Justia Landlord - Tenant Opinion Summaries
Articles Posted in Supreme Court of Texas
WESTWOOD MOTORCARS, LLC v. VIRTUOLOTRY, LLC
Westwood Motorcars, LLC leased commercial property in Dallas to operate an automobile dealership. The lease was set to expire in 2013, but an addendum allowed Westwood to extend the lease for two additional 24-month terms. In 2015, ownership of the property changed hands and Virtuolotry, LLC became the new landlord. Westwood sought to exercise its option to extend the lease for the second additional term, but Virtuolotry’s lawyers refused, asserting that Westwood had breached the lease in numerous ways. Amidst this dispute, Westwood claimed that Virtuolotry and its manager, Richard Boyd, harassed Westwood at the premises, interfering with its business operations. Westwood sued Virtuolotry in district court, seeking a declaratory judgment that it had not breached the lease and that it had properly extended the lease for another two years. Virtuolotry sued in justice court to evict Westwood for unpaid rent, lease violations, and holding over unlawfully.The justice court ruled in favor of Virtuolotry, awarding it "possession only." Westwood appealed the judgment to the county court at law. However, a few weeks before the trial date, Westwood formally withdrew its appeal in county court, and the county court entered a “stipulate[d] and agree[d]” judgment ordering “that possession of the Premises is awarded” to Virtuolotry. Westwood fully vacated the property, but continued its pending suit in district court, adding claims for breach of contract (against Virtuolotry) and constructive eviction (against Virtuolotry and Boyd). The district court ruled in favor of Westwood, awarding damages and attorney’s fees.Virtuolotry and Boyd appealed, and the court of appeals reversed the district court's decision, ruling that by agreeing to the eviction-suit judgment in county court, Westwood “voluntarily abandoned the premises” and thus “extinguish[ed] any claim for damages.” Westwood then petitioned the Supreme Court of Texas for review.The Supreme Court of Texas reversed the court of appeals' decision, ruling that the court of appeals erred by giving a judgment of possession from a court of limited jurisdiction preclusive effect over Westwood’s claim for damages in district court. The Supreme Court of Texas held that Westwood’s agreement to entry of the county-court judgment cannot reflect assent to anything more than what that judgment resolves—i.e., who receives immediate possession of the property. The court remanded the case to the court of appeals for further proceedings. View "WESTWOOD MOTORCARS, LLC v. VIRTUOLOTRY, LLC" on Justia Law
Mosaic Baybrook Once, L.P. v. Cessor
The Supreme Court reversed the judgment of the court of appeals affirming the trial court's order certifying a class in this action claiming violations of Tex. Prop. Code 92.019, which regulates landlords' ability to impose late fees on tenants who untimely pay their rent, holding that the trial court abused its discretion by failing to address Petitioners' defenses in the trial plan and their effects on the requirement for class certification.Respondent sued Petitioners for breach of Tex. Prop. Code 92.019 for charging and collecting late fees and charging back rent concessions. Respondent later moved for class certification. After a hearing, the trial court granted the motion. The court of appeals affirmed. The Supreme Court reversed, holding that the trial court abused its discretion by failing correctly to identify the elements of Petitioners' defenses in the trial plan and address their effect on the requirements for class certification in violation of Tex. R. Civ. P. 42(c)(1)(D). View "Mosaic Baybrook Once, L.P. v. Cessor" on Justia Law
In re Auburn Creek Limited Partnership
The Supreme Court conditionally granted a writ of mandamus sought by real parties in interest (the Paus) in this action brought against Relators (collectively, Auburn Creek) seeking $33 million in damages allegedly caused by carbon-monoxide exposure in a dwelling the Paus leased from Auburn Creek, holding that the trial court clearly abused its discretion in denying Auburn Creek's motion to compel.Auburn Creek filed a motion to compel a neuropsychological exam for each of the Pau family members. The trial court denied the motion with prejudice on the grounds that the scope of the exams was not sufficiently circumscribed and subsequently denied Auburn Creek's request for mandamus relief. The Supreme Court conditionally granted relief, holding that the trial court abused its discretion by concluding that Auburn Creek had not shown good cause for the exams. View "In re Auburn Creek Limited Partnership" on Justia Law
Rohrmoos Venture v. UTSW DVA Healthcare, LLP
