HOUSTON - The 14th Court of Appeals today wiped a $1.6 million verdict in favor of Alpha Hunter Drilling, rendering a take-nothing judgment in its suit against the White Star Pump Company.
Alpha Hunter filed suit against White Star, alleging breach of contract/warranty, fraud and negligent undertaking.
Court records show Alpha Hunter contacted White Star about the possible purchase of mud pumps and engines to power them. On Aug. 8, 2013, a pump exploded. No one was injured.
White Star’s investigation of the explosion concluded that it was a result of Alpha Hunter’s incompetence and refusal to heed warnings or properly run the mud pumps, and a defective control system requested by Alpha Hunter, court records state.
At trial, Alpha Hunter’s experts testified that the cause of the collision was a lack of rubber mounts -- a deficiency that existed when the mud pump packages left White Star’s facility.
After the explosion, Alpha Hunter submitted a warranty claim to White Star. White Star offered to repair or replace the damaged equipment if Alpha Hunter fronted the cost of the replacement part pending the completion of the investigations into the explosion. White Star also offered to reimburse Alpha Hunter if the investigation established it was responsible for the explosion. Alpha Hunter refused White Star’s proposal, court records show.
Following the trial, the jury found White Star failed to provide Alpha Hunter with non-defective equipment and that White Star was liable under a negligent-undertaking theory, rejecting all other claims.
The jury found Alpha 35 percent responsible for causing the incident and awarded the company $1.6 million under the negligent undertaking cause of action for the market value of the pump and the loss of use of the pump, court records state.
On appeal, White Star argued that the trial court erred when it signed the judgment against it because the economic loss rule bars any recovery under Alpha Hunter’s negligent undertaking claim.
Justices agreed.
“Because the contract authorized White Star’s drilling site activities and the only loss Alpha Hunter experienced was damage to the subject of the contract, we hold that the economic loss rule bars Alpha Hunter’s negligent undertaking recovery,” the opinion states. “Having sustained White Star’s first issue on appeal, we reverse the trial court’s judgment and render judgment that Alpha Hunter take nothing on its causes of action against White Star.”
White Star is represented by Houston attorney Mel Smith and attorney Bradley Snead of Wright, Close & Barger in Houston.
Alpha Hunter is represented by Greg Eidman Jr., Courtney Gahm-Oldham and Ben West, attorneys for Frost Brown Todd.
Appeals case No. 14-20-00207-CV