Verified Denial Required to Dispute Existence of Contract

The failure to file a verified denial as to the existence of covenant not to compete, according to the Dallas Court of Appeals, prevents a party from later challenging the existence of that contract. In Greenville Automatic Gas Company v. Automatic Propane Gas and Supply, LLC, et. al.; Cause No. 05-13-01405-CV (Tex. App.—Dallas June 9, 2015), the Court held that the terms of an employment contract were settled by the absence of a verified denial of those terms. Defendant employed Plaintiff for approximately fifteen years as a route driver, delivering propane to Defendant’s customers. Defendant alleged Plaintiff signed a nine-page employment agreement that contained a covenant not to compete. After Plaintiff accepted a position with a competitor, Plaintiff filed a declaratory judgment action against Defendant seeking to establish his rights under the employment agreement. Plaintiff argued that the non-compete provisions of the employment agreement were unenforceable. Defendant filed a response to the petition as well as a counterclaim, attaching a copy of the employment agreement to its answer. Plaintiff did not timely

Painting Contractor Liable for Breach of Express Warranty

The Dallas Court of Appeals affirmed the trial court’s judgment that a commercial painting contractor breached its express warranty and is liable for $92,000 in damages. In Contemporary Contractors, Inc. v. WILC/MVL, LLP, et. al. (Tex. App—Dallas May 28, 2015), Cause No. 05-14-00411-CV, Plaintiff and Defendant entered into a contract for Defendant to replace and repair exterior wood on and to paint the exterior of an apartment complex in Grapevine, Texas. The contract contained the following express warranty: “All work described herein shall be warranted and guaranteed to be free from defects and failure and to perform as intended for a period of five years from completion.” About one year after the work was completed, Plaintiff began noticing issues with the exterior paint and asked Defendant to repaint the property. Defendant refused. Plaintiff hired another contractor to repair and repaint the complex for $92,000 and subsequently sued Defendant for breach of express warranty. The Dallas Court of Appeals interpreted the express warranty as having two parts, either of which, if violated, would