Texas Judiciary Online - HTML Opinion

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Opinion issued August 2,=20 2007

In = The

Court of=20 Appeals

For=20 The

First=20 District of Texas

NO. 01-06-00191-CV

__________

CESAR=20 ARGUETA, Appellant

MERCEDES=20 BANALES, Appellee

On = Appeal=20 from County Civil Court at Law Number One

Harris County, Texas

Trial Court=20 Cause No. 834737

MEMORANDUM=20 OPINION

In this=20 auto accident case, the jury found that Mercedes Banales, = appellee,=20 negligently caused damage to Cesar Argueta's, the appellant's, = car. In his=20 sole issue, Argueta asserts that the final judgment was erroneous = because=20 (1) there was no evidence or pleadings to support the jury's = finding of a=20 total loss, (2) he is entitled to rental costs that the jury = awarded to=20 him, and (3) the trial court incorrectly calculated costs and = interest. We=20 vacate the judgment and remand the case to the trial court for = entry of a=20 new judgment.

Background

On March=20 10, 2005, cars driven by Argueta and Banales collided. Argueta = sued=20 Banales to recover for the damage to his 1994 Toyota Corolla = involved in=20 the collision. At trial, Argueta testified that his car was = repairable.=20 However, the trial court instructed the jury to disregard any = testimony=20 regarding the repair cost because "you're required to have someone = who is=20 in that profession who can testify what a reasonable cost of = repairs would=20 be."

The jury=20 found Banales negligent for the collision. The jury also found = that (1)=20 the difference in the market value of Argueta's car before and = after the=20 collision was $1,800; (2) Argueta was entitled to $1,100 for = rental car=20 charges; and (3) Argueta's car was a total loss. In its final = judgment,=20 the trial court awarded Argueta $1,800 plus costs and interest and = noted=20 that, "since the jury would [sic] the vehicle was a total loss, = Plaintiff=20 is not entitled to damages for his use of a rental car." Argueta = appeals=20 the entry of this judgment.

Total Loss and Award of Rental Car=20 Charges

In his sole=20 issue, Argueta argues that the trial court's final judgment is = erroneous=20 because there was no evidence or pleadings to support the jury's = finding=20 of total loss and the final judgment should have included his = rental car=20 charges. We disagree. =

The jury's=20 finding of total loss was immaterial to the final judgment entered = in this=20 case. In other words, even if the jury had found that Argueta's = car was=20 repairable and not totally destroyed, the final judgment entered = by the=20 trial court would be the same. Argueta would not have been awarded = his=20 rental car charges.

When a = person's=20 property is not totally destroyed, two alternative measures of = damages may=20 be used to calculate damages for the injury to the property. A = plaintiff=20 may recover the diminution in value of the article, calculated = as the=20 difference in the market value of the property before and after = the=20 accident. Waples-Platter Co. v. Commercial Standard Ins. = Co., 156=20 Tex. 234, 236, 294 S.W.2d 375, 376-77 (Tex. 1956). In the = alternative,=20 a=20 plaintiff may elect to recover the reasonable cost of repairing = the=20 property. Pasadena State Bank v. Isaac, 149 Tex. 47, 51, = 228=20 S.W.2d 127, 129 (Tex. 1950). If cost of repair damages are sought, = damages=20 for loss of use of the property may also be recovered. Berry=20 Contracting v. Coastal States Petrochem., 635 S.W.2d 759, 761 = (Tex.=20 App.--Corpus Christi 1982, writ ref'd n.r.e.); Exp. Ins. Co. = v.=20 Herrera, 426 S.W.2d 895, 901 (Tex. Civ. App.--Corpus Christi = 1968,=20 writ ref'd n.r.e.). Loss of = use damages=20 include rental costs and charges. See Luna v. N. Star = Dodge=20 Sales, Inc., 667 S.W.2d 115, 119 (Tex. 1984); Mondragon = v.=20 Austin, 954 S.W.2d 191, 193 (Tex. = App.--Austin=20 1997, pet. denied). However, it has long been established that = loss of use=20 damages are recoverable only if the plaintiff seeks = recovery for=20 cost of repair damages; they are not available as a separate = measure of=20 damages when the plaintiff seeks recovery for diminution in value. = See=20 Cogbill v. Martin, 308 S.W.2d 269, 271 (Tex. Civ. App.--Waco = 1957, no=20 writ) (citing Pasadena, 149 Tex. at 51, 228 S.W.2d at=20 129).=20

A = plaintiff=20 may not recover (1) the difference in the value of the property=20 immediately before the injury and immediately after the injury and = before=20 repairs as well as (2) the cost of repairs and for loss of use. = Such a=20 recovery would constitute an impermissible double recovery. = Parkway Co. v.=20 Woodruff, 901 S.W.2d 434, 441 (Tex. 1995) (holding that = homeowner had=20 to choose between diminution in market value of home and cost to=20 repair).

