Defendant seeks to compel production in $3M breach of contract case

David Yates Aug. 15, 2011, 7:52am

A request for production was recently filed in a suit filed by J.C. Cantera Homes, which seeks nearly $3 million in damages.

Alleging it was forced to replace every nail in more than 100 homes, Cantera filed a lawsuit March 1 in Jefferson County District Court against Aaron Jaramillo; Zulema Escobedo, doing business as Escobedo's Insurance Co.; and Farmers Insurance.

On Aug. 1 Escobedo filed a motion to compel request for production and disclosure.

In its motion, Zulema Escobedo said it filed its discovery request on March 18 but has since not had a response by Cantera.

Court records show Cantera hired Jaramillo to provide framing work on certain homes it was building in Jefferson County. As part of its contract, Jaramillo agreed to provide liability insurance coverage, which it obtained through Escobedo. In turn, Escobedo secured a commercial liability policy through Farmers, the suit states.

A windstorm engineer discovered rusted nails used in the wall sheathing and roof decking. This led Cantera to discover that Jaramillo did not use nails that were in accordance with applicable building codes, according to the complaint.

"Since the Defendant Jaramillo did not use the correct nails the Plaintiff is now required by the Texas Department of Insurance to take off all the roof decking and wall sheathing on all the homes involved and redo all the roofing and siding with galvanized nails," the suit states. "This has to be done and is being done to over 100 homes."

In addition to the $700,000 in actual damages and the $2.1 million in exemplary damages it seeks, Cantera wants the court to award it post-judgment interest at the highest legal rate, attorney's fees, costs and other relief to which it may be entitled.

Kenneth D. Baugh of Houston represents Cantera.

Houston attorney Ray Edwards represents Zulema Escobedo.

Judge Donald Floyd, 172nd District Court, is assigned to the case.

Case No. E189-481

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