AUSTIN - On Friday, the Texas Supreme Court reversed an appellate court, finding that it erred in ruling that a provision in a land improvement contract was ambiguous.
Court records show U.S. Polyco sued Texas Central Business Lines for breach of contract.
According to the high court’s opinion, the parties disagree about the meaning of a particular provision in their land-improvement contract. The trial court interpreted that provision as a matter of law and instructed the jury accordingly, leaving the jury to resolve liability and damages.
On appeal, the appellate court reached the same result as the trial court but found that the provision was ambiguous.
Justices reversed the trial court’s judgment, which had been based on the jury’s verdict, and ordered a new trial so that a jury could determine the meaning of the contractual text, the opinion states.
The Texas Supreme Court found that the trial court correctly construed this provision, and the appellate court erred in holding that it was ambiguous.
“Because of the latter court’s holding, however, it had no opportunity to address Texas Central’s other arguments…,” the opinion states. “The court of appeals should address those issues in the first instance on remand.
“Without hearing oral argument, we grant the petition for review, reverse the court of appeals’ judgment, and remand the case to that court for further proceedings.”
Supreme Court case No. 22-0901