TX STATETexas Court of Appeals, 8th District (El Paso)
2013

STR Constructors Ltd. and Arch Insurance Company v. Newman Tile, Inc.

395 S.W.3d 383Texas Court of Appeals, 8th District (El Paso) • Decided 2013Enforced

HOLDING

STR Constructors hired Newman Tile as a subcontractor to install tile in a school kitchen renovation. STR terminated Newman Tile without cause before the work was complete and refused to pay for the work already done. The Texas Court of Appeals ruled that STR materially breached the contract first, which excused Newman Tile from finishing the job and allowed Newman Tile to recover full damages plus attorney's fees under both breach of contract and quantum meruit (payment for work performed).

KEY FINDINGS

Pay-When-Paid

A general contractor cannot terminate a subcontractor without cause and then avoid paying for substantially completed work—this is material breach that excuses the subcontractor from further performance.

Termination for Convenience

If a GC wrongfully terminates you, you can recover damages for the entire contract value plus attorney's fees, not just the work completed to date.

Change Order

Document all work completed, take photos, and keep detailed records—quantum meruit claims (payment for work done) require proof of what you actually performed.

FULL COURT OPINION