*1 provisions hearing, for notice and or that
appellant prejudiced by provi- was those
sions. timely protested ap- Friedrich
praisal after it had received notice. 25.23(c), (d)
See TEX.TAX CODE ANN. §
(Vernon 1982). hearing A was held Appraisal Board,
Bexar Review which en- regarding
tered an appraisal. order argue
Friedrich does not that the Review hearing inadequate.
Board Friedrich entitled under Tax Code to further
appeal to the district court and to obtain regard-
there a trial de on novo the issues
ing appraisal. See TEX.TAX CODE (Vernon 1982).
ANN. 42.23 Friedrich
perfected appeal to the district court suit,
timely filing of notice and the
court entered an order in the from appeal
which this was taken. Friedrich
points nothing in procedures, these provided multiple opportunities heard, deprivation that constitutes a process.
due eight Points of error and nine
are overruled. judgment is affirmed. CHAPA, JJ.,
CANTU and concur opinion.
without
SOUTHWESTERN BELL TELEPHONE
COMPANY, Appellant, DELANNEY,
Eugene Appellee. C.
No. 9614. Texas, Appeals
Court
Texarkana.
Oct.
Rehearing Denied Nov.
BLEIL, Justice. Telephone Compa-
In Southwestern Bell ny’s appeal judgment from a on a verdict damaged finding negligently that it Eu- gene Delanney, Bell raises asked concerning questions issues for jury, the denial of its motions trial, the directed verdict and a new en- forceability of a contractual limitation and sufficiency find of the evidence. We judgment affecting error the trial court’s and affirm.
Delanney operated Delanney & Associ- ates, Galveston, a real firm in estate which successfully had advertised in Southwest- Pages. April ern Bell’s Yellow Delanney agreed and Pages listing Delanney’s a Yellow real estate in the 1980-81 business directory. 1980, Delanney Also decided rotary system to include a his third line on and to add another line to one of his two remaining required inactive lines. This cancellation of one line and the transfer of rotary system. this line to The can- celled line was the number to which the Pages listing Delanney Yellow was billed. change before Pages listings printer. to the were sent Bell’s Because internal billing procedure, Delanney’s request re- in the sulted deletion of his Yellow directory. advertisement from the 1980-81 Delanney sued Southwestern negligence. jury found that South- Delanney’s Bell’s western deletion of Yel- resulted from low negligent acts which $109,- profits suffer lost in the amount of during year 200.00 his firm was not $40,000.00 loss of listed future profits. The court remitted the trial future $11,840.00. damage award to Initially contends Southwestern Bell that submitting ques- the trial court erred in asking tion Southwestern Bell negligent, claiming reality Jr., Buckley, Greer, Foutch, John A. merely had breached a contract with Delan- Adams, Galveston, Herz for appellant. & ney underlying action sounded Griffin, Anthony Griffin, Anthony P. in contract P. alone. Southwestern cites Inc., Galveston, appellee. distinguish authorities actions con- tort,
tract from
argues
part
actions
on the
of Southwestern
solely
is based
con- Bell were:
tract
duty imposed
because the
on South-
(1) failing
to inform
that the
purely by
western Bell arose
virtue of the
rotary system
installation of a
would cancel
contract. Southwestern Bell claims that an
Pages listing;
*3
action in
duty
contract
for breach of a
(2) failing
adequately
to
train and inform
arising
out of a
an
while
employees
its
order
an
to cancel one
duty imposed by
for tort is for a
breach
the
would cancel the
numbers
law, relying
Printing
on International
Pages advertisement;
Pressmen
and Assistants’ Union v.
(3) failing
recognize
to
that the automat-
Smith,
145 Tex.
198 S.W.2d
Pages
ic cancellation of the Yellow
adver-
(1946).
billing pro-
tisement would occur when the
A party to a contract owes a com
changed.
cedure was
care, skill,
mon law
to
Most of
the cases relied on
South-
expedience
reasonable
and faithfulness the
western Bell focus on the
of exem-
award
done,
thing
negligent
to be
and a
failure in
plary damages.
plaintiff
in those
performing any of these conditions can be
required
proven—in
cases was
to have
ad-
recovery
the basis for
as
well as
damages
dition to a breach of contract and
breach
contract. Coulson v. Lake L.B.
—a
injury
distinct tortious
with actual dam-
District,
Municipal Utility
J.
ages
support
to
an additional award of
(Tex.1987);
Montgomery Ward & Co.
exemplary damages. Exemplary damages
Scharrenbeck,
153, 204
146 Tex.
only
are
involved
this case. The
(1947).
Bell
relies on
Delanney
awarded to
were for
Homes,
Reed,
Jim Walter
Inc. v.