The Supreme Court held that, under David v. Inwood North Professional Group-Phase I, 747 S.W.2d 373 (Tex. 1988), a tenant can terminate a commercial lease contract for the landlord's prior material breach and that the evidence offered to prove attorney's fees in this case was insufficient for fee-shifting awards.After terminating its lease early and vacating the premises while still owing unpaid rent a commercial tenant (Tenant) sued Landlord for breach of contract and breach of the implied warranty of suitability and also sought a declaratory judgment. The jury found that Landlord materially breached the lease agreement first, Landlord breached the implied warranty of suitability, and Tenant had the right to terminate the lease agreement. The trial court awarded Tenant attorney's fees. The court of appeals affirmed. After explaining the prevailing party's evidentiary burden and the standard for shifting reasonable and necessary attorney's fees to the non-prevailing party, the Supreme Court reversed the court of appeals' judgment as to the attorney's fee award but otherwise affirmed, holding (1) a commercial tenant can terminate a commercial lease based on the landlord's prior material breach; but (2) the evidence used to prove attorney's fees was not legally sufficient to support the fee award. View "Rohrmoos Venture v. UTSW DVA Healthcare, LLP" on Justia Law
Shields Limited Partnership v. Bradeberry
Waiver of a nonwaiver provision cannot be anchored in the same conduct the parties specifically agreed would not give rise to a waiver of contract rights.The long-term tenant in this forcible-detainer action frequently defaulted on the lease’s rental payment terms. The commercial landlord, however, regularly accepted, without protest, the tenant’s rental payments when tendered. A contractual nonwaiver provision provided that the landlord acceptance of rent past due “shall not be a waiver and shall not estop Landlord from enforcing that provision or any other provision of [the] lease in the future[.]” In this forcible-detainer action, the landlord sought to oust the tenant, claiming a superior right of immediate possession under a lease-extension option. The tenant, in turn, asserted that the landlord’s conduct in accepting late rental payments waived the contractual nonwaiver clause. Thus, the Supreme Court reversed the court of appeals’ judgment rejecting the landlord’s forcible detainer action and rendered judgment in the landlord’s favor because the landlord did not act inconsistently with the contract’s express terms and because the tenant failed to identify any evidence supporting an equitable-estoppel bar to eviction. View "Shields Limited Partnership v. Bradeberry" on Justia Law
Wal-Mart Stores, Inc. v. Forte
The Texas Optometry Act prohibits commercial retailers of ophthalmic goods from attempting to control the practice of optometry; authorizes the Optometry Board and the Attorney General to sue a violator for a civil penalty; and provides that “[a] person injured as a result of a violation . . . is entitled to the remedies. In 1992, Wal-Mart opened “Vision Centers” in its Texas retail stores, selling ophthalmic goods. Wal-Mart leased office space to optometrists. A typical lease required the optometrist to keep the office open at least 45 hours per week or pay liquidated damages. In 1995, the Board advised Wal-Mart that the requirement violated the Act. Wal-Mart dropped the requirement and changed its lease form, allowing the optometrist to insert hours of operation. In 1998, the Board opined that any commercial lease referencing an optometrist’s hours violated the Act; in 2003, the Board notified Wal-Mart that it violated the Act by informing optometrists that customers were requesting longer hours. Optometrists sued, alleging that during lease negotiations, Wal-Mart indicated what hours they should include in the lease and that they were pressured to work longer hours. They did not claim actual harm. A jury awarded civil penalties and attorney fees. The Fifth Circuit certified the question of whether such civil penalties, when sought by a private person, are exemplary damages limited by the Texas Civil Practice and Remedies Code Chapter 41. The Texas Supreme Court responded in the affirmative, noting that “the certified questions assume, perhaps incorrectly, that the Act authorizes recovery of civil penalties by a private person, rather than only by the Board or the Attorney General.” View "Wal-Mart Stores, Inc. v. Forte" on Justia Law
Philadelphia Indem. Ins. Co. v. White
After Tenant moved into her apartment, her apartment and several adjoining units were severely damaged in a fire that originated in Tenant’s clothes dryer. Insurer paid Landlord’s insurance claim and then sued Tenant for negligence and breach of the Apartment Lease Contract. The jury found that Tenant breached the lease agreement and awarded $93,498 in actual damages and attorney’s fees from Insurer. Tenant filed a motion for judgment notwithstanding the verdict, asserting several grounds for avoiding enforcement of the contract. The trial court granted Tenant’s motion and rendered a take-nothing judgment. The court of appeals affirmed, concluding that the residential-lease provision imposing liability on Tenant for property losses resulting from “any other cause not due to [the landlord’s] negligence or fault” was void and unenforceable because it broadly and unambiguously shifted liability for repairs beyond legislatively authorized bounds. The Supreme Court affirmed in part and reversed in part, holding (1) the court of appeals properly rejected Tenant’s ambiguity defense; but (2) the court of appeals erred in invalidating the lease provision on public-policy grounds. Remanded. View "Philadelphia Indem. Ins. Co. v. White" on Justia Law