Red Ball Oxygen Company, Inc. v. Southwest Railroad Car Parts Company and Air Liquide Industrial U.S., L.P. , 523 S.W.3d 288 ( 2017 )


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  •                                  NO. 12-16-00049-CV
    IN THE COURT OF APPEALS
    TWELFTH COURT OF APPEALS DISTRICT
    TYLER, TEXAS
    RED BALL OXYGEN COMPANY,                        §      APPEAL FROM THE
    INC.,
    APPELLANT
    V.                                              §      COUNTY COURT AT LAW NO. 2
    SOUTHWEST RAILROAD CAR PARTS
    COMPANY AND AIR LIQUIDE
    INDUSTRIAL U.S., L.P.,                          §      GREGG COUNTY, TEXAS
    APPELLEES
    OPINION
    This case involves a dispute over a supply contract between Red Ball Oxygen Company,
    Inc. and Southwest Railroad Car Parts Company which led to litigation involving a suit on
    account, tortious interference, and reciprocal breach of contract claims. In six issues, Red Ball
    asserts the trial court misconstrued the contract, Southwest, not Red Ball, breached the contract,
    and therefore Red Ball, not Southwest, is entitled to damages and attorney’s fees. We affirm.
    BACKGROUND
    In 2005, Southwest agreed to a long-term contract with Red Ball for the purchase of
    oxygen and propane. In January 2012, David Toarmina, Southwest’s vice president and general
    counsel, questioned price increases instituted by Red Ball, as well as certain other charges, and
    refused to pay a portion of billed amounts. In February 2012, Toarmina notified Red Ball that
    Southwest would be cancelling the contract effective June 1, 2012, but asked Red Ball to submit
    a proposal for supplying oxygen to Southwest after that date. The parties were unable to resolve
    the disputes concerning the 2005 contract or reach a new agreement. Southwest entered into
    contracts with other suppliers, Air Products and Air Liquide Industrial U.S., L.P., effective June
    1, 2012.
    Red Ball sued Southwest for suit on account and breach of contract, and requested a
    declaration that Southwest prematurely terminated the contract and that the contract was valid
    until November 4, 2015. Red Ball also sued Air Liquide for tortious interference with contract.
    Red Ball prayed for actual damages against Southwest, damages against Southwest and Air
    Liquide for lost profits and rentals, exemplary damages against Air Liquide, attorney’s fees, and
    a declaration that the contract was enforceable through November 4, 2015.
    Southwest and Air Liquide asserted numerous affirmative defenses to Red Ball’s causes
    of action, and Southwest alleged counterclaims for breach of contract, declaratory relief, and
    violations of the Texas Deceptive Trade Practices Act (DTPA). After a trial before the court, the
    court rendered judgment that Red Ball prevailed in part on its suit on sworn account and that Red
    Ball take nothing on its suit for tortious interference against Air Liquide. The court also held that
    Southwest repudiated the agreement in good faith and the agreement terminated effective June 1,
    2012, and that Southwest should prevail on its breach of contract claim, but take nothing on its
    DTPA claim. The court awarded damages and attorney’s fees to Southwest.
    COST INCREASES AND FEES
    In its first issue, Red Ball contends that the trial court erred in interpreting the contract. It
    argues that the contract provided for price increases during the contract’s term and did not limit
    those increases to increases in Red Ball’s costs of bulk oxygen as found by the trial court. It
    argues that the pricing language provided that Red Ball was entitled to raise its prices for its
    products as its “operational and product costs” increased.
    In its second issue, Red Ball asserts that the trial court erred in ruling that Red Ball
    breached the contract by raising prices when the evidence establishes that the parties intended
    “cost increases” to include all costs, not just product costs. Red Ball argues that, even if the
    contract is ambiguous, the only evidence in this case supports Red Ball’s interpretation. It relies
    on the testimony of its senior vice president of business development, Jarrod Lipsey, that the
    term “costs” included the everyday cost of doing business. It further relies on the testimony of
    Ralph Thomas, Red Ball’s vice president of finance, who testified that “cost increases” means
    increases in the cost of goods sold and overhead costs combined together. Therefore, the
    2
    argument continues, there is no evidence that Red Ball breached the contract by raising its prices
    by more than the direct amount charged by Red Ball’s supplier.