711 S.W.
profits,
damages.
lost
which are actual
provides
2d 617
which
some
guidance as to
an
when
action sounds
issues,
Turning to other
Southwest
tort and when an action sounds in contract.
ern Bell claims that the trial court erred
brought
In that
the Reeds
an action
overruling its motions for directed verdict
against
housing
contractor who breach
and for new trial because the evidence ad
ed their
by failing
construction contract
negli
duced
trial failed to establish a
according
the house
speci
build
to contract
gence
Delanney’s negli
cause of action.
fications. In addition to breach of
gence action is based on Southwestern
negligent supervision
Reeds claimed
handling
Delanney’s request
Bell’s
for
construction
the contractor.
In deter
rotary
Delanney
an additional
line.
mining whether an action is
in tort
based
claimed that Southwestern
failed to
contract, the court noted that it is the sub
inform him that the addition of an extra
stance
cause of action and not neces
rotary
Pages
line would cancel his Yellow
sarily
pleading
the manner of
con
listing, that
negligently
Southwestern Bell
trols, and that
injury
nature
recognize
failed to
that automatic cancella
most often determines the duties that are
place,
tion would take
and that Southwest
Generally,
injury
breached.
when the
properly
ern Bell failed to inform and
train
only
subject
the economic loss to the
employees.
itself,
contract
action sounds
con
Miller,
Lorraine
a Southwestern Bell em-
Homes,
tract alone. Jim
Walter
training
ployee, testified that she received
Reed,
Delanney
did not receive the adver
stated that
wife called to re-
paid
quest
Delanney listings
tisement he
for and as a
suf
one of the
result
damages.
fered
When Southwestern Bell
cancelled and added as a third
number
line,
listing
rotary
rotary
pulled
equip-
cancelled a
and added a third
so Miller
line,
doing
listing, got
so
and re ment
the information and told
sponsible
damages proximately Delanney
get
for
she would
with her.
back
order,
thereby.
specific findings
of Miller wrote the
disconnected the
oc
omitted,
errors
advertising
or which
as a
listing
put
number
directory in
cur,
life of the
the issue
Delanney’s rota-
for
the end of
third number at
A similar limitation
she did not
testified that
volved.”
ry line. Miller
upheld in a
breach
Delanney that
clause was
inform
Bell Tele
The line
advertising
cancelled.
suit.
v. Southwestern
would be
Wade
(Tex.Civ.
phone Company,
to have cancelled was
asked
writ);
Enterprises and
see also
D. and D.
listing
App.
—Austin
Miller
listing
Delanney.
was not
Helms v. Southwestern
(5th Cir.1986);
filled out the
Co.,
at the time she
Calarco
testified that
indicated case of Reuben H. followed the. the court to Delanney’s listing due of McKinnon, omission 688 S.W.2d Donnelley Corp. v. jury could production. in an error (Tex.App. Corpus Christi — these facts that reasonably infer from n.r.e.), limitation held a similar ref’d its Bell did not Southwestern in a Yellow adver liability clause of thus, care; Delanney with agreement with because unenforceable tisement contract finding supports a of South- the evidence negli was based on plaintiff’s the negligent performance of a Bell’s western limit its defendant could not gence and the Delanney. Montgomery duty it owed at 616. negligence. 688 S.W.2d liability for Scharrenbeck, supra. & Co. v. Ward to en court’s refusal The trial complains additionally Southwestern liability clause was the limitation force erroneously the trial court submitted that or nonexistence and the existence proper, liability question to the the limitation of bargaining power was disparity in not public policy issues are jury because ac a this is irrelevant because limi- proper jury for consideration enforce may refuse to tion. courts While liability as á tation of clause is enforceable there is liability clauses where limitation of Also, of law. matter that bargaining power disparity such erroneously held that the trial court claims adhesion, Allright, is one of the contract liability is un- that the limitation of clause S.W.2d 266 Elledge, Inc. enforceable. not serve provision would this contractual question court The trial submitted Bell’s to limit Southwestern jury, the as follows: Helms v. South negligent conduct. its at 794 F.2d preponderance of western Bell you
Do find from a 192-94; Donnelley Corp. H. disparity Reuben the that there was evidence error, McKinnon, 616. The plaintiff bargaining power the between court’s submis concerning the trial negotiating any, the con- the defendant disparity of on the question Page advertising. sion of the tract for Yellow Although a power is harmless. bargaining disparity A of bar- INSTRUCTION: power bargaining would disparity party has gaining power exists when one the liability limit under necessarily itself accepting agreement an real choice harm resulted present, no circumstances party. limiting liability of the other question. asking jury that from this Apparently, the trial court submitted maintains Bell also Delanney claimed his question because asking question constitutes of this liability that the that the limitation petition weight comment on the impermissible limi- an is void and unenforceable. clause in accompanying the evidence that as follows: clause reads tation definition elements of the omitted agrees struction applicant that “The guidance any real give jury did not for errors Company shall not be liable has The trial court the issue. advertising to answer directory be- omissions submitting spe- directory considerable discretion paid yond the amount questions jury, cial deciding testimony to the and in proper was not a basis jury necessary what instructions are award. in submitting questions jury. to the Mobil Delanney’s Pelaez, expert, Rolando testi- Bell, Company Chemical during fied period that (Tex.1974). only We need decide listing Pages, was omitted from the Yellow
whether the trial court’s action was arbi Delanney’s closings decreased from 9.68
trary or unreasonable. Markantonis v. per
per
month to 7.92
month
while
Tropoli, 730
(Tex.App.—
closings for all other realtors increased.
