Texas existed Homes, Inc., ble Mobile 521 S.W.2d decision, before today’s appellant (T ex.Civ.App.—Dallas writ),5 de entitled to a reversal of the trial court’s purchaser nied the a recovery from the judgment and judgment a rendition of manufacturer of the mobile home because plaintiff nothing. Here, take as in privity. lack of Foremost Mobile Mfg. Corp. Homes Steele, 647 (Tex.Civ.App.— S.W.2d discussion, For further R. see: Wein Fort writ): Worth “The mobile traub, UCC,” “Warranties Under home was never considered to be useless for (1974), Tex.L.Rev. 60 and Salmon Rivers the purpose for which purchased, it was but Sportsman Camps, Co., Inc. Cessna Air. rather was considered to be less useful 97 Idaho 544 P.2d Indeed, reason plain of the defects.” my If position needs strengthen further tiffs in living our case are still in the mobile ing, need but quote the basic rationale of (or they home at least were at the time of Chief Justice Traynor speaking for the Cali case). Thus, case, the trial of the like fornia Supreme Seely Court in case of Steele, supra, pure is a “case of Co., v. White Motor 63 Cal.2d 45 Cal. involving law mere economic loss” Rptr. (1965): P.2d plaintiffs may prevail. I would Since “The law of sales has been ar- carefully reverse judgment appel and render for the govern ticulated to the economic relations lant, I dissent from an affirmation. suppliers between consumers goods. The history of the doctrine

strict in tort that was indicates

designed, not to warranty undermine the

provisions act the sales or of the Uni- but, rather,

form Commercial Code

govern problem the distinct of physical injuries.” which I have taken in this harmony

dissent is strict all with I, too, disagree Reporter with “broad statements” advance sheets indicates that a writ Company found in Ford Motor v. Lemieux sought of error was not in the case. my Company, Lumber 418 S.W.2d 909. See concurring opinion Company in John Deere Traynor 6.This is the same Justice who was the City Tenberg, Kansas author the decision in Greenman v. Yuba *8 writ). — Beaumont Prods., Cal.Rptr. Power 59 Cal.2d court was not member when Lemieux speaking 377 P.2d 897 of this was decided. Greenman, opinion in Dean Prosser has said: Traynor’s opinion obviously “Justice des- history 5. The writ of Emmons is uncertain. be, along case, Henningsen tined to with the Citations, Sheppard’s p. Vol. No. “RNRE”, among one of the twin landmarks these deci- gives (May 1976), the notation sions.” W. “The Fall the Citadel refused, indicating that writ reversi- (Strict Consumer),” Liability to the 50 Minn.L. appearing error. The writ of error table ble Rev. pages pink of the current Southwestern

Case Details

Case Name: Nobility Homes of Texas, Inc. v. Shivers
Court Name: Court of Appeals of Texas
Date Published: Jul 15, 1976
Citation: 539 S.W.2d 190
Docket Number: 7808
Court Abbreviation: Tex. App.
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