In this=20 case, Argueta elected to seek, and the jury found, damages = calculated as=20 the diminution in market value of his car before and after the = accident.=20 Argueta elected not to pursue damages for costs of repair. = Accordingly,=20 regardless of whether the jury found that the car was repairable, = Argueta=20 could not recover damages for loss of use, i.e., rental car = charges,=20 because he did not seek damages for costs of repair. See=20 Cogbill, 308 S.W.2d at 271. In light = of=20 Argueta's submission to the jury under the measure of damages = theory of=20 recovery, the jury's finding of total loss was immaterial and = could have=20 been properly disregarded by the trial court in its judgment. = See=20 Spencer v. Eagle Star Ins. Co. of Am., 876 S.W.2d 154, = 157 (Tex.=20 1994) (holding that a jury question is immaterial when it should = not have=20 been submitted or when it was properly submitted but has been = rendered=20 immaterial by other findings). The final judgment correctly = excluded an=20 award of Argueta's rental car charges.

Costs

Argueta=20 next contends that, in addition to the actual damages awarded by = the jury,=20 he is entitled to $212 in costs through trial. The clerk assessed = $162 in=20 costs, and, after trial, Argueta asked the costs to be retaxed. = The=20 request was denied. On appeal, Banales agrees that Argueta should = be=20 awarded $212 in court costs.

Costs,=20 within the meaning of Rules 125 through 149 of the Rules of Civil=20 Procedure, are those items in the clerk's bill of costs. Tex. R. = Civ. P.=20 125-149. In response to a request for an award of costs, the trial = court's=20 role is to determine which party or parties is to bear the costs = of court,=20 not to adjudicate the correctness of specific items. Reaugh v. = McCollum Exploration Co., 167 S.W.2d 727, 728 (Tex. 1943). = The=20 inclusion of specific items taxed as costs is a ministerial duty = performed=20 by the clerk. Id. Correction of errors in specific items = of costs=20 is sought by a motion to retax costs. Id.

Allocation=20 of costs is a matter for the trial court's discretion and cannot = be=20 overturned on appeal unless the trial court abused its discretion. = Univ. of Houston-Clear Lake v. Marsh, 981 S.W.2d 912, 914 = (Tex.=20 App.--Houston [1st Dist.] 1998, no pet.). Unless the trial court = makes a=20 finding of good cause, an abuse of discretion is shown when costs = are not=20 allocated according to the provisions of Rule 131.^{=20
(1)}=20 Id.

Argueta was = entitled to=20 recover his entire court costs under Rule 131 in the = amount=20 agreed to by the parties because he was successful in his = negligence claim=20 and because the trial court did not make any finding relating to = good=20 cause.

Interest =

Prejudgment=20 Interest

Argueta=20 contends that he is entitled to prejudgment interest on $2,900 = ($1,800 +=20 $1,100) at a rate of 5% per annum, in simple interest, from March = 26, 2005=20 to December 5, 2005. The final judgment, which was rendered on = December 6,=20 2005, provided for pre-judgment interest as follows:

Simple=20 pre-judgment interest is calculated, per annum, from March 26, = 2005, the=20 day suit was filed, until November 30, 2005 when a jury verdict = was=20 rendered. Prejudgment interest is calculated as = follows:

March 26,=20 2005 to November 30, 2005 - $38.50

Total=20 prejudgment interest: $38.50

The=20 interest between December 6, 1997 [sic] and September 6, 1998 = [sic] is=20 calculated at a rate of ten (5%) [sic] percent per annum on = Eighteen=20 Hundred Dollars ($1,800.00) for a period of five months and four=20 days.

The=20 pre-judgment interest is to be added to the jury award to bring = the total=20 judgment to One Thousand, Eight Hundred, Thirty Eight Dollars = and/50 Cents=20 ($1,838.50).

Here, the=20 rate and means of calculating interest is determined as a matter = of law.=20 See Tex. Fin. Code Ann. =A7 304.104 (Vernon 2006). Under = section=20 304.104, prejudgment interest accrues "during the period beginning = on the=20 earlier of the 180th day after the date the defendant receives = written=20 notice of a claim or the date the suit is filed and ending on the = day=20 preceding the date judgment is rendered." Id. Section = 304.104=20 "applies only to a wrongful death, personal injury, or property = damage=20 case." Id. =A7 304.101.