n.r.e.).
Houston
that,
writ ref 'd
during
Pelaez testified
period,
average
would
closed an
have
argues
every
five more homes
month had the ratio
jury
issue allows the
to consider the
Delanney’s closings
closings
to other
only
and that
equal.
remained
Based on an estimated
instruction,
which instructs
sixty-five
additional
homes
could
parties’
to consider the
relative
closed,
average
$55,-
have
at an
value of
bargaining power,
000.00,
$216,000.00
sources of
alternative
Pelaez calculated
as the
loss;
advertisement and the reasonableness of
amount of commission
deducting the
term,
challenged
paid
agents
should
amount
have been sub
sales
leaves a bro-
*5
$112,621.00.
ker’s share of
Although
mitted.
Southwestern
instruction,
have
witness,
expert
Southwestern Bell’s
F.
one the
proper.
trial court submitted is also
Sweeney,
Delanney
Gerome
testified that
enforceability
Where the
of a limitation of
paid
average
forty-five percent
out an
of
of
issue,
liability
clause is
the relative bar
gross
agents
his
commissions to his
and
gaining power
of the
is a relevant
just
part
that such commissions are
one
of
fact to
Allright,
be determined.
selling
Sweeney
expenses.
stated that fif-
And,
Elledge, 515 S.W.2d at
ty-nine percent
three-year average
was a
by
instruction submitted
the trial court is a
expenses, forty-five percent
total
of which
correct
Clearly,
statement of the law. Id.
selling
is commissions and
rest is other
the trial court’s instruction
arbi
testified,
expenses. Sweeney also
on
based
Moreover,
trary or
light
unreasonable.
Delanney’s administrative costs in the
of our determination that
years
through
Delanney
the contractual
claims,
liability
limitation of
apply
would not
to
had achieved the sales volume he
he
$10,-
liability
damages
limit
would have incurred an additional
by
tor-
conduct,
expenses.
000.00
administrative
ques
tious
this issue and the issue
tioning
showing
the exclusion of evidence
profits,
To recover for lost
it is not
necessity
business
for the
limita necessary
that the loss
exact
be shown
tion become immaterial.
It
is
calculation.
sufficient
by competent
amount
is shown
evi
loss
asserts that there is
certainty.
dence with reasonable
v.White
support
insufficient
jury’s
evidence to
$109,200.00
award
as
for lost
(Tex.1983).
profits and that the award was so excessive
toas
shock one’s conscience and sense of
parties presented competent
Both
justice. Southwestern Bell claims insuffi-
Delanney
evidence of the amount of loss
Delanney’s expert
cient
because
evidence
suffered as a result of the omission of his
witness,
who testified that
suf-
Pages
from the
list
$112,-
damages in
fered
the amount
ings.
province
It is within the
621.00, made a deduction for commissions
accept.
testimony
to determine which
to
only
expenses.
and not for other variable
Thus,
give
jury’s prerogative
complains
Southwestern Bell
that Delan-
testimony
credit to the
of Pelaez
whatever
ney’s expert
selling
did not take increased
Sweeney
appropriate.
it deemed
expenses
calculating
supports
jury’s finding
into account
lost
on
evidence
thus,
and,
profits
damages.
the amount stated in his
(Emphasis
may injure
promisee.”
affirm ance
find no reversible error and
We
added.) Id.,
judgment.
trial court’s
only had a contract
If
CORNELIUS,
Justice,
Chief
Pages ad-
Bell for a Yellow
concurring.
damages in
vertisement,
recovery
his
majority opinion,
I
concur
there
would be unauthorized because
tort
separately
emphasize what I be-
write
failure to
complete
awas
tort and
lieve to be the distinction between
only damage was to the
obligation, and the
this,
actions in cases such as
itself. His
matter of that contract
subject
peculiar
circum-
why
the narrow and
sustained, however, on the
recovery can be
case the action in tort is
stances of this
he either had two contracts
theory that
permissible.
imposed two
integrated
one
contract which
nonfeasance
The distinction
between
(1)
Bell:
obligations on Southwestern
complete
and misfeasance. The
service,
including
furnishing failure
only
'perform a contract
a breach
lines,
(2)
ad-
rotary
contract,
unless the
and is not
vertisement.
one
is also
imposed by the contract is
Delan-
Although the mere failure to list
Printing
imposed
law.
