Martin v. McKee Realtors, Inc.

McGEE, Justice.

We must determine whether a plaintiff’s failure to request a special issue regarding discretionary damages under section 17.-50(b)(1) of the Deceptive Trade Practices Act amounted to a waiver of recovery of such damages. The trial court rendered judgment against McKee Realtors, Inc., Jean Rush, and Ruby Lyons, (McKee), for $2,800 actual damages, $2,000 statutory damages, and $3,500 attorney’s fees. The court also awarded $5,400 discretionary damages despite the Martins’ failure to request a jury issue on those damages. McKee appealed only the award of discretionary damages and the assessment of attorney’s fees. The court of appeals reformed the trial court’s judgment to remove the award of discretionary damages and, as reformed, affirmed. McKee Realtors v. Martin, 651 S.W.2d 360. We affirm the judgment of the court of appeals.

The Martins filed this action against McKee Realtors and its salespersons alleging certain misrepresentations made in connection with a real estate transaction, in violation of the Deceptive Trade Practices Act (DTPA). The case was tried to a jury which, in response to a special issue, found that McKee’s salespersons knowingly made the misrepresentations in question and that such misrepresentations were a producing cause of the damages. The Martins failed to request a jury issue regarding the amount, if any, of discretionary damages they should recover. The trial judge, however, awarded the maximum amount of such damages permissible under the DTPA.

We are concerned here with an interpretation of TEX.BUS. & COMM.CODE, § 17.50(b)(1), which governs the award of damages under the DTPA. It provides:

(b) In a suit under this section, each consumer who prevails may obtain:
(1) the amount of actual damages found by the trier of fact. In addition the court shall award two times that portion of the actual damages that does not exceed $1,000. If the trier of fact finds that the conduct of the defendant was committed knowingly, the trier of fact may award not more than three times the amount of actual damages in excess of $1,000. [Emphasis ours].

Under § 17.50, three types of damages may be awarded. First, the trier of fact may award actual damages. Second, if actual damages are so found, it is mandatory that the court award additional statutory damages in the amount specified. Third, if the trier of fact finds that the defendant’s conduct was committed knowingly, then the trier of fact may award discretionary damages up to a specified amount, or alternatively, not award them at all.

The Martins contend that the issue of whether McKee acted knowingly was a part of the discretionary damage issue. As a result, they claim that since the “knowingly” issue was submitted to the jury and McKee did not object to the nonsubmission of the discretionary damage issue, the omitted issue should be deemed as found by the court in a manner as to support the judgment. TEX.R.CIV.P. 279. In other words, the Martins concede that they had the burden to request a jury issue regarding those damages, yet claim that since McKee failed to object to the nonsubmission of a jury issue against themselves, they waived their right to have the jury determine it.

We disagree. Under the original wording of section 17.50(b)(1) of the DTPA,1 the trebling of any actual damages *448was mandatory. Woods v. Littleton, 554 S.W.2d 662, 669 (Tex.1977). In 1979, the Texas legislature amended section 17.-50(b)(1). They expressly made any award of the third type of damages under section 17.50(b)(1) within the discretion of the trier of fact if such trier found that a defendant acted knowingly. In a jury trial, such as the one before us, it is the jury, and not the judge, that acts as the trier of fact. Only in the absence of a jury is the award, if any, of discretionary damages under the DTPA a question for the court. It was within the jury’s exclusive discretion, as mandated by section 17.50(b)(1), to determine whether or not an award of such damages under the DTPA was proper. In the instant case, the jury had no opportunity to pass upon this issue.

In First State Bank, Morton v. Chesshir, 634 S.W.2d 742 (Tex.App. —Amarillo 1982, writ ref’d n.r.e.), the plaintiff sued for actual and exemplary damages for conversion and DTPA violations. In Chesshir, the court held that exemplary damages constitute an independent ground of recovery which cannot be awarded absent a special issue thereon, stating:

The Chesshirs utilize their fourth point to contend, as we understand their argument, that they were entitled to recover exemplary damages in their conversion action upon the special issue finding authorizing treble damages under the DTPA.... [T]hey concede that they neither requested the submission of or a jury finding on exemplary damages, and that they have found no authority to sustain their contention. Given this situation, it suffices to state that exemplary damages, being in the nature of an independent ground of recovery, are waived in the absence of a request for the submission thereof. Holland v. Lesesne, 350 S.W.2d 859, 865 (Tex.Civ.App.—San Antonio 1961, writ ref d n.r.e.). The point is overruled.

Id. at 747 (emphasis added).

A trial court may not make findings of fact where, as here, the omitted issue is an independent ground of recovery. Glens Falls Insurance Co. v. Peters, 386 S.W.2d 529, 532 (Tex.1965). Accord, Holland v. Lesesne, 350 S.W.2d 859 (Tex.Civ.App.—San Antonio 1961, writ ref’d n.r.e.) (issue as to willfulness in conversion suit so as to support exemplary damages is plaintiff’s issue; if not requested it is waived). See also Villareal v. Reza, 236 S.W.2d 239 (Tex.Civ.App.— San Antonio 1951, no writ) (in jury trial, if recovery for exemplary damages is desired and supported by evidence, separate exemplary damage issue must be submitted); Loom Treasures, Inc. v. Terry Minke Advertising Design, Inc., 635 S.W.2d 940 (Tex.App.—Fort Worth 1982, no writ) (plaintiff’s failure to submit issues regarding exemplary damages and attorney’s fees resulted in waiver of those recoveries).

The wording of section 17.50(b)(1) compels the conclusion that, in a jury trial based upon the DTPA, a plaintiff who seeks to recover discretionary damages must request a jury issue on such damages. The plaintiff’s failure to do so results in a waiver of recovery of those damages. The court of appeals correctly held that it was incumbent upon the Martins to request a jury issue on such damages and their failure to do so amounted to a waiver.

The judgment of the court of appeals is affirmed.

SPEARS, J., dissents.

. Prior to the 1979 amendments to the DTPA, section 17.50 provided, in pertinent part:

“In a suit filed under this section, each consumer who prevails may obtain:
*448il) three times the amount of actual damages plus court costs and attorney’s fees reasonable in relation to the amount of work expended; ...”
1973 TEX.GEN.LAWS, ch. 143, sec. 1, § 17.50 at 326.