South Texas Wastewater, LLC v. Valley Dewatering Services, Inc.

Summary

The Thirteenth Court of Appeals of Texas affirmed summary judgment in favor of Valley Dewatering Services, Inc. on South Texas Wastewater, LLC’s negligent misrepresentation and breach-of-contract claims and on Valley’s suit-on-sworn-account claim. The court held that South Texas Wastewater failed to raise genuine issues of material fact regarding false information, reasonable care, justifiable reliance, contractual breach, and consequential damages. The court also rejected South Texas Wastewater’s offset defense because its underlying claims lacked evidentiary support.

Holdings

1. South Texas failed to raise a genuine issue of material fact on the false-information, reasonable-care-or-competence, and justifiable-reliance elements of negligent misrepresentation; no-evidence summary judgment was therefore proper.
2. South Texas failed to raise a genuine issue of material fact that Valley breached the parties' implied contract because the evidence did not establish a contractual promise that Valley would keep its facility open indefinitely and without interruption.
3. South Texas failed to raise a genuine issue of material fact on damages because its claimed lost profits were not shown to be foreseeable or reasonably certain.
4. South Texas failed to raise a genuine issue of material fact supporting its offset defense because that defense was based solely on its negligent-misrepresentation and breach-of-contract claims, both of which failed as a matter of summary judgment evidence.

Questions Presented

1. Whether South Texas Wastewater produced evidence raising a genuine issue of material fact on the false-information, reasonable-care-or-competence, and justifiable-reliance elements of negligent misrepresentation.
2. Whether South Texas produced evidence raising a genuine issue of material fact that Valley breached an implied contract by stopping its wastewater services.
3. Whether South Texas produced evidence of foreseeable and reasonably certain consequential damages from the alleged breach.
4. Whether South Texas established a genuine issue of material fact supporting its affirmative defense of offset to Valley's suit-on-sworn-account claim.

Disposition

affirmed