International
be nonfea-
ney in the Yellow
would
Pressmen
and Assistants’ Union
and therefore
nonperformance,
sance or
399, 198
Smith, 145 Tex.
S.W.2d729
only
a breach
Keeton,
Keeton on the
W.
Prosser and
(fur-
obligation
of the first
performance
1984).
(5th
Torts
at 655-61
ed.
Law
lines)
a tort as
nishing telephone
can be
negligent performance
contract. Since the
well as a breach of
however, can be a tort as well as a breach
negligent performance of that contractual
*6
Accompanying every
of contract.
contract
loss
obligation proximately caused a
other
duty
is a common law
the act
contract, Delan-
subject
that
than the
of
care,
agreed upon with
skill and faithful
resulting
in tort for the
ney can recover
ness,
any
failure to
observe
Sales,
damage.
Edgar & J.
Texas
See J.
of those conditions is a tort as well as a
1.03(4)(b)(1988).
Torts & Remedies §
breach of contract. Coulson v. Lake L.B.
District,
Municipal Utility
J.
(Tex.1987); Montgomery
649
& Co.
Ward
GRANT, Justice, dissenting.
Scharrenbeck,
153,
146 Tex.
204
v.
agree
I
I dissent. While
v.
Light
Texas Power &
Co.
performance of a con-
may occur in the
Barnhill,
(Tex.App.—
Anderson,
(Tex.Civ.App.—
intent set forth in the contract.
test, i.e.,
wrong
he
of that
Did
do it
or did
only theory
law should be the
right?
he fail to do it
upon
imposed.
can be
See
Keeton,
W.
Prosser and Keeton on the
difficulty
applying
this test
(5th
1984).
Law
Torts
at 656
ed.
present
illustrated
case. Southwest-
Telephone Company totally
ern Bell
omit-
(2) The
injury
nature
most
often
ted
advertisement. This would
determines which duty or duties are
*7
nonfeasance,
clearly
seem
a case of
to be
Homes,
breached.
Jim
Inc.
Walter
and therefore there would
no tort liabili-
be
Reed,
(Tex.1986).
and
cases con Southwestern Bell
352
These
type
firm the need to look to the
of dam
1961,
(Tex.Civ.App.-Austin
460
no
S.W.2d
ages
incurred and the
which was vio writ).
to determine
lated
order
whether
Poliquin
The Court in Martin v. Lou
in tort or contract.
Inc.,
Enterprises,
supra, held that when
involving
Litigation
telephone
errors in
involved,
DTPA
limitation-of-liabili-
directories are
no means
to our
new
ty
clause
used to avoid
cannot be
jurisprudence.
twenty-two
At least
deceptive
that Act for
trade
available under
type of
to in-
litigation
states found this
practices.
present case
The
was initiated
contract
volve a breach of
action.4
allegations
pleadings
under
included
Corpus
Appeals
The
Christi Court of
violations; however,
DTPA
no
issues
McKinnon,
Donnelley Corp. v.
Reuben H.
that basis and the trial
were submitted on
(Tex.App.-Corpus
688
612
Christi
judgment specifically
court
excludes
1985,
n.r.e.),
writ ref’d
treated the failure
any DTPA violations.5
provide
Pages advertising
as a
question
validity
The
of a limita-
negligence.
following
state
and federal cases decided
Texas also
clause
in the
tion
of this nature
telephone
from
treated an omission
raised
v. Southwestern Bell
White
book as a contractual breach: Faber v.
Co.,
260
Telephone
Telephone Company,
Bell
Southwestern
telephone compa-
a case which
involved
(S.D.Tex.1957);
F.Supp.
155
162
Russell v.
ny’s
listing
a florist’s
incorrect
Co.,
Telephone
Bell
130
Pages. However,
number
(E.D.Tex.1955);
F.Supp. 130
Calarco
Supreme
point
that this
Court found
Co.,
Telephone
725
fully
was not
and that
could be
briefed
(Tex.App.-Houston
S.W.2d 304
[1st Dist.]
being remanded.
addressed after
n.r.e.);
1986,
ref’d
Martin
Poli
writ
v. Lou
limitation
pled that the
clause
Inc.,
quin
696
Enterprises,
S.W.2d 180
against
policy and unenforcea-
public
1985,
(Tex.App.-Houston
that there was a dis-
ble.
found
n.r.e.);
ref’d
Goldson Southwestern
parity
bargaining power
between the
Co.,
(Tex.App.-
Telephone