There is no=20 dispute that the pre-judgment interest began accruing on March 26, = 2005,=20 the day that suit was filed. Pre-judgment interest should have = stopped=20 accruing, however, on December 5, 2005, the day preceding the date = judgment was rendered, not on November 30, 2005, "when the jury = verdict=20 was rendered." Accordingly, we reform the judgment to reflect 5% = interest=20 on $1,800 from March 26, 2005 to December 5, 2005.^{=20
(2)}

Postjudgment=20 Interest

Argueta also = contends that=20 he "is entitled to postjudgment interest on all amounts, in = compounded=20 interest, at a rate of 5% per annum from December 6, 2005 until = paid in=20 full." The final judgment provided for postjudgment interest as=20 follows:

"IT IS FURTHER, = ORDERED,=20 ADJUDGED AND DECREED that Plaintiff, CESAR BANALES, [sic] have and = recovery [sic] post-judgment interest on this judgment at the = interest=20 rate of ten percent (5%) [sic] per annum from the date used = entered until=20 it is paid."

Postjudgment=20 interest on a money judgment accrues during the period beginning = on the=20 date the court renders judgment and ending on the date the = judgment is=20 satisfied. Tex. Fin. Code Ann. =A7 304.005(a) (Vernon = Supp. 2006).=20 Postjudgment interest, unlike prejudgment interest, is not an = element of=20 the measure of damages in a personal injury case. Univ. of = Tex. Med.=20 Branch at Galveston v. York, 808 S.W.2d 106, 112 (Tex. = App.--Houston=20 [1st Dist.] 1991) rev'd on other grounds, 871 S.W.2d 175 = (Tex.=20 1994). Instead, postjudgment interest is compensation allowed by = law for=20 the use or detention of money computed from the date of the = rendition of a=20 judgment until the date of its satisfaction. Tex. Rev. Civ. Stat. = Ann.=20 art. 5069-1.05, =A7 3(a) (Vernon Supp.1991). When a judgment = debtor makes a=20 timely, unconditional tender of payment of the judgment, no = postjudgment=20 interest will be allowed. Trevino v. City of Houston, 695 = S.W.2d=20 289, 291 (Tex. App.--Houston [1st Dist.] 1985, writ ref'd n.r.e.). =

Banales=20 responded that Argueta "is not entitled to postjudgment interest = as=20 [Banales] tendered the amount of judgment immediately after it was = signed." A tender, = to be=20 effective, must be legally valid; it must be unconditional; and it = is=20 without legal effect if it is accompanied by conditions which the = debtor=20 has no right to impose. Baucum v. Great Am. Ins. Co. of New = York,=20 370 S.W.2d 863, 866 (Tex. 1963); e.g., Plasky v. Gulf Ins. = Co.,=20 160 Tex. 612, 616, 335 S.W.2d 581, 583-84 (Tex. 1960). The burden = of=20 proving a valid tender is on the party asserting it. Rozelle = v. First=20 Nat'l Bank in Dallas, 535 S.W.2d 768, 771 (Tex. Civ. App.-- = Waco=20 1976, writ ref'd n.r.e.); e.g., Bus. Aircraft Corp. v. Elec.=20 Communications, Inc., 391 S.W.2d 70, 71 (Tex. Civ. App.--San = Antonio=20 1965, writ ref'd n.r.e.). Here, = there is no=20 verification in the record that Banales unconditionally tendered = the=20 amount of the judgment.^{=20
(3)}=20 Furthermore, given our holding regarding prejudgment interest, the = amount=20 of the judgment will be reformed.=20

Conclusion

We order the clerk = to retax=20 the costs, and we remand this case to the trial court to calculate = prejudgment interest consistent with this opinion and correct the = judgment=20 to reflect the correct interest rate. In all other respects, we = affirm the=20 trial court's judgment.

George C. Hanks,=20 Jr.

Justice

Panel consists of = Justices=20 Nuchia, Hanks, and Bland.

1. "The = successful=20 party to a suit shall recover of his adversary all costs incurred = therein,=20 except where otherwise provided." Tex. R. Civ. P. 131.=20

2. We have = already=20 determined that Argueta was not entitled to the additional $1,100. =

3. The record = does=20 contain a copy of a letter that Banales sent to Argueta's = attorney.=20 Attached to the letter is a copy of the check for the judgment. = The letter=20 indicates that the check will be released once Argueta signs a = power of=20 attorney releasing the car, and once he produces the original = title for=20 the car. The record is silent as to whether the check was actually = given=20 to Argueta. =

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