    In its third issue, Red Ball contends the trial court erred in ruling that Red Ball was not
    entitled to charge hazardous material fees, fuel surcharges, and delivery fees because the contract
    allows those charges. Red Ball asserts that the evidence conclusively establishes that it did not
    breach the contract by charging for those items. Red Ball argues that the contract “specifically
    discusses Surcharges and the effect of changes in those over the term of the Contract.”
    Therefore, the trial court’s finding that the contract does not provide for Red Ball to invoice
    Southwest for surcharges makes the language regarding those charges surplusage, violating a
    cannon of interpretation. It argues that the contract specifies that Red Ball was to provide liquid
    oxygen to Southwest at Red Ball’s facility, and Southwest was then responsible for shipping
    costs after that point. Thus, Red Ball was entitled to bill Southwest delivery and fuel charges
    under the term “F.O.B. Seller’s location.” Further, the parties operated under the contract for
    more than six years with Red Ball passing on those charges to Southwest without complaint from
    Southwest. Accordingly, Red Ball argues that “all competent evidence establishes that the only
    viable interpretation [of the contract] is that the parties intended that the Contract allow for Red
    Ball to bill Southwest for the surcharges and to increase those charges from time to time.” Thus,
    the trial court’s finding to the contrary “is in contradiction of the plain language of the Contract
    and the evidence and should be reversed.”
    Standard of Review
    In an appeal of a judgment rendered after a bench trial, the trial court’s findings of fact
    have the same weight as a jury’s verdict, and we review the legal and factual sufficiency of the
    evidence used to support them just as we would review a jury’s findings. In re Doe, 
    19 S.W.3d 249
    , 253 (Tex. 2000). A party who challenges the legal sufficiency of the evidence to support an
    issue upon which it did not have the burden of proof at trial must demonstrate on appeal that
    there is no evidence to support the adverse finding. Exxon Corp. v. Emerald Oil & Gas Co.,
    L.C., 
    348 S.W.3d 194
    , 215 (Tex. 2011). When reviewing a no evidence issue, we determine
    whether the evidence at trial would enable reasonable and fair minded people to reach the verdict
    under review. City of Keller v. Wilson, 
    168 S.W.3d 802
    , 827 (Tex. 2005). In making this
    determination, we must credit favorable evidence if a reasonable finder of fact could and
    disregard contrary evidence unless a reasonable finder of fact could not. 
    Id. If there
    is any
    3
    evidence of probative force to support the finding, i.e., more than a scintilla, we will overrule the
    issue. Uniroyal Goodrich Tire Co. v. Martinez, 
    977 S.W.2d 328
    , 334 (Tex. 1998).
    We review the trial court’s legal conclusions concerning an unambiguous contract de
    novo. MCI Telecomm. Corp. v. Tex. Utils. Elec. Co., 
    995 S.W.2d 647
    , 651 (Tex. 1999). We
    will uphold them if the judgment can be sustained on any legal theory supported by the evidence.
    Brown v. Brown, 
    236 S.W.3d 343
    , 348 (Tex. App.−Houston [1st Dist.] 2007, no pet.). The trial
    court’s conclusions of law are not subject to challenge for lack of factual sufficiency, but we may
    review the legal conclusions drawn from the facts to determine their correctness. 
    Id. Applicable Law
           The construction of an unambiguous contract is a question of law for the court, which we
    may consider under a de novo standard of review. Tawes v. Barnes, 
    340 S.W.3d 419
    , 425 (Tex.
    2011). Our primary concern is to ascertain the true intent of the parties as expressed in the
    instrument. Wood Care Ctrs., Inc. v. Evangel Temple Assembly of God of Wichita Falls, Tex.,
    
    307 S.W.3d 816
    , 820 (Tex. App.−Fort Worth 2010, pet. denied).                           When discerning the
    contracting parties’ intent, courts must examine the entire agreement and give effect to each
    provision so that none is rendered meaningless. 
    Id. An unambiguous
    contract’s meaning and
    intent is determined from the four corners of the document without the aid of extrinsic evidence.
    Mikob Props., Inc. v. Joachim, 
    468 S.W.3d 587
    , 595 (Tex. App.−Dallas 2015, pet. denied). We
    give contract terms their plain, ordinary, and generally accepted meanings unless the contract
    itself shows them to be used in a technical or different sense. Valence Operating Co. v. Dorsett,
    
    164 S.W.3d 656
    , 662 (Tex. 2005). We construe contracts from a utilitarian standpoint bearing in
    mind the particular business activity sought to be served and will avoid a construction which is
    unreasonable, inequitable, and oppressive when possible. Frost Nat’l Bank v. L & F Distribs.,
    Ltd., 
    165 S.W.3d 310
    , 312 (Tex. 2005) (per curiam).
    Increased Costs
    The trial court’s finding of fact nine provides as follows:
    The Court finds that the phrase “increased costs incurred by Seller” has
    only one reasonable meaning, being those costs incurred by Red Ball directly
    attributable to the Agreement. It would not be a reasonable reading of the
    phrase “increased costs incurred by the Seller” to cover any or all general
    overhead costs of Red Ball coming into existence over the course of a five year
    contract.
    4
    In its conclusion of law five, the trial court explained that it construed the phrase
    “increased costs incurred by the Seller” to mean those costs incurred by Red Ball directly
    attributable to the contract, i.e. those costs Red Ball had to pay its supplier, Praxiar, for the
    oxygen and other materials.
    The trial court determined that the contract was unambiguous and that determination has
    not been questioned on appeal. Accordingly, we review the trial court’s construction de novo.
    
    Tawes, 340 S.W.3d at 425
    . We decline Red Ball’s invitation to consider evidence of the parties’
    intent. The law is clearly established that we look solely to the four corners of the contract to
    determine its meaning and intent. 
    Joachim, 468 S.W.3d at 595
    .
    Paragraph 9 of the contract provides as follows:
    9. Price
    From time to time during the term of this Agreement, Seller shall have
    the right to increase the prices set forth on Schedule “A” due to cost increases
    incurred by the Seller.
    For purposes of this paragraph, changes in prices attributable to: (1)
    replacements of or additions to Seller’s equipment pursuant to paragraph 6c or
    (2) changes in delivery charge, hazardous material charge, equipment and
    maintenance charges, surcharges or maintenance on Purchaser-owned
    equipment shall not constitute price increases.
    Paragraph 9 plainly states that Red Ball has the right to increase prices set forth on
    Schedule A. Schedule A lists pricing for rental of a 6000 gallon tank and the price per hundred
    cubic feet of liquid oxygen. It does not list pricing for any other item. Therefore, the contract
    does not allow Red Ball to pass along cost increases due to other expenses Red Ball may incur
    such as operational and overhead costs. Red Ball’s suggested interpretation is unreasonable. See
    Frost Nat’l 
    Bank, 165 S.W.3d at 312
    . The trial court did not err in construing this provision of
    the contract.
    We turn now to Red Ball’s assertion that “[t]here is a complete lack of evidence to
    support Southwest’s claim that Red Ball breached the Contract by raising its prices by more than
    the direct amount charged by Red Ball’s supplier.” Apparently, Red Ball is arguing there is no
    breach of contract when interpreting the contract as asserted by Red Ball, as opposed to the trial
    court’s interpretation. However, we will address the argument in light of our determination that
    the trial court correctly interpreted the contract.
    5
    Lipsey testified that the cost increases Red Ball charged Southwest “were calculated
    based on the everyday cost of doing business as a company that relate to many other things, other
    than just the cost of the product.” He specifically testified that Red Ball had to cover all of its
    overhead costs. Thomas testified that Red Ball’s cost increases during the term of the contract
    included increases in the cost of goods sold and overhead costs combined together. Thus, Red
    Ball’s own evidence shows that its charges were based on all of its costs, including overhead,
    contrary to the terms of the contract. Its argument that it was justified in passing those costs
    along to Southwest does not change the meaning of the contract or the fact that Red Ball
    breached it. The evidence is legally sufficient to support the trial court’s finding that Red Ball
    breached the contract by charging Southwest for amounts not authorized by the contract. See
    
    ExxonCorp., 348 S.W.3d at 215
    . We overrule Red Ball’s issues one and two.
    Additional Fees
    In finding of fact sixteen and conclusion of law five, the trial court determined that there
    is no provision in the contract allowing Red Ball to charge Southwest for hazardous materials,
    delivery fees, or fuel surcharges. In conclusion of law four, the court determined that Southwest
    should recover the charges for hazardous materials, delivery fees, and fuel surcharges, reaching
    back four years from January 30, 2014, the date Southwest filed its counterclaims against Red
    Ball.
    Contrary to Red Ball’s assertion that the contract “discusses” surcharges and the “effect
    of changes” in surcharges, the contract makes only one reference to delivery charges, hazardous
    material charges, or surcharges in the single sentence in paragraph 9 of the contract, quoted
    above. Contrary to Red Ball’s assertion that the contract allows it to charge Southwest for those
    items, the contract does not include any language stating that Southwest is responsible for paying
    for those items. After authorizing Red Ball to increase certain prices of items named in Schedule
    A, the contract specifies that changes in surcharges shall not constitute a price increase.
    Therefore, pursuant to the plain language of the contract, it is properly construed to mean that
    Red Ball cannot charge Southwest for delivery charges, hazardous material charges, or fuel
    surcharges. See 
    Dorsett, 164 S.W.3d at 662
    .
    Neither are we persuaded by Red Ball’s argument that a single sentence in paragraph 11
    of the contract is to be interpreted that Southwest must pay delivery and fuel charges. Paragraph
    11 provides as follows:
    6
    11. Payment
    Seller will invoice purchaser upon delivery. Any sales, use, excise or
    other tax imposed by reason of any sale, delivery, charge or furnishing of any
    item hereunder will be paid by Purchaser. Terms of delivery shall be F.O.B.
    Seller’s location. Terms of payment will be net 30 days following date of
    invoice. A service charge of 1.5% per month will be charged on any payment
    not made within 30 days of the invoice date.
    Red Ball, a distributor, obtained oxygen in bulk from its supplier, Praxair. Lipsey
    testified that Praxair delivered the oxygen from Praxair’s manufacturing plant to the 6000 gallon
    tank at Southwest’s Longview location “for Red Ball.” Lipsey also testified that Red Ball passed
    expenses such as those associated with hazardous materials charges, fuel charges, and delivery
    fees to its customers. The evidence reflects that they billed Southwest for these charges over the
    course of their contractual relationship. Red Ball relies on the parties’ use of the term “F.O.B.
    Seller’s location” to claim the right to charge delivery and fuel charges. “Trade usage” evidence
    may be admissible to show that the meaning of a certain term or phrase is the one which is so
    regularly observed in an industry so as to justify an expectation that it will be observed with
    respect to a particular agreement. See Nat’l Union Fire Ins., Co. v. CBI Indus., Inc., 
    907 S.W.2d 517
    , 521 & n.6 (Tex. 1995) (per curiam). However, no such evidence was presented
    here to explain the meaning of the term. While Lipsey testified that it is industry standard for all
    bulk gas users to pay delivery, hazardous materials fees, and surcharges, he did not specify
    language normally included in bulk gas contracts to indicate when this industry standard has
    been embraced. Southwest’s plant manager testified that she did not know what “F.O.B.”
    means. We note that the term F.O.B. means “free on board” and is a delivery term indicating
    that the seller bears the expense of putting the goods into the possession of the carrier or
    transporting the goods to the place of destination. TEX. BUS. & COM. CODE ANN. § 2.319(a)
    (West 2009).
    The phrase is included in a single sentence in a paragraph regarding the process by which
    Red Ball would bill Southwest. There is no indication on the face of the contract that the phrase
    “F.O.B. Seller’s location” ordinarily means that the purchaser must pay delivery and fuel charges
    when the product does not originate from seller’s location.                 Based on the Business and
    7
    Commerce Code, the logical interpretation is that Red Ball bears the expense, if any, of
    transporting the goods to its location. See id.1
    Once again, Red Ball conflates the concepts of contract construction and sufficiency of
    the evidence. It argues that the contract allows it to charge hazardous material charges, fuel
    surcharges, and delivery charges therefore there is no evidence that it breached the contract by
    charging these fees. Because the trial court did not err in construing the contract to mean that
    Red Ball is not entitled to charge hazardous material charges, fuel surcharges, or delivery
    charges, and Red Ball admits it charged Southwest for those fees, the evidence supports the trial
    court’s determination that Red Ball breached the contract. See Exxon 
    Corp., 348 S.W.3d at 215
    .
    We overrule Red Ball’s third issue.
    PERFORMANCE BY SOUTHWEST
    In its fourth issue, Red Ball contends the trial court erred in ruling that Southwest
    justifiably repudiated the contract even though Southwest demanded that Red Ball continue to
    operate under the contract and, therefore, Southwest’s counterclaim for breach of contract is
    barred. It argues that, if Red Ball breached the contract by raising its liquid oxygen prices,
    Southwest had the option to continue operating under the contract or repudiate the contract. Red
    Ball asserts that Southwest attempted to do both by continuing to order liquid oxygen while
    refusing to pay the full amounts invoiced and then breached the contract by terminating before
    the termination date.
    In conclusion of law ten, the trial court determined that Southwest acted in good faith in
    repudiating and terminating the contract as a result of Red Ball’s prior breach of the contract. In
    conclusion of law eleven, the court further determined that Red Ball’s prior breach of the
    contract by increasing prices more than the amount it actually incurred in costs excused
    Southwest from paying the amounts Red Ball charged. These conclusions are supported by
    finding of fact eleven. There, the court found that Southwest acted in good faith in repudiating
    the contract, declaring it breached, and ending the contract effective June 1, 2012. It also found
    that Red Ball’s prior breach of the contract by increasing prices more than its costs increased
    excused any further performance on Southwest’s part.
    1
    We do not decide whether Red Ball could have charged that portion of the delivery expense from its place
    of business to Southwest’s place of business as there is no evidence in the record that the product was delivered to
    Red Ball’s place of business.
    8
    When a contracting party commits a material breach, the non-breaching party must elect
    between two courses of action, either continuing performance under the contract or ceasing
    performance and terminating the contract. Mustang Pipeline Co. v. Driver Pipeline Co., 
    134 S.W.3d 195
    , 196 (Tex. 2004) (per curiam); Gupta v. Eastern Idaho Tumor Inst., Inc., 
    140 S.W.3d 747
    , 756 (Tex. App.−Houston [14th Dist.] 2004, pet. denied). This rule deems treating a
    contract as continuing after a breach as a waiver of the excuse for non-performance. Chilton
    Ins. Co. v. Pate & Pate Enters., Inc., 
    930 S.W.2d 877
    , 887-88 (Tex. App.−San Antonio 1996,
    writ denied).
    In January 2012, Toarmina notified Red Ball that he was reviewing their contract and
    asked for documentation establishing the validity of Red Ball’s price increases. He explained
    that, until Red Ball can justify the increases, Southwest would pay the original contract price. A
    month later, Toarmina notified Red Ball that he had concluded that Red Ball’s price increases
    constituted a breach of contract. Therefore, Southwest cancelled the contract effective June 1,
    2012.   Toarmina contacted several suppliers, including Red Ball, requesting proposals for
    supplying oxygen to Southwest after June 1. Red Ball responded with a demand that Southwest
    remit the payments it “short-payed” [sic] but did not present a proposal for a new contract.
    Further, Red Ball’s counsel made a settlement offer in April. Included in that letter was the
    statement that until the matter is resolved, or Southwest brings its account current, Red Ball
    requires cash payment for all deliveries. Toarmina rejected the offer and renewed his prior offer
    to continue to pay the original contract price. He explained that, if that is not acceptable to Red
    Ball, counsel can tell them not to sell oxygen to Southwest and, when the tank is empty, Red Ball
    can come and get it. Shortly thereafter, on May 2, Toarmina sent a letter to Red Ball outlining
    his terms regarding disposition of the tank. Sometime in April, Southwest signed a contract with
    Air Liquid to provide bulk oxygen beginning June 1. On May 11, because he and Red Ball were
    unable to agree on pricing, Toarmina arranged for Air Liquid to provide a small amount of
    oxygen in cylinders until their bulk product agreement went into effect on June 1.
    Based on the record, we disagree that Southwest continued performance under the
    contract. Southwest made it clear, in January 2012, that due to Red Ball’s breach of contract, it
    would no longer pay the totals demanded by Red Ball. Southwest stated in writing that it was
    canceling the contract effective June 1 and openly shopped for a new contract. Toarmina never
    wavered in his determination that Red Ball was in the wrong and had breached their contract.
    9
    Both parties acknowledged that it would take some time to transition from one supplier to
    another. During the time leading up to June 1, Southwest was actively trying to extricate itself
    from its arrangement with Red Ball while making certain its oxygen needs were met so it could
    continue in business. As we explained above, the evidence shows that Red Ball breached the
    contract. Therefore, Southwest was excused from any further obligation to perform. See Long
    Trusts v. Griffin, 
    222 S.W.3d 412
    , 415 (Tex. 2006) (per curiam). The record shows that
    Southwest did not continue to perform under the contract.            Accordingly, the trial court’s
    conclusions ten and eleven are not erroneous as a matter of law. See 
    Brown, 236 S.W.3d at 348
    .
    We overrule Red Ball’s fourth issue.
    ATTORNEY’S FEES
    In its fifth issue, Red Ball asserts that the trial court improperly awarded attorney’s fees
    to Southwest and failed to award attorney’s fees to Red Ball. It asserts the trial court abused its
    discretion by finding that Red Ball did not timely designate an expert to testify regarding
    attorney’s fees because Southwest was not unfairly prejudiced by Red Ball’s late designation of
    its attorney’s fees expert. It argues that the trial court should have offset Southwest’s award by
    Red Ball’s attorney’s fees because it was also a prevailing party.
    Based on its arguments in its first four issues, Red Ball asserts that the evidence is
    insufficient to sustain any of Southwest’s claims, Southwest breached the contract, and Red Ball
    is therefore entitled to recover its attorney’s fees. For the reasons articulated above as we
    overruled issues one through four, we disagree with Red Ball’s assertion that it is entitled to
    attorney’s fees on that basis.
    The trial began on August 4, 2015, with the parties stating in open court that they had
    entered into an agreement that the issue of attorney’s fees would be submitted to the court by
    affidavit “subject to parties’ objections to timeliness of any designation of experts on attorney’s
    fees or other issues that the affidavits raise.” In its September 8, 2015 letter ruling, the court
    stated that, although the parties had announced at the commencement of the proceeding that an
    agreement had been reached on attorney’s fees, the court had not received any affidavits on the
    issue of attorney’s fees. Southwest moved for an award of attorney’s fees with supporting
    documentation. Red Ball also moved for attorney’s fees, filing a motion supported by Red Ball’s
    10
    attorney’s affidavit and billing records. Red Ball prayed that Southwest’s motion for attorney’s
    fees be denied or, alternatively, offset by Red Ball’s attorney’s fees.
    Southwest objected to Red Ball’s motion, arguing that Red Ball should not be awarded
    attorney’s fees because it did not timely designate any experts to testify about attorney’s fees. It
    asserted that the court had ordered Red Ball to designate any expert witness by January 14, 2014,
    but Red Ball designated its attorney’s fees expert on July 22, 2015.
    The trial court found for Red Ball on its suit on account claim to the extent of the unpaid
    rate increases directly attributable to Praxair rate increases from December 2011 through May
    2012, i.e., $8,189.06. However, the trial court found that Red Ball is not entitled to attorney’s
    fees because it did not timely designate an expert to testify regarding the reasonableness and
    necessity of its attorney’s fees.
    When a party fails to supplement a discovery response in a timely manner, the evidence
    will be excluded unless the court finds that there was good cause for that failure or the failure to
    timely supplement will not unfairly surprise or prejudice the other party. TEX. R. CIV. P.
    193.6(a); Beard Family P’ship v. Commercial Indem. Ins. Co., 
    116 S.W.3d 839
    , 850 (Tex.
    App.−Austin 2003, no pet.). To escape Rule 193.6’s automatic exclusion provision, the burden
    is on the party seeking to admit the evidence to establish good cause or the lack of unfair surprise
    or unfair prejudice. TEX. R. CIV. P. 193.6(b); F & H Invests., Inc. v. State, 
    55 S.W.3d 663
    , 671
    (Tex. App.−Waco 2001, no pet.). The record must support a finding of good cause or lack of
    unfair surprise or prejudice. TEX. R. CIV. P. 193.6(b). The trial court’s decision to exclude an
    expert who has not been properly designated to testify is reviewed for abuse of discretion. May
    v. Ticor Title Ins., 
    422 S.W.3d 93
    , 104 (Tex. App.−Houston [14th Dist.] 2014, no pet.).
    Red Ball’s counsel’s October 22, 2015 affidavit in support of its motion for attorney’s
    fees never addressed the timeliness problem, good cause for its failure to timely supplement, or
    whether Southwest would be surprised or prejudiced by Red Ball’s failure to timely name an
    expert on attorney’s fees. Red Ball did not present any evidence showing the application of
    either of the two exceptions to the rule’s automatic exclusion. Therefore, the trial court had no
    choice but to exclude Red Ball’s evidence of attorney’s fees. See F & H Invests., 
    Inc., 55 S.W.3d at 671
    . We overrule Red Ball’s fifth issue.
    11
    DAMAGES
    In its sixth issue, Red Ball contends that this court should reverse the trial court’s
    judgment and render judgment that it be awarded damages for breach of contract and on a sworn
    account. The basis for this argument is Red Ball’s assertion that, as it showed in its previous
    issues, the evidence is insufficient to sustain the trial court’s rulings in favor of Southwest. Red
    Ball argues that the evidence conclusively establishes that it did not breach the contract and
    Southwest did breach the contract. As we have explained above, the evidence establishes just
    the opposite. Due to Red Ball’s failure to identify any trial court error, we conclude that it is not
    entitled to reversal or an award of damages. See Velvet Snout, L.L.C. v. Sharp, 
    441 S.W.3d 448
    ,
    451 (Tex. App.−El Paso 2014, no pet.). We overrule Red Ball’s sixth issue.
    DISPOSITION
    Having overruled Red Ball’s six issues, we affirm the trial court’s judgment.
    JAMES T. WORTHEN
    Chief Justice
    Opinion delivered May 31, 2017.
    Panel consisted of Worthen, C.J., Hoyle, J., and Neeley, J.
    (PUBLISH)
    12
    COURT OF APPEALS
    TWELFTH COURT OF APPEALS DISTRICT OF TEXAS
    JUDGMENT
    MAY 31, 2017
    NO. 12-16-00049-CV
    RED BALL OXYGEN COMPANY, INC.,
    Appellant
    V.
    SOUTHWEST RAILROAD CAR PARTS COMPANY
    AND AIR LIQUIDE INDUSTRIAL U.S., L.P.,
    Appellees
    Appeal from the County Court at Law No. 2
    of Gregg County, Texas (Tr.Ct.No. 2012-1074-CCL2)
    THIS CAUSE came to be heard on the oral arguments, appellate record, and
    briefs filed herein, and the same being considered, it is the opinion of this court that there was no
    error in the judgment.
    It is therefore ORDERED, ADJUDGED and DECREED that the judgment of
    the court below be in all things affirmed, and that all costs of this appeal are hereby adjudged
    against the Appellant, RED BALL OXYGEN COMPANY, INC., for which execution may
    issue, and that the decision be certified to the court below for observance.
    James T. Worthen, Chief Justice.
    Panel consisted of Worthen, C.J., Hoyle, J., and Neeley